Title
Consideration of and action on a resolution to transfer $4,026,425 from the Fiscal Year 2018-2019 Unassigned Fund Balance of 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 $4,026,425 of Fiscal Year 2018-2019 unassigned fund balance of the General Fund to the Capital Improvements Fund, which is available for this purpose. Note: the recommended transfer amount is based on the estimated results for Fiscal Year 2018-2019 presented as part of the final proposed budget for the new 2019-2020 fiscal year.
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 2018-2019 unassigned fund balance of the General Fund will be reduced by the $4,026,425 amount of this transfer to the Capital Improvements Fund.
Recommended action
Approve the resolution to transfer $4,026,425 of Fiscal Year 2018-2019 unassigned fund balance of the General Fund to the Capital Improvements Fund.