07-12-2017 Council Packet - Laserfiche WebLink

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STAFF REPORT TO: Mayor Keis and Members of City Council FROM: Sharon Provos, Finance Director DATE: July 7, 2017 RE: Fund Transfer & Budget Amendments Attached is the calculation for a transfer from the General Fund to the General Capital Improvements Fund (GCIF) that indicates $496,472 could be available for transfer given the exceptional budget year we experienced in 2016 that was largely attributable to much higher than normal building permit revenues. This transfer calculation is consistent with the City’s General Fund Cash Flow Policy, and would keep the fund balance at the high end of our targeted range (42.5% to 65% of budgeted General Fund expenditures). As you may recall, the GCIF’s projected fund balance was tight over the next few years. A transfer of $496,472 coupled with anticipated 2018 Local Government Aid (LGA) of at least $240,000 for the GCIF, the fund balance will become pretty healthy. The only caveat to that statement is new capital expenditures could quickly alter that projection. Staff feels we can safely transfer $496,472 from the General Fund to the General Capital Improvement Fund. Staff recommends approval of the transfer as proposed. Staff is also recommending we amend the 2017 Budget by moving the $20,000 Comprehensive Planning expense from the General Fund to the General Capital Improvement fund and increase the amount to $40,000 to cover the overall projected cost. This will take some pressure off of the General Fund in 2017 and the GCIF is a better spot for the expenditure given it is not an annually recurring expenses. Finally, staff is also recommending we authorize a budget amendment of $35,830 in the GCIF to reflect the cost of the Parks & Recreation Master Planning process.