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1/8/2021 <br />3 <br />POLICY AMENDMENTS FOR CONSIDERATION <br />Minnesota State Auditor’s office recommends that Cities maintain their unassigned General Fund balance at 35-50% <br />Amend Current Policy to reflect State Auditor’s recommend range <br />Address the situation when one time monies creates a Fund Balance beyond policy defined range <br />Annually reset Fund Balance after Audit, begins the new year with a fund balance at 42.5% - mid-point of Auditor’s recommendation <br />Transfer excess fund balance, if any, to capital funds based on City Council guidance <br />IMPACT OF MODIFIED POLICY <br />The modifications would place the City’s fund balance at the mid-point of recommended <br />range. Also would provide funding to Capital Budgets that are long range in nature. <br />Low High <br />2021 Budgeted Expenditures 7,651,785$ 7,651,785$ <br />Less Police and Finance contracts 897,989 897,989 <br />Net 2021 Budgeted Expenditures 6,753,796 6,753,796 <br />Minimum balance (30-35%)30%30% <br />City Minimum Working Capital - Fund Balance 2,026,139$ 2,026,139$ <br />Est. Unassigned Fund Balance @ 12/31/2020 2,946,790$ 3,086,790$ <br />Est % Fund balance 44%46% <br />Transfer to Capital Funds during 2021 76,427$ 216,427$ <br />Opening 2021 Fund Balance 2,870,363$ 2,870,363$ <br />Fund Balance %42.50%42.50%