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AGENDA ITEM 3D <br />STAFF ORIGINATOR: Mary M. Vaske <br />DATE: April 10, 1998 <br />TOPIC: Resolution designating fund balance for the General Fund for the <br />year ended December 31, 1997. <br />Resolution 91 -3 set standards for a reserve policy for the General Fund. The policy requires <br />that 1/2 of cash flow from property taxes and state aids for the ensuing year be required 15% <br />general contingency reserve for the ensuing budget, prepaid items (i.e. insurance, seminars, <br />'etc.) <br />and unpaid employee benefits (vacation, sick leave severance). In 1997, the total reserves <br />surpassed these requirements by $307,000. The City Council discussed the designation at the <br />last work session and determined some preliminary percentages. <br />30% Finance hardware/software <br />50% Parks playground equipment <br />10% Road reconstruction <br />10% Contingency Fund <br />I have redefined these numbers to decrease the Finance percentage and added the difference <br />to a personnel contingency, which can be used for union contract settlements, severance, etc. <br />that was not included in 1998 budget. <br />1. Approve resolution 98-68 to designate the General fund balance for the year ended <br />December 31, 1997. <br />2. Send back to staff to reallocate, but this would hold up the 1997 audit. <br />Option 1 - <br />