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STAFF REPORT <br />TO: <br />FROM: <br />DATE: <br />RE: <br />Mayor Keis and Members of City Council <br />Brenda Malinowski, Finance Director <br />May 5, 2020 <br />2019 General Fund-Fund Balance and 2020 Budget Amendment <br />ACTION REQUESTED: <br />Amend the 2020 General Fund Budget expenditures by $78,870 for building permitting <br />efficiencies upgrades. <br />BACKGROUND: <br />Per the Financial Policies dated 06/24/2019, the City will strive to maintain an unassigned <br />minimum fund balance in the General Fund in the range 42.5% to 65% of the subsequent year’s <br />budget expenditures. In addition, Council has designated the authority to assign fund balance for <br />specified purposes to the City Administrator and/or Finance Director. <br />DISCUSSION: <br />Attached is the draft General Fund Budgetary Comparison Schedule for the year ended December <br />31, 2019. The numbers on this budget comparison schedule have only changed slightly from the <br />2019 4th Quarter Report that was presented at the meeting on February 26th. In addition, the <br />General Fund Balance Component Schedule is attached. <br />Assigned Fund Balance <br />Assigned fund balance has been calculated as follows: <br />•Building Permitting Efficiencies <br />During the 2020 budget process, it was estimated that the City would experience <br />an increase in fund balance, in part due to increased building activities. Specific <br />building permitting efficiency improvements that had been requested to be funded <br />in the 2020 Budget were identified to be funded with the increase of the 2019 Fund <br />Balance. With this strategy, the 2020 Property Tax Levy did not need to be <br />increased to fund these improvements. These items were designated in the end <br />of 2019, and a 2020 Budget Amendment is needed to utilize these funds. <br />Description Council Meeting Approval Amount <br />PermitWorks (building permit software) 11/16/2019 $16,670 <br />OPG-3 (online building permits) 01/29/2020 $22.200 <br />Address file scanning 12/18/2019 $40,000 <br />Total $78,870 <br />•COVID-19 Budget Impacts <br />While all the financial and budget impacts regarding the COVID-19 pandemic are <br />unknown at this time, $60,000 has been designated at the end of 2019 for these <br />impacts. If these funds are needed, a budget adjustment will be presented at that <br />time.