2011 Approved Budget - Laserfiche WebLink

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J.� Pynose N rill Wal 11 '111, ir 100 It (11I tit U To provide working capital by ensuring sufficient cash flow to meet the City's needs throughout the year 9 The City will maintain ■ general fund reserve of 50% of the general fund's total annual operating budget. This ensures that the City has adequate funds on hand to provide for operations between bi-annual property tax collection periods. Any surplus beyond the required general fund reserve may be transferred to another reserve ftmd with a ftmding shortfall U The City will strive to create a reserve 'in the Recreation Fund to equal 25% of the annual recreation budget. This reserve will provide a cash flow cushion and reduce the inter-fund borrowing expense to the Recreation Fund. Because of more frequent cash inflows, a 25% reserve will be adequate to support the daily cash needs of the fund 3 The Community Development Fund 'is supported solely by building permit fees and charges. 6 Because the economic environment has a major effect IM Fund, a fund balance of 25-50 % of the annual budget i's a reasonable target. It is expected that r downturns takoi place, this reserve will provide for a transition period during which the Council will be able ti: assess and to better match operations with the economic need El All other operational funds e.g. License Center, Information Technology, etc are expected to operate with posve reserve balances of 10-25% of the annual operating budget. Each operational fund shall be reviewed on an annual basis to assure the fund balance is in line with the fund's objectives IMplementation All fund reserves shall be reviewed each year at the time of the annual budget preparation for the T-urpose of complying with this policy. Budgets shall be prepared on an "All Resources" basis, so that V the City Council and Community can readily discern the current and projected management of all