HomeMy WebLinkAbout023657 RES - 05/25/1999RESOLUTION
REAFFIRMING 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;
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 adopted a new Financial Policy in May
1998 by Resolution No. 023319; 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. 023319 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:
SECTION 1. That the following Financial Policy is reaffirms the financial policies adopted
by Resolution No. 023319 and is made part of the City Comprehensive Policy Manual.
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
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aside in the General Fund ending balances.
SECTION 3. The goal for the General Fund ending balance will be at least five (5%)
percent of total annual General Fund appropriations. Using the starting base of $1,613,134 as of July
31, 1997, 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. 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.
SECTION 6. A primary goal for the General Fund operating budget is that current budgeted
revenues will equal or exceed current budgeted expenditures. However, there may be unforseen or
emergency circumstances which require funding from the fund balance or contingency funds.
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 by May, prior to consideration of the
budget, and the City Manager is instructed to prepare the budget in accordance with these policies.
ATTEST:
Armando Chapa, City Secretary
CITY OF CORPUS CHRISTI
amuel L. N , Jr., Mayo
Legal form approved 2) la.c.j" , 1999; James R. Bray, Jr., City Attorney
By: N Lt e A.04 a�Q.Pa t
Alison Gallaway, Assistant City Attorney
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Corpus Christi, Texas
Dayof, 1
The above resolution was pass by the following vote:
Samuel L. Neal, Jr.
Javier D. Colmenero
Melody Cooper
Henry Garrett
Dr. Arnold Gonzales
Rex A. Kinnison
Betty Jean Longoria
John Longoria
Mark Scott
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