Finance Committee Agenda and Packet 2022 03 21

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SUBJECT: FINANCIAL STATEMENTS DATE: MARCH 21, 2022 PAGE 4 OF 4 Wastewater Utility Fund The ending working capital for the Wastewater Utility Fund is projected to increase by approximately $318,000 to $6,800,000. This is $1,500,000 greater than last year's estimate and is mainly due to higher -than -expected revenue, an operating turnback of nearly 5%, and an unspent capital budget of $1,160,000 (66% unspent). Staff anticipates most of this unspent capital budget will be re -appropriated for 2022 and later years. The Financial Policies stipulate a minimum Combined Utility Fund reserve equal to 25% of annual operating expenditures. The preliminary calculation of minimum reserves for the Wastewater Utility Fund equals about $890,000. The projected ending working capital is $5,900,000 greater than the minimum reserve amount. Stormwater Utility Fund The ending working capital for the Stormwater Utility Fund is projected to increase by approximately $196,000 to $2,400,000. This is $1,700,000 greater than last year's estimate and is mainly due to an unspent capital budget of $1,810,000 (89% unspent). Staff anticipates most of this unspent capital budget will be re -appropriated for 2022 and later years. The Financial Policies stipulate a minimum Combined Utility Fund reserve equal to 25% of annual operating expenditures. The preliminary calculation of minimum reserves for the Stormwater Utility Fund equals about $153,000. The projected ending working capital is $2,300,000 greater than the minimum reserve amount. CITY COUNCIL COMMUNICATION 10