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