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Attachment B
<br />It should be noted that these projections are based on preliminary financial results through October 31,
<br />2022 along with estimated financial activity for the remainder of the year. For the General Fund, the
<br />margin of error is +/- 3% ($400,000) that can be expected given these assumptions.
<br />The License Center has seen some recovery from the past two years. This fund will likely end 2022
<br />with a positive fund balance, but it will be under the low target reserve level. In all likelihood, a
<br />transfer in will be needed at year end to achieve the low target reserve.
<br />
<br />The Information Technology fund is projected to end the year in a deficit position. In 2021, $360,160
<br />was swept out of this fund into the excess cash reserve fund. In 2022, we have the option of folding this
<br />fund into the general fund, since we are now contracting with Metro-INET, or we can transfer dollars
<br />into the fund to maintain the low target reserve level.
<br />
<br />The Parks & Recreation fund is projected to end the year with a reserve level of 33.69% which is over
<br />the maximum level of reserves for this fund. If the projection holds to year end, $208,318 could
<br />potentially be swept to the excess cash reserve fund. Final projections will go to the City Council in
<br />March 2023.
<br />
<br />In 2019 the council approved the establishment of a Cash Reserve (cash carryforward) Fund using
<br />reserves that exceed the HIGH target level as measured at the end of the fiscal year. The following chart
<br />shows the activity within the Cash Reserve Fund since it was created.
<br />
<br />Funding Sources ( Uses)
<br />InformationParks & LicenseCommuni-Use of Excess Cash
<br />YearGeneralTechnologyRecreationCentercationsFundsReserve Fund
<br />Cash Balance: January 12018-$ -$ -$ -$ -$ -$ -$
<br />Contribution2018- 170,000 635,000 81,000 - - 886,000
<br /> Cash Balance December 312018- 170,000 635,000 81,000 - - 886,000
<br />Contribution 2019- 234,924 169,985 249,140 124,947 - 778,996
<br />Interest Revenue201910,084 - - - - - 10,084
<br />Tranfer to Gen Fd-min. balance2019- - - - - (918,583) (918,583)
<br /> Cash Balance December 31201910,084 404,924 804,985 330,140 124,947 (918,583) 756,497
<br />Contribution 2020- 193,990 - - - - 193,990
<br />Interest Revenue20206,323 - - - - - 6,323
<br />Equity Consultant2020- - - - - (100,000) (100,000)
<br />Trf to Parks & Recreation2020- - - - - (235,798) (235,798)
<br />Trf to License Center2020- - - - - (354,958) (354,958)
<br /> Cash Balance December 31202016,407 598,914 804,985 330,140 124,947 (1,609,339) 266,054
<br />Contribution 2021- 360,160 79,662 - - - 439,822
<br />Interest Revenue20211,070 - - - - - 1,070
<br /> Cash Balance December 31202117,477 959,074 884,647 330,140 124,947 (1,609,339) 706,946
<br />2023 Budgeted uses:
<br /> Fuel Increase(126,500)(126,500)
<br /> Parks & Rec Vehicle & Equip Fund(200,000)(200,000)
<br />Estimated Balance **380,446
<br />** License Center & IT fund currently projected to be $204,050 below LOW target level
<br />
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<br />The City is committed to maintaining a strong financial condition which has helped mitigate the impact
<br />of the pandemic and its effects on the CityÓs operations.
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