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Gbj *.4 <br />I REQUEST FOR ACTION <br />V r <br />ACTION REQUESTED <br />Review city Fund Balance Policy, discuss excess fund balance accounting and consider options for use of <br />excess fund balance. <br />ACKGROUND/ ISCUSSION <br />Last week the Council reviewed the 2013 General Fund budget and wanted to further discuss the use of <br />excess General Fund fund balance. <br />At the end of 2011, we have a total accumulated fund balance available of $493,358 based on the audited <br />financial statements and the adopted 2012 budget. Our fund balance policy requites a minimum fund <br />balance of 40% of the next year's budget to cash flow out expenses. The updated 2013 budget requites <br />$97,650 of this available fund balance. We have historically maintained a fund balance of 41.5 %,in case <br />of unexpected expenditures, tax court cases, unplanned revenue shortfalls or emergencies, and to <br />maintain out minimum balance. <br />From time to time we can have excess fund balance resulting from expenditures come under budget, <br />vacant positions and unexpected revenues (grants), but the same could also happen where we go over <br />budget on expenditures and we experience a significant number of tax revenue delinquencies or revenue <br />loss. <br />We will review the illustration in detail at the meeting and discuss some options regarding using excess <br />fluid balance going forward. Those options will center around the following bullet points. <br />• Using over multiple years <br />• Using over a year or two <br />Transferring out any excess to capital project funds <br />• Fund Balance illustration <br />• Fund Balance Survey <br />2013 Budget adjustment worksheet <br />Mu <br />C: \Documents and Settings \1ziemer \Local Settings \Temporary Internet <br />Piles \Conteut.Outlook \OXPP9NI IG \budgets taffreport01119. dots <br />