Title
Consider/Discuss/Act on a Resolution Adopting the Fiscal Year 2016-2017 Financial Policies
Summary
COUNCIL GOAL: Financially Sound Government
MEETING DATE: September 20, 2016
DEPARTMENT: Financial Services
CONTACT: Mark Holloway, Interim Chief Financial Officer
RECOMMENDED CITY COUNCIL ACTION:
• Adopt the Fiscal Year 2016-2017 Financial Policies
ITEM SUMMARY:
• The City of McKinney shall take action to annually adopt the financial policy.
• This policy, which is included in the annual budget, is used by the external auditor to ensure that prudent financial management is being practiced.
• Updates to the Financial Policies accommodate the City’s current charter and operating practices including:
o The basis of budgeting for capital projects to reflect the City’s annual adoption of unspent balances on multi-year projects in capital project funds
o Removal of appropriation ordinance language revised by the last charter election
o Budget transfers between expenditure accounts within a department to be approved by the newly created Budget Director position
o Removal of the risk/insurance reserve on General Fund balance language
§ There has not been a reservation of General Fund balance for this purpose since the Risk/Insurance Internal Service Fund was established in FY13
BACKGROUND INFORMATION:
• The City adopts financial policies to provide a stable financial base at all times. The policy establishes that sufficient funds be retained to provide cash flows as needed for the financial operations of the City.
FINANCIAL SUMMARY: N/A
BOARD OR COMMISSION RECOMMENDATION: N/A