Title
Consideration of and action on a resolution to transfer $450,000 from the Fiscal Year 2025-2026 Unassigned Fund Balance of the General Fund to the Asset Replacement Fund.
Body
Summary:
The Asset Replacement Fund was created for the purpose of funding the future replacement of rolling stock, including vehicles and equipment. The City believes it is prudent to set aside monies for future capital equipment replacement needs. On November 18, 2025 the City Council passed Ordinance No. 4666 authorizing the transfer of $350,000 from the General Fund Unassigned Fund Balance to the Asset Replacement Fund to purchase a new Medic 2 ambulance. Additional rolling stock replacement needs have been identified and the City recommends the transfer of an additional $450,000.00 of Fiscal Year 2025-2026 Unassigned Fund Balance of the General Fund to the Asset Replacement Fund, which is available for this purpose. With approval of this resolution, the total transfer of Unassigned Fund Balance to be transferred to the Asset Replacement Fund for Fiscal Year 2025-2026 will total $800,000.00.
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 2025-2026 unassigned fund balance of the General Fund will be reduced by the $450,000.00 amount of this transfer to the Asset Replacement Fund.
Recommended action
Approve the resolution to transfer $450,000.00 of Fiscal Year 2025-2026 unassigned fund balance of the General Fund to the Asset Replacement Fund.