Finance Committee January 22, 2025
Baker Tilly Policy Recommendations
A. Establish an operating reserve for the Fleet ISF equal to 10% of budgeted annual operating expenditures, excluding capital outlay.
B. Establish a capital reserve target between 75% and 100% of the calculated accumulated replacement value to date for the inventory listing.
C. Track capital reserves separately for ratepayer-supported Enterprise fund assets between 75% and 100% of the calculated accumulated replacement value to date for the inventory listing.
D. Review projected reserve goals compared to actual reserves in each budget cycle and adjust annual replacement charges to target ending reserves that meet the 75% to 100% reserve target.
E. Create a designated reserve balance in the Fleet ISF for each Enterprise fund that totals approximately $1,900,000 by 6/30/2024.
F. Transfer approximately $561,000 from the General Fund to the Fleet ISF to ensure the Enterprise fund designated reserve balances are funded at the 75% target reserve level.
G. Develop a plan to transfer funds from the General Fund to the Fleet ISF to fund undesignated reserves at the 75% level no later than 6/30/2031.