65C - FINANCIAL POLICY - Laserfiche WebLink

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In order to ensure proper maintenance of a continued balanced budget, the City Council will adopt a compensation and retirement benefit directive that provides guidance and conforms with the established budget directives and reserve requirements as outlined in this policy. 0 0 14oweveF, at - 0 61p9A attaipmpnt of I q%, 0 One -Time Monies Fund Balance determined to be one-time in nature, including but not limited to: ending operating balance, unallocated fund balance or un-appropriated "Assigned" fund balance is herein classified as "One -Time monies'. Utilization of one-time monies is allowable upon two-thirds approval by the City Council to be utilized in the event a structural budget deficit exists. Use of one-time funds is allowable for one-year and may be eligible for two consecutive years upon further consideration by the City Council. Unassigned Fund Balance In accordance with Governmental Accounting Standards Board (GASB) 54 and continuing to ensure a continued orderly operation of City Government and address any unforeseen economic occurrences, the City shall establish the following Reserve Accounts within the Unassigned Fund Balance category: • Operating Reserve • Economic Uncertainty Reserve • Unallocated Amount As a result of the GASB 54, the following fund balance categories were also created: Non -Spendable; Restricted; Committed; Assigned and Unassigned. Operating Reserve Account As a measure of prudent fiscal health and recommendations made by GFOA, the Citv created an OoeratinR Reserve Account, disclosing a range where two months (approximately 16.67%) up to twenty percent (20%) of recurring General Fund (011) operating revenues or expenditures (including transfers) are maintained. At no time is it permissible for the Operating Reserve requirement to fall below the above -referenced threshold range. Budget & Financial Polices Page 2 65C-6