Res 2008-123 - Laserfiche WebLink

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• Securities for the construction or improvement of public streets and/or rights- of way in order to relieve congestion or for public safety matters. XII. FINANCIAL CONDITIONS, RESERVES, AND STABILITYRATIOS 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/ Workin Capital - 1. The General Fund's fund 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. 2. The Electric Utility and Water and Wastewater Utility Funds working capital should be maintained at 25% of total operating expenses or the equivalent of three months. The computation for the Electric Fund will exclude the cost of power charged by LCRA, as this cost is simply passed on to the customer. As a goal, the City will strive to achieve 3 3 % fund balance, or the equivalent of four months of operational expenses. 3. Reserves will be used for emergencies or unforeseen expenditures, except when balances can be reduced because their levels exceed guideline minimums as stated below. C. Capital and Debt Service Funds - 1. Monies in the Capital Improvement Program Funds should be used within twenty- four months of receipt or within a reasonable time according to construction schedules. Interest income and unspent monies from bond issuances can be used to fund similar projects as outlined by bond covenants. Any remaining monies will be used to pay the bond issuance. 2. Revenues in the Debt Service Fund are based on property tax revenues and interest income. Reserves in the Debt Service Fund are designed to provide funding between the date of issuance of new debt and the time that property tax levies are adjusted to reflect the additional debt. Article 10, Section 10.02 of the City Charter requires that the City maintain a reserve balance of two percent of all outstanding general obligation debt. City of San Marcos Financial Policy -Proposed Sept 2008 Page 19