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2. The City will maintain fund balances in the General and Special Revenue Funds at a level which will avoid issuing short-term debt to meet the cash flow needs of the current operating budget. Generally, the goal of the City is to maintain a minimum balance of 30% - 35% of the operating budget. Within the general operating fund is the accounting of the Police contractual services provided to Lauderdale and Falcon Heights. Since each City makes payment on a monthly basis, there are no reserves deemed necessary for these expenditures. This need could fluctuate with each year's budget objectives and appropriations such as large capital expenditures and variations in the collection of revenues. V. OPERATING BUDGET The Operating Budget is the annual financial plan for funding the costs of City services and programs. The General Operating Budget includes the General Fund, the Special Revenue Funds, the Street Reconstruction Fund, and the Capital Equipment Fund. Enterprise operations are budgeted in separate Enterprise Funds. 1. The City Manager shall submit a balanced budget in which appropriations shall not reasonably exceed the total of the estimated revenues and available fund balance. 2. The City will provide for all current expenditures with current revenues. The City will avoid budgetary procedures that balance current expenditures at the expense of meeting future years' budgets. 3. The City will coordinate the development of the 5 -Year Capital Equipment Budget with the development of the operating budget. Operating costs associated with capital improvements will be projected, approved by Council and budgeted on a project basis. 4. The budget will provide for adequate operation, maintenance, replacement of City equipment and for their orderly replacement. 5. The impact on the operating budget from any new programs or activities being proposed should be minimized by providing funding with newly created revenues whenever possible. 6. The City will maintain a budgetary control system to help it adhere to the budget. 7. The City administration will prepare monthly reports comparing actual revenues and expenditures to the budgeted amounts. 8. The operating budget will provide for the major goals to be achieved and the services and programs to be delivered for the level of funding provided. 9. When establishing operating expenses, Enterprise fund budgets shall be balanced with operating revenues. Reserves from operations can be appropriated to provide replacement costs of property, buildings, equipment, or if appropriate, used when establishing rates and charges for services.