03-23-2022 Council Packet - Laserfiche WebLink

Home Browse Search

STAFF REPORT TO: Mayor Keis and Members of City Council FROM: Brenda Malinowski, Finance Director DATE: March 23, 2022 RE: 2021 General Fund-Fund Balance ACTION REQUESTED: Approve a transfer from the General Fund to the General Capital Improvements Fund in the amount of $900,000 or another amount effective 12/31/2021, per the City’s Fund Balance Policy. BACKGROUND: Per the City’s Fund Balance Policy, 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. If the unassigned fund balance rises above the desired range; excess funds will be transferred to the General Capital Improvements Fund. The General Capital Improvements Fund is used to accounts for general capital improvements including building maintenance and repairs, public works equipment, park improvements, and EAB removal and replacement. Currently, the primary source of funding for this fund is 80% of LGA (currently 347,000 per year) that the City receives each year and periodic transfers from the General Fund. There is approximately $1.2 million in expenditures in this fund per year over the next five years. DISCUSSION: The General Fund Balance Component Schedule is attached for review. 2021 Ending Fund Balance for General Fund The Fund Balance for the General Fund is allocated into three components; Nonspendable, Assigned, and Unassigned. 1. Nonspendable Fund Balance This component of fund balance for amounts that cannot be spent because they are in a nonspendable form. These are prepaid expenses and interfund loans. As of the end the year, these amounts total $503,889.