O-1992-1828 - Laserfiche WebLink

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. e Administrative Transfers The City shall recover from selected enterprise operations an administrative fee. The fee shall be considered a payment for certain administrative functions (oversight management, accounting, human resource assistance, etc) and for payments in-lieu of taxes (i.e. if the operation was operated by someone other than the City, the City would receive property tax revenues). Flat Fee Transfers - Transfers from the Utility and La Porte Area Water Authority Funds to the General Fund will be determined by City management during the budget process and shall not exceed an overhead allocation where administrative fees are distributed to all City divisions based on their share of non-capital expenditures (expenses) as compared to all City non- capital expenditures (exp~nses). Transfer from Golf Course Fund - An administrative transfer from the Golf Course Fund to the General Fund shall be based on 10% of its estimated ending working capital balance, as long as its the transfer does not cause its working capital balance to fall below its targeted reserve balance as established in Section 3. Transfer from Commercial Solidwaste Fund - Upon successful privitation of the commercial solidwaste operation, the Commercial Solidwaste Fund will be dissolved by an administrative transfer to the General Fund. These transfers will occur over a multi-year period to minimize the impact on ongoing General Fund revenues. 3. Reserve Policies The objectives of the reserve policies is not to hold resources solely as a source of interest revenue, but rather to provide adequate resources for cash flow and contingency purposes, while maintaining reasonable tax rates and charges for services. In addition, the City's proximity to the Gulf Coast provides the very real possibility of a damaging tropical storm or hurricane. Operating funds The City shall strive to maintain a targeted working capital balance of 90 to 120 days of operating capital in its operating funds. The number of days of working capital shall be calculated by taking the budgeted expenditures (expenses) for the fund (including capital outlay), dividing by 365 days and multiplied by 90 days for the lower limit and 120 days for the upper limit. Debt service fund The Debt Service Fund will strive to maintain a targeted working capital balance of 60 days of service requirements. Any excesses over this amount will be used over a sufficient length of time as to provide a minimum impact on the City's Interest and Sinking portion of the tax rate. 4