2006_0717_Packet - Laserfiche WebLink

Home

Q City enterprise funds shall have operating cash reserves sufficient to provide for monthly cash flow, and for a reasonable level of equipment and infrastructure replacement. Major reconstruction or system upgrades, may need to be funded from enterprise revenue bonds. Annual utility rate reviews will be made in regard to projected operating expenses and capital improvements. The Council will, on an annual basis, establish rates in accordance to operating cost recovery and the projected capital improvements * Comment * the current reserve level for these funds are at acceptable levels except for the Water Fund. Above-injlation water rate increases will be needed each year for an estimated IO years to bring the Water Fund's financial condition to a level that is similar to all other City operations. The alternative is to transfer monies from other enterprise funds that have stronger-than-neededreserve levels ❑ All other operational funds e.g. License Center, Information Technology, etc are expected to operate with positive reserve balances of 10-25% ��5�x. ' of the annual operating budget. ��v�v��,t� �� E�;�–c��E� . . �t��j��t�. �1�� l�a��n�ea-E�;t�r�--l}e�L��r� r�r �I��-�l,�F r:n,;, �e�+�r��r�. Each operational fund shall be reviewed on an annual basis to assure the fund balance is in line with the fund's objectives C� A one time capital gain on the City's treasury portfolio in 1998 has provided for a Taxpaver Reduction fund which has been dedicated to providing an ongoing tax reduction to Roseville property taxpayers. The intent of this fund is to transfer the annual interest earninas to the General Fund to taartzal�v reduce the necessarv tax Iew. �#� ��,��,r�--�i;a�ss - �� ts ta redu�.� � �-��j�ii��d r��-��ri�i��--�3� �r��3��1�}+. �f�i��;a��a--��,�qg�fi��kat�r �° � ��T �hi� Fund has been formally cate�orized�� the Council as a permanent fund, whereb.��X the interest proceeds are used each vear for the stated t��mose. The ori�inai vrincival amount remains intact * Comment * the current reserve level for this fund is �1.9 million. While the original intent was to ensure that this fund remain separate from all others, low reserve levels in the City's key operatingfunds – specifically the General Fund, may warrant a transfer of these monies elsewhere. Implementation All fund reserves shall be reviewed each year at the time of the annual budget preparation. Budgets shall be prepared on an "All Resources" basis, so that the City Council and Community can readily discern the eurrent and projected managementof all reserves. —f2