A Risk-Based Analysis of General Fund Reserve Requirements

Shayne C. Kavanagh

The City of Colorado Springs, like many other governments, had questions about the amount it should maintain in reserve. This case study of Colorado Spring's risk-based assessment of reserve requirements starts out by identifying general risk factors. It then identifies primary risk factors -- revenue volatility, infrastructure upkeep, and vulnerability to extreme events -- and secondary risk factors before explaining the GFOA's findings and recommendations for the city.