Title
Consideration of and action on a resolution to transfer $16,500,000.00 from the Fiscal Year 2023-2024 Unassigned Fund Balance from the General Fund to the Capital Improvements Fund.
Body
Summary:
The Capital Improvements Fund is for the purpose of funding capital improvements on a cash or pay-as-you-go basis to reduce the use of long-term debt financing. The City believes it is prudent to set aside monies for future capital needs and recommends the transfer of $16,500,000.00 of Fiscal Year 2023-2024 unassigned fund balance of the General Fund to the Capital Improvements Fund, which is available for this purpose.
Monies will be assigned for projects funded through the Capital Improvements Fund as follows:
$14,000,000 - Jimmy Burke Activity Center
$1,000,000 - Fire Station #1
$1,000,000 - Fire Station #2 and Training Center
$500,000 - Various FY 24-25 Capital Projects
In accordance with the Financial Management Policy, the City shall maintain a General Fund unreserved fund balance equivalent to a minimum of 25% of normal recurring operating costs, based on the current years budgeted operating expenditures. The current unreserved fund balance of the General Fund exceeds this 25% reserve requirement.
Fiscal/Budgetary Impact:
The Fiscal Year 2023-2024 unassigned fund balance of the General Fund will be reduced by the $16,500,000.00 amount of this transfer to the Capital Improvements Fund.
Recommended action
Approve the resolution to transfer $16,500,000.00 of Fiscal Year 2023-2024 unassigned fund balance of the General Fund to the Capital Improvements Fund.