City Council Resolution 1991-09RESOLUTION 91- 9
RESOLUTION DESIGNATING MINIMUM RESTRICTED
GENERAL FUND BALANCES
WHEREAS, only limited revenues are received during the first six
months of each budget year and as much as 50% of the expenses occur
during that period of time, and
WHEREAS, a minimum level of cash is necessary to pay expenses
during that first six months of each year, and
WHEREAS, a minimum general fund balance is necessary to begin each
budget year for the purposes of covering the anticipated operating
expenditures that will occur within the first six months without
having to resort to temporary borrowing between receipt of major
revenues, and
WHEREAS, it is financially prudent to provide funds for unforeseen
expenditures or anticipated expenditures of an uncertain amount or
unforeseen shortfalls of anticipated revenues,
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF MONTICELLO,
MINNESOTA, that a general fund working capital reserve balance
equal to 50% of the following year's general fund budgeted
expenditures be designated for cash flow purposes and shall be
adjusted annually so that it equals one-half of the sum of the
ensuing year's budget expenditures.
BE IT FURTHER RESOLVED that an additional contingency reserve
balance be established equal to 10% of the ensuing year's budgeted
general fund expenditures, and this designation shall be adjusted
annually so that it equals 10% of the ensuing year's general fund
expenditures to provide for unforeseen expenditures or unforeseen
revenue shortfalls.
BE IT FURTHER RESOLVED that these minimum unreserved designated
fund balances may be changed by the Council upon a simple motion
recognizing the need to do so.
Adopted this 22nd day of April, 1991.
Maor
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City Admini trator