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.