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City Council Finance Committee <br />Meeting Minutes <br />03/21 /22 <br />Page 2 of 5 <br />PRELIMINARY STATEMENTS OF REVENUE, EXPENDITURES, AND <br />CHANGES TO FUND BALANCES / WORKING CAPITAL FOR THE QUARTER <br />AND YEAR ENDED DECEMBER 31, 2021 <br />Kevin Watson, Finance Director, presented preliminary Statements of Revenue, <br />Expenditures, and Changes to Fund Balances (or Working Capital) for the fourth <br />quarter and year ended December 31, 2021 for the City's major operating and <br />capital funds. Director Watson noted that these were preliminary statements <br />presented early in order to give the Finance Committee a general perspective of <br />where the City ended the 2021 fiscal year. <br />The focus of the meeting presentation was on preliminary ending fund balances <br />(or working capital) and how it compared to last year's final estimates and to the <br />minimum and targeted fund balances defined in the Financial Policies. <br />Highlights from the presentation are summarized below, by fund. <br />General Fund <br />The ending General Fund balance is projected to increase by approximately <br />$1,160,000 to $12,460,000. This is $2,380,000 greater than last year's estimate <br />and is due to higher -than -expected revenue and a turnback percentage of over <br />11 %. The term "turnback" refers to a positive actual -to -budget variance. The <br />turnback percentage refers to the amount of unspent budget "turned back" to <br />reserves. <br />The Financial Policies stipulate a targeted General Fund reserve equal to 25% of <br />annual operating expenditures. The preliminary calculation of targeted reserves <br />equals $5,130,000. <br />The projected ending fund balance is $7,330,000 greater than the target reserve <br />amount. <br />The Committee discussed using the excess reserves for Marshall Fire recovery. <br />Open Space & Parks Fund <br />The ending Open Space & Parks Fund balance is projected to increase by <br />approximately $580,000 to $3,810,000. This is $1,210,000 greater than last year's <br />estimate and is due to an operating turnback of nearly 10% and an unspent capital <br />budget of $1,230,000 (70% unspent). <br />3 <br />