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City Council Finance Committee <br />Meeting Minutes <br />03/21 /22 <br />Page 3 of 5 <br />The Financial Policies stipulate a minimum Open Space & Parks Fund reserve <br />equal to 15% of annual operating expenditures. The preliminary calculation of <br />minimum reserves equals about $440,000. <br />The projected ending fund balance is $3,370,000 greater than the minimum <br />reserve amount. Historically, the excess reserves in the Open Space & Parks <br />Fund have been retained as reserves for property acquisition. <br />Recreation Fund <br />The ending Recreation Fund balance is projected to increase by approximately <br />$770,000 to $2,140,000. This is $560,000 greater than last year's estimate and is <br />due to higher -than -expected revenue and an operating turnback over 8%. <br />The Financial Policies stipulate a minimum Recreation Fund reserve equal to 15% <br />of annual operating expenditures. The preliminary calculation of minimum <br />reserves equals about $600,000. The Financial Policies also require a Capital <br />Asset Renewal and Replacement reserve. The most recent calculation of this <br />reserve equals $1,420,000. Therefore, the total minimum reserve is <br />recommended at $2,020,000. <br />Capital Projects Fund <br />The ending Capital Projects Fund balance is projected to increase by <br />approximately $24,000 to $6,700,000. This is $6,600,000 greater than last year's <br />estimate and is due to an unspent capital budget of $7,800,000 (48% unspent). <br />The Financial Policies do not require minimum reserves for the Capital Project <br />Fund. <br />Water Utility Fund <br />The ending working capital for the Water Utility Fund is projected to decline by <br />approximately $1,100,000 to $17,700,000. This is only $74,000 less than last <br />year's estimate. <br />The projected sales of water rights ($5,400,000) has been delayed, the operational <br />turnback is projected at a negative 1 %, and the unspent capital budget is projected <br />at $5,900,000 (51 % unspent). <br />The Financial Policies stipulate a minimum Combined Utility Fund reserve equal <br />to 25% of annual operating expenditures. The preliminary calculation of minimum <br />reserves for the Water Utility Fund equals about $1,190,000. The projected ending <br />working capital is $16,600,000 greater than the minimum reserve amount. <br />El <br />