Title
Excess General Fund Balance to Future Infrastructure Projects
Brief Description: This is a discussion on how the City can set aside a portion of the excess General Fund carryover balance into some type of reserve account/fund for future infrastructure projects.
Body
Legislative History
None.
Purpose & Explanation
The financial projections for the annual Five-Year Plan are made in the early Fall. This allows sufficient time to review and amend the Plan and pass legislation by year end. Finance staff appropriately uses a conservative approach in estimating the year end balances. This has resulted in the actual year end balances exceeding the projected balances, thus creating an "excess carryover balance".
Historically, City Council has used a portion of this excess for capital/infrastructure type projects/purchases however, there is no formal policy in place. The purpose of this discussion is to consider options for how to best reserve these funds.
Attached to this memo is the section of the Ohio Compliance Supplement that summarizes the allowable reserve balance accounts and funds. Ohio Revised Code section 5705.13(C) appears to be most applicable. This section allows a capital projects fund to be established to accumulate resources to acquire, construct, or improve fixed assets.
The fund must be created by ordinance or resolution. The ordinance or resolution must identify the purpose, amount to be accumulated and source of funding. There is a 10-year limit on the time to be accumulated. City Council can rescind the fund at any time and return the accumulated resources to the fund from which they came.
The excess carryover at the end of 2022 is currently $2,262,000.
Timing Considerations
None.
Fiscal Impact
Currently Budgeted (Account #, $)
X Supplemental Appropriation Required (if a reserve fund is established)
Appropriation Not Required.
Recommendation
Suggested Action
Staff recommends City Council review and discuss the options.
S...
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