There is hereby established a policy for the maintenance and use of unencumbered cash reserves in the city’s General Fund for the purpose of financial stability and to back-up future repayment of debt from the city’s Bond Retirement Fund.
(a) The administration and Council shall attempt to maintain an unencumbered General Fund cash reserve of at least 20% of each respective year’s General Fund appropriations.
(b) If the General Fund cash reserves are near or at this threshold, the administration and Council shall review austerity measures and revenue enhancements.
(c) Cash reserves below the threshold may be used primarily for emergencies as the administration and Council designate.
(d) Cash reserves above the threshold may be used primarily for the early retirement of debt and for capital items or projects with a useful life of more than five years and any other purpose that will not cause an annual reduction of reserves.
(Ord. 2007-167, passed 7-2-2007; Ord. 2013-67, passed 5-6-2013)