Consent 1.P.
Regular City Council Meeting
- Meeting Date:
- 02/22/2010
- TITLE
- Recommended Fund/Working Capital Balances and General Fund Balance Policies
- PRESENTED BY:
- Patrick M. Weber
- Department:
- City Hall Administration
Presentation:
PROBLEM/ISSUE STATEMENT
The City of Billings needs to adopt a Fund Balance (“Assigned”) and Working Capital Balance (“Assigned”) Policy (Exhibit A) to provide the City with minimum recommended balances for certain funds. The policy is necessary to provide sufficient cash flow for daily financial needs, secure and maintain investment grade bond ratings, offset revenue shortfalls, and provide funds for unforeseen expenditures related to emergencies.
The City of Billings is also required to adopt a General Fund balance policy (Exhibit B) per Governmental Accounting Standards Board (GASB) 54.
These policies were reviewed with the City Council at its Feb. 8, 2010, work session.
The City of Billings is also required to adopt a General Fund balance policy (Exhibit B) per Governmental Accounting Standards Board (GASB) 54.
These policies were reviewed with the City Council at its Feb. 8, 2010, work session.
ALTERNATIVES ANALYZED
The Council may:
- Approve the resolution; or
- Not approve the resolution.
FINANCIAL IMPACT
There is no immediate cost to approving this resolution, but maintaining sufficient cash flow for future needs and complying with the GASB 54 requirements help assure the City's financial future.
RECOMMENDATION
Staff recommends approval of the resolution adopting the two policies.