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<br /> <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, Storm Water and <br />o <br />Garbage) <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 />Contingency <br /> <br />Potentially volatile revenue sources <br />o <br /> <br />Unforeseen natural or man-made disasters and emergencies <br />o <br /> <br /> <br />Savings <br /> <br />Planned one-time expenditures and grant matching opportunities <br />o <br /> <br />Impact of significant capital projects identified in a long-term plan <br />o <br /> <br /> <br />Other Factors <br /> <br />Impact on city’ bond rating <br />o <br /> <br />Requirements by external funding source <br />o <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 /> <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 /> <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 /> <br /> <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 /> <br />