Cash reserves are necessary to fund the City’s day to day operations as well as fund capital improvements, and help ensure that the City can keep operating in case of an emergency. Under current economic conditions, these reserves are particularly important in case revenues for the City decline. In addition, many operations of the City, particularly within the water, sewer and electric utilities, require significant cash reserves because equipment operated and maintained by the City, which is crucial to maintaining each utility, can cost hundreds of thousands of dollars to replace.