6.0. SR 10-22-2001 - Laserfiche WebLink

Home Browse Search

10. 8.4 Subject to relevant legal constraints, reserves may be used for short-term internal borrowing. General Fund Balance 9.1 The General Fund shall have an unreserved balance of not less than 45 percent of the next year's budgeted expenditures. This balance is needed to provide adequate cash flow during the first six months of the year, to fund unexpected, unbudgeted expenditures, to provide a temporary buffer against legislative actions that may reduce state aid payments, to provide revenue base stabilization, and to maintain or improve the City's bond rating. 9.2 If the year end fund balance exceeds 45 percent of the next year's budgeted expenditures, the surplus shall be allocated based on the following criteria: (1) Investments that generate future savings will be given priority; (2) The surplus will be allocated to more than one uses; (3) The surplus will not be used on expenditures or programs that require an ongoing financial commitment. 9.3 The following Reserve Fund needs will be given high priority when allocating the surplus: (1) Government Building Reserve Fund - to provide for future building expansion, replacement, and maintenance needs of all City buildings except for enterprise fund buildings; (2) Capital Outlay Reserve Fund - to purchase major capital equipment and to reduce the need for debt to acquire equipment. 9.4 The Council shall annually approve a resolution designating the use of the surplus prior to finalizing the Comprehensive Annual Financial Report (CAFR) for the fiscal year just ended. The resolution shall include the following: (1) The amount of the surplus and (2) The specific uses of the surplus. Capital Investment 10.1 10.2 The City will maintain buildings, infrastructure, utilities, parks, facilities, and other assets in a manner that protects the investment and minimizes future maintenance and replacement costs. The City Administrator will annually prepare and submit to the City Council a Capital Improvements Plan (CIP) for the next five fiscal years. 10.3 At a minimum, the CIP will include a description of the proposed improvement, the estimated cost, timing and potential sources of funding. If applicable, the CIP will identify implications for the operating budget created by the proposed improvement. 10.4 In most cases, private developers will be responsible for the construction of streets, sanitary sewer, watermain, and storm water collection systems lO