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HomeMy WebLinkAboutResolution-1992-1304 RESOLUTION NO. 1304 SERIES OF 1992 TITLE: RESOLUTION ESTABLISHING RESERVE ACCOUNTS AND GUIDELINES FOR USE, AND SETTING FUND BALANCE PARAMETERS. THIS RESOLUTION WILL RESCIND RESOLUTION NO. 725, SERIES OF 1980 REGARDING PREVIOUS RESERVE POLICIES. WHEREAS, the City of Wheat Ridge is subject to emergencies, events and purchases which could require a outlay of funds, at times on a moment's notice; and unforeseen substantial WHEREAS, the fiscally responsible corporation requires that a cash reserve be order to provide necessary services; and operation of a municipal maintained at all times in WHEREAS, the City may have unanticipated expenditures of a non- emergency nature that are vital to the operation of the City; and WHEREAS, the City will have a liability for employee leave and must pay annual costs of departing employees; and WHEREAS, the City will have a need to replace capital equipment on an annual basis. NOW, THEREFORE, BE IT RESOLVED THAT by the Wheat Ridge City Council in order to provide for the proper fiscal management of the City and to ensure the provision of essential services, the following budget reserve accounts and policies are created: 1. The City Administrator is hereby authorized to maintain a Fund Balance. The Fund Balance will serve as an unencumbered cash reserve account. The Fund Balance will be maintained at a level between 8% and 15% of the annual general fund operating budget. Funds in excess of 15% at the beginning of each fiscal year will be transferred to the Capital Improvement Account, unless specified otherwise by Council. The Council will annually specify the amount to be placed in the Fund Balance. Expendi tures from the Fund Balance may only be made with a majority vote of the entire City Council. 2. The City Council shall appropriate and control the Una110cated Contingency account. The purpose of the account is to provide a method of funding unanticipated expenditures of a non-emergency nature. The account will be budgeted in the general fund under the City Council budget. The City Council must approve all expenditures from this account. 3. The City Administrator is hereby required to budget and maintain an Emergency Reserve account. The Emergency Reserve Account will be used to fund unanticipated expenditures of an emergency nature. The Emergency Reserve account will be budgeted in the general fund Non- Departmental General Operations budget (610). Expendi tures from the Emergency Reserve account may be approved by either the City Councilor the Mayor or the City Administrator. All expenditures from the Emergency Reserve account must be approved in advance. If necessary, an emergency meeting of the City Council shall be called by the Mayor for the purpose of approving such expenditures unless it is impracticable to do so. The funds deposited in the Emergency Reserve account shall be maintained in a separate, interest-bearing depository account with immediate availability by the City Treasurer. 4. The City Administrator is hereby required to budget and maintain a Compensated Absences Reserve account. The Compensated Reserve account will fund the accumulated leave time liability for employee leave time. This account will pay the annual costs for departing employees. Annually, any shortfall from the actual compensated absences account balance and the calculated accumulated liability will be funded. The account will be budgeted in the General Fund Non-Departmental General Operations area. 5. The City Administrator is hereby required to budget and maintain a Capital Depreciation account. The Capital Depreciation account will be established in order to fund the purchase of capital equipment. Annually, funds in the Capital Depreciation account will be transferred to a Capital Equipment Fund which will be established by ordinance. The City Council will approve the Equipment Fund replacement schedules and annual equipment purchases. The Capital Equipment Fund will be budgeted on an annual basis. DONE AND RESOLVED by a vote of of July, 1992. 8 to o hereby rescinded. 27 th on this day 6. Resolution No. 725, Series of 1980 is ATTEST: