Desired levels of budgetary fund balance reserves shall be established and defined as follows:
   A.   Definition: In an effort to provide fiscal stability for the city and allow city management to apply fiscal prudence in managing the budgetary condition of the city and its public trusts, desired fund balance reserve levels are established. "Fund balance reserves" are defined as the amount of fund balance available for appropriation at any point in time.
   B.   Operating Funds Group: The desired level of reserves for the operating funds group, considered in aggregate, shall be sixty percent (60%) of the annual fund revenue accruing to the fund group.
   C.   Capital Funds: The desired level of reserves for capital funds will be based on an estimated average annual capital budget as evidenced by the long term capital plan as discussed in this chapter.
   D.   Adding To Reserves: In fiscal years when these desired reserves are not already in existence, city management and the city commission will add to the reserves when possible to attain the desired levels.
   E.   Monthly Report: On a monthly basis, the city treasurer will report the budget status of the operating and capital funds to the city commission and will make an express statement as to the status of the unappropriated fund balance on hand at month end. The city will also engage the external financial statement auditor to make an express statement as to the city's compliance with this budget policy, including the level of budgetary reserves. (Ord. 896, 11-8-2004)