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(AUDm.WIIT)
CONSENT AGENDA #: 4 (e)
PREPARED BY: RALPH TESCHNER FINANCE DIRECTOR
SUBJECT: CONSIDER APPROVAL OF RESOLUTION 94-27 APPROPRIATING
GENERAL FUND UNDESIGNATED BALANCE TO THE
EQUIPMENT FUND RESERVE
DATE: JUNE 6, 1994
INTRODUCTION:
At the May 16, 1994 regular council meeting, the City Council authorized
the appropriation of $300,000 from the General Fund balance to the
Equipment Fund for the purpose of limiting future equipment certificate
debt financing to a level that would not raise property taxes.
As a result of this decision, the Council directed staff to prepare a
resolution incorporating this appropriation approval and also to establish
an annual review of the General Fund balance in conjunction with the
Council's adoption of the City's yearly financial report.
RECOMMENDATION: Staff would recommend that Resolution 94-27 Appropriating General
Fund Undesignated Balance to the Equipment Fund Reserve be approved.
ACTION REQUIRED:
REVIEWED BY:
A motion by the City Council approving Resolution 94-27 Appropriating
General F. und Unde~=ted Balance to the Equipment Fund Reserve as
p/ 0: 7 sent '; da would be in order.
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4629 Dakota St. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORnJNITY EMPLOYER
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'''/ NNE SO~ ~ RESOLUTION 94-27
RESOLUTION APPROPRIATING GENERAL FUND UNDESIGNATED
BALANCE TO THE EQUIPMENT FUND RESERVE
MOTION BY:
SECONDED BY
WHEREAS,
the City of Prior Lake needs a required level of its General Fund balance to
provide working capital to sustain operational expenditures prior to tax
settlement; and
WHEREAS,
the City Council has approved a working capital designation of the City's
General Fund Balance equivalent to 30% of the current year's Operating Budget;
and
WHEREAS,
the remaining portion of the General Fund balance is undesignated and represents
available financial resources; and
WHEREAS,
the City of Prior Lake's General Fund balance at December 31, 1993 is
$1,731,775 of which $300,000 represents excess reserves above the working
capital requirement; and
WHEREAS,
it is the decision of the City Council to review, on an annual basis, the
availability of such reserves and to allocate these funds in a manner that would
best serve the community; and
WHEREAS,
the City Council recognizes that the establishment of a revolving equipment fund
would stabilize our debt level associated with equipment certificate financing and
thereby minimize property tax increases.
NOW, THEREFORE, BE IT RESOLVED by the Mayor and City Council that a $300,000.00
appropriation from the General Fund balance to the Equipment Fund is hereby authorized.
BE IT FURTHER RESOLVED that the City Council shall consider future appropriations and designate
their specific use on an annual review basis.
Passed and adopted this ~ day of ~, 1994.
YES
NO
Andren
Greenfield
Kedrowski
Schenck
Scott
Andren
Greenfield
Kedrowski
Schenck
Scott
{ Seal }
Frank Boyles
City Manager
City of Prior Lake
4629 Dakota St. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
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