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fund balance requirements, and capital asset renewal and replacement reserves, this policy <br />also authorizes an annual transfer from the Capital Projects Fund to the Recreation Fund in <br />the amount of $125,000 for 2019 and each year thereafter inflated on an annual basis by the <br />regional Consumer Price Index for All Urban Consumers. This transfer is restricted for capital <br />outlay. <br />The projected Recreation Fund balance at the end of 2024 is $2.0 million, which exceeds the capital <br />asset renewal and replacement target of $1.9 million. The projected Recreation Fund balance at the <br />end of 2028 is $3.9 million. This is well above the minimum fund balance but is approximately 97% of <br />the capital asset renewal and replacement target. <br />Capital Projects Fund Long -Term Forecast <br />Incorporating the revenue assumptions, the operating expenditure targets, the proposed <br />interfund transfers, and the updated CIP projections outlined in the preceding discussion, the <br />following chart summarizes a history and projection of revenue, expenditures, and fund <br />balances for the Capital Projects Fund. <br />at iii1111111 <br />o u <br />Large fluctuations in revenue, expenditures and fund balances within capital project funds are typical. <br />The City does not have a formal reserve policy for its Capital Projects Fund. However, the City has <br />historically attempted to maintain enough reserves to mitigate current and future risks (revenue <br />shortfalls, unanticipated expenditures, etc.). <br />The projected fund balance at the end of 2028 is approximately $5.1 million, which staff believes is an <br />adequate balance. <br />14 <br />