MO 1999-051 to 1999-055 - Laserfiche WebLink

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d) It is assumed that normal revenue inflation will go to pay normal expense inflation. Any new or expanded programs will be required to identify funding sources or will be offset by cost reductions through cutting back or eliminating other programs. e) Non -recurring revenues will be used for discretionary expenditures only. f) Some governmental programs will be subsidized, such as those that have intrinsic quality of life value. g) The costs of all internal service functions will be allocated to line departments. h) When internal support charges are distributed to external service providers, it will be done on an equitable basis. i) Proprietary fund (Enterprise and Internal Service Funds) activities must be self- supporting. j) Capital improvements will be financed through the most cost beneficial method, including cash payment, private financing, public/private partnerships, direct charges, etc. k) Financial management at departmental and project levels will be utilized to ensure control over expenditures. 1) All departments will know costs of services, monitor cost center trends, and continually evaluate their revenues and expenditures. 3) Fund Balance Designations and Reserves Management a) The City will maintain fund or working capital balances of at least 20% of operating expenditures in the General Fund and Enterprise Funds (Water Pollution Control Plant, Refuse, Golf, Marina, and Storm Water). This is considered the minimum level necessary to maintain the City's credit worthiness and to adequately provide for: i) Economic uncertainties, local disasters, and other financial hardships or downturns in the local or national economy. ii) Contingencies for unseen operating or capital needs. iii) Cash flow requirements. b) For General Fund assets, the City will establish and maintain Equipment Replacement Funds (Information Services, Garage, and Building Maintenance) to provide for the timely replacement of vehicles, capital equipment, and major building maintenance projects. Under the City's current definition of capital outlay, this includes items with an individual replacement cost of $2,500 or more. The City will maintain a minimum fund balance in the Equipment Replacement Funds of at least 20% of the original purchase cost of the items accounted for in these funds. The annual contributions to the Funds will generally be based on the annual use allowance s (depreciation) which is determined based on the estimated life of the vehicle or Fa