HomeMy WebLinkAbout07H Fund Balance - 2020 General Fund on December 31, 2020
To: Mayor and City Council Members
Jennifer Levitt, City Administrator
From: Robin Roland, Finance Director
Date: February 24, 2021
Subject: Fund Balance – General Fund on December 31, 2020
Introduction
In accordance with Resolution 2011-165, the City Council is advised about the designation of
fund balance and associated transfers as soon as is practical after the close of the fiscal year.
Discussion
The 2020 adopted budget anticipated no increase or decrease to the fund balance.
The revised 2020 budget which was adopted on Resolution 2020-154 reflected a potential
increase of $1,742,473 in the fund balance, including a supplemental transfer of $1,000,000 to
the equipment replacement fund. This increase was anticipated after receipt of significant
building and development revenues and reduction in expenditures due to the impacts of CARES
Act funding. The revised budget resolution also anticipated the assignment of 2020 fund balance
to balance the 2021 budget if necessary.
On December 31, 2020, General Fund operating revenues are projected to be 1.1% greater than
the revised budget. Operating expenditures are projected at 1.9% more than the revised budget
and include the required transfer to the HERO Center operations ($69,077) and an adjustment
to the IT allocation for GIS conversion expenses which had not been included in the revised
budget resolution. In summary, the amount of revenues more than expenditures is $1,708,692.
Please note that this information is subject to audit and is not finalized.
This increase in the fund balance allows for the following fund transfers identified by the Fund
Balance policy:
Outstanding debt $472,750
Equipment replacement 337,679
Building replacement 202,607
Future pavement management 135,071
Total $1,148,107
General Fund – Fund Balance December 31, 2020 is as follows:
Non-spendable Fund Balance:
Prepaid Items $ 21,885
Compensated absences 1,001,006
Assigned Fund Balance:
Designated for future budgets 500,000
School Bus safety 5,600
Designated for 2021 budget gap 262,000
Unassigned Fund Balance (working capital) 10,315,352
$12,105,843
Compensated absences represent outstanding annual leave amounts owed to city employees
at year end. This value is larger than usual due to many employees not using their annual leave
due to the pandemic.
Assignment of Fund Balance for Specific Purposes
The City Administrator and Finance Director have assigned the following balances for specific
purposes under the policy.
Since 2009, the City Council has set aside funding in an amount to balance revenues and
expenditures in the General Fund if necessary. $500,000 remains assigned for use in
future budgets.
Fine revenue that is received from drivers who violate the school bus stop sign law is
restricted to education programs related to traffic safety. The amount that is unspent is
$5,600.
Implementation of the 2020 Compensation Study in the 2021 Budget was approved by
the City Council, which caused a gap between revenues and expenditures in the final
adopted budget. Assignment of $262,000 in fund balance will provide resources if
necessary, to balance the 2021 Budget.
The remaining $10,315,352 is the 55% of annual expenditures set aside for working capital as
provided by the amended Fund Balance Policy. Under GASB 54, this amount is described as
“Unassigned”.
Action Requested
No action is required by the Council.
General Fund 2020201920182017
Computation of Fund Balance - December 31, 2020
DesignatedDesignatedDesignatedDesignated
Based onAmountBased onAmountBased onAmountBased onAmount
General Fund Amount Available : Per the preliminary financial statements
*$ 13,456,557*$ 12,033,726*$ 11,333,891*$ 11,980,578
Non Spendable Fund Balance
Prepaid Items Updated >>>> 21,885Updated >>>> 33,718Updated >>>> 15,089Updated >>>> 8,750
Compensated Absences Updated >>>> 1,001,006Updated >>>> 927,071Updated >>>> 877,715Updated >>>> 888,269
Fund Balance Fund Balance
Fund Balance Amounts Assigned Fund Balance Amounts Assigned
Amounts Amounts
(GASB 54 Fund Balance Policy)(GASB 54 Fund Balance Policy)
Other Amounts as determined by City Administrator/Finance Director
Updated >>>> 500,000Updated >>>> 500,000Updated >>>> 500,000Updated >>>> 500,000
Designated for future budgets
Updated >>>> 5,600Updated >>>> 5,600Updated >>>> 5,350Updated >>>> 5,200
Amounts collected for violations of "school bus arm"
Updated >>>> -Updated >>>> -Updated >>>> -Updated >>>> 40,200
Set aside for future EAB activiites
Updated >>>> -Updated >>>> -Updated >>>> -Updated >>>> 105,500
Set aside for 50% of Permitting software
Updated >>>> -Updated >>>> -Updated >>>> -Updated >>>> 50,000
Set aside for ADA & Design Standards
Updated >>>> 262,000Updated >>>> -Updated >>>> -Updated >>>> -
Set aside for Budget gap 2021
Unassigned Fund Balance per GASB54 fund Balance Policy 18,755,185 18,266,500 17,593,800 16,848,225
55% 10,315,352 10,046,575 9,676,590 9,266,524
55% of subsequent year General Fund Expenditures
Total 12,105,843 11,512,964 11,074,744 10,864,443
Amounts in excess of fund balance policy - available for transfer 1,350,714 520,762 259,147 1,116,135
Budget Carryovers0% -0% -0% -0% -
Outstanding debt35% 472,75035% 182,26735% 90,70135% 390,647
Equipment Replacement25% 337,67925% 130,19125% 64,78725% 279,034
Building Replacement15% 202,60715% 78,11415% 38,87215% 167,420
Future Pavement Mgmt10% 135,07110% 52,07610% 25,91510% 111,614
Transferred to other funds 1,148,107 442,648 220,275 948,715
Remaining Unassigned 202,607Unassigned 78,114Unassigned 38,872Unassigned 167,420
Remaining year-end General Fund - Fund Balance $ 12,308,450$ 11,591,078$ 11,113,616$ 11,031,863