HomeMy WebLinkAbout6.g. Amend Fund Balance Policy (F--7)CITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
CITY COUNCIL MEETING DATE: February 17, 2004
Based on the advice of our auditors, we have made small Language changes in the Fund Balance
Policy that was originally approved on December 16, 2003. Rather than setting up a separate fund to
account for compensated absences, the General Fund will specially designate a portion of its fund
balance to account for its share of the compensated absences on an annual basis. These changes
will, in no way, change the spirit of the policy that was approved in December. This policy will allow
the City to maintain a healthy fund balance and to designate excess funds for items that are longer-
term goals of the City. The General Fund will maintain a 55% "Designated for Working Capital" year-
end fund balance in relation to the following year's budget. This is a number that will allow us to
maintain our day to day operations and meet the cash flow needs that we have in dealing with our bi-
annual tax payments in July and December of each year.
RECOMMENDED ACTION: Approve the amended Fund Balance Policy (F -7)
COUNCIL ACTION:
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