Laserfiche WebLink
Internal Service Funds <br />Background <br />Internal Service Funds are established to administer and account for various activities whose purpose is to provide <br />for goods and services to support other departments for their ongoing operational and programming needs. The <br />delivery of these services is recovered on a cost recovery basis. <br />Purpose <br />It is the intent of the Internal Service Fund Reserve Policy to establish general guidelines as to the establishment <br />of a proper recovery rate structure and define an appropriate level of reserves for each Internal Service Fund. It <br />will also establish criteria for the use of reserves and establish a process by which to replenish reserves if utilized. <br />Although this policy only addresses the Risk Management Funds (i.e. Liability and Property Insurance and Workers <br />Compensation Fund), it is the intent to build upon and include all internal service funds within this policy. <br />Risk Management <br />The Risk Management programs are established to protect the City's assets through the administration of a <br />properly funded liability claim and insurance program and by minimizing the cost and effect of work -related <br />injuries. Rates for these programs are established on a biennial actuarial basis. <br />Reserves <br />Reserves for these accounts will be funded at not less than 80% as defined in the actuarial study. In addition, <br />three months of operational reserves will be included to address any variations related to revenues and <br />expenditures. Any surplus amounts defined in these accounts from general agencies shall be available for transfer <br />to the General Fund until such time that the General Fund reserve meets the minimum requirement of 15% or to <br />establish the reserve for Economic Uncertainty. Transfers shall be submitted to Council for approval. There after <br />any surplus can be used to fund any deficits identified in other Internal Service Fund reserves, as well as other <br />unfunded capital and deferred related maintenance. <br />Budget & Financial Polices (Rev. 6/2017) 65A-1 2 Page 5 <br />