05-22-2019 Council Packet - Laserfiche WebLink

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STAFF REPORT TO: Mayor Keis and Members of City Council FROM: Brenda Malinowski, Finance Director DATE: May 16, 2019 RE: Fund Balance – General Fund 2018 BACKGROUND: Per the Fund Balance Policy dated December 21, 2011, the City will strive to maintain an unassigned minimum fund balance in the General Fund in the range 42.5% to 65% of the subsequent year’s budget expenditures. DISCUSSION: Attached is a preliminary unaudited General Fund Financial Report for the year ended December 31, 2018. The 2018 Adopted General Fund Balance anticipated the use of $21,343 of fund balance. At December 31, 2018, the General Fund operating revenues are projected to be 2.91% greater than the adopted budget. Operating expenditures are projected to be 2.56% less than the adopted budget. In summary, the amount of revenues in excess of expenditures is $186,172. The General Fund Balance as of 12/31/2018 is projected to be as follows: 12/31/2018 Unassigned Fund Balance as % of 2019 Budget Expenditures Nonspendable: Prepaid Items $8,769 Interfund Loan Receivables $718,024 Assigned - Unassigned 1,992,382 50.93% Total Fund Balance $2,719,175 A comparison of the 2018 and 2017 General Fund Balance Components is attached. The interfund loan from the General Fund to TIF 5-1 was paid in 2018. This is causing the increase in the Unassigned General Fund Balance. The Unassigned Fund Balance is not larger than 65% of the 2019 Budget, so a transfer out to other funds is not recommended. ACTION REQUESTED: No action is required by the Council.