7. Discussion on Fund Balance policy and projected year end fund balance
Staff Report
Date of Meeting: December 5, 2018
To: City Council
From: Neil Soltis, Administrator
Re: Year-end Fund balance
Background: The Fund Balance policy adopted by the Council provides for the following:
FUND BALANCE GOAL
General Fund: Maintain fund balance of 50% to 65% of total annual General Operating Fund
expenditures. If the balance of the unassigned account rises above 65% at the end of the
fiscal year, the amount above 65% shall either be budgeted in the next year’s annual
operating budget or transferred to a capital improvement fund. The City Administrator shall
annually report the projected unassigned fund balance of the General Fund when the
annual budget for the forthcoming year is presented to the City Council.
At the end of 2018 the unassigned balance in the General Fund is projected to be $1,5 38,849.
Pursuant to the Fund Balance policy the target balance in the General Fund is between
$848,400 (50%) and $1,102,920 (65%). The proposed 2019 budget for the General Fund is
$1,696,800. Based on this the amounts that would be in excess of the target fund balance are
$695,749 (50%) and $441,229 (65%).
The Council should discuss what action should be taken to reduce the property tax levy or to
designate an amount to be transferred to a capital project fund.
Year Certified Maximum Levy Actual Levy
2015 collected in 2016 $2,257,872 $2,257,872
2016 collected in 2017 $2,257,872 $2,257,872
2017 collected in 2018 $2,353,102 $2,257,872
2018 collected in 2019 $2,318,380