HomeMy WebLinkAbout(1996, 02/26) - F-2 - AmendedF -2
RESERVES/DESIGNATIONS OF FUND BALANCE
PURPOSE:
To establish the policy for the reserve or designation of fund balance for the City's
funds as required.
POLICY:
General Fund Stabilization Reserve - The City Council has determined at a Stabilization
Reserve be created and that the balances in the Stabilizatio Reserve shall be
maintained with not less than fifteen percent (15 %) of the appr priation budget total
within the General Fund of the City's annual approved bud t If, at any time, this
reserve falls below fifteen percent the City Manager shall d elop a plan to restore the
reserve to fifteen percent over a three to five year peri , depending on the fiscal
circumstances affecting the City. This restoration pl shall be presented to and
approved by the City Council.
Said Reserve will not be a line item appropriatioy(, but is to be a designation of the
General Fund fund balance that may be used at a discretion of the City Council for
emergencies or unanticipated expenditures.
Water System Reserve - The minimum opera ' g reserve (unappropriated funds) should
exceed the amount necessary to operate a system and provide water for two (2)
months. These funds shall be used for ergency repair to the water system and, if
used, shall be restored within three fis 1 years. It will be the City's goal to maintain
reserves at a level higher than the mi ' um.
The City's goal is to maintain a W er System Reserve balance that exceeds the amount
necessary to operate the system a d provide water for six (6) months, plus an amount
equal to one -half of the avera annual Budget for Water Enterprise Fund capital
improvement projects. The a rage annual budget for capital improvement projects
shall be based on the last five ) fiscal years. See also Policy L -20, Water Rates.
Future Water Infrastructure Reserve - Certain water capital projects may extend over
several budget years, and it may be necessary to set aside funds for these larger projects
several years in advance of construction. The Future Water Infrastructure Reserve is
established to allow funds to accumulate in a designated water capital project reserve.
The reserve will be used for designated projects that are part of the distribution system,
reservoirs, pump stations, pressure regulators, treatment facilities or operating
F -2 •
facilities. At the time an expenditure is required from the Future Water Infrastructure
Reserve, the Public Works Director shall request the City Council to approve a fund
transfer from the reserve to a designated Water Enterprise Fund Capital Project
Account.
Wastewater Systein Reserve - The minimum operating reserve (unappropriated funds)
should exceed the amount necessary to operate and maintain the system for two (2)
months. These funds shall be used for emergency repair to the wastewater system and,
if used, shall be restored within three fiscal years. It will be the City's goal to maintain
reserves at a level higher than the minimum.
The City's goal is to maintain a Wastewater Systein Reserve balance that exceeds the
amount necessary to operate and maintain the system for six (6) months, plus an
amount equal to one -half of the average annual budget for Wastewater Enterprise Fund
capital improvement projects. The average annual budget for capital improvement
projects shall be based on the last five (5) fiscal years.
Future Wastewater Infrastructure Reserve - Certain wastewater capital projects may extend
over several budget years, and it may be necessary to set aside funds for these larger •
projects several years in advance of construction. The Future Wastewater Infrastructure
Reserve is established to allow funds to accumulate in a designated wastewater capital
project reserve. The reserve will be used for designated projects that are part of the
collection system, pump stations or operating facilities. At the time an expenditure is
required from the Future Wastewater Infrastructure Reserve, the Public Works Director
shall request the City Council to approve a fund transfer from the reserve to a
designated Wastewater Enterprise Fund Capital Project Account.
Adopted - January 24,1994
Amended - April 10, 1995
Amended - February 26,1996
Formerly F -3, F-4, F -5