File #: RES 21-223    Version: 1 Name:
Type: Resolution Status: Agenda Ready
File created: 8/5/2021 In control: City Council
On agenda: 9/21/2021 Final action:
Title: Consideration of and action on a resolution to transfer $1,000,000.00 from the Fiscal Year 2020-2021 Unassigned Fund Balance of the General Fund to the Capital Improvements Fund.
Sponsors: Finance
Attachments: 1. Resolution - Transfer to CIP 09.21.21
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Title

Consideration of and action on a resolution to transfer $1,000,000.00 from the Fiscal Year 2020-2021 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 $1,000,000.00 of Fiscal Year 2020-2021 unassigned fund balance of the General Fund to the Capital Improvements Fund, which is available for this purpose. 

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 2020-2021 unassigned fund balance of the General Fund will be reduced by the $1,000,000.00 amount of this transfer to the Capital Improvements Fund. 

 

Recommended action

Approve the resolution to transfer $1,000,000.00 of Fiscal Year 2020-2021 unassigned fund balance of the General Fund to the Capital Improvements Fund.