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� �� EN HILLS <br /> MEMORANDUM <br /> DATE: April 3, 2001 <br /> TO: Joe Lynch, City Administrator <br /> FROM: Terrance Post, City Accountant <br /> SUBJECT: Disposition of 2000 General Fund Operating Surplus <br /> Background <br /> Preliminary General Fund No. 101 operating results for the year ended December 31, 2000 <br /> indicates a projected surplus of approximately$170,000. Preliminary revenues were under <br /> budget by approximately<$90,000> and preliminary expenditures were approximately $260,000 <br /> under budget. On both revenue and the expenditure side, the cancellation of the Ingerson <br /> neighborhood street improvement project was an important driver in operating results. <br /> • Issue <br /> In previous years, the City Council has directed staff where to transfer operating surpluses. Staff <br /> is looking for similar direction from the council regarding the preliminary 2000 General Fund <br /> operation surplus. <br /> Alternatives <br /> 1. Leave the operating surplus in the General Fund. The 01/01/01 undesignated equity in <br /> the General Fund was $579,742. 2001 General Fund budgeted expenditures and <br /> operating transfers amounts are $2,787,691. Adding the 2000 operating surplus <br /> ($170,000) to the beginning fund balance ($579,742)would result in the ending 12/31/00 <br /> fund balance of approximately $750,000. This fund balance would represent <br /> approximately 27% of 2001 budgeted expenditures and operating transfers out. This <br /> level of equity could easily be supported for working capital needs. <br /> 2. Transfer$150,000 to Land and Municipal Buildings Capital Fund No. 408. The rationale <br /> for this transaction would be that, if additional funding were not required for the new city <br /> hall project, there certainly would be a funding requirement for the future maintenance <br /> facility project. <br /> • <br />