3.8. SR 04-04-2005
*Item 3.8.*
MEMORANDUM
TO: Mayor and City Council
FROM: Lori Johnson, Finance and Administrative Services Director
DATE: April 4, 2005
SUBJECT: Consider Resolution Allocating 2004 General Fund Balance
As required by the Financial Management Plan, attached is a resolution allocating the 2004
General Fund balance, As in previous years, the resolution calls for the General Fund
balance to remain at 41,5% of the next year's operating budget in accordance with past
Council practice, The amount available for allocation based on an unreserved fund balance
of 41.5% is $114,478, The resolution calls for this balance to be reserved to fund capital
equipment, which will lessen the city's dependence on equipment certificates, and to fund
pay adjustments in order to complete the pay plan adjustments as directed by the City
Council in August 2004,
Action Requested
The City Council is asked to consider the attached resolution allocating the 2004 General
Fund balance,
s: \ Council\Lori\200S \ GenFundBalance.doc
RESOLUTION 05-
A RESOLUTION FOR THE CITY OF ELK RIVER
A RESOLUTION ALLOCATING THE 2004 GENERAL FUND BALANCE
WHEREAS
The City’s Financial Management Plan includes a General Fund Balance
policy that stated that any unreserved fund balance in excess of forty percent
shall be allocated to other purposes at the discretion of the City Council; and,
WHEREAS
The City Council has requested that the minimum unreserved balance in the
General Fund for 2004 be 41.50 percent; and,
WHEREAS
The City Council has considered the various uses of the balance in excess of
41.50 percent;
NOW THEREFORE BE IT RESOLVED
that the City Council of the City of Elk River
makes the following reservations of the 2004 General Fund Balance:
Amount Allocation
$114,478 Capital Equipment and Pay Adjustments
$114,478 Total
th
Passed and adopted by the City Council this 4 day of April 2005.
Stephanie A. Klinzing, Mayor
ATTEST:
Joan M. Schmidt, City Clerk