Chapter 1 · Administration
Article 7. Revenue, Finance & Community Development
1-701 Employee benefits contribution fund.
(a)The City of Andale, in accordance with the provisions of K.S.A. 12-16,102, does hereby establish an employee benefits contribution fund for the purpose of paying the city’s share of employee benefits prescribed by subsection (b).
(b)The city’s share of the cost of employee benefits authorized for payment from the fund created by subsection (a) shall include the following:
(1)Social Security (FICA);
(2)Kansas Public Employees Retirement (KPERS);
(3)Worker’s compensation benefits;
(4)Employment security and unemployment compensation benefits;
(5)Medical, health and hospitalization insurance and other health care costs.
(Ord. 89-6; Code 2021)
1-702 Main trafficway designations for bond financing purposes.
(a)The following are designated as main trafficways of the city pursuant to K.S.A. 12-685 et seq. for purposes of bond financing certain improvements:
(1)Ven John Street;
(2)Dale Street;
(3)Magnolia Street;
(4)Sherman Street;
(5)Fourth Avenue;
(6)Anderson Avenue;
(7)Second Avenue;
(8)First Avenue; and
(9)First Street.
(K.S.A. 12-685 et seq.; Ord. 88-5; Ord. 3-3; Code 2021)
1-703 Municipal equipment reserve fund.
There is hereby established a Municipal Equipment Reserve Fund which shall be used by the City to finance the acquisition of equipment, including machinery, vehicles, and other personal property necessary for the future operation of the City.
(K.S.A. 12-1,117; Ord. 91-6; Code 2021)
1-704 General fund reserve policy.
(a)Purpose and policy. It is the policy of the City to maintain prudent General Fund reserves sufficient to:
(1)provide adequate working capital throughout the City's annual revenue and expenditure cycle;
(2)maintain essential municipal services during and immediately following emergencies or disasters;
(3)mitigate the effects of significant economic downturns, revenue shortfalls, or other unexpected adverse fiscal conditions;
(4)provide reasonable financial flexibility to address extraordinary and nonrecurring expenditures or opportunities; and
(5)promote long-term financial stability, creditworthiness, and responsible fiscal planning.
(b)General fund reserve structure and legal character. For purposes of this Resolution, the City’s General Fund reserves shall be known as the “General Fund Stabilization Reserve” or “Stabilization Reserve.” The General Fund Stabilization Reserve is hereby established solely as a designated reserve, budgetary classification, account, or subaccount within the City's existing General Fund. The Stabilization Reserve:
(1)is not a separate statutory fund within the meaning of K.S.A. 79-2925 or any other provision of Kansas law;
(2)shall always remain part of the City’s General Fund unless money is lawfully transferred to another statutory fund pursuant to independent statutory authority;
(3)may be separately identified in the City's budget, accounting records, financial statements, and supporting schedules for purposes of fiscal management and transparency without thereby becoming a separate statutory fund; and
(4)shall not be referred to or accounted for in a manner suggesting that the City has created a separate statutory “Stabilization Fund.”
A designation, allocation, release, or reclassification of General Fund money to or from the Stabilization Reserve is an internal allocation within the General Fund and is not a transfer from one statutory fund to another.
(c)Reserve build-up and targets:
(1)The City shall endeavor to devote 75% or more of any potential sales tax revenue to the Stabilization Reserve until the Stabilization Reserve amount reaches $2.3 million, after working to keep property taxes at or under the Revenue Neutral Rate.
(2)The City shall also endeavor to devote all income of the City generated by deposits or investments to the Stabilization Reserve.
(3)The City shall endeavor to maintain a Stabilization Reserve equal to approximately $2 million.
(4)This is a fiscal-management target and not a mandatory expenditure, taxation, or levy requirement.
(5)This target is separate from the nonappropriated balance permitted by K.S.A. 79-2927 and shall not be construed to enlarge the maximum nonappropriated balance authorized by that statute.
(d)Designation and ongoing funding of stabilization reserve.
(1)Following the City's year-end closing and determination of the actual General Fund balance, City staff shall determine the amount of unrestricted, unencumbered, and otherwise legally available General Fund resources.
(2)To the extent the Stabilization Reserve is below its target, available year-end General Fund balances should ordinarily be designated first toward replenishment of the Stabilization Reserve.
(3)The Governing Body may also designate available General Fund resources to the Stabilization Reserve during adoption or amendment of the annual budget or by separate resolution.
(4)No provision of this Resolution requires the Governing Body to levy a tax, increase a tax or fee, or otherwise generate additional revenue solely for the purpose of attaining a reserve target.
(e)Authorized use of stabilization reserve. Amounts designated to the Stabilization Reserve may be released for expenditure for any lawful General Fund purpose. Once the Stabilization Reserve build-up target of $2.3 million is reached, the governing body may withdraw annually, while maintaining a Stabilization Reserve balance equal to approximately $2 million. At the discretion of the governing body, exceptions could be made for massive capital needs of the city, after which the Stabilization Reserve Target would be replenished before additional spending from the Stabilization Reserve occurs.
The Stabilization Reserve should not ordinarily be used to establish or permanently support new recurring programs, recurring personnel costs, or other ongoing expenditures. Temporary use for recurring expenditures is permissible during a qualifying circumstance under this Section when the Governing Body determines such use is necessary and a plan exists to transition the expenditure to recurring revenues, reduce the expenditure, or otherwise eliminate continuing reliance upon the Stabilization Reserve.
(f)Governing body authorization required. No amount designated to the Stabilization Reserve shall be released for expenditure except by:
(1)express provision in the City's duly adopted or lawfully amended annual budget; or
(2)vote of the Governing Body authorizing such use.
(3)An authorization under this Section constitutes a release or reallocation of internally designated General Fund resources. It does not constitute a transfer from a separate Stabilization Fund into the General Fund.
(4)Nothing in this Resolution independently increases the City’s lawful expenditure authority. If use of the Stabilization Reserve would require amendment of the City's adopted General Fund budget under K.S.A. 79-2929a or other applicable law, the required budget amendment shall be completed before expenditures requiring such amendment are incurred.
(g)Replenishment and restoration.
(1)If the Stabilization Reserve is below its target, available year-end General Fund resources should ordinarily be designated toward replenishment of the Stabilization Reserve.
(2)If the combined General Fund reserves fall materially below the target established by subsection (c), the City Administrator or other designee shall submit to the Governing Body, in conjunction with the next annual budget, a reasonable plan for restoration of the Stabilization Reserve.
(h)Budgeting and accounting.
(1)The City's annual budget, budget worksheets, or supporting financial schedules shall separately identify the Stabilization Reserve within the General Fund to the extent reasonably permitted by the budget forms and accounting system used by the City.
(2)The Stabilization Reserve shall not be treated as an additional nonappropriated balance in excess of the limitation contained in K.S.A. 79-2927.
(3)To the extent required by the Kansas Budget Law or the budget forms prescribed by the State of Kansas, amounts intended to be retained as the Stabilization Reserve shall be reflected as an identified General Fund reserve appropriation, expenditure classification, or other lawful budgetary designation rather than as an additional nonappropriated balance.
(4)At the conclusion of each budget year, any General Fund cash or balance attributable to an unused reserve appropriation remains part of the General Fund and shall be carried forward as provided by K.S.A. 79-2934. The succeeding year’s budget should, when appropriate, again identify the amount intended to constitute the Stabilization Reserve.
(5)Nothing in this Resolution shall be construed as creating a perpetual appropriation or expenditure authority extending beyond that provided by the City’s duly adopted annual or amended budget.
(Res. 4-26)