HomeMy WebLinkAbout023319 RES - 05/19/1998RESOLUTION
ADOPTING FINANCIAL POLICIES TO REBUILD GENERAL FUND
ENDING BALANCES TO PRIOR YEAR LEVELS AND ENSURE
THAT ENDING BALANCES ARE MAINTAINED AT ACCEPTABLE
LEVELS 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 by Resolution
No. 022828, reaffirmed the Financial Policy in June 1997 by Resolution No. 022965 and modified
the Financial Policy in July 1997 by Resolution No. 022992; and
WHEREAS, this policy provides an essential guide to direct financial planning and to
maintain and strengthen the City's bond rating; and
WHEREAS, Resolution No. 022828 requires City Council to reaffirm the financial policy
annually in conjunction with preparation of the budget.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF CORPUS CHRISTI, TEXAS THAT:
SECTION 1. That the following Financial Policy is approved and replaces the financial
policies adopted by Resolution No. 022828 .. . and is made part
of the City Comprehensive Policy Manual.
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SECTION 2. 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 3. 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.
SECTION 4. Consistent with these policies and to provide additional security, the GO 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 5. 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
include:
A.
Utility franchise agreement renewals at higher revenue levels;
Chz'isti;
C. S..ekin,g the authority for the administration of-thc L nu c.tey Tckpl.,,nc Sy skiff
(9 11 program),
BD. Audit and study of all outside revenue sources and areas such as fines, fees, and
contributions to determine that they are appropriate.
SECTION 6. 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 7. Recognizing that expenditure controls are a major factor in achieving these
goals, the City Manager will review and make expenditure recommendations.
SECTION 8. The City council is prepared to make expenditure reductions that may be
necessary to meet these goals.
SECTION 9. 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.
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INTRODUCED AND PASSED by the City Council of the City of Corpus Christi, Texas
this h day of %} I , 1998.
ATTEST:
"
Armando Chapa, City Se v tary Samuel L. Neal, Jr., MAYOR
THE CITY OF CORPUS CHRISTI
Legal form approved 15 stnsi , 1998; James R. Bray, Jr., City Attorney
By. LALOw , Lltagas.v�
Alison Gallaway, Assistant City Attorney
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Corpus Christi, Texas
19_h Day of
,19
The above resolution was passed by the following vote:
Samuel L. Neal, Jr.
Javier D. Colmenero
Melody Cooper
Alex L. Garcia, Jr.
Dr. Amold Gonzales
Betty Jean Longoria
John Longoria
Edward A. Martin
Dr. David McNichols
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