HomeMy WebLinkAboutReso 080-93 GenFundAssetPolicyRESOLUTION NO. 80 - 93
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
ESTABLISHING A POLICY FOR MANAGEMENT AND USE OF GENERAL FUND ASSETS
WHEREAS, the City Council of the City of Dublin recognizes the
importance of General Fund Reserves; and
WHEREAS, General Fund Reserves are an important asset of the City
and it is prudent to have an established policy to guide their use; and
WHEREAS, typically, General Fund monies are a discretionary funding
source which can be appropriated as enacted through the annual budget
process; and
WHEREAS, interest earnings from City General Fund Reserves can
provide an independent local revenue source; and
WHEREAS, it is not possible to exactly predict over time how
economic conditions may impact either the interest earnings (income) or
the need to utilize reserves to provide the level of municipal services
deemed adequate by City Council policy; and
WHEREAS, prudent management would dictate that the City have a
general policy for the management of its assets, including the
anticipated purpose of General Fund Reserves.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Dublin does hereby establish the attached Policy for the Management and
Use of General Fund Reserves (Exhibit A), attached hereto and by
reference made a part hereof.
BE IT FURTHER RESOLVED that City Staff are hereby authorized and
directed to undertake all administrative steps necessary to implement
said "Policy" and present periodic reports to the City Council.
PASSED, APPROVED AND ADOPTED this 14th day of June, 1993.
AYES:
Councilmembers Burton, Houston, Howard, and Mayor Snyder
NOES: None
ABSENT:
ABSTAIN:
Councilmember Moffatt
PSR/lss a:ResoBO.a a#12:
None
EXHIBIT A
CITY OF DUBLIN
~ENEI~L FUND RESERVE POLICY
PURPOSE
The purpose of this document is to formally outline the City Council
policy of maintaining General Fund Reserves and designating the
potential types of uses for such reserves. General Fund Reserves
shall not be considered as being readily available for appropriations
towards operating expenses, except as allowed for in this policy and
through explicit action by the City Council.
MOUNT OF RESERVES
The amount of General Fund Reserves will fluctuate over time. The
City Council recognizes that there are numerous events which could
place a legitimate demand on the reserves.
INTEREST EARNINGS
All interest earnings on the General Fund Reserves shall accrue to the
City's General Fund Unreserved Fund Balance, for appropriation by the
City Council in accordance with local and State laws, regulations and
policies.
ABILITY TO ACCOMMODATE CITY NEEDS
The City Council recognizes the importance of maintaining flexibility
at this time as well as in the future. Proper maintenance of the
City's General Fund Reserves will accommodate a response to economic
conditions affecting earnings on said funds as well as unanticipated
events which require an appropriation.
POTENTIAL USE OF RESERVES
Any appropriation of General Fund Reserves is subject to action by the
City Council. The following events are the basis for a policy to
protect and carefully plan for any expenditure from General Fund
Reserves:
City Indebtedness: Reserves may be utilized to reduce or
eliminate the need for current or future debt service payments.
The limitation of debt service as an annual operating expense
allows for available monies to be expended for other public
purposes. This shallbe considered the highest priority for the
use of General Fund Reserves.
Economic Uncertainty: A prudent reserve can be used to finance
municipal services in the event that economic conditions have
deteriorated to the extent .that traditional revenue sources can
no longer support the services.
Response to Reductions in Revenues: In recent years, State
Government has taken revenues which were previously considered to
be local revenues. Development of a locally controlled revenue
source can be important.
Catastrophic Loss: The City currently participates in a pooled
self-insured liability and property program. A catastrophic
event may require additional appropriations in order to attain a
full recovery.
Preservation of Funds as Revenue Generator: The preservation of
General Fund Reserves provides revenue as a result of investment
income° This is an important discretionary income source.
Economic Development Stimulus: A locally controlled funding
source could become one component of an investment plan, which
would provide a positive return to the City and a public benefit.
This listing is not intended to be all inclusive; however, it is
generally reflective of the types of considerations to be made when
proposing the use of such funds. Proposed uses which are inconsistent
with this policy should demonstrate a public benefit and a finding
that it is in the best interest of the City.
REVISIONS
Revisions to this policy shall be approved by the City Council in the
form of a Resolution.
PSR/tss a: FundExbA.agenda#12