RES 2006-02TOWN OF TROPHY CLUB I
RESOLUTION NO. 2006-03
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A RESOLUTION BY THE TOWN OF TROPHY CLUB, TEXAS ESTABLISHING
A NINETY DAY OPERATING FUND TO FINANCE TOWN EXPENDITURES
DURING THE FIRST THREE (3) MONTHS OF THE FISCAL YEAR AND
ESTABLISHING A CONTINGENCY RESERVE FUND TO FLND
UNEXPECTED EMERGENCIES; ADOPTING THE CALCULATIONS AND
THE METHODOLOGY TO ESTABLISH THOSE FUNDS IN ACCORDANCE
WITH ATTACHMENT "A"; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the Town Council of the Town of Trophy Club, Texas desires to establish an
Unencumbered Fund balance equivalent to ninety days operating expense to finance Town activities
during the first three (3) months of the Fiscal Year; and
WHEREAS, the Town Council of the Town of Trophy Club, Texas desires to establish an
Contingency Reserve Fund to provide a sense of continuity, and provide a means for dealing with
unexpected emergencies; and
WHEREAS, the calculation of such operating funds will be established each fiscal year after the
Budget is adopted, but prior to the adoption of the tax rate; and
WHEREAS, the formula used to calculate the reserves required will follow the methodology as
set forth in the 90 DAY OPERATING FUND CACULATION as set forth in Attachment A.
NOW, THEREFORE BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN
OF TROPHY CLUB, TEXAS THAT:
Section 1. A 90 DAY OPERATING F'UND and a CONTINGENCY RESERVE be
established using the calculations and methodology as set forth in Attachment A, a copy of which is
attached hereto and incorporated herein.
Section 2. This resolution shall become effective and be in full force and effect from and after
the date of passage and adoption by the Town Council of the Town of Trophy Club, Texas.
Passed and adopted by the Town Council of the Town of Trophy Club, Texas, this the 6th day of
March, 2006.
Mayor
Town of Trophy Club, Texas
ATTEST:
Town secretai-y /
Town of Trophy Club, Texas
APPROVED AS TO FORM:
Town of Trophy Club, Texas
ATTACHMENT "A"
Recommend
Calculation
114 operating revenues less AV Taxes
Sales Taxes 416,000
Franchise fees less TXU ( not pd till June) 1 14,413
Permits etc 692,840
DPS 1,016,032
Park Rev 70,223
Misc Revenues 324,918
Total 2,634,426
114 Exp
Less operating rev less AV Taxes
Plus
Contingency Reserve - (Total net Capital
Expenses times 2% - $5,264,922 X 2%) 105,298
Alternative of 4% for Contingency Reserve $210,597