Utility Operating Reserve

The Operating Reserve Fund is money that has been set aside in case of a catastrophic or emergency event. The required amount is calculated in each year’s budget process and transfers are established based on only the regular operating expense, meaning that all major non-recurring purchases are not included in the calculation. The goal is to have approximately three months operating costs in reserve allowing the city to maintain uninterrupted service for at least that amount of time.

For the past few years, audited figures show that the balance in the Utility Operating Reserve, when combined with reserves in other areas, far exceed the 25% preference. Transfers to the operating reserve are no longer necessary and allow additional funding of capital projects and purchases.