Res 2003-172 - Laserfiche WebLink

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N. Elections - State law regulates which securities may be issued only after a vote of the electors of the City and approved by a majority of those voting on the issue. 1. Election Required - Securities payable in whole or in part from ad valorem taxes of the City except issues such as tax increment securities, certificates of obligation, and limited tax notes. 2. Election Not Required- . Short-term notes (12 months or less) issued in anticipation ofthe collection of taxes and other revenues. . Securities issued for the acquisition of water rights or capital improvements for water and wastewater treatment. . Securities payable solely from revenue other than ad valorem taxes of the City. . Refunding securities issued to refund and pay outstanding securities. . Tax increment securities payable from ad valorem tax revenue derived from increased valuation for assessment of taxable property within a plan of development or other similar area as defined by applicable State Statutes. . Certificates of obligation. . Limited Tax Notes. . Securities for the construction or improvement of public streets and/or rights- of-way in order to relieve congestion or for public safety matters. IX FINANCIAL CONDITIONS, RESERVES, AND STABILITY RATIOS A. Operational Coverage - The City's Enterprise Funds will comply with all bond covenants and maintain an operational coverage of at least 120%, such that current operating revenues will exceed current operating expenses. B. Fund Balances/ Working Capital- a) The General Fund's ftmd balance should be at least 25% of the General Fund's annual operating expenditures. This percentage is the equivalent of three months operational expenditures. As a goal, the City will strive to achieve 33% fund balance, or the equivalent of four months of operational expenditures. City of San Marcos Financial Policy Page 14 of 17