HomeMy WebLinkAboutResolution 2002-36 General Fund Balance Policy
RESOLUTION NUMBER 2002-36
A RESOLUTION OF THE CITY OF WINTER SPRINGS, FLORIDA,
ESTABLISHING A GENERAL FUND FUND BALANCE POLICY
AND PROVIDING AN EFFECTIVE DATE
WHEREAS, the City Commission, in and for the City of Winter Springs, Florida,
hereinafter referred to as Commission, endorses sound financial policies and practices;
and,
WHEREAS, the Commission has determined that a fund balance policy for the General
Fund tailored to the particular needs of the City is the most responsible way to insure
against unanticipated events which would adversely affect the financial condition of the
City and jeopardize the continuation of necessary public services; and,
WHEREAS, it is essential that the Commission maintain an adequate fund balance in its
general operating fund to provide the capacity to: (1) provide sufficient cash flow for
daily financial needs, (2) secure and maintain investment grade (i.e. A or above) bond
ratings, (3) offset significant economic downturns or revenue shortfalls, and (4) provide
funds for unforeseen expenditures related to emergencies; and,
WHEREAS, the City has an informal goal establishing an amount equal to three months
operating expense of the General Fund to be the desired General Fund fund balance; and,
WHEREAS, the Commission desires to adopt a formal General Fund fund balance
policy, now therefore be it resolved as follows:
SECTION I - Definition:
I. General Fund Operating Expense - For purposes of this resolution, operating
expense shall mean General Fund expenses other than capital outlay and debt.
II. Capital Outlays - For purposes of this resolution, capital outlay shall mean
vehicles, equipment, real estate and improvements to real estate.
SECTION II - Unreserved Fund Balance Goal:
It shall be the goal of the City to maintain at all times an unreserved General Fund fund
balance in an amount equal to not less than 25% of the total operating expenses of the
General Fund.
SECTION III - Required Minimum Unreserved General Fund Fund Balance:
Except as provided in Section IV herein, the City shall not reduce the unreserved General
Fund fund balance below an amount equal to 20% of the total operating expenses of the
General Fund.
SECTION IV - Reduction of Unreserved General Fund Fund Balance Below the
Minimum:
By a super majority vote of the Commission, supplemental appropriation from
unreserved General Fund fund balance may be authorized by the Commission for a
General Fund purpose reducing the umeserved General Fund fund balance below the
20% minimum provided that the unreserved General Fund fund balance is restored to the
minimum in the following year budget.
SECTION V - Excess Unreserved General Fund Fund Balance:
I. Umeserved General Fund fund balances in excess of the 20% minimum may be
appropriated in the budget for capital outlays as defined herein or one time
expenditures when required to balance the adopted final budget of a given year.
II. During the fiscal period the Commission by a majority vote of the Commission
may authorize supplemental appropriations to fund unforeseen expenses from
umeserved General Fund fund balance in excess of the 20% minimum.
SECTION VI - Effective Date:
This Resolution shall take effect immediately upon its adoption.
PASSED, APPROVED AND ADOPTED this 11th day of November, 2002.
CITY OF WINTER SPRINGS, FLORIDA
Paul P. Partyka, Mayor
City of Winter Springs, Florida
ATTEST:
Andrea Lorenzo-Luaces,City Clerk
City of W inter Springs, Florida
Approved as to form:
City Attorney
Resolution 2002-36
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