4.9. SR 06-17-2019 - Laserfiche WebLink

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ii. Impact of significant capital projects identified in a long-term plan d. Other Factors i. ii. Requirements by external funding source 4. Special Revenue Funds Reserves will be maintained at levels sufficient to provide working capital for current expenditure needs plus an amount estimated to meet legal restrictions, requirements by external funding sources and/or 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 annual CIP. 5. Debt Service Funds Reserves will be maintained at levels sufficient to provide working capital for current expenditure needs plus an amount estimated to meet legal restrictions and requirements by external funding sources. 6. Capital Project Funds Reserves will be maintained at levels sufficient to provide working capital for current expenditure needs plus an amount estimated to meet legal restrictions, requirements by external funding sources and/or pay for future capital projects. Future capital projects must be identified and quantified in a written finance plan for the fund, which shall be included in the annual CIP. 7. Monitoring and Reporting The finance director shall annually review with the City Council the status of the fund balances with this policy and present it to the Council in conjunction with the development of the annual budget and/or other long-term financial planning documents such as the CIP. Reserve balances will be annually reviewed for adequacy. Rating agency methodologies and medians will be periodically reviewed for updates to ensure the reserve policy is consistent for maintaining the existing rating or positioned for an upgrade. Debt Debt issuance shall follow guidelines identified through examination of materials from state statutes, bond rating agencies, and the Government Finance Officers Association (GFOA). This policy can be amended by the City Council to maintain consistency with general municipal practices. The following policies shall determine when and how to use debt for financing capital and equipment needs. 1. Debt Limits a. Legal Limits: i. Minnesota Statute, § 475 prescribes a debt limit that shall not exceed 3% of taxable market value. This limitation applies only to debt wholly tax-supported for either General Obligation (GO) debt of any size bond issue or Lease Revenue Bond issues were over $1,000,000 at the time of issuance. Several other types of debt do not count against the limit including GO Tax Increment, GO Abatement, GO Special Assessment, GO Utility Revenue, and HRA or EDA-issued debt considered to have a separate revenue source other than taxes. HRA and EDA Public Project Revenue Bonds or Lease Revenue Bonds with a financing lease agreement with a city or county do count against the limit. ii. Financial Management Policies Page 7