HomeMy WebLinkAbout024455 RES - 05/15/2001RESOLUTION
REAFFIRMING AND AMENDING FINANCIAL POLICIES ADOPTED BY
RESOLUTION NO. 023319 AND PROVIDING A POLICY TO MAINTAIN
THE FUND BALANCE FOR THE GENERAL FUND AT AN ADEQUATE
LEVEL
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; reaffirmed the Financial Policy in May 1999 by Resolution No.
023657; and again reaffirmed the Financial Policy in May 2000 by Resolution No. 024044;
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 reaffirms and amends the financial
policies adopted by Resolution No. 023319. This Financial Policy is made part of the City
Comprehensive Policy Manual.
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
circumstances will be considered justification for utilizing the fund balance or contingency funds.
SECTION 3. To ensure that current and future operations are protected from severn 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 maintain 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 contingency to mitigate unforeseen
circumstances, changes in economic conditions and/or other emergencies. Staffis hereby directed
to maintain this policy and shall report on compliance with this policy 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. The City has developed an implementation plan to comply with the
Governmental Account Standards Board Statement No. 34, "Basic Financial Statements and
Management's Discussion and Analysis for State and Local Governments" for the Fiscal Year
Ending July 31, 2002. One of the requirements of the statement is to depreciate the City's General
Fixed Assets, which was not done in the past. The implementation plan specifies that an outside
appraisal firm be hired to assist in valuating these assets. Funds may be required to accomplish this
evaluation and will be appropriated as necessary.
SECTION 6. 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 7. The City Council and City Staff will pursue new and enhanced revenue
sources at both the local and state levels.
SECTION 8. Recognizing that expenditure controls are a major factor in achieving these
goals, the City Manager will review and make expenditure recommendations.
SECTION 9. The City Council is prepared to make expenditure reductions that may be
necessary to meet these goals.
SECTION 10. This budget policy will be reaffirmed by the end of 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
Legal form approved
By:
Lisa Aguilafi)
Assistant City Attorney
2001; James R. Bray, Jr., City Attorney
Corpus Christi, Texas
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The above resolution was passed by the following vote:
Samuel L. Neal, Jr.
Brent Chesney
Javier D. Colmenero
Henry Garrett
Bill Kelly
Rex A. Kinnison
John Longoria
Jesse Noyola
Mark Scott