Operational Fund Reserves

The purpose of this policy is to ensure that the City maintains adequate liquid financial reserves in the General Fund to protect against unanticipated circumstances and events resulting in revenue shortfalls or unexpected expenditures.  

This policy applies to fund balance in the General Fund net of: 

1.    Non-spendable Fund Balance1 – non-liquid assets that cannot be converted to cash or that are long-term
2.    Restricted Fund Balance1 – externally enforced legal restrictions by creditors, grantors, contributors or other governments

The City will maintain a level of at or above 25% of operating expenditures.