Laserfiche WebLink
Financial Management Policies Page 15 2 <br />▪The fee structure for municipal utilities should produce a net annual surplus of revenues over <br />expenditures after accounting for all operating costs, depreciation of capital assets and payment of <br />debt service. <br />▪All municipal utility funds will maintain adequate cash reserves. The reserve needs vary for each <br />municipal utility. The assessment of cash reserves should take into account future capital investments, <br />diversity, and stability of revenues and potential for unanticipated changes in revenues and <br />expenditures. <br />▪All utility rates should be reviewed every yearannally to minimize the impacts of rate changes and to <br />insure adequate long-term funding. <br />▪Elk River Municipal Utilities will make an annual contribution to the city. The cash contribution will <br />be based on 4% of gross electric sales within the corporate limits of the city. The City Council will <br />determine the fund allocation for the proceedsportion of this contribution to be allocated to the <br />General fund, Library and the Equipment Replacement fund. <br />▪The City Council will determine the chargeback to the Sewer, Storm water, and Garbage Ffunds for <br />administration of the sanitary sewer system, storm water, and garbage collection. <br />▪Any operating transfer not included in the budget must be approved by the City Council. <br />Page 82 of 294