CITY OF HOMER

HOMER, ALASKA

                                                                                                              Wythe

RESOLUTION 06-100

 

A RESOLUTION OF THE HOMER CITY COUNCIL EXPRESSING ITS INTENT AND DESIRE REGARDING FUTURE BUDGET APPROPRIATIONS TO DEPRECIATION RESERVE ACCOUNTS AND THE CASH BALANCES IN THOSE ACCOUNTS.

 

WHEREAS, Maintaining healthy cash balances in depreciation reserve accounts is good fiscal policy because it provides security in the event emergency appropriations are needed and allows the City to repair and replace aging and outdated buildings and equipment as needed and on schedule, and

 

WHEREAS, Over the past ten years, the City has experienced relatively tight budgets and as a result, has been forced to limit contributions to depreciation reserve accounts, defer needed maintenance expenditures, and defer procurement of new equipment, and

 

WHEREAS, Over the past two budget cycles, the City Council has made a concerted effort to increase contributions to depreciation reserve accounts in response to new GASB 34 guidelines and the fact that the City’s buildings and equipment are aging and in need of repair and replacement, and

 

WHEREAS, In recent budget discussions, the City Council has identified increased contributions to depreciation reserve accounts and maintaining healthy cash balances in those accounts as a top fiscal priority.

 

NOW THEREFORE BE IT RESOLVED, That the Homer City Council finds that increasing appropriations to depreciation reserve accounts (building and fleet reserves) and gradually growing the cash balances in those accounts is sound fiscal policy and a worthy goal, and

 

BE IT FURTHER RESOLVED, That the Council hereby establishes a goal of gradually, over ten years, attaining a cash balance in depreciation reserve accounts equal to 40% of depreciable capital assets (excluding land), and

 

BE IT FURTHER RESOLVED, That the goal established above shall apply to all General Fund, Port and Harbor Enterprise Fund, and Water and Sewer Enterprise Fund depreciation reserve accounts.

 

PASSED AND APPROVED by the Homer City Council this 14th day of August, 2006.

 

CITY OF HOMER

 

 

ATTEST:                                                                     JAMES C. HORNADAY, MAYOR

MARY L. CALHOUN, CMC, CITY CLERK

 

Fiscal Note: Grow Cash Balances in All Depreciation Reserve Accounts to approximately 35 Million within 10 years.