Title
Resolution to Adopt Revised Fund Balance Policy
Memorandum
Attached for your review and approval is a revised fund balance policy. The recommended revision establishes a minimum unassigned fund balance of 15% - 20% in the General Fund and changes the measurement of expenditures to exclude pass-throughs such as AAATA. Additional changes to other funds are included in this revision as well.
Adoption of this policy is consistent with the City Administrator's Fiscal Year 2016 Proposed Budget
Staff recommends adoption of this policy.
Staff
Prepared/Reviewed by: Tom Crawford, Financial Services Administrator and CFO
Approved by: Steven D. Powers, City Administrator
Body
Whereas, On June 20, 2011, Council adopted (R-11-254) a revised fund balance policy incorporating the standards of Governmental Accounting Standards Board Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions;
Whereas, The City staff have indicated a minimum unassigned fund balance of 15% - 20% of General Fund expenditures (excluding pass-throughs) is an appropriate policy;
Whereas, City staff have indicated a half-year's millage held in fund balance is appropriate for the Street and Sidewalk Repair Millage fund; and
Whereas, The City desires to operate within prudent financial policies;
RESOLVED, That the City Council adopt the attached revised fund balance policy in order to help address the City's long-term needs.