Page 4 - Report

FY 2024-2025 Proposed Budget

Introduction

The property tax revenue in this proposed budget is based on the proposed No New Revenue tax rate of
$0.722033.

This document explains funds and provides an estimated fund balance for all funds. It provides a summary of
the revenue and expenditures for all funds as well, which are detailed in the actual budget document. Also
included is a 2-year history of staffing positions compared to the budgeted positions for FY 2024-2025.

Funds

The table below shows the City of Blue Mound funds with fund numbers.

City of Blue Mound Funds
General Fund (general municipal operations) 100
Crime Control Prevention 200
Special Revenue Fund (Court Security/Technology 300
Fund)
State & Local Fiscal Recovery Fund 400
Capital Projects Fund 500
Debt Service Fund (debt payment for bonds) 600
Enterprise Fund (Water/Sewer) 900
Drainage Fund 910

These funds have a balance, called fund balance. Fund balance, in its simplest form is:

• The difference between assets and liabilities in the fund (similar to a business’s net worth).
• Rolls over year to year and can fluctuate up or down.

Below are the estimated balances of the City’s funds. These are estimates as the bank reconciliations and audit
for FY 2022-24 are not completed. They do not necessarily equate to actual cash on hand nor what is available
to spend because funds may owe each other.

These amounts also do not include any reserves (saving for down times). Reserves are to cover operating costs
in the event the City stops receiving revenue or there is a decline in revenue.

• The recommended best practice for reserves is 90 days of operating expenses.
• The council can adopt a reserve policy as it sees fit. To date, the City does not have a formal reserve policy
in place.
• 90 days operating reserves for the General fund = $445,000. Adjusted Fund Balance for FY 2023 year-end
= $466,688.00.
• 90 days reserves for the Water/Sewer Fund = $205,171. Adjusted Fund Balance for FY 2023 year-end =
$1,339,362.00.
• Fund balance can be used for capital projects/purchases and to balance the budget.

FY 2024-2025 Adopted Budget 4 August 20, 2024