Chapter 3.08
EXPENDITURE AND DEBT MANAGEMENT POLICIES

Sections

3.08.010    General fund ending balance policy.

3.08.020    Debt management policies.

3.08.010 General fund ending balance policy.

(1) The city manager is directed to establish expenditure policies that will result in a general fund ending balance or operating reserve amounting to seven percent of the cumulative total of the general, park, and street operating funds for each fiscal year. The seven percent consists of two percent operating reserve generally designated for unanticipated expenditures that have been incurred during the fiscal year, with the five percent operating reserve intended to account for unanticipated revenue shortfalls.

(2) Expenditures within the two percent operating reserve limitation may be paid at the discretion of the city manager. Expenditures within the five percent operating reserve limitation require council approval. [Ord. 1144 § 2, 1995.]

3.08.020 Debt management policies.

The following debt managing policies are adopted:

(1) Debt shall not be used to finance ongoing operational costs.

(2) Whenever possible, the city shall identify alternative sources of funding and shall examine the availability of all sources in order to minimize the level of debt.

(3) The city shall determine the most advantageous financing method for all new projects.

(4) Pay-as-you-go financing of capital improvements shall be utilized whenever feasible.

(5) Total general obligation debt shall not exceed seven percent of the actual assessed value of the city as required by law.

(6) The city shall utilize intergovernmental contributions, when available, to finance capital improvements that are consistent with the goals and priorities of the city.

(7) The scheduled maturities of long-term obligations shall not exceed the expected useful life of the capital project or asset financed.

(8) The city shall encourage and maintain professional relations with financial and bond rating agencies and shall follow a policy of full and open disclosure as required by the Security and Exchange Commission Rule 15-3C-1. [Ord. 1144 § 3, 1995.]