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DRAFT <br />8. Enterprise Funds were established to account for the operation of Water, Sanitary Sewer, <br />Recycling, and Surface Water Management. These operations are designed to be self-supporting <br />from user charges. <br /> <br />City enterprise funds shall have operating cash reserves sufficient to provide for monthly cash <br />flow, and for a reasonable level of equipment and infrastructure replacement. Major <br />reconstruction or system upgrades, may need to be funded from enterprise revenue bonds. <br />Annual utility rate reviews will be made in regard to projected operating expenses and capital <br />improvements. The Council will, on an annual basis, establish rates in accordance to operating <br />cost recovery and the projected capital improvement. <br /> <br />9. Internal Service Funds were established to account for operations which are designed to be self- <br /> <br /> <br />a. Risk Management Fund <br /> <br />positive claims experience. This funds tracks dividend revenues and deductible costs for <br />claims. The goal of this fund is to build a fund balance that would allow the City to increase <br />insurance provider are also used to provide wellness programs. Funds received from the <br />League of Minnesota Cities Insurance Trust are committed while funds received from the <br /> <br /> <br />b. Engineering <br /> <br />This fund is used to account for the provision of engineering services to development <br />projects, infrastructure projects, and the City in general. This fund is financed predominantly <br />through user charges both internally and externally to developers and is normally not <br />expected to carry a fund balance at year-end. <br /> <br />c. Central Garage and Equipment <br /> <br />This fund is used to account for the materials, supplies, and expenses of the Central Garage <br />and equipment of Public Works which is comprised of the following departments; Streets, <br />Parks, Water, Sanitary Sewer, and Surface Water Management. This fund is financed <br />predominantly through user charges internally to the public works departments. Fund <br />balance is assigned for the purchase, replacement, and repair of equipment and vehicles used <br />by public works. <br /> <br /> <br />d. Technology <br /> <br />This fund is used to account for the materials, supplies, and expenses related to technology. <br />This fund is financed predominantly through user charges internally to City departments. <br />Fund balance is assigned for the purchase, replacement, and repair of equipment and licenses <br />related to technology. <br /> <br /> <br /> <br />10. Fund balances will be assigned according to the above guidelines up to the amount available after <br />restrictions and other commitments. This policy is not intended to require the reporting of deficit <br />unassigned fund balances. <br /> <br />Revised 04/28/2014 <br />