Laserfiche WebLink
Operating Fund Reserve Policy <br />P ose <br />^ To provide a cushion against unexpected revenue and income interruptions <br />^ To provide working capital by ensuring sufficient cash flow to meet the City's needs <br />throughout the year <br />Po v <br />^ The City will maintain a general fund reserve of 50% of the general fund's total annual <br />operating budget. This ensures that the City has adequate funds on hand to provide for <br />operations between bi-annual property tax collection periods. Any surplus beyond the <br />required general fund reserve maybe transferred to another reserve fund with a funding <br />shortfall <br />^ The City will strive to create a reserve in the Recreation Fund to equal 25% of the <br />annual recreation budget. This reserve will provide a cash flow cushion and reduce the <br />inter-fund borrowing expense to the Recreation Fund. Because of more frequent cash <br />inflows, a 25% reserve will be adequate to support the daily cash needs of the fund <br />^ The Community Development Fund is supported solely by building permit fees and <br />charges. Because the economic environment has a major effect on this Fund, a fund <br />balance of 25-50 % of the annual budget is a reasonable target. It is expected that as <br />economic downturns take place, this reserve will provide for a transition period during <br />which the Council will be able to assess and to better match operations with the <br />economic need <br />^ City enterprise funds shall have operating cash reserves sufficient to provide for <br />monthly cash flow, and for a reasonable level of equipment and infrastructure <br />replacement. Major reconstruction or system upgrades, may need to be funded from <br />enterprise revenue bonds. Annual utility rate reviews will be made in regard to <br />projected operating expenses and capital improvements. The Council will, on an annual <br />basis, establish rates in accordance to operating cost recovery and the projected capital <br />improvements <br />^ All other operational funds e.g. License Center, Information Technology, etc are <br />expected to operate with positive reserve balances of 10-25% of the annual operating <br />budget. Each operational fund shall be reviewed on an annual basis to assure the fund <br />balance is in line with the fund's objectives <br />^ A one time capital gain on the City's treasury portfolio in 1998 has provided for a <br />Taxpayer Reduction fund which has been dedicated to providing an ongoing tax <br />reduction to Roseville property taxpayers. The intent of this fund is to transfer the <br />