1998 AGN JAN 13 I26 - Laserfiche WebLink

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.V CITY OF COLTON Number: Date: September 3 1996 AMINISTRATJ IE PO. ICY Authority: Beso. R-61-96 Subject: Reserve Funds City Manager I. PURPOSE; To ensure that the City maintains sufficient Equipment Replacement Reserve Fund Account, Contingency (Infrastructure) Reserve Fund Account, Non -Reimbursable Mandated Costs Reserve Account and a Self Insurance Fund in order to provide for the continuation of City services and carefully monitor and account for the use of all reserve funds so that such funds are available for the Purposes for which they have been set aside in reserve when the time comes to make such planned or unplanned expenditures. II. GENERAL POLICY: In order to ensure the continuationof critical public services in the event of natural disaster or other fiscal emergency, the City Manager shall determine and maintain an Equipment Replacement Reserve Fund Account, a Contingency (Infrastructure) Reserve Fund Account and a Non -Reimbursable Mandated Costs Reserve for the General Fund and all Enterprise Fund. The Self Insurance Fund reserve shall be established based on the third party administrator's recommendation on open claims and the actuarial analysis of incurred but not reported claim reserves (IBNRs). IIL PROCUEDURES: A. Establishing the Reserve: The City Manager to take the necessary steps to establish and maintain reserve balances in the General Fund and Enterprise Funds during .the bi-annual budget preparation process. 'This shall be accomplished by comparing proposed expenditures against total available resources and adjusting the expenditures until the appropriate amount of reserves are achieved. 1. Equipment Replacement Reserve Fund Account Shall be based on the straight line depreciation of its' original purchase cost and replaced at the end of the estimated life of the vehicle or equipment or considered to be out of service. 2. ContinQencv (Infrastnirnirel Reserve Fund Account: Shall be based on 30% of the total replacement cost of major infrastructure' and straight line replacement cost for air conditioning, roofing, flooring, plumbing and including but not limited to major pool repair. 3. Non -reimbursable Mandated Costs Reserve: Fund operating reserves sufficient to finance such operations mandated by State or Federal programs that are not reimbursable, including without limitation, disaster preparedness. Such a reserve shall consist of 12% of the General Fund and Enterprise Funds appropriated budget.