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Budget-Related Policies and Procedures

in which revenues for a given year under perform budgeted estimates and/or fund balance
is insufficient to meet the Minimum Fund Balance policy. In such a case, this policy can
be suspended for only one year at a time by a majority vote of the City Commission. This
sunset provision for the exception will expire at the end of each fiscal year affected.

Minimum Fund Balance
The General Fund shall maintain a minimum fund balance of 140 days of operating
expenditures.

Minimum Working Capital Balances
The Water and Wastewater Funds, individually, shall maintain a minimum working
capital balance of 120 days of operating expenses. The Bridge Fund shall maintain a
minimum working capital balance of 90 days of operating expenses.

Management Fee to Enterprise Funds
Each enterprise fund as well as the Development Corporation pays a management
fee to the General Fund an amount as set by the budget. This charge shall be
construed as a payment for general administrative overhead, including management,
accounting, legal, data processing, and personnel services.

Depreciation (Replacement) Funds
The Water Fund sets aside funds equal to 40% of actual depreciation in a separate
fund for the replacement of capital plant, buildings, infrastructure, and equipment. The
Wastewater Funds in like manner sets aside 40% for the same purposes.

The General Depreciation Fund and Sanitation Depreciation Fund, which were
established by transfers from the General Fund and Sanitation Fund, respectively, are used
to acquire/replace rolling stock for the General Fund and the Sanitation Fund,
respectively. These funds are replenished to provide for future replacements by charging a
rental charge to the benefited fund equal to cost plus 10% for anticipated inflation over
the estimated useful life of each asset. The City Commission would like to extend this
policy to all other enterprise funds as the cash flow from operations permits. All other
funds will allocate sufficient funding in their operating budgets for adequate maintenance
and replacement of capital plant, buildings, infrastructure, and equipment.

Priority in Applying Restricted vs Unrestricted Resources
When an expense is incurred for purposes for which both restricted and unrestricted net
assets are available, the City typically first applies restricted resources, as appropriate
opportunities arise, but reserves the right to selectively defer the use thereof to a future
project or replacement equipment acquisition.

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