HomeMy Public PortalAbout2006-111 (06-20-06)RESOLUTION NO. 2006.111
A RESOLUTION OF THE LYNWOOD CITY COUNCIL
ADOPTING THE CITY OF LYNWOOD'S POLICY
ON BALANCED BUDGETS
WHEREAS, the Government Finance Officers Association (GFOA) recommends
that jurisdictions adopt policies that define a balanced budget, encourage commitment
to balanced budgets under normal circumstances, and provide for disclosure when a
- deviation from a balanced budget is planned, or when it occurs; and
WHEREAS, balanced budgets ensure responsible use of the taxpayers' dollars
to provide City services;
WHEREAS, unbalanced budgets can lead to increased irharest charges, thereby
reducing funds available for operations and services; avid
RESOLVED: that the City Council of the City of Lynwood hereby finds,
determines, declares and resolves as follows:
Section 1. All of the recitals set forth above are true and correct.
.Section 2. The City Council hereby adopts a balanced budget policy, as set
forth below:
CITY OF LYNWOOD'S POLICY ON BALANCED BUDGETS
,_ I. Purpose/Definition
The City shall adopt balanced budgets, i.e., containing appropriated revenues
equal to appropriated expenditures. This policy entails the following additional
definitions and qualifications:
1. The budget must be balanced at an individual fund level.
2. City policies on reserve requirements for individual funds must be taken
into account. The appropriated expenditures to be included in the
balanced budget equation must include the appropriations necessary to
achieve or maintain an individual fund's reserve target.
3. Appropriated revenues can include transfers from fund balance where
such fund balance is reasonably expected to exist by the end of the fiscal
year preceding the year of the adopted budget. Transfers from fund
balance are not to be counted as revenue if the fund balance is not
reasonably expected to exist by the end of the fiscal year proceeding the
year of the adopted budget. (Note: The precise definition of 'fund balance'
will vary from fund to fund, depending on the fund's characteristics and
accounting treatment.)
II. General Responsibilities
The City Manager shall be responsible for ensuring that the budget proposed to
the City Council by the City Manager adheres to the balanced budget policy.
III. Annual Monitoring & Reporting
Each fiscal year, once financial audit results have been made available, the City
Manager shall produce a report to the City Council, for each fund in which current
year appropriations exist, whether the actual year-end data from the prior year
has caused any individual fund to be in violation of the balanced budget policy. If
so, the City Manager shall recommend steps to be taken to bring that fund back
into compliance with the policy.
SECTION 3. This resolution shall become effective immediately upon adoption.
PASSED, APPROVED AND ADOPTED this 20`h day of June, 2006.
ATTEST:
Andrea L. Hooper
City Clerk
APPROVED AS TO FORM:
o t~~c~
Ci y Attorney
LETICIA VASOUEZ OR
AP AS O ONTENT:
r
N. Enri Ma Inez, it Manager
J
STATE OF CALIFORNIA )
)SS.
COUNTY OF LOS ANGELES )
I, the undersigned, Secretary of Lynwood Information Inc, do hereby
certify that the foregoing Resolution was passed and adopted by the City Council
of the City of Lynwood at a regular meeting held on the 20th day of
JUNE ,2006.
~I AYES: COUNCILMEMBERS, BYRD, JOHNSON, PEDROZA, SANTILLAN, AND VASQUEZ
~_
NOES: NONE
ABSENT: NONE
A~BST~A~IN: NON/E ~~
L~f'k-ice-.c- O~, ~v-~`'`7¢.e~~
Andrea L. Hooper, City Clerk
STATE OF CALIFORNIA )
)SS.
COUNTY OF LOS ANGELES )
I, the undersigned, Secretary of the Lynwood Information Inc, do hereby
~ certify that the above foregoing is a full, true and correct copy of Resolution No.
2006.111 on file in my office and that said Resolution was adopted on the
date grid by the vote therein stated.
Dated this 20th day of JUNE , 2006.
~h~ ~ ~~
Andrea L. Hooper, City Clerk