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INFORMATIONAL MEMO <br />Page 2 <br />to Section 1.B. of the attached resolution. For clarification purposes, the following tables show the <br />calculation of minimum fund balance according to the current financial reserve policy (top table) <br />compared with the minimum fund balance calculation when GASB 68 is excluded (bottom table). <br />CURRENT CALCULATION OF MINIMUM FUND BALANCE <br />Foster <br />Surface <br />Removing effects of GASB 68 <br />Water <br />Sewer <br />Golf <br />Water <br />(a) + (b) = (c) <br />Utility <br />Utility <br />Course <br />Utility <br />(a) 2016 Unrestricted Balance <br />6,692,750 <br />7,826,985 <br />117,982 <br />2,602,903 <br />(b) Prior Year Revenues <br />6,484,496 <br />9,020,998 <br />1,481,791 <br />5,086,199 <br />(c) Minimum Fund Balance' <br />103% <br />87% <br />8% <br />51% <br />1 Current City policy requires unrestricted balances of enterprise <br />funds to equal or exceed 20% of prior year revenue. <br />111% <br />90% <br />46% <br />68% <br />PROPOSED CALCULATION OF MINIMUM FUND BALANCE <br />Foster ': <br />Surface <br />Removing effects of GASB 68 <br />Water <br />Sewer <br />Golf <br />Water <br />(a + b) + (c) = (d) <br />Utility ; <br />Utility ; <br />Course <br />Utility <br />(a) 2016 Unrestricted Balance <br />6,692,750 <br />7,826,985 <br />117,982 <br />2,602,903 <br />(b) GASB 68 calculation <br />499,836 <br />290,202 <br />568,376 <br />841,678 <br />(c) Prior Year Revenues <br />6,484,496 <br />9,020,998 <br />1,481,791 <br />5,086,199 <br />(d) Minimum Fund Balance <br />111% <br />90% <br />46% <br />68% <br />RECOMMENDATION <br />The Finance Committee is asked to recommend passing the revised Financial Reserve Policy <br />and forward that recommendation to the Committee of the Whole on November 13, and to the full <br />Council on November 20. <br />ATTACHMENTS <br />• Financial Reserve Policy Resolution <br />154 <br />