2025 12 08 Work Session Packet

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TO: 
FROM: 
DATE: 
RE: 
FINANCE DEPARTMENT 
MEMORANDUM 
Randy Dowling, City Manager 
Mike Keith, Director of Finance 
November 24, 2025 
FY2026 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 FY2026 budget, that amount should be 
$16,943,250. I am recommending that we transfer $1,700,000 of excess fund balance to the 
Capital Projects Fund in December. This will leave us with a fund balance of approximately 
$17,500,000 in the General Fund. I realize it is above the target but we have $150,000 of leftover 
paving funds to use in future years that will come out of fund balance. Secondly, the balance of 
$17,500,000 will put us at the estimated fund balance needed for the FY2027 budget. With sales 
tax revenue growth slowing in the current year and the loss of property tax revenues, I believe 
this will help us maintain the appropriate fund balance over the next several years. 
Please let me know if you have any questions or need any additional items for this memo. 
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