Commission to transfer $1.433 million from general‑fund surplus to construction for Fire Station 5

City staff told the commission they are recommending a transfer of $1,433,000 from the general fund unassigned balance to the construction fund for use on Fire Station 5.

Staff said the city finished fiscal year 2024 with a $5.16 million surplus that increased the unassigned fund balance to $23,788,000. Under city policy, the commission maintains a 17% required fund balance and a 30% target; the transfer of $1,433,000 would move amounts above the 30% target into capital.

"What I'm recommending is that those funds be transferred out of the fund balance for the general fund, to the construction fund, and they will be, earmarked for our Fire Station 5 project," City staff member Mr. Smith told commissioners. Smith said the city had earlier reallocated some Fire Station 5 money to cover costs for Fire Station 4 and that the current transfer will support the design‑build process underway for Fire Station 5.

Commissioners asked about cash management and where the city holds funds. Staff said idle funds are placed in the State Board of Administration (SBA) account and may be moved as needed to cover large pay requests; the SBA was said to be earning about 4.48 percent at the time of the meeting.

Why this matters: The transfer moves surplus operating dollars into capital construction for a public safety facility and reflects application of the city—s fund balance policy to maintain fiscal reserves while funding capital priorities. The transcript records the presentation and questions but does not record a formal vote.