5.04.025 Stabilization of funds.
A. It is the policy of the city to maintain the fund balances and net assets of the various city operating funds at levels sufficient to maintain the city’s creditworthiness, and to provide financial resources for unforeseeable emergencies. The purpose of this section is to carry out this policy first before allowing further designation of unrestricted fund balance or net assets.
B. General Fund.
1. The annual budget for the general fund that is presented to the council, and all amendments to the annual budget for the general fund that are presented to the council, shall provide for an unrestricted general fund balance not less than the minimum unrestricted fund balance and not more than the maximum unrestricted fund balance.
2. It is the policy of the city not to approve an appropriation from the general fund that would cause the unrestricted general fund balance to be less than the minimum unrestricted fund balance, except where the appropriation is required for an emergency expenditure or a major capital purchase.
3. It is the policy of the city to add to committed fund balances any amount in the general fund balance at the end of a fiscal year (as confirmed by the city’s annual audit) in excess of the maximum unrestricted fund balance for the succeeding fiscal year, unless the annual budget for the succeeding fiscal year provides for the expenditure of that excess during the succeeding fiscal year.
4. If at the end of the fiscal year the unrestricted general fund balance (as confirmed by the city’s annual audit) is less than the minimum unrestricted fund balance, the mayor shall submit to the council a plan to cause the unrestricted general fund balance to be not less than the minimum unrestricted fund balance before the end of the succeeding fiscal year.
C. Enterprise Funds.
1. It is the policy of the city to maintain a positive net asset balance in each of the enterprise funds to provide sufficient reserves for emergencies and revenue shortfalls.
2. The annual budgets for the sewer and water enterprise funds that are presented to the council, and all amendments to the annual budgets for the sewer and water enterprise funds that are presented to the council, shall provide for an unrestricted net asset balance in each fund at least equal to the minimum unrestricted net assets for that fund.
D. It is the policy of the city not to maintain positive net asset balances in the internal service funds. The city shall transfer accumulated unassigned net assets from an internal service fund to other operating funds.
E. It is the policy of the city to add to the restricted fund balance in each of its debt service funds an amount not less than the sum of all restricted fund balances required by bond ordinances applicable to that fund. (Ord. 11-10 § 3, 2011; Ord. 10-18 § 2, 2010; Ord. 04-48 § 2, 2004; Ord. 02-28 § 2, 2002; Ord. 00-60 § 2, 2000)