City Council Minutes 2015 06 09 SP

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City Council Special Meeting Minutes June 9, 2015 Page 10 of 12 • The minimum working capital for the Water, Wastewater, and Storm Water Utility Funds shall be maintained at or above 25% of current operating expenses, as measured on the City's budgetary basis. For purpose of this policy, operating expenses are defined as all budgetary basis expenses, excluding interfund transfers and capital. Debt Policies • Follows best practices, on the conservative side for determining the issuing of bonds. Does not apply to the Urban Renewal Authority. Fee Policies User Fees • User Fees and Services Charges. The City will periodically recalculate the full cost of providing services in order to provide a basis for setting the associated user fee or service charge. Full cost shall incorporate direct and indirect costs, including operations (with City labor costs), maintenance, overhead, debt service, equipment, and capital charges. The intent of this policy is to set fees at a level that is related to the actual cost of producing the good or service. The City will also periodically examine and compare rates from other cities providing similar services. It is recognized that competing policy objectives may result in user fee levels that recover only a portion of the costs. Fee Policies for Recreational Services. • The City will set fees for recreational services at a level to support seventy -five percent (75 %) of the direct and indirect costs of children's programs. Non - resident recreation participants will pay the regular program fees plus an additional fee of 25% or $5.00, whichever is higher. Operating Budget Policies • The intent is not only a balanced budget but a structurally balanced budget which means recurring revenue will meet recurring expenses. Investment Policies • It is the policy of the City of Louisville to invest public funds in a manner which will provide the highest investment return with the maximum security while meeting the daily cash flow demands and conforming to all Colorado Revised Statutes, the City of Louisville Charter, and the City of Louisville Municipal Code. • Objectives. In order of priority, the primary objectives of investment activities shall be safety, liquidity, and yield. COUNCIL COMMENT Council member Lipton wondered if the City Manager would need authority to reduce reserves below budget. City Manager Fleming agreed and noted he would just recommend a budget amendment for City Council consideration. Finance Director Watson stated this was a flexibility tool to watch levels during the year. Council member Lipton suggested the City Manager could go below the target in the event of an emergency.