11/28/2011 Council Packet - Laserfiche WebLink

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P 3 0 portion, there is a need to maintain a certain funding level. Undesignated fund balance is commonly used for emergency expenditures not previously considered. In addition, the resources classified as undesignated can be used to cover expenditures for revenues not yet received. Policies Non - spendable Fund Balance At the end of each fiscal year, the City will report the portion of the fund balance that is not in spendable form as Non - spendable Fund Balance on the financial statements. Restricted Fund Balance At the end of each fiscal year, the City will report "restricted" fund balance for amounts that have applicable legal restrictions per GASB #54. In addition, encumbrances or funds restricted by enabling legislation will be reported as "restricted ". Committed Fund Balance The City Council is the City's highest level of decision - making authority. and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment for a specific purpose is a motion or resolution approved by the Council at the City's Council meeting. The motion or resolution must either be approved or rescinded, as applicable, prior to the last day of the fiscal year for which the commitment is made. Assigned Fund Balance The City Council has authorized the City's Finance Director as the official authorized to "assign" fund balance to a specific purpose as approve by this fund balance policy. Unassigned Fund Balance Cash Flow At the end of each fiscal year, the City will maintain Spendable — Unassigned portions of the fund balance for Cash Flow in a range equal to 35 — 50% of the General Fund operating expenditures. In addition to cash flow needs this accommodates emergency contingency concerns. In the event that amounts designated for cash flow fall above or below the desired range, the City Administrator shall report such amounts to the City Council as soon as practical after the end of the fiscal year. Should the actual amount designated for Cash Flow fall below the desired range, the City shall create a plan to restore the appropriate levels. Should the actual amount designated for cash flow rise above the desired range, any excess funds will remain undesignated pending the Council's final decision concerning transfer to another fund. It is the policy of the City that such excess funds will be, by council action, to be reported in the spendable limited category of this policy. Adopted by the Lino Lakes City Council on this 28th day of November, 2011. 3 Financial Management Policy — Fund Balance City Administrator