HomeMy WebLinkAboutItem 11 CC 4 2 13 Fund Balance Net Assets Policy
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MAYOR AND COUNCIL COMMUNICATION
DATE: 4/02/2013
CONSENT
ITEM #: 11
MOTION
AGENDA ITEM: Approve Fund Balance/Net Assets Policy
SUBMITTED BY: Cathy Bendel, Finance Director
THROUGH: Dean Zuleger, City Administrator
REVIEWED BY: Dean Zuleger, City Administrator
SUMMARY AND ACTION REQUESTED: The City Council is asked to consider approval
of a policy related to the Fund Balance/Net Assets.
BACKGROUND INFORMATION: The City of Lake Elmo currently has no official policy
surrounding the Fund Balances and Net Assets. Although most items listed are currently being
adhered to, there is nothing documenting that fact as there should be. By approving the attached
policy the City Council will strengthen the internal controls surrounding the use of these funds
and provide clear direction to staff on the monitoring and reporting surrounding those funds.
STAFF REPORT: It is important for the financial stability of the City to maintain fund
balance/net assets for unanticipated expenditures, as well as to provide adequate working capital
for current operating needs so as to avoid short-term borrowing. The monitoring and reporting
on all fund balances is a critical function and this policy will outline the process and procedure.
During the 2013 budget cycle the use of a “contingency fund” was introduced to set aside money
for unforeseen expenditures that always seem to arise in the course of doing business. This
policy will ensure that this continues to happen as part of the regular annual budgeting process.
RECOMMENDATION: It is recommended that the City Council consider approval of the
Fund Balance/Net Asset Policy. The suggested motion to do so is as follows:
“Move to approve the Fund Balance/Net Assets policy as presented”
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ATTACHMENTS:
1. Draft Fund Balance/Net Assets Policy
SUGGESTED ORDER OF BUSINESS:
Introduction of Item…………………………………………………………….City Administrator
Report/Presentation…………………………………………………………….Finance Director
Questions from Council to Staff……………………………………………….Mayor Facilitates
Public Input, if Appropriate……………………………………….…………..Mayor Facilitates
Call for Motion…………………………………………………………..Mayor & City Council
Discussion……………………………………………………….……….Mayor & City Council
Action on Motion………………………………………….…………………..Mayor Facilitates