6. EDSR 07-15-2013 - Laserfiche WebLink

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