Minutes 05/11/2010 - Laserfiche WebLink

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May 11. 2010 "ORDINANCE TO APPROPRIATE $41,926,023 IN THE FY 2010-2011 CAPITAL IMPROVEMENT FUND AND $12,669,000 IN THE FY 2010-2011 PUBLIC UTILITIES CAPITAL IMPROVEMENT FUND." Ayes: Heretick, Moody, Psi mas, Randall, Smith, Whitehurst, Holley Nays: None 10 - 228 - Adoption of a resolution establishing a Budget Stabilization Fund in the FY 2010-2011 operating budget for the purpose of capturing and accumulating excess funds above the City's 15% established Unreserved and Undesignated General Fund Balance to be used for one-time nonrecurring expenditures. Vision Principles: Bold New Directions and Robust and Prospering Economy. Background: . City Council adopted a series of financial policies in September 2009. Establishing a Budget Stabilization Fund solidifies Council's commitment to strong financial leadership and expounds upon the financial policies previously adopted by Council. Discussion: . The purpose the Budget Stabilization Fund is to segregate and account for any undesignated unreserved fund balance in excess of the 15% fund balance policy limit. . The Budget Stabilization Fund Resolution includes three critical components: . The funds can only be used for one-time, nonrecurring expenses. . Use of funds must be approved by a super-majority of Council (five or more members). . Council will not set a tax rate sufficient to contribute any funding to the Budget Stabilization Fund; only excess revenues above expenditures in any given fiscal year will be appropriated to the Fund. Financial Impact: . Adoption of the proposed resolution creates financial transparency but does not create any direct or immediate financial impact. Staff Recommends: . Council's adoption of this resolution. Vision Principle: Bold New Directions and Robust and Prospering Economy. Next Steps Following Council Action: . The Chief Financial Officer will prepare the City's financial records to reflect this additional fund. 1. Mark Geduldig-Yatrofsky, 2713 Sterling Point Drive, voiced his concern with the fact there is no limit set on the amount of money that can be in this fund and asked that whatever amounts are in this fund be posted on the website. Motion by Mr. Whitehurst, and seconded by Mr. Smith, to adopt the following resolution, and was adopted by the following vote: "RESOLUTION ESTABLISHING A BUDGET STABILIZATION FUND IN THE FY 2010-2011 OPERATING BUDGET FOR THE PURPOSE OF CAPTURING AND ACCUMULATING EXCESS FUNDS ABOVE THE CITY'S 15% ESTABLISHED UNRESERVED AND UNDESIGNATED GENERAL FUND BALANCE TO BE USED FOR ONE-TIME NONRECURRING EXPENDITURES WHEREAS, it is the stated goal of the City Council to provide strong financial leadership for the City including the establishment of financial policies and practices to reduce annual fluctuations in the City's budget; and