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over the subsequent fiscal year. Upon attainment of the phased objectives, a comprehensive review of the <br />general financial condition of the City will be completed and a new reserve work plan will be developed and <br />submitted for approval that outlines the next intermediate steps for meeting the main objective of a reserve <br />target level of 15%. Until such time that the General Fund Unassigned Reserve meets the minimum phased <br />requirements as outlined above, the following budgetary and operational guidelines shall be used as a basis to <br />achieve the various minimum requirements- <br />- Budget consideration of new programs, personnel, or capital related expenditures shall only be <br />considered if a source of funding is identified either through a corresponding cost reduction, an identified <br />general increase in general tax revenue, or a one-time revenue infusion. Source of funding should include <br />consideration of ongoing general maintenance and operational costs. <br />- Departments will be encouraged to continually achieve savings through internal organizational <br />efficiencies. <br />- Technology will be encouraged if it can be demonstrated that a one-time capital infusion can result in <br />savings being generated beyond two years. <br />- Any General Fund savings generated at the fiscal year end can be considered either for term specific <br />operational or capital needs but a minimum of SO% (up to 100%) of the savings shall be deposited into the <br />unassigned reserve balance until such time that the phased reserve levels are met. <br />- Any internal service fund that has funds in excess of the identified minimum reserve requirement as <br />outlined in this policy, can be utilized as a means to meet the minimum General Fund Reserve <br />requirements. Only unrestricted funds deemed transferable can be utilized. Any transfer to the General <br />Fund Unassigned Reserve Balance will be submitted to Council for consideration and approval. <br />- In order to generate additional savings and until such time that the minimum level of reserves has been <br />achieved, the Budget Office will only utilize a fiscally conservative profile for revenue projections. <br />- If the phased reserve target requirements as outlined above have not been met it is recommended that <br />beginning in FY 14-15 a more conservative projection factor be used to generate forced budgetary <br />savings: <br />(NOTE: Each 1% equates to approximately $2 million) <br />FY 12-13. 100% of recurring revenue projected; <br />FY 13-14: 100% of recurring revenue projected; <br />FY 14-15: 99% of recurring revenue projected; <br />Such factors shall be used to generate General Fund savings until such time that a 7%-8% unassigned <br />General Fund reserve has been achieved. <br />Any generated General Fund savings achieved after reaching between a 7%-8% undesignated General <br />Fund reserve shall be applied in the following order: <br />Up to a max of 25% -Unassigned General Fund Reserve <br />Up to a max of 25% -Economic Uncertainty Reserve <br />Up to a max of 50% -Can be applied to term specific programs, projects, personnel as well as deferred <br />capital maintenance. <br />Budget & Financial Polices Page 3 <br />