Christopher M. Quinn, MACC, CPA, CFE, CGFO, CGMA Finance Director

Purpose of Policy  Establish level of “Working Capital” (cash) in operating & other funds  Hedge against sudden decreases in revenue or unexpected expenditures  Provide guidance for increasing/decreasing levels of fund balance

Why Update?  Changes in GASB terminology Net Assets = Net Position  Changes in operations or goals of specific funds  Newly established funds to include in the policy  Existing funds not previously included

Proposed Changes  “Net Position” terminology  Tennis Center & Golf Course operations  Establish policy for existing internal services funds

Tennis & Golf Funds Auditor suggested we consider policy changes to reflect actual operations. Option 1  Eliminate minimum level of fund balance required  Support as needed from General Fund Option 2  Incorporate into General Fund as part of our Parks & Recreation budget, Examples: Pool, Indian Trails Sports Complex

Internal Services Funds  Fleet Fund Minimum level set at total amount of estimated fleet replacements, divided by estimated average life Consistent with current practice

Internal Services Funds  Self Insured Health Fund Minimum level set at 50% of difference between expected cost & maximum cost Consistent with current practice

Next Step  Approve Resolution updating the Fund Balance Policy