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RESOLUTION NO. 8026 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA Assigning General Fund Balance for Future Levy Reduction and Stabilization WHEREAS, the City desires to maintain accounting records that follow Generally Accepted Accounting Principles (GAAP); and WHEREAS, the City Council would like to maintain the intent of the former Levy Reduction Special Revenue Fund; and WHEREAS, the City Council previously "Committed" fund balance in Resolution 7824; and WHEREAS, additional guidance has been provided by the Government Finance Officers'Association (GFOA) as to requirements for establishing committed fund balance; and WHEREAS, the amount previously committed for levy reduction does not meet those criteria but does meet the criteria for assignment; and WHEREAS, the City Council would like to "Assign" General Fund balance for future levy reduction/stabilization and has established that use of assigned fund balance can be no more than ten percent (10%) of the subsequent years budgeted expenditures; and WHEREAS, 2012 and future assigned amounts will be calculated by adding to the preceding years' amount a proportional amount of interest and deducting the council designated budget transfer to determine the current years' assigned amount; and WHEREAS, future councils are not limited by this assignment if circumstances change and can modify this assignment by rescinding and passing a new resolution. NOW THEREFORE, BE IT RESOLVED by the Mounds View City Council that General Fund Balance is Assigned for future levy reduction and stabilization based on the above formula and future use of assigned fund balance is limited to no more than ten percent (10%) of subsequent budgeted expenditures. Adopted this 26th day of November 2012. •= . ahert ►I- - ATTEST: J 1, -- Jim Ericson, City Administrator (SEAL)