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,� (°y� , fk ] �'-n STATE OF MINNESOTA <br /> ��{ i(, COUNTY OF' RAMSEY <br /> j CITY OF NEW BRIGHTON <br /> r <br /> RESOLUTION APPROVING POLICY FOR GENERAL RESERVES <br /> :`• Whereas, the City Council directed that the Financial <br /> Policy Advisory Board prepare a proposal on the desirability <br /> !' of establishing general reserves; <br /> ! Whereas , the Advisory Board has determined that such <br /> a policy would be desirable and the City Council is in agree- <br /> il ment with this finding; <br /> 11 <br /> Whereas, the benefits of this policy are: <br /> ! -less dependence on external aid whose amounts are <br /> outside of the City ' s control; <br /> -instill fiscal discipline in the budget process lay <br /> encouraging total spending of less than total revenue; <br /> -avoid boom/bust cycles in services which would reduce <br /> . costly layoffs and cuts; <br /> !; -enhance or maintain the City ' s bond ratings; and, • <br /> -provide some additional revenue through interest income. <br /> !j <br /> !� Now, therefore be it resolved that: <br /> 1: The general reserves shall be defined as the uncommitted <br /> Fund and Capital Replacement Fund fund ' <br /> li portion of the Generalp p <br /> H balances. <br /> !j 2 . The goal for the reserve for cash flow shall be at <br /> an amount equal to .one-half of 'the sum of the ensuing year' s <br /> budgeted General Fund tax levy and anticipated local government <br /> i I aids . <br /> 3 . The goals for the reserve for contingencies shall <br /> be at an amount equal to l0% of the ensuing year ' s expected <br /> i General Fund budget. <br /> 4 . Any variance between the actual reserve amount and <br /> the amounts specified in Section 2 and 3 above, shall be <br /> adjusted over the ensuing five years in increments of 20% per year <br /> I <br /> 5 . The reserves shall be expended only when a drop in <br /> external aids occurs. <br /> Adopted this 22nd .day of December , 1987 . <br /> !17e0A./ 7,--Lele---. <br /> Robert J. enke, Mayor <br /> :1 �t'/c'1.n'1/ �'�Lrc/ <br /> ,i Henry D. Sinda, City Manager <br /> 1 ATTEST: <br /> 4 <br /> �� Margar t A. Egan <br /> I! Financ Director <br />