Laserfiche WebLink
�02 <br />103 <br />104 <br />105 <br />]06 <br />�07 <br />108 <br />109 <br />110 <br />111 <br />112 <br />113 <br />114 <br />115 <br />X16 <br />� �'� <br />118 <br />119 <br />12Q <br />121 <br />122 <br />City of <br />���� A� ,.�I� <br />Minnesota USA <br />, <br />P�nse <br />Operati�ng Fund. Reserve Policy <br />0 Ta �a�avide a cus�ion against unexpected revenue and income interruptions <br />0 To pravide working capi�ai by er�suring su�ficient cas� flow to meet ti�e Ciiy's needs <br />thrnug�out t�e year <br />Pa,iicv <br />CI The City will maintain a general fu�d reservc of SO% of ihe ge�eral fiand`s tatal a�ual <br />operating budget. This �nsures that t�e C�# has ade uate fun.ds on hand �o rovid� for <br />a e�a�ians between bi-annual rn ert �a� col�ection eriads. Any suxplus beyond �he <br />required general f�nd. reserve rr�ay be transfer�ed ta another reser�ve fu�d with a funding <br />shartfall <br />�` Comntent * the cur�ent �es�rve level fot� this fund is only 3D%. An <br />additional $2 millian is needed to comply with thi� paZicy. Current <br />Gene�al Fund revenues and budgeting practices are unlikely to produce <br />the surpluse� needed to co�nply with this policy. <br />123 <br />�24 0 The City wi�l s�rive tn create a xeser�e in the Recxeation Fund �a equa� 2S% of �he <br />125 anr�ual recreatian budget. This areserve will pravide a cash flow cus�zan and reduce the <br />126 inter-firnd banrowing expense ta ihe Recreatio�: Fund. B�cause of anr�ore freq�ent cash <br />127 inflo�vs, a 25% reserve wili be ac�equate to sup�ort t�ie daily cash needs o�the %r�d <br />12S <br />129 <br />130 <br />�31 <br />132 <br />133 <br />134 <br />135 <br />136 <br />137 <br />138 <br />139 <br />140 <br />141 <br />142 <br />* Comment * the cu�rent reserve level for this fund is 5%. An additional <br />$800 thou,rand is needed to comply with this policy. Cut��^ent Rec�eation <br />p�og�aYn fee rnechanisrns and bud'geting pYactices are unlikely to produce <br />the su�pduses needed to cornply with this policy. <br />❑ T�e Cozx�munity Develop�ez�t Fund is supported solely by bui�ding permit �ees and <br />charges. Because the econamic enviroza;ment has a major effect an this Fund, a fund <br />balance of 25-50 %�-A&�� of the annual budget is a reasanable target �. It is <br />ex�ected tha� as ecano�ic downturns take place, this reserve wi�l pxovide for a <br />transitian period during whzch the Council will be able �:o assess and ta better match <br />operations with the econoz�a.ic z�eed <br />* Comment * the cur�ent �eseYVe level fa� this fund is at 35%. <br />0 <br />