2022 08 16 City Council

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FINANCE DEPARTMENT

MEMORANDUM

TO: C. Seth Sumner, City Manager

FROM: Mike Keith, Director of Finance

DATE: August 3, 2022

RE: FY2023 Budget Amendment Number 1 for Fund Balance Transfer

Our fund balance policy for the unassigned fund balance in the General Fund is to maintain an
amount equal to 75% of budgeted expenditures. For the FY2023 budget, that amount should be
$14,625,000. Since we have several items that were not completed in the prior year and are
being carried over to this year ($500,000 of paving being one item), | recommend that this
amount be $15,500,000.

Based on the above, | recommend transferring $2,900,000 from the General Fund to the Capital
Projects Fund in August and ask that it be placed on the August Agenda. Please let me know if
you have any questions or need any additional items for this memo.

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