HomeMy WebLinkAbout(1995, 04/10) - F-2 - AmendedRESERVESIDESIGNATIONS OF FUND BALANCE
F -2
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 that a
Stabilization Reserve be created and that the balances in the Stabilization
Reserve shall be maintained with not less than fifteen percent (15%) of the
appropriation budget total within the General Fund of the City's annual
approved budget. If, at any time, this reserve falls below fifteen percent the City
Manager shall develop a plan to restore the reserve to fifteen percent over a three
to five year period, depending on the fiscal circumstances affecting the City.
This restoration plan shall be presented to and approved by the City Council.
Said Reserve will not be a line item appropriation, but is to be a designation of
General Fund Fund Balance that may be used at the discretion of the City
Council for emergencies or unanticipated expenditures.
Future Water Sources - $100,000 per year from water revenues shall be set aside
for study and /or acquisition of future water sources. See also Policy M - 5.
Water Quality - $200,000 per year from water revenues shall be set aside for
water quality. See also Policy M - 5.
Water Wells and Transmission - $1,000,000 per year from water revenues shall be
set aside for a water well and transmission project. See also Policy M - 5.
Sewer System Reserve - The capital improvements and annual operating cost of the
sewer system will be financed by a sewer use fee.
A Sewer Program Reserve is established to level fluctuations in the sewer use fee
caused by extraordinary expenses. This reserve is to be funded by the sewer use
fee at a level of $150,000 per year to a maximum of $1,200,000.
Formerly F -3, F-4, F -5
Adopted - January 24,1994
Amended - April 10, 1995