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SUBJECT: RECOMMENDATIONS FOR AMENDMENTS TO FINANCIAL POLICIES <br />DATE: OCTOBER 4, 2018 <br />PAGE 2 OF 6 <br />Below is a brief summary of some of the main policy elements within each policy section, <br />which assumes Council approval of proposed amendments. <br />Introduction <br />• States the overall purpose of financial policies. <br />• Discusses the difference between policies and statements of procedures. <br />• Contains a list of definitions related to all policy sections. <br />General Policies <br />• Requires a set of financial indicators to be calculated and disclosed in the City's <br />budget documents. <br />Reserve Policies <br />• Defines both minimum and targeted reserve levels for the General Fund. <br />• Defines minimum reserve levels for the Open Space & Parks Fund and establishes <br />a recurring annual support transfer from the General Fund. <br />• Defines minimum reserve levels for the Cemetery Fund and establishes a recurring <br />annual support transfer from the General Fund. <br />• Defines minimum reserve levels for the three Enterprise Funds that comprise the <br />Combined Utility Fund. <br />• Defines minimum operational reserve levels and capital asset renewal and <br />replacement reserve levels for the Recreation Fund. Establishes a recurring <br />annual support transfer from the General Fund. <br />• Defines minimum operational reserve levels and capital asset renewal and <br />replacement reserve levels for the Golf Course Fund. Establishes a recurring <br />annual support transfer from the General Fund. <br />Debt Policies <br />• Discusses factors which may favor "pay-as-you-go" financing and those that may <br />favor "pay -as -you -use" financing. <br />• Discusses and recommends debt financing structures and methods of sale. <br />• Does not apply to debt issued by the Urban Revitalization District. <br />Revenue Policies <br />• States that the City will value diversification, stabilization, and equity within its <br />revenue structure. <br />• Formalizes the desire to fund all recurring expenditures with recurring revenue and <br />that non -recurring revenue should be used to fund only non -recurring, one-time <br />expenditures. <br />• Sets guidelines for use of intergovernmental revenue. <br />• Sets broad guidelines for setting user fees and charges. <br />CITY COUNCIL COMMUNICATION <br />