2.3.
CC Work Session
- Meeting Date:
- 05/12/2015
Information
Title:
Amend City Funds Policy and Excess Revenue Transfer Policy
Purpose/Background:
Purpose: Update the City's Ordinance entitled "City Funds" that outlines the respective sources and uses for each fund currently utilized in the city and amend the Excess Revenue Policy to remove Park Maintenance Fund and replace with Park Improvement Fund.
Chapter 7 (Section 7.9) Entitled 'Funds' of the City Charter Charter states that there should be maintained in the city treasury a general fund and such other funds as may be required by state statutes, resolution or ordinance. The council shall, by resolution or ordinance, create and abolish funds and shall define with funds are eligible for inter-fund loans as it may deem necessary and appropriate.
The last time the city's Funds Ordinance was amended was in 2004. Since that time, there have been some funds that are no longer utilized, some added and some that just require an update in their authorized sources and uses. The Lawful Gambling Fund is an example of a fund that needed an update in its authorized sources and uses.
In regards to the Excess Revenue Policy, the request is for the Park Improvement Fund be the fund receiving excess revenue at year end due to the demands on Park Improvements instead of a Park Maintenance Fund, whose funding should come from the General Fund. It is best for operational expenses to be included into the budget, because the reliance upon a one-time, excess revenue account for annual expenses is not sustainable and an unreliable way to fund necessary expenditures. This action is in line with the "Financial Stability" goal of the Council. Staff will be requesting at a later date that City Council authorize the transfer of funds currently held in the Park Maintenance Fund to the Park Improvement Fund. The amount of the transfer would be approximately $245,000. The estimated cost of planned park improvements currently exceeds identified revenue sources, even with this transfer.
Chapter 7 (Section 7.9) Entitled 'Funds' of the City Charter Charter states that there should be maintained in the city treasury a general fund and such other funds as may be required by state statutes, resolution or ordinance. The council shall, by resolution or ordinance, create and abolish funds and shall define with funds are eligible for inter-fund loans as it may deem necessary and appropriate.
The last time the city's Funds Ordinance was amended was in 2004. Since that time, there have been some funds that are no longer utilized, some added and some that just require an update in their authorized sources and uses. The Lawful Gambling Fund is an example of a fund that needed an update in its authorized sources and uses.
In regards to the Excess Revenue Policy, the request is for the Park Improvement Fund be the fund receiving excess revenue at year end due to the demands on Park Improvements instead of a Park Maintenance Fund, whose funding should come from the General Fund. It is best for operational expenses to be included into the budget, because the reliance upon a one-time, excess revenue account for annual expenses is not sustainable and an unreliable way to fund necessary expenditures. This action is in line with the "Financial Stability" goal of the Council. Staff will be requesting at a later date that City Council authorize the transfer of funds currently held in the Park Maintenance Fund to the Park Improvement Fund. The amount of the transfer would be approximately $245,000. The estimated cost of planned park improvements currently exceeds identified revenue sources, even with this transfer.
Timeframe:
20 minutes
Funding Source:
Responsible Party(ies):
Finance Director
Outcome:
Establish amended City Funds Ordinance for future City Council adoption and authorize staff to bring amended Excess Revenue Policy forward for future Council adoption.
Attachments
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Kurt Ulrich | Kurt Ulrich | 05/07/2015 09:51 AM |
- Form Started By:
- Diana Lund
- Started On:
- 04/29/2015 12:53 PM
- Final Approval Date:
- 05/07/2015