[1]
Editor's Note: The City of Leadington Investment Policy is
included as an attachment to this Chapter.
[Ord. No. 275, 10-11-2011]
It hereby is declared to be the policy of the City of Leadington,
Missouri, to diligently and efficiently manage the financial resources
of the City of Leadington in the most beneficial manner possible and
to increase the non-tax revenues of the City by investing available
cash when it is not needed for current obligations.
[Ord. No. 275, 10-11-2011]
The goals of the policy are to develop a written program of
cash management, to increase the availability of cash by improving
the control on receipts and disbursements, to increase the interest
earnings of the City by more aggressive investment practices, and
to decrease the borrowing costs of the City by better understanding
the flow of cash and careful scheduling of cash disbursements.
[Ord. No. 275, 10-11-2011]
The City Clerk hereby is charged with the duty of carrying out
and implementing the policies and goals established herein.
[Ord. No. 275, 10-11-2011]
The City Clerk is requested to make monthly reports to the Board
of Aldermen on the progress and success in implementing these policies
and goals. These reports, besides showing current investments and
interest earnings, may include recommendations for actions by the
Board of Aldermen to improve the cash management practices of the
City.
[Ord. No. 301, 9-9-2014]
The City of Leadington has enacted the following policy in an
effort to ensure financial security through the maintenance of a healthy
reserve fund that guides the creation, maintenance, and use of resources
for financial stabilization purposes. The City's primary objective
is to maintain a prudent level of financial resources to protect against
reducing service levels or raising taxes and fees due to temporary
revenue shortfalls or unpredicted one-time expenditures. The City
also seeks to maintain the highest possible credit ratings which are
dependent, in part, on the City's maintenance of a healthy fund balance.
[Ord. No. 301, 9-9-2014]
As used in this Article, the following terms shall have the
meanings indicated:
Amounts a government intends to use for a specific purpose;
intent can be expressed by the Governing Body or by an official or
body to which the Governing Body delegates the authority.
Amounts constrained to specific purposes by a government
itself using its highest level of decision-making authority; to be
reported as committed, amounts cannot be used for any other purpose
unless the government take the same highest-level action to remove
or change the constraint.
The excess of assets over liabilities in a governmental fund.
Amounts that are not in a spendable form (such as inventory)
or are required to be maintained intact (such as the corpus of an
endowment fund).
Amounts constrained to specific purposes by their providers
(such as grantors, bondholders, and higher levels of government) through
constitutional provisions or by enabling legislation.
Amounts a government intends to use for a specific purpose;
intent can be expressed by the Governing Body or by an official or
body to which the Governing Body delegates the authority.
Amounts that are available for any purpose; these amounts
are reported only in the General Fund.
[Ord. No. 301, 9-9-2014]
A.
The fund balance of the City's General Fund has been accumulated
to meet this purpose, to provide stability and flexibility to respond
to unexpected adversity and/or opportunities.
B.
The target is to maintain an unrestricted fund balance of not less
than seventeen percent (17%) of annual operating expenditures for
the fiscal year.
C.
The City's basic goal is to maintain annual expenditure increases
at a growth rate, and to limit expenditures to anticipated revenue
in order to maintain a balanced budget. The decision to retain an
unrestricted fund balance of not less than seventeen percent (17%)
of operating expenditures stems from the following:
1.
This amount provides adequate funding to cover approximately
two (2) months of operating expenses.
2.
This amount provides the liquidity necessary to accommodate
the City's uneven cash flow, which is inherent in its periodic tax
collection schedule.
3.
This amount provides the liquidity to respond to contingent
liabilities.
4.
The Government Finance Officers Association recommends the minimum
General Fund unrestricted fund balance to be maintained should be
no less than either two (2) months of regular operating revenues or
expenditures.
D.
Beginning in 2011, unassigned fund balance shall be any remaining
amounts.
E.
This policy may be amended from time to time per the Board of Aldermen.
[Ord. No. 301, 9-9-2014]
Any person who violates any provision of this Chapter shall, upon conviction, be deemed guilty of an ordinance violation and shall be punished as set out in Section 100.220 of this Code.
