Anna would keep between 90 and 150 days of operating money in reserve under a 46-page set of financial policies the City Council is scheduled to adopt Tuesday, Nov. 17.
The manual, listed on the consent agenda for the council's special meeting, collects 12 separate policies covering accounting and audits, internal controls, cash handling, budgeting, revenue, spending, long-range planning, capital assets, fund balance, debt, purchasing and city purchasing cards. Director of Finance Terri Doby is listed on the item. The draft calls for the finance director to review the policies at least once a year.
Reserve target
The fund balance policy sets a goal of keeping unrestricted General Fund money between 25% of total appropriations, about 90 days of operations, and 40%, about 150 days. It calls 35%, or roughly 120 days, the ideal.
Falling below 25% would be "a cause for concern," the policy says, and anything over 40% would be considered excessive and moved to the city's Infrastructure Investment fund for capital projects or one-time equipment.
If the city dips below the 25% floor, the policy says it should rebuild to that level within one to three years.
Who signs off on purchases
The purchasing section spells out approval levels by dollar amount: designated supervisors up to $5,000, assistant directors to $10,000, department directors to $50,000, the city manager above that, and the council at $100,000 and up. Purchases from $3,000 to just under $100,000 need three written quotes, two of them from historically underutilized businesses as state law requires.
