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City of St Anthony <br />Financial Plan <br />III. RESERVES <br />It is important for the financial stability of the City to maintain reserve funds for <br />unanticipated expenditures or unforeseen emergencies, as well as to provide adequate <br />working capital for current operating needs so as to avoid short-term borrowing. <br />POLICY STATEMENT <br />1. The City will establish and maintain a Contingency Reserve Fund from the prior <br />year's General Fund budget. These funds are available for appropriation by the <br />Council for unanticipated expenditures and unforeseen emergencies. Council <br />will review the request for funding on a scheduled basis and authorize funding as <br />necessary. In an emergency, the City Manager has the authority to commit <br />funds from the Contingency Reserve Fund. <br />2. The City will maintain fund balances in the General and Special Revenue Funds <br />at a level which will avoid issuing short-term debt to meet the cash flow needs of <br />the current operating budget. <br />Generally, the goal of the City is to maintain a minimum balance of 30% - 35% of <br />the operating budget. Within the general operating fund is the accounting of the <br />Police contractual services provided to Lauderdale and Falcon Heights. Since <br />each City makes payment on a monthly basis, there are no reserves deemed <br />necessary for these expenditures. <br />This need could fluctuate with each year's budget objectives and appropriations <br />such as large capital expenditures and variations in the collection of revenues. <br />119 <br />