HomeMy WebLinkAbout1990.05.21 RESO 1990-0015RESOLUTION 1990-15
RESOLUTION ADOPTING FISCAL POLICY
BE IT RESOLVED by the City Council of the City of Hugo,
Washington County, Minnesota, that the following fiscal
guidelines be adopted:
1. The City Council shall be provided with a detailed line -item
budget in August of each year that conforms to the chart of
accounts as prescribed by the Office of the State Auditor.
2. The city shall operate within the scope of the annual
budget. When unbudgeted expenditures are authorized
without a corresponding revenue source, offsetting deletions
from the budget should be identified.
3. Special fund revenues should not be used for general fund
operations.
4. The municipal utilities department should be charged for its
proportionate share of administrative, audit, insurance and
other related costs.
5. Property taxes shall be levied to the limit when the city
is subject to statutory maximums.
b. The annual certified ad valorem tax levy shall include
homestead credit.
7. Deficiencies in debt sinking funds shall be replenished by
special tax levies.
S. Building permit and other related fees and charges for
services should be reviewed annually.
9. General fund reserves in an amount equal to twice our
certified Local Government Aid should be designated in the
annual audit report as reserved for potential revenue
losses.
10. General fund reserves in an amount equal to 30% of the
general fund operating budget should be designated in the
annual audit report as reserved for working capital to cover
the first six months of operation.
11. General fund reserves shall not be budgeted for expenditure
unless designated reserves for potential revenue losses and
working capital have been exceeded.
12. Establish a Capital Facilities Fund for deposit of funds
exceeding the reserve limits established in Articles 9 & 10
of this policy.
13. The city administrator is permitted to authorize budgeted
expenditures up to $2,000. All unbudgeted and budgeted
expenditures in excess of $2,000 must be approved by Council
action identifying the source of revenue to be used.
14. Monthly financial reports shall be provided to the City
Council.
15. The finance department shall assemble and maintain a fixed
asset register of all assets equal to or in excess of $500.
ib. The finance department shall strive to achieve an
unqualified audit opinion and a Certificate of Achievement
for Excellence in Financial Reporting as awarded by the
Government Finance Officers Association.
17. All idle funds shall be invested in safe and liquid
investment instruments for the purpose of maximizing
interest earnings. Local financial institutions shall be
given the opportunity to submit interest rate quotations.
18. Investment interest earnings should be proportionately
distributed to all funds on the basis of average monthly
cash balances.
19. A five (5) year capital improvements program shall be
prepared which identifies needed public improvements and
available funding sources.
20. Major capital improvements should be funded by debt issuance
using referendum where required.
21. Assess 100% of public improvement costs to benefiting
property or developer for new developments (exception -
oversizing, watermain loopings, etc.).
22. The city should charge the maximum rate permissible on
unpaid special assessments.
23. The equity remaining in debt sinking funds that have no
outstanding liabilities should be transferred to a Permanent
Improvement Revolving (PIR) fund.
24. Certificates of indebtedness should be utilized to fund
major equipment purchases to offset the general tax levy
for equipment rental.
............................. . .
25. Tax increment financing may be used to finance traditional
municipal infrastructure projects such as watermain and
sewermain installations and extensions.
26. Requests for public financing of private commercial and
industrial projects will be considered on a case by case
basis depending on the public benefits to be derived.
Upon roll call, the following members voted AYE: McAllister,
Jesinski, Olson, Vail, Atkinson
Voting NAY: NONE
Whereupon said resolution was 4Gee
4Atkion,
nd adopted this
21st day of May, 1990.
Mayor
ATTEST:
Mary Creager, Cit lerk