Resolution 5578 - Fiscal Policy! ! ,.:�; !.:
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WHEREAS, the City Council acknowledges that the City of Kalispell, as a local government,
is vulnerable to economic uncertainty, unanticipated events, credit rating
assignments, and potential shortfalls in revenue cycles within any respective
budget year; and
WHEREAS, it is the desire of the City Council that the city sustain a strong financial
foundation for unassigned fund balances, but to also uphold a financial culture
that does not sacrifice the provision of municipal services merely for the sake of
fiscal targets; and
WHEREAS, the Government Finance Officers Association in Best Practice "Appropriate Level
of Unrestricted Fund Balance in the General Fund" identifies that a general
purpose government, regardless of size, should maintain an unrestricted fund
balance in its general fund of no less than two months (16.7%) of general fund
operating revenues or expenditures;" and
WHEREAS, the City Council hereby finds that it is prudent and in the best interests of the city
to establish a specific policy to guide the development and maintenance of the
level of unassigned fund balance within the general fund.
NOW THEREFORE BE IT RESOLVED by the Council of the City of Kalispell, Montana
that:
SECTION I. The targeted ending unassigned fund balance in the general fund shall be
20% of the annual general fund revenues for that respective fiscal year.
SECTION H. Should events occur that require the use of the unassigned fund balance
that lowers it below the 20% level, budgeting adjustments shall be made
in the following year that realigns the unassigned fund balance toward, if
not to the 20% amount.
SECTION III. Unassigned fund balances above 20% will be budgeted toward
municipal operations so as to not create an excessive unassigned balance
of taxpayer provided funds.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF
THE CITY OF KALISPELL, THIS 20TH DAY OF AUGUST, 20 2.
Tammi Fisher
ATTEST: Mayor
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Theresa White
City Clerk