Item Coversheet
Meeting Date:
9/20/2022
Staff Contact:

Kim Quin

Finance Director


 
Agenda Items:

(4)(d)
E-mail:
kquin@saginawtx.org
  Phone:817-230-0332
SUBJECT:
Action regarding increasing the General Fund emergency reserve balance by $440,000 to comply with Financial Management Policies.  Reserve balances in the Enterprise Fund do not need to be adjusted.

BACKGROUND/DISCUSSION:

The purpose of this item is to ensure that the emergency reserves of the General and Enterprise Funds comply with the Financial Management Policies adopted by the City Council on March 17, 2020.  Both funds are required to reserve 25% of the operating budget for unexpected emergencies.

 

The current emergency reserve in the General Fund is $4,550,000; based on the FY2022-2023 adopted budget less capital and one-time items the emergency reserve should be $4,990,000.  An additional $440,000 should be added to the emergency reserve balance in the General Fund.

 

The current emergency reserve in the Enterprise Fund is $2,450,000; based on the FY2022-2023 adopted budget less capital and one-time items the emergency reserve is adequate. 

 



FINANCIAL IMPACT:
There is no impact as this is not an expenditure but a reclassification from unrestricted to restricted.

RECOMMENDATION:
Staff recommends increasing the General Fund Emergency Reserve by $440,000.