4.8. SR 05-05-2014 - Laserfiche WebLink

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City of Elk=' Request for Action River To Item Number Mayor and City Council 4.8 Agenda Section Meeting Date Prepared by Consent May 5, 2014 Tim Simon, Finance Director Item Description Reviewed by Resolution Authorizing a Transfer From the Cal Portner, City Administrator General Fund to the Capital Outlay Reserve Fund Reviewed by and Surface Water Management Fund Action Requested Approve,by resolution,a transfer of General Fund balance. Background/Discussion During the April 7 work session,the Council reviewed the 2013 General Fund results of operations and the long-range financial model. In addition, transfers being proposed were reviewed. The fund balance policy sets a minimum and maximum fund balance in the General Fund of 40-45 percent. During the 2013 budget process, the Council wanted to use any excess above our maximum amount over the next several years. With the proposed transfers we will have met the goal with the 2015 budget. As you will recall,with Governmental Accounting Standard Boards (GASB) Statement#54 (reprinted below),the amount above our maximum will be transferred out. We still have the flexibility of each budget cycle to make an annual transfer in similar to the way it may have been done in the past and have the same impact. Paragraph 16 of GASB Statement No. 54 16.An appropriation of existing fund balance to eliminate a projected budgetary deficit in the subsequentyear's budget in an amount no greater than the projected excess of expected expenditures over expected revenues satisfies the criteria to be classified as an assignment of fund balance.As discussed in paragrapb 15, assignments sbould not cause a deficit in unassigned fund balance to occur. Financial Impact The excess above 45 percent will be included as part of the 2015 budget process. A budgeted transfer in from the Capital Outlay Reserve may be used for the remaining fund balance which will bring it to the goal of$200,000. The remaining balance above the $200,000 will go to the Surface Water Management Fund. Attachments ■ Resolution P a w E A E U a r Template Updated 4/14 INIM UREI