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Council approves $4.2M in transfers from excess reserves for vehicles and drainage projects
Summary
After reviewing FY2025 audit results, council approved transfers of $2.2M to an equipment replacement fund and $2.0M to drainage capital projects (Silver Creek, Wolf Creek, Yonge Boulevard); council discussed fund balance policy and rate impacts before a unanimous vote.
Finance staff presented FY2025 audit figures and a recommendation to apply DeSoto's fund‑balance policy to transfer excess reserves to capital needs. The staff report said the general fund held just over $33 million at audit close and that approximately $5 million exceeded the policy maximum.
As recommended, council approved transferring $2,200,000 from the general fund reserve to the equipment replacement fund for scheduled vehicle replacements and $2,000,000 to the drainage capital fund for projects including Silver Creek, Wolf Creek and Yonge Boulevard. Finance staff characterized these moves as the policy’s normal end‑of‑year options to dedicate one‑time excess funds to capital or one‑time needs.
Council member Crystal Chisholm questioned whether moving excess reserves was the best response to rising utility‑rate pressures and urged staff to consider balancing rate impacts with one‑time purchases. Finance staff explained fund‑by‑fund policy application and said the public‑utility fund did not have excess this year; transfers therefore focused on the general fund and drainage fund.
Council approved the ordinance unanimously.
