ITEM 15 ATTACHMENT 1 - Laserfiche WebLink

strive to maintain a reserve of between 30.0% and 40.0% of the previous year's expenditures with a target of 35.0% for each fund: • Streetlight Replacement • Traffic Signal Replacement • Facilities Renovation • Park & Median Renovation 4. Internal Services Fund Reserves - Equipment Replacement: If financial resources are available, the following Internal Service Funds shall strive to maintain a reserve of between 10.0% and 20.0% of the previous year's operating expenditures with a target of 15.0% for each fund: • Equipment Replacement • Fire Apparatus Replacement • Police Vehicle Replacement 5. An appropriated fund/reserve (e.g., a reserve made for the purpose of repairing, replacing, and procuring City assets) may be created and developed as necessary by the City Manager or their designee. Use of Reserve Funds 1. Economic Uncertainty: For use to mitigate annual revenue shortfalls (actual revenues less than projected revenues) due to a temporary slowdown in general economic conditions as well as a short-term reduction in revenues caused by actions of the State or Federal government. • If any unanticipated reductions in revenue are deemed to be recurring, adjustments should be made to the budget to reflect the new revenue expectations. 2. Emergency: For use to mitigate costs associated with unforeseen emergencies, including natural disasters. 3. Enterprise Fund and Internal Service Fund Reserves shall only be used for unexpected expenses that would normally be paid by that fund. For example, the Streetlight Replacement reserve may only be used in the event of an unexpected streetlight malfunction. 4. The use of reserves shall be approved by the City Council through a resolution or budget adoption. The City Manager shall have the authority to approve the appropriation of Reserve Funds to respond to an emergency situation. The City Manager will then take a resolution to the City Council at its next regularly scheduled meeting confirming the nature of the emergency and formally authorizing the appropriation of reserve funds. Replenishment of Reserves If the General Fund reserve level falls below 16.7%, the goal is to replenish the reserve within three fiscal years. For the Water and Sewer Enterprise Fund reserves, if either reserve level falls below 30.0%, a rate study will be required to be completed in 12 months or less that provides a roadmap to replenish the impacted reserve over the next three fiscal years. Excess Fund Balances If actual reserve balances exceed the level required by the reserve policy at year end, the surplus funds shall remain in the reserve until allocation by the City Council for the following purposes: 1. Use of General Fund excess balance shall not be used for new recurring expenses. 260