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In addition to the annual General Fund transfer towards the annual operating costs, minimum fund <br />balance requirements, and capital asset renewal and replacement reserves, this policy also authorizes <br />an annual transfer from the Capital Projects Fund to the Recreation Fund in the amount of $125,000 for <br />2019 and each year thereafter inflated on an annual basis by the regional Consumer Price Index for All <br />Urban Consumers. This transfer is restricted for capital outlay.. <br />The closing of the Recreation & Senior Center due to the pandemic has significantly affected the Recreation <br />Fund revenue, expenditures, and resulting fund balances. Additional transfers of $432,000 in 2021 and <br />$350,000 in 2022 were added to keep the Recreation Fund reserves above the minuimum amounts as defined <br />in the Reserve Policy. <br />Capital Projects Fund <br />Incorporating the revenue assumptions, the operating expenditure targets, interfund transfer projections, and the <br />Capital Improvements Plan into the long-term financial planning model results in the following graph, which <br />summarizes a history and six -year projection of revenue, expenditures, and fund balances for the Capital <br />Projects Fund. <br />20..000,000 <br />18,000,000 <br />16,003,003 <br />14,003,003 <br />12,003,003 <br />10..000..000 <br />8,000,000 <br />6..000..000 <br />4..000,400 <br />2000,400 <br />fi <br />--. <br />Capital Projects Fund <br />2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 <br />* Revenue * Expenditures i Fund Balance <br />Large fluctuations in revenue, expenditures, and fund balances within capital project funds are typical. The City <br />does not have a formal reserve policy for its Capital Projects Fund. However, the City has historically attempted <br />to maintain enough reserves to mitigate current and future risks (revenue shortfalls, unanticipated expenditures, <br />etc.) <br />The projected fund balance at the end of 2026 is approximately $4.6 million. Staff believes this is well above the <br />level needed to adequately mitigate any revenue shortfalls or expenditure overages. <br />15 <br />