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ggSgRpg pOLICIBS <br />pURPOSE <br />1. To provide a stable source of funding for those areas of <br />expenditure that fluctuate significantly from year to year; <br />i.e., equipment replacement and facility maintenance. <br />2. To provide a cushion against unexpected revenue problems. <br />3. To provide for working capital to ensure sufficient cash flow <br />to meet the City's needs throuqhout the year. <br />4. To maintain and improve the City's credit rating. <br />POLICY <br />� . The City will maintain a qeneral fund reserve at 44 percent <br />of the general and recreation fund'_= total annual operating <br />budget. <br />Any surplus beyond the required general fund reserve shall be <br />transferred to another reserve fund with a funding shortfall. <br />The City will establish an equipment reserve fund, and will <br />� appropriate funds to it annually to provide for timely <br />replacement of equipment. The amount will be maintained at <br />an amount equal to the accumulated depreciation plus 3 <br />percent to provide for equipment replacement. <br />The City will establish a physical plant maintenance reserve <br />fund, and will appropriate funds to it annually to provide <br />for timely maintenance of all buildings and plants supported <br />by the general fund. <br />: The City will establish a reserve fund to provide for physi- <br />� cal plant replacement; i.e., City Hall, maintenance garage, <br />etc. <br />30 <br />