HomeMy WebLinkAboutB03.0 Fund Balance Reserve �'l3llRl�ll `Y 111CJ-
1' E A S
CITY OF GRAPEVINE ADMINISTRATIVE POLICY
SUBJECT: FUND BALANCE SECTION: B NUMBER: 3.0
RESERVE
PREPARED BY: Administrative Services REVISED DATE: 02/01/2014
PAGE: 1 of 1
PURPOSE
3.1 The purpose of the Fund Balance Reserve policy is to ensure fund availability for
unforeseen emergencies that would severely impact the City's ability to pay for basic
operations and guarantee the payment of debt obligation.
POLICY
3.2 The emergency reserve should be maintained at the following minimum levels:
3.2.1 General Fund - 20% (72 days) of total current budgeted expenditures.
3.2.2 Debt Service Fund - 20% (72 days) of total current budgeted net debt service
expenditures.
3.2.3 Occupancy Tax Fund - 16% (60 days)of total current budgeted expenditures.
3.2.4 Utility Fund -Working capital reserves should be maintained at 16% (60 days)
of total budgeted expenses.
3.2.5 Golf Fund-Working capital reserves should be maintained at 25% (90 days)of
total budgeted expenses.
The reserves should be submitted as part of the annual budget process and be reviewed
by the City Council at the time of budget adoption. Any exceptions should be noted at the
time the budget is approved. As stipulated by the resolution, any use of reserves not
included in the annual budget will require that an ordinance be passed amending the
budget for this purpose.