Title
City Council Review and Discussion of the General Fund 2020 Year-End Excess Surplus
Brief Description: At the request of Council, this is a discussion about the best use of the General Fund’s excess surplus at the end of fiscal year 2020.
Body
Legislative History
Resolution 20-142 - A Resolution adopting in concept the City of Hudson Five-Year Plan 2021-2025
Purpose & Explanation
The approved 2021-2025 Five Year Plan projected a General Fund ending balance at 12/31/2020 of $13,376,491 (or 56% of projected expenditures).
The actual ending unencumbered balance was $15,452,490 (or 66% of actual expenditure)
As a result, we had an excess surplus of approximately $2.3 million. In other words, we have $2.3 million available to spend and still keep a 56% carryover at 12/31/2020 as well as stay above 40% for the remaining 5 years of the Plan.
Note: The Five-Year Plan assumes borrowing $2 million to help finance a portion of the budgeted General Fund capital projects (Roads, Trails/Sidewalks, Adaptive Signals). One idea to consider is to spend down the excess surplus in lieu of borrowing the funds.
Timing Considerations
None.
Fiscal Impact
Currently Budgeted (Account #, $)
X Supplemental Appropriation Required (if Council decides to spend excess funds)
Appropriation Not Required.
Recommendation
Suggested Action
Staff recommends Council consider how best to use the excess surplus.
Submitted by,
Jane Howington, City Manager
Jeff Knoblauch, Asst City Manager/Finance Director