09-26-2007 Council Agenda - Laserfiche WebLink

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Proposed Amendment Replace Section d. language with the following language: The reserve funds in excess of 42.5% will be transferred to the General Capital Improvement Fund. The portion of the transfer that represents an unused General Fund surplus from the prior year will be available for use by the General Capital Improvement Fund. The remainder of the balance transferred will only be available for future transfer back to the General Fund, emergency General Fund expenditures, or for levy adjustments which would have the same effect. The above amendment will re- establish the prior policy of using the General Fund surplus to help support the GCIP. The surplus transferred will be limited to the prior year's audited surplus less any amount of that surplus designated for use in the upcoming budget year. This will increase the amount available in the 2008 GCIP Budget by $255,238, see documents attached as Exhibit B. Finally, this amendment will not impact our goal of a 42.5% reserve balance at the beginning of the fiscal year. This goal is consistent with the original intent to be mid- range of the State Auditor's suggested range of reserve balances equal to 35 -50% of current expenses.