The Government Finance Officers Association (GFOA) indicates that it is essential that governments maintain adequate fund balances to mitigate exposure to risks (e.g. revenue shortfalls and unanticipated expenditures) and to ensure stable tax rates. The GFOA recommends, that cities maintain at a minimum, an unrestricted balance in their general fund of no less than two months of regular operating expenditures. This recommendation also applies to the City’s bond and interest fund and its utility funds (water, wastewater,and stormwater funds). The City has historically held general fund cash reserves in an amount well below the GFOA recommendation and should steadily pursue building and maintaining reserves within all appropriate funds.