HomeMy WebLinkAboutRES 1991-025 ��� RESOLUTION NO. q1 _25
w� A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS, ESTABLISHING AN EMERGENCY
RESERVE POLICY RESTRICTING FUNDS FOR USE IN
EMERGENCY SITUATIONS WHICH WOULD SEVERELY
IMPACT CITY OPERATIONS OR THE ABILITY TO MEET
DEBT OBLIGATIONS AND PROVIDING AN EFFECTIVE
DATE
WHEREAS, the City Council desires to establish fund balance
reserve guidelines to plan for unforeseen emergencies which would
severely impact the City's ability to pay for basic operations; and
WHEREAS, the City Council desires to establish fund balance
reserve guidelines to ensure the payment of debt obligations.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS:
Section 1. That all reserve guidelines established by the
'"� "Fund Balance Reserve Policy" be incorporated into the annual
budget process and that the "Fund Balance Reserve Policy" , attached
� hereto as Exhibit "A" , be used by the City Council and City Manager
as a guideline for making prudent fiscal decisions.
Section 2 . That every effort will be made to use fund balance
reserves for non-recurring capital expenditures rather than ongoing
operating expenditures.
Section 3 . That all funds not meeting the "Fund Balance
Reserve Policy" guidelines be so noted prior to the passage of the
annual budget with the intention of ineeting the guidelines at the
earliest financially practical date.
Section 4 . That in order to use fund balance reserves not
included in the annual budget ordinance, a budget amendment is
required.
Section 5. That this resolution shall take effect from and
after the date of its passage.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
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GRAPEVINE, TEXAS on this the 3rd day of September , 1991.
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APPROVED:
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William D. Tate
Mayor
ATTEST:
L' Huff
City Secretary
APPROVED AS TO FORM:
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John F. Boyle, Jr.
City Attorney
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EXHIBIT "A"
TO RES. 91-25
City of Grapevine
FLtnd Balance Reserve Policy
Septembex 3, 1991
The City will establish an emergency reserve to pay for needs caused by
unforeseen emergencies which sevexely impact cash flows. The emergency
reserve will be maintained at the follawing minimtun levels:
1. General Ftiuld - 16� (60 days) of total current budgeted experiditures.
2. Debt Service F1.u�d - 20% (75 days) of total current budgeted e.xpenditures.
3. Oc.cupancy Tax F1u�d - 16� (60 days) of total current budgeted e�penditures.
4. Utility Fund - working capital reserves will be maintained at 16% (60
days) of total budgeted expenses.
5. Golf Fund - working capital reserves will be maintained at 25% (90 days)
of total budgeted exper�ses.
The reserves will be su?�iitted as part of the annual budget process and be
reviewed by the City Council at the time of budget adoption. Any exceptions
will be noted at the t�m�e the budget is approved. As stipulatecl by the
resolution any use of reserves not included in the annual budget will require
that an ordirsance be passed amendirig the budget for this purpose. An increase
�r,,,, in the minim�nn res�xves stipulated by the policy may be considered as the
financial position of the City is presented with the annual audit report.
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