5.3. SR 04-02-2007
City of Elk River
REQUEST FOR COUNCIL ACTION
Agenda Section Meeting Date
Administration A ril 2, 2007
Item Description
Resolution Transferrin 2006 General Fund Balance
Item Number
5.3.
Prepared by
Tim Simon, Finance Director
Reviewed by
Lori ohnson, Ci Administrator
Introduction
The City's financial management plan requires that the fund balance in the General Fund in excess of 40
percent of next years budgeted expenditures be allocated to other purposes at the discretion of the City
Council.
Discussion
In previous years the City Council has set the unreserved fund balance at 41.5 percent of next years
General Fund budgeted expenditures and allocated the amount over that for capital equipment, pay
adjustments, or other one-time expenditures. The attached resolution transfers the balance over 41.5
percent to the capital outlay reserve fund for 2008 capital outlay purchases. By allocating to the capital
outlay reserve fund, the city will be able to reduce the 2008 general fund expenditures for capital outlay
and equipment certificates.
Financial Impact
Reduction in the 2008 equipment certificates and General Fund capital outlay purchases.
Attachments
Resolution transferring the 2006 General Fund balance.
Action Requested
Consider attached resolution
Council Action
Motion by _
Second by _
Vote
Follow Up
s: \ Council\ Tim \FundBalance allocation. doc
RESOLUTION 07-_
A RESOLUTION OF THE CITY OF ELK RIVER
A RESOLUTION AUTHORIZING A TRANSFER FROM THE GENERAL FUND
TO THE CAPITAL OUTLAY RESERVE FUND
WHEREAS, The City of Elk River's Financial Management Plan includes a General Fund Balance
policy 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 2006 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 transfer of funds from the 2006 General Fund Balance:
Capital Ouday Reserve Fund $424,674
Passed and adopted this _ day of
20_.
Stephanie Klinzing, Mayor
ATTEST:
Tina Allard, City Clerk
S:\Council\ Tim \FundBalance allocation. doc