3-Fund Balance Policy CalculationCity of OtsegoFund Balance Policy General Fund Transfer2025Calculation Comments2025 General Fund Budget 9,940,102 Resolution 2024-87Minimum Fund Balance 4,473,046 The City's Fund Balance states that the minimum General Fund Balance should be 45% of the subsequent year budget.2024 Ending Fund Balance 5,537,452 Per Audited Financial Statements(294,193) Less: Fund Balance from Insurance Reserve Fund (#204) - Grouped with General for Financial Reporting(69,614) Less: Fund Balance from Educational Programming Fund (#215) - Grouped with General for Financial Reporting(180,133) Less: Restricted Fund Balance - Public Safety Aid Distribution in 2023 (Restricted for Law Enforcement Contracts)(149,029) Less: Nonspendable Fund Balance - Financial Reporting Requirement - Funds actually have alredy been expended.(202,200) Less: Nonspendable Fund Balance - Financial Reporting Requirement - Future funds from land for resale proceeds.Fund Balance Available (Unassigned) 4,642,283 % of Current Year's Budget 46.70%Transfer 169,237 Presented to City Council for Discussion on August 4, 2025ILLUSTRATION - INCLUDING PUBLIC SAFETY AIDFund Balance Available (Unassigned) 4,642,283 180,133 Add: Restricted Fund Balance - Public Safety Aid Distribution in 2023 (Restricted for Law Enforcement Contracts)Fund Balance Available (For Budget) 4,822,416 % of Current Year's Budget 48.51%Minimum Fund Balance 4,473,046 Transfer 349,370 Not a formal recommendation; illustrative purposes only.FUTURE VIEWUnassigned Fund Balance 4,642,283 2026 General Fund Budget 11,087,481 As of 7-31-2025% of Next Year's Budget 41.87%FUTURE VIEW (ILLUSTRATION)Unassigned Fund Balance 4,642,283 Restricted Fund Balance 180,133 Less: 2025 Allocation (90,054) Subtotal 4,732,362 2026 General Fund Budget 11,087,481 As of 7-31-2025% of Next Year's Budget 42.68%Y:\Budget\2026\General Fund\Calculation of Fund Balance Policy Transfers2025