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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 /> • Cash Flow <br /> • Six months of projected operation expenditures (Sewer and Garbage) <br /> • One year of projected operation expenditures (Liquor) <br /> • Debt service obligations — 100% of next year's principal and interest <br /> • Contingency <br /> • Potentially volatile revenue sources <br /> • Unforeseen natural or man-made disasters and emergencies <br /> • Savings <br /> • Planned one-time expenditures and grant matching opportunities <br /> • Impact of significant capital projects identified in a long-term plan <br /> • Other Factors <br /> • Impact on city'bond rating <br /> • Requirements by external funding source <br /> D. Special Revenue Funds <br /> The city will maintain reserves in the Special Revenue funds at levels sufficient to provide <br /> working capital for current expenditure needs plus an amount that is estimated to be <br /> needed to meet legal restrictions, requirements by external funding sources and/or pay for <br /> future capital projects. Future capital projects must be identified and quantified in a <br /> written plan for the fund,which shall be included in the city's annual CIP. <br /> E. Debt Service Funds <br /> The city will maintain reserves in the Debt Service funds at levels sufficient to provide <br /> working capital for current expenditure needs plus an amount that is estimated to be <br /> needed to meet legal restrictions and requirements by external funding sources. <br /> F. Capital Project Funds <br /> The city will maintain reserves in the Capital Project funds at levels sufficient to provide <br /> working capital for current expenditure needs plus an amount that is estimated to be <br /> needed to meet legal restrictions, requirements by external funding sources and/or pay for <br /> future capital projects. Future capital projects must be identified and quantified in a <br /> written finance plan for the fund,which shall be included in the city's annual CIP. <br /> G. Monitoring and Reporting <br /> The Finance Director shall annually review with the City Council the status of the fund <br /> balances with this policy and present it to the City Council in conjunction with the <br /> Financial Management Policies Page 9 <br />