2004 Performance Based Budget - Laserfiche WebLink

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Reserve Policies 1) The City will establish contingency reserves to provide for unanticipated expenditures of a nonrecurring nature, or to meet unexpected small increases in service delivery costs. This reserve will be maintained at a minimum of 15 percent of the General Fund Operating Budget and 7.5 percent (increasing to 15 percent within two years) of the Park and Recreation Department Operating Budget. Reserves for Enterprise Funds will be targeted between 10 and 25 percent (increasing to 15 and 25 percent in 2003) of their respective operating budgets. These reserves will be identified and segregated at the time the annual capital budgets are prepared and approved. 2) The City will establish an insurance reserve for self-insured liabilities of the City. The maximum balance of the reserve will be $5 million (representing the City's tort liability limit) and the reserve will be maintained in the Internal Service Fund cash balances for Self-Funded Employee Benefits Fund and Insurance Liability Premium Reserve Fund. 3) The. City will maintain adequate levels of funding for all retirement programs. Debt and Investment Policies 1) Debt will be used to finance long-lived capital and operating assets within the constraints of maintaining or improving bond ratings and debt service capacity. Debt will always be maintained within the legal debt limits as defined by state statutes. 2) The City will use "pay as you go" financing to fund general capital projects when feasible and practical. 3) Capital projects financed through the issuance of bonds or other financing agreements will be financed for a period not to exceed the expected useful life of the asset or project. The City will keep the average maturity of general obligation bonds at or below 20 years. 4) Debt management will provide for the protection of bond ratings which would include (but not be limited to) the maintenance of adequate debt service reserves and compliance with debt instrument provisions and appropriate disclosures to investors, underwriters and rating agencies. S) The City will maintain a sound relationship with all bond rating agencies. 6) The City, through investment management, will strive to maximize investment return on the City's idle funds. This will be accomplished through pooling funds, where permitted, in order to receive the best rate through competitive bidding, and by implementing effective cash forecasting procedures. A-12