Title
A Resolution Amending the City's Fund Balance Policy
Summary
Description of Topic: (who, what, where, when, why and how much)
Sue Steigerwad/Finance: Request the following amendments to the City's Fund Balance Policy: increase the percentage used in the calculation from 25% to 35% to reflect the long-term effects to cash of Hurricane Sally; add a section requiring the amount of reserve for self-insured claims be stated separately.
Budgetary Impact:
Non-Capital Item: N/A
____ Budgeted under account #_______________ (discussion item)
____ Not budgeted, requesting transfer of $__________ from Account #______________ to Account #_____________.**Request to Transfer Departmental Budget Dollars form must be attached**
____ Not budgeted requiring increase to account #___________ in the amount of $____________.**Request to Increase Departmental Budget Dollars form must be attached**
Capital - Departmental **Capital Purchase Worksheet form must be attached**
____ Budgeted under account #______________ for $_________ and described in budget as ________________________. Additional amount needed, if any: Increase in budget of $_________ OR, transfer of $________ from Account #____________ to Account #_____________**Request to Increase OR Request toTransfer Departmental Budget Dollars form must be attached**
____ Not Budgeted - account #____________ requires budget increase of $_____________.**Request to Increase Departmental Budget Dollars form must be attached**
Capital Project - **If requesting to start a project, a Capital Project Worksheet form must be attached**
In current year Capital Projects Plan:
_____ Yes, described as __________________________, planned amount $___________, requesting $_________ as total project estimate, including contingencies, under account #_________________
_____ No, requesting $___________ as total project estimate, including contingencies, under account #____________________.
_____ No, requesting an increase of $___________ to an already approved project titled ________________________ that is being tracked under Account No. ___________________.
Body
WHEREAS, on March 2, 2009, Resolution 3649-09 established an undesignated fund balance goal of 25% of defined expenditures for the General Fund which was based $5.5 million of Hurricane Ivan costs required to be self-funded prior to receipt of Federal and State assistance, and
WHEREAS, the fund balance goal was incorporated into a Fund Balance Policy by Resolution 4648-11 in response to issuance of the Governmental Accounting Standards Board, Statement No. 54, and
WHEREAS, Resolution 15-2296 combined the above actions into the City's current Fund Balance Policy, and
WHEREAS, more than ten months after Hurricane Sally made landfall, the City continues to self-fund $14 million dollars of Hurricane Sally immediate costs for city-wide debris removal, PPDR, leaners and hangers, and emergency protective measures, representing approximately 35% of anticipated defined expenditures for Fiscal Year 2022, and
WHEREAS, the cost to self-insure eligible employees is a defined expenditures in the calculation of the City's undesignated fund balance goal.
NOW THEREFORE BE IT RESOLVED that the City Council of the City of Foley, Alabama, as follows:
SECTION 1: Approves increasing the General Fund minimum undesignated fund balance goal to 35 percent of the annual budgeted expenditures, as defined in the Fund Balance Policy, effective with the FY2022 Budget year.
SECTION 2: Approves stating the amount of fund balance reserve set aside for self-insured costs separately from other defined expenditure reserves.
SECTION 3: Approves amending the City's Fund Balance policy accordingly.
SECTION 4: This Resolution shall become effective immediately upon its adoption as required by law.