Laserfiche WebLink
. made. The designations established through this policy shall be used in designating funds <br /> for the year-end financial statement purposes. <br /> 3. The General Fund balance shall be designated as of December 31st for the following <br /> purposes in the amounts described below: <br /> a. The City will maintain a general fund reserve of 50% of the general fund's total <br /> annual operating budget. This ensures that the City has adequate funds on hand to <br /> provide for operations between bi-annual property tax collection periods <br /> b. The City will maintain an amount sufficient to cover accumulated vacation and <br /> compensatory time balances and that portion of PTO leave that would be payable <br /> under the City's severance pay policy or union contracts. This amount shall be <br /> adjusted annually as part of the year-end close and annual financial report <br /> process. <br /> c. For specific purposes as authorized by the City Council. <br /> Funds shall be designated first for compensated absences, second for cash flow needs and <br /> lastly for emergencies/contingencies. <br /> 4. The amount of the General Fund balance greater than the sum of all General Fund <br /> • designations will be transferred to a fund or funds determined by the City Council. Such <br /> transfer is pursuant to Council approval. <br /> 5. Fund balances held in Special Revenue Funds or Capital Project Funds for future <br /> program and/or project costs and not yet legally obligated will be designated. <br /> 6. Fund balances in Debt Service Funds for future debt payments will be designated. <br /> 7. City enterprise funds shall have operating cash reserves sufficient to provide for monthly <br /> cash 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 <br /> capital improvements. The Council will, on an annual basis, establish rates in accordance <br /> to operating cost recovery and the projected capital improvement. <br /> 8. Fund balances will be designated according to the above guidelines up to the amount <br /> available after other designations. This policy is not intended to require the reporting of <br /> deficit undesignated fund balances. <br /> • <br /> \\Metro-inet\ArdenHills\Finance\Policies and Pracedures\Policies\Fund Balance Policy.doc <br /> Last printed 1/4/2008 3:03 PM <br />