HomeMy WebLinkAbout022992 RES - 07/22/1997RESOLUTION
Adopting financial policies to rebuild General Fund ending balances to prior year
levels and ensure that acceptable levels are maintained in future years:
Whereas, the City of Corpus Christi has a commitment to citizens as expressed in
its Mission Statement:
"Our Mission is to provide the citizens of Corpus Christi, collectively,
excellent quality products and highly responsive services in the areas of:
Infrastructure Needs (including water, wastewater, gas distribution, solid
waste, aviation and streets); Protective Services (including law enforcement,
fire and health); Quality of Life Enrichment (including housing and community
development, libraries, cultural and leisure activities); Economic
Development (including support of existing economic bases and
encouragement of growth); and Development Services (including
engineering, planning and inspection...)" and
Whereas, financial resources are budgeted to fulfill this commitment ; and
Whereas, it is prudent to adopt financial policies and actions to rebuild General
Fund ending balances to prior year levels and ensure that acceptable levels are
maintained in future years; and
Whereas, the City Council adopted a Financial Policy in January 1997, and
reaffirmed the Financial Policy in June 1997; and
Whereas, this policy provides an essential guide to direct financial planning and to
maintain and strengthen the City's bond rating.
Now, therefore, be it resolved by the City Council of the City of Corpus Christi that
the following Financial Policy is hereby approved and replaces the previously approved
and reaffirmed Financial Policy and made part of the City Comprehensive Policy Manual:
SECTION 1. To ensure that current and future operations are protected from
severe impact of any economic slowdowns or unforeseen expenditures, adequate financial
resources will be set aside in the General Fund ending balances.
SECTION 2. The goal for the General Fund ending balance will be at least four
percent of total annual General Fund appropriations. Using the starting base of
$1,613,134, analysis of current trends and opportunities in revenue and expenditures
indicates that this goal can be accomplished in six years through incremental increases in
the General Fund ending balance of approximately 25 percent per year, with annual
performance determining percentage requirements to meet the four percent
goal. Unique situations may arise in which the timing of external actions out of the City's
control may impact the General Fund ending balance. These situations will be noted in
the budget and in evaluation of progress and compliance with the Financial Policy.
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SECTION 3. Consistent with these policies and to provide additional security, the
G.O. Debt Bond Fund will continue to maintain an acceptable level of fund balance to
cover a substantial portion of the subsequent year principal and interest debt obligation.
SECTION 4. The City Council and City Staff will pursue new and enhanced revenue
sources at both the local and state levels. Some of the areas to be pursued in the first two
years include:
A. Utility franchise agreement renewals at higher revenue levels;
B. Effective operation of the Regional Landfill to the benefit of the citizens of Corpus
Christi;
C. Seeking the authority for the administration of the Emergency Telephone System
(911 program);
D. Audit and study of all outside revenue sources and areas such as fines, fees, and
contributions to determine that they are appropriate.
SECTION 5. A primary goal for the General Fund operating budget is that current
budgeted revenues will exceed current budgeted expenditures. However, expenditures
may exceed revenues if higher than planned surpluses occur and the 25 percent growth
target in the General Fund ending balance is maintained or exceeded.
SECTION 6. Recognizing that expenditure controls are a major factor in achieving
these goals, the City Manager will review and make expenditure recommendations.
SECTION 7. The City Council is prepared to make expenditure reductions that may
be necessary to meet these goals.
SECTION 8. This budget policy will be reaffirmed each May, prior to consideration
of the budget, and the City Manager is instructed to prepare the budget in accordance with
these policies.
SECTION 9. This Financial Policy is approved and replaces the previously
approved and reaffirmed Financial Policy and is made part of the City Comprehensive
Policy Manual.
Attest:
The City of Corpus Christi
Armando Chapa, City Secretary Mayor
Approved: it Day of
James R. Bray, Jr. City Attorney
,1997
Corpus Christi, Texas
And day of , 19 97
The above resolution was
passed by the following vote:
Loyd Neal Lit 7
Jaime Capelo
Melody Cooper
/ V
Alex L. Garcia, Jr.
Arnold Gonzales
Betty Jean Longoria
John Longoria
Edward A. Martin
Dr. David McNichols