HomeMy WebLinkAbout024863 RES - 04/30/2002RESOLUTION
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; again reaffirmed the Financial Policy in May
2000 by Resolution No. 024044; and reaffirmed the Financial Policy in May 2001 by
Resolution No. 024455;
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.
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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 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 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 and maintain a reserve in the
General Fund ending balance which totals at least ten (10%) percent of total annual
General Fund appropriations, excluding anticipated reimbursements, within five years.
(This goal is subject to modification pending the impact of Government Account
Standard Board No. 34, "Basic Financial Statements and Management's Discussion
and Analysis for State and Local Governments," implementation, as noted in Section 5
below.) That reserve is intended to provide for a reasonable financial contingency to
mitigate unforeseen circumstances, changes in economic conditions and/or other
emergencies. Staff is 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 City
has hired an outside appraisal firm to assist in valuating these assets.
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.
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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:
Arman~
City Secretary
APPROVED: 26th day of April, 2002.
THE CITY OF CORPUS CHRISTI
Samuel L. Ne~l, Jr. f
Mayor
James R. Bray Jr.
City Attorney
By: R. j~l~nin-~
First Assistant City Attorney
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Corpus Christi, Texas
~ f , 2002
The above resolution was passed by the following vote:
Samuel L. Neal, Jr.
Brant Chesney
Javier D. Colmenero
Henry Garmtt
Bill Kelly
Rex A. Kinnison
John Longoria
Jesse Noyola
Mark Scott
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R22110A2.doc