Item Coversheet
Meeting Date:
4/7/2020
Staff Contact:

Kim Quin

Finance Director


 
Agenda Items:

(4)(c)
E-mail:
kquin@saginawtx.org
  Phone:817-230-0332
SUBJECT:
Action regarding increasing the General Fund emergency reserve balance by $1,650,000 and the Enterprise Fund emergency reserve balance by $50,000 to comply with Financial Management Policies.

BACKGROUND/DISCUSSION:

The purpose of this item is to increase the balance of the General Fund and Enterprise Fund emergency reserves to 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 $2,550,000; based on the current year budget less capital and one-time items the emergency reserve should be $4,200.000.  An additional $1,650,000 should be added to the emergency reserve balance in the General Fund.

 

The current emergency reserve in the Enterprise Fund is $2,200,000; based on the current year budget less capital and one-time items the emergency reserve should be $2,250,000.  An additional $50,000 should be added to the emergency reserve balance in the Enterprise Fund.

 

 

 

 

 



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

RECOMMENDATION:
Staff recommends increasing the General Fund Emergency Reserve by $1,650,000 and the Enterprise Fund Emergency Reserve Fund by $50,000.