HomeMy Public PortalAboutResolution No. 580-23 08-28-2023 RESOLUTION NO. 580-23
A RESOLUTION OF THE RICHLAND HILLS CITY COUNCIL FOR THE
PURPOSE OF ESTABLISHING THE STRATEGIC INITIATIVE FUND
AND SETTING GUIDELINES FOR THE ANNUAL TRANSFER FROM
THE GENERAL FUND TO THE STRATEGIC INITIATIVE FUND
WHEREAS, during the Fiscal Year 2023 budget process the City Council desired
to establish the Strategic Initiative Fund to provide funding for special projects and one-
time expenditures with excess General Fund reserves; and
WHEREAS, the City's adopted Financial Management Policies state that the
unassigned fund balance of the General Fund should be a minimum of 90 days
(24.66%) of the General Fund annual expenditures; and
WHEREAS, the City Council desires to adhere to the financial policy for the
General Fund of 90 days of fund balance and maintain an additional level of reserve in
the amount of $400,000 in determining the annual calculation of transfer from the
General Fund to the Strategic Initiative Fund; and
WHEREAS, in Fiscal Year 2023, the City Council made an initial transfer of
$2,400,000 from the unassigned fund balance of the General Fund to provide initial
funding for the Strategic Initiative Fund.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF RICHLAND HILLS, TEXAS, THAT:
The formula for the annual calculation of the transfer from the General Fund to
the Strategic Initiative Fund is as follows:
General Fund threshold for transfer of fund balance:
1. General Fund Budgeted Expenditures and Transfers to be multiplied by 24.66%
plus $400,000.
2. This calculated General Fund threshold will be subtracted from the most recently
audited unassigned Fund balance of the General Fund (current fiscal year
amount available for transfer).
3. This current fiscal year amount available for transfer can be transferred to the
Strategic Initiative Fund in the current fiscal year.
4. This amount will be evaluated annually during the budget process to determine if
there is sufficient funding for the transfer to the Strategic Initiative Fund.
5. In the event the calculated General Fund threshold for transfer of fund balance is
less than $0.00, a transfer can be made back to the General Fund of
unencumbered funding in the Strategic Initiative Fund.
APPROVED AND ADOPTED at a regular called meeting of the Richland Hills
City Council on August 28, 2023, by a vote of ayes, nays, and
abstentions.
APPROVED:
The Honorable Mayor Edward Lopez
ATTEST:
ICL
\ (1 0,ff.-- --'r----
indsay Ra in n, City Secretary
\‘y0. R....
`- r I'
7
•
,i / 'y
'/„, . •••...... •s'A .,:,
,,,!J'ioi/IIIII1i1111\1\\\00\\
Resolution No. 580-23, Page 2 of 2