Adopt Resolution #16-05-089 Amending Financial Policy for Purpose of Allocation of Excess/Deficient General Fund Revenues

Purpose:  To amend the current policy to more accurately reflect the allocation of excess/deficient General Fund Revenues at year-end to those funds that best meet the city's needs.

The original Excess/Deficient General Fund Revenue Policy was adopted in 1994.  Since this time, the policy has been amended three times.  The last amendment in 2011, had the distribution of excess/deficient General Fund Revenues at year end as such:
            10%:  Equipment Replacement Fund
            10%:  Capital Maintenance Fund
            40%:  Public Improvement Revolving Fund
            40%:  Public Facilities Construction Fund

At the worksession of April 26, 2016, staff presented the following funds allocation based on the current needs of the city. 
            30%:  Equipment Replacement Fund
            30%:  Capital Maintenance Fund
            30%:  Public Improvement Revolving Fund
            10%:  Public Facilities Construction Fund
An example being for the recommended change:  increasing the Capital maintenance fund from 10% to 30% due to the increased unforeseen maintenance costs that the city could experience with the municipal center and parking ramp being 10 years old, increased park improvement needs, etc.
   
The Financial Policy for the allocation of excess/deficient General Fund revenues is a guiding policy for how the funds should be distributed at year end.  The City Council has the discretion to direct the transfer of funds at year end as they see current needs.




 

Amending the policy to the applicable percentages listed above was recommended by staff and City Council was in agreement at the worksession of April 26, 2016.

Motion for City Council to adopt Resolution #16-05-089 Resolution Establishing a Financial Policy for Purpose of Allocation of Excess/Deficient General Fund Revenues.