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government aid (LGA), etc.). The working capital allocation shall be reduced by the <br /> balance of prepaid items at year-end. <br /> 2. Unanticipated events—A fund balance allocation for unanticipated future events shall <br /> be established in the amount of 5-10% of budgeted General Fund expenditures in the <br /> ensuing budget year(not including transfers to other funds). <br /> 3. Special temporary allocations as established by Council action for specific purposes. <br /> 4. Excess fund balance and authorization of annual transfer—The amount of General <br /> Fund balance greater than the sum of working capital, unanticipated events, and <br /> special temporary allocations is considered excess fund balance, and shall be <br /> transferred to a fund, or funds, as determined by the City Council. Because excess <br /> fund balance is considered a one-time source (non-recurring), excess balances may be <br /> used to: <br /> o Build and/or improve fund balance levels. <br /> o Support one-time expenditures that do not increase operating costs (giving priority <br /> to one-time expenditures that reduce future operating costs). <br /> o Provide tax levy or user fee stabilization <br /> o Cover start-up expenditures associated with a new program or service <br /> o Aid in the transition through an anticipated budget change (loss of revenue or <br /> change in service levels) <br /> o Reduce debt levels, or reduce future debt levies <br /> 5. Fund balances below minimum—If General Fund balances fall below the minimum <br /> required (as dictated by working capital requirements), the City will restore fund <br /> balances through a combination of expenditure reductions and revenue enhancements <br /> (levies, user fees etc.), giving higher priority to structural changes that will serve to <br /> stabilize operations over the long-term, as opposed to one-time strategies that shift <br /> challenges into later accounting periods. The City will levy the following year to <br /> recover working capital balances, or as soon as is practicable. <br /> 6. Unanticipated event allocation below 5%—If the portion of General Fund balance <br /> allocated to unanticipated events falls below 5% of the ensuing years General Fund tax <br /> levy, and levy-based state aid, the City will develop strategy to return to a minimum of <br /> 5% within 3 years. <br /> 3 <br />