CCR2007148AMENDED
COMMON COUNCIL - CITY OF MUSKEGO
RESOLUTION #148-2007
. GENERAL FUND RESERVE AND
ANNUAL GENERAL FUND BUDGETED CONTINGENCY POLICY
WHEREAS, the Common Council has the authority for the management and control of
the City's finances, and
WHEREAS, the Common Council desires to establish guidelines and procedures for
City General Fund reserve levels through a policy that works toward meeting cash flow
needs for the general operation of the City and defines appropriate reserve levels in the
best interests of the taxpayers.
NOW, THEREFORE, BE IT RESOLVED, the Common Council, upon the
recommendation of the Finance Committee, hereby establishes the following general
fund reserve and annual general fund budgeted contingency policy.
.
Policv Obiectives
The objectives of this policy are to preserve the credit worthiness of the
City for borrowing monies at favorable interest rates; provide working
capital for the City to meet cash flow needs during the year and stabilize
fluctuations from year to year in property taxes paid by the City's
taxpayers.
Policv Procedures
In order to achieve the objectives of this policy, the Common Council shall
adhere to the following guidelines:
1. The General Fund unreserved fund balance shall be maintained as of
December 31 of each year in an amount greater than or equal to a
minimum of two months (17%) of the ensuing year's budgeted General
Fund expenditures, with a targeted maximum of four months of the
ensuing year's budgeted expenditures.
2. The City shall include in the General Fund operating budget annually,
a contingency account greater than or equal to 0.50% of the General
Fund total expenditures. This contingency will expire at the end of
each fiscal year and balances will not be brought forward.
.
3. As part of the annual budget process, the Finance Department
Supervisor will estimate the surplus or deficit for the current year and
prepare a projection of the year-end undesignated general fund
balance. Such projection will include an analysis of trends in fund
balance levels on a historical and future projection basis and
recommended levels for the current year.
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.
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Resolution #148-2007 Page 2
4. Any surpluses (actual revenues less expenditures for the fiscal year
end) realized in the General Fund at year-end should be used first to
meet the minimum undesignated fund balance as set forth under (1)
above. Upon a majority vote of the Common Council, excess surplus
may then be used for the following purposes, listed in order of priority:
a. Cash Payments for specified Capital Improvement Program
Projects.
b. Retirement or Refinancing of Existing Debt.
c. Reducing ensuing year's property tax levy.
5. The Common Council, by a majority vote, can declare a fiscal
emergency and withdraw any amount of general fund balances for
purposes of addressing the fiscal emergency. Any such action must
also provide for necessary appropriations to restore the undesignated
general fund balance to the minimum balance within a three-year
period.
6. This policy will be reviewed by the Finance Committee every three
years following adoption or sooner at the direction of the Common
Council.
This policy shall take effect as of January 1, 2007.
BE IT FURTHER RESOLVED That the adoption of this policy will replace Resolution
#178-1995 adopted on September 12,1995.
DATED THIS 24TH DAY OF JULY ,2007.
SPONSORED BY:
FINANCE COMMITTEE
Ald. Bob Melcher
Ald. Neil Borgman
Ald. Keith Werner
This is to certify that this is a true and accurate copy of Resolution #148-2007 which
was adopted by the Common Council of the City of Muskego.
~l.2~/h~~ .
erk Trea er
Financial Reserve Policy
Developed: 7/2007
Reviewed: 7/10/2007 by Committee of the Whole
Adopted by the Common Council: 7/24/2007
.
.
.
COMMON COUNCIL - CITY OF MUSKEGO
RESOLUTION #148-2007
GENERAL FUND RESERVE AND
ANNUAL GENERAL FUND BUDGETED CONTINGENCY POll
WHEREAS, the Common Council has the authority for the managemen and control of
the City's finances, and
WHEREAS, the Common Council desires to establish guidelines a procedures for
City General Fund reserve levels through a policy that works tow d meeting cash flow
needs for the general operation of the City and defines appropri e reserve levels in the
best interests of the taxpayers.
NOW, THEREFORE, BE IT RESOLVED, the Common Co cil, upon the
recommendation of the Finance Committee, hereby esta Ishes the following general
fund reserve and annual general fund budgeted contin ncy policy.
Policy Obiectives
The objectives of this policy are to p serve the credit worthiness of the
City for borrowing monies at favor Ie interest rates; provide working
capital for the City to meet cash f w needs during the year and stabilize
fluctuations from year to year i roperty taxes paid by the City's
taxpayers.
Policv Procedures
In order to achieve the jectives of this policy, the Common Council shall
adhere to the followin guidelines:
1. The General F d unreserved fund balance shall be maintained as of
December 31 f each year in an amount greater than or equal to a
minimum of 0 months (17%) of the ensuing year's budgeted General
Fund exp ditures, with a targeted maximum of four months of the
ensuing ear's budgeted expenditures.
2. The ty shall include in the General Fund operating budget annually,
a c tingency account greater than or equal to 0.50% of the General
F d total expenditures. This contingency will expire at the end of
ach fiscal year and balances will not be brought forward.
. As part of the annual budget process, the Finance Department
Supervisor will estimate the surplus or deficit for the current year and
prepare a projection of the year-end undesignated general fund
balance. Such projection will include an analysis of trends in fund
balance levels on a historical and future projection basis and
recommended levels for the current year.
4. Any surpluses (actual revenues less expenditures for the fiscal year end) realized in the General Fund at year-end should be used first to
.
.
.
Resolution #148-2007 Page 2
meet the minimum undesignated fund balance as set forth under (1)
above. Upon 2/3 majority vote of the Common Council, excess surplus
may then be used for the following purposes, listed in order of priority:
a. Cash Payments for specified Capital Improvement Program
Projects.
b. Retirement or Refinancing of Existing Debt.
c. Reducing ensuing year's property tax levy.
5. The Common Council, by a two-thirds vote, can declare a fiscal
emergency and withdraw any amount of general fund balances for
purposes of addressing the fiscal emergency. Any such action must
also provide for necessary appropriations to restore the undesignated
general fund balance to the minimum balance within a three-year
period.
6. This policy will be reviewed by the Finance Committee every three
years following adoption or sooner at the direction of the Common
Council.
This policy shall take effect as of January 1, 2007.
BE IT FURTHER RESOLVED That the adoption of this policy will replace Resolution
#178-1995 adopted on September 12,1995.
DATED THIS DAY OF ,2007.
SPONSORED BY:
FINANCE COMMITTEE
Ald. Bob Melcher
Ald. Neil Borgman
Ald. Keith Werner
This is to certify that this is a true and accurate copy of Resolution #148-2007 which
was adopted by the Common Council of the City of Muskego.
Clerk Treasurer
Financial Reserve Policy
Developed: 7/2007
Reviewed: 7/10/2007 by Committee of the Whole
Adopted by the Common Council: xJxxJ2007
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