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<br /> <br /> <br /> <br />1.to fund an expenditure of significant long-term benefit or legacy to the <br />community <br /> <br />2.to fund a one-time (non-recurring) expenditure or grant match <br />opportunity <br /> <br />3.to provide catch-up funding or long-term obligations not previously <br />recognized <br /> <br />4.to fund a one-time unplanned revenue shortfall <br /> <br />5.to fund an unplanned expenditure due to an emergency or disaster <br /> <br />6.to retire existing debt <br /> <br />7.to fund policy shifts by other governmental entities having a negative <br />impact on the city <br /> <br />8.to moderate property taxes <br /> <br /> <br /> <br />Appropriation from the minimum fund balance shall require the approval of the City <br />Council and shall be used only for non-recurring expenditures, unforeseen emergencies <br />or immediate capital needs that cannot be accommodated through current year <br />savings. Replenishment recommendations will accompany the decision to utilize fund <br />balance. <br /> <br /> <br />At the discretion of the City Council, fund balance may be committed for specific <br />purposes by resolution designating the specific use of fund balance and the amount. <br />The resolution would need to be approved no later than the close of the reporting <br />period and will remain binding unless removed in the same manner. <br /> <br /> <br />The City Council authorizes the Finance Director and/or City Administrator to assign <br />fund balance that reflects the city’s intended use of those funds. <br /> <br /> <br />When both restricted and unrestricted resources are available for use, it is the city’s <br />policy to first use restricted resources, and then use unrestricted resources as they are <br />needed. When committed, assigned or unassigned resources are available for use, it is <br />the city’s policy to use resources in the following order; 1) committed 2) assigned and <br />3) unassigned. <br /> <br />C. Enterprise Funds <br />The city will maintain reserves in Enterprise funds at levels sufficient to provide adequate <br />working capital for current expenditure needs, for the replacement of capital assets within <br />the fund over their estimated useful life and to pay for future capital projects. Future <br />capital projects must be identified and quantified in a written plan for the fund which shall <br />be included in the city’s annual Capital Improvement Plan (CIP). <br />The city will maintain a reserve balance at a level which takes into consideration the <br />following: <br /> <br /> <br />Cash Flow <br /> <br />Six months of projected operation expenditures (Sewer and Garbage) <br />o <br /> <br />One year of projected operation expenditures (Liquor) <br />o <br /> <br />Debt service obligations – 100% of next year’s principal and interest <br />o <br /> <br /> <br /> <br />Contingency <br /> <br />Potentially volatile revenue sources <br />o <br /> <br />Unforeseen natural or man-made disasters and emergencies <br />o <br />Financial Management Policies Page 9 <br /> <br />