12-13-2011 Agenda - Laserfiche WebLink

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charitable gambling. Street projects,equipment purchases, and renovations are programmed into the City's Capital Improvement Plan.and are generally planned years in advance. The City will strive to maintain fund balances in the Equipment Building&Replacement Fund,Public Safety Capital Fund,Parks Fund,and the Permanent Revolving Improvement Fund in an amount sufficient to support the ongoing capital expenditures planned in the CIP and in congruence with the.Long Range Financial Management Plan. Revenues not legally restricted will be assigned. 8. Enterprise Funds were established to account for the operation of Water, Sanitary Sewer, Recycling, and Surface Water Management. These operations are designed to be self-supporting from user charges. City enterprise funds shall have operating cash reserves sufficient to provide for monthly cash flow,and for a reasonable level of equipment and infrastructure replacement. Major reconstruction or system upgrades,may need to be funded from enterprise revenue bonds. Annual utility rate reviews will be made in regard to projected operating expenses and capital improvements. The Council will,on an annual basis,establish rates in accordance to operating cost recovery and the projected capital improvement. 9. Internal Service Funds were established to account for operations which are designed to be self- supporting from"internal"user charges. a. Risk Management Fund This fund was established to pool dividends received the City's insurance providers for positive claims experience. This funds tracks dividend revenues and deductible costs for claims. The goal of this fund is to build a fund balance that would allow the City to increase deductible limits in order to reduce premium costs. Dividends from the City's health. insurance provider are also used to provide wellnessprograms. Funds received from the League of Minnesota Cities Insurance Trust are committed while funds received from the City's health insurance carrier are assigned. b. Engineering This fund is used to account for the provision of engineering services to development projects. infrastructure projects,and the City in general. This fund is financed predominantly through user charges both internally and externally to developers and is normally not expected to carry a fund balance at year-end. c. Central Garage and Equipment 7, This fund is used to account for the materials, supplies,and expenses of the Central Garage and equipment of Public Works which is comprised of the following departments., Streets,Parks,Water, Sanitary Sewer,and Surface Water Management. This fund is financed predominantly through user charges internally to the public works departments. Fund balance is assigned for the purchase,replacement,and repair of equipment and vehicles used by public works. &iO. Fund balances will be designated-assigned according to the above guidelines up to the amount available after restrictions and other designation3commitments. This policy is not intended to require the reporting of deficit undesignated-unassigned fund balances. • P:\Finance\Policies and Procedures\Policies\Funli Balance Policy-2011.docP:\Financc\Polioie5 and Proocdrrres\Policies\Fund Balance Policy.doc Last p..:.,tee r 1 it 0/one n 2 1 Pr u°dopted 11/28/2011