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<br /> <br /> <br /> <br /> Internal Service Funds <br /> <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 /> <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 /> <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 /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> Budget & Financial Polices 75B-11 Page 4 <br />