HomeMy WebLinkAboutORDINANCE NO 14 09 220STATE OF GEORGIA ORDINANCE NO. 14-09-220
COUNTY OF FULTON
AN ORDINANCE TO AMEND CHAPTER 2, ARTICLE VI, DIVISION 13. FUND BALANCE
POLICY -TO MODIFY HOW THE MINIMUM FUND BALANCE AND SURPLUS FUND
BALANCE ARE DETERMINED AND TO REDEFINE HOW SURPLUS FUND BALANCE CAN
BE USED
WHEREAS, Chapter 2, Article VI, Division 13 of the Code of Ordinances of the City of Milton, Georgia
contains provisions on how the minimum fund balance and surplus fund balance are calculated;
WHEREAS, the subsequent year's budgeted expenditures and outgoing transfers are the two factors used
in the calculation;
WHEREAS, a majority of the outgoing transfers represent monies that fund the City's capital projects;
WHEREAS, a minimum fund balance is maintained to protect against cash flow shortfalls;
WHEREAS, surplus fund balance may be used for one-time expenditures that are nonrecurring in nature;
WHEREAS, including outgoing transfers in the calculation for minimum fund balance and surplus fund
balance is redundant; and
WHEREAS, most one-time expenditures impact the operational budget in some fashion;
BE IT ORDAINED by the Mayor and Council of the City of Milton, Georgia while in a special called
council meeting on the 29th day of September, 2014 at 6:00 p.m. as follows:
SECTION 1. That the amendment to Section 2-681(4),(5), and (6), as reflected in the
highlighted language, is hereby adopted and approved; and is attached hereto as if fully set forth
herein;
SECTION 2. All ordinances, parts of ordinances, or regulations in conflict herewith are
repealed.
SECTION 3. This Ordinance shall become effective upon its adoption.
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ORDAINED this the 29th day of September 2014.
Attest:
Sudie AM Gordon, City Clerk
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Sec. 2-681. Operational guidelines.
(4) Minimum unassignedfund balance. The city will maintain a minimum unassigned fund balance
in its general fund of 16 percent of the subsequent year's budgeted expenditures. This minimum
fund balance is to protect against cash flow shortfalls related to timing of projected revenue
receipts and to maintain a budget stabilization commitment.
(5) Replenishing deficiencies. When fund balance falls below the minimum 16 percent, the city will
replenish shortages/deficiencies using the budget strategies and timeframes described below.
• The city will reduce recurring expenditures to eliminate any structural deficit;
or
• The city will increase revenues or pursue other fund sources; or
• A combination of the two options above.
Minimum fund balance deficiencies shall be replenished within the following
time periods:
• A deficiency resulting in a minimum fund balance between 16 percent and II
percent of the subsequent year's budgeted expenditures shall be replenished over
a period not to exceed one year.
• A deficiency resulting in a minimum fund balance between II percent and six
percent of the subsequent year's budgeted expenditures shall be replenished over
a period not to exceed three years.
(6) Surplus fund balance. Fund balance will be considered a surplus if over 21 percent of the
subsequent year's budgeted expenditures. Should unassigned fund balance of the general fund
ever exceed 21 percent, the city will consider such fund balance surpluses for one-time
expenditures that are nonrecurring in nature.
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