Exhibit “A”
ATTACHMENT 2
Public Safety Sales Tax Fund
The City will strive to maintain a fund balance of at least 25% of operating expenditures in the Public Safety Sales Tax Fund consistent with the risk assessment methodology for setting reserve levels developed by the Government Finance Officers Association in adequately addressing:
a. Higher levels of fund balance may be needed if significant revenue sources are subject to instability and downturns in the local or national economy.
b. Dependency of the Public Safety Sales Tax Fund on the General Fund.
This committed fund balance reserve is limited for use under currently budgeted operations and should not be used to fund new programs or new positions added outside of the current fiscal year budget.
Circumstances where taking reserves below policy levels would be appropriate include responding to the risks that reserves are intended to mitigate, such as one-time uses in meeting cash-flow needs; closing a projected short-term revenue-expenditure gap; responding to unexpected revenue shortfalls.