2018-11-14 CC Packet - Laserfiche WebLink

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.. �ere) ffe. 1880W111-111"',C,.n.,ver(, LY51038 jm °e,a�14d�T�d`.1 LGti �a�b."�4' 6 51-424 3232 of 4¢r6�1429-Y629 Memorandum Date: November 14, 2018 To: Honorable Mayor and City Council Members Through: Mark R. Statz, City Administrator/City Engineer From: Bruce DeJong, Finance Director Item: 2018 General Fund Surplus Estimate It is desirable to have an estimate of where our General Fund may end up for the year. We have made an estimate of the amount of revenues and expenditures for the rest of the year. That estimate has been added in to the October Financial Report information in order to project the net amounts, both positive and negative, for each revenue source and department. In order to estimate accurately, we made a couple of adjustments. We assume that we will collect 99% of the current year taxes —allowing for a small delinquency. We assume that we will spend all of the money budgeted for police and fire protection, but that we do not spend the additional $110,000 for fire relief that exceeds our current year contribution from the state insurance surcharge. The remainder of the items assume that we get revenues and spend at the average of the previous three years (2015-2017). Using these assumptions, we have an estimated $140,000 surplus for the year. This is a rudimentary estimate based on historical averages. It won't be entirely accurate, but it does get the direction right and is reasonably close for today's purposes. The City Council should probably use this as a point estimate with a range of around $30,000 plus or minus. This is based on natural variation of about $20,000 in revenue and about $10,000 on expenditures. This gives us a range of$110,000 to $170,000 that we could potentially add to fund balance in 2018. This is in addition to the amount that currently exceeds our policy level of 40-50%. 2017 Fund Balance $1,529,950 2018 Estimated Low Surplus +110,000 2018 Estimated Fund Balance $1,639,950 11