HomeMy WebLinkAbout024044 RES - 05/23/2000RESOLUTION
REAFFIRMING FINANCIAL POLICIES ADOPTED BY
RESOLUTION NO. 023319 AND PROVIDING A POLICY TO
BUILD THE GENERAL FUND BALANCE TO AN ADEQUATE
LEVEL 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 acceptable levels and ensure that those 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, modified the Financial Policy in July 1997 by Resolution No. 022992, adopted a
new Financial Policy in May 1998 by Resolution No. 023319; and reaffirmed the
Financial Policy in May 1999 by Resolution No. 023657 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.023657 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 reaffirms the financial policies
adopted by Resolution No. 023319 and is made part of the City Comprehensive Policy
Manual.
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SECTION 2. A primary goal for the General Fund operating budget is that
current budgeted revenues will equal or exceed current budgeted expenditures. Only
unforeseen or emergency circmnstances will be considered justification for utilizing the
fund balance or contingency funds.
SECTION 3. 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 4. It is the goal of the City Council to build a reserve in the General
Fund ending balance which totals at least five (5%) percent of total annual General Fund
appropriations. That reserve is intended to provide for a reasonable financial cushion to
mitigate unforeseen circumstances, changes in economic conditions and/or other
emergencies. That reserve will be built by allocating any surplus in the General Fund for
a given year to this reserve in lieu of allocating that surplus for subsequent expenditure.
Reasonable actions will be taken to ensure the generation of surpluses to meet this policy
including conservative budgetary practices, close scrutiny of expenditures, identification
of new resources, and other budgetary and management practices as appropriate. The
Council will also consider allocation to the reserve all or a portion of one-time revenues
that were not anticipated in the budget and which are not required to meet current year's
appropriations. It is anticipated that the goal of having this 5 percent reserve can be
accomplished within 5 years. Staff is hereby directed to prepare a plan to meet this
policy and shall report on progress toward meeting this goal at least annually as part of
the budget process. Unique situations may arise in which the timing of external actions
out of the City' s control may require the use of the funds in the reserve up to and after the
time in which this policy goal is reached. These situations will be noted in the budget
and in evaluation of progress and compliance with the Financial Policy and any amount
of reserve that is used will be replaced in the immediate subsequent fiscal year or in
accordance with a repayment plan that is specifically approved by City Council.
SECTION 5. 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 6. The City Council and City Staff will pursue new and enhanced
revenue sources at both the local and state levels.
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.
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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:
Arma~retary
CITY OF CORPUS CHRISTI
Legal form approved '1'~, 2000, James R. Bray, Jr., City Attomey.
By: Lisa~AA~ui]ar~City Attorney
Corpus Christi, Texas
C;q3 ay of 'W~ , 2000 d
The above resolution was passed by the following vote:
Samuel L. Neal, Jr.
Javier D. Colmenero
Melody Cooper
Henry Garrett
Dr. Amold Gonzales
Rex A. Kinnison
Betty Jean Longoria
John Longoria
Mark Scott
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