Clearfield's budget forecasts reserves $172,968 above its two-month target

Clearfield's fiscal 2027 budget forecasts that the city's unrestricted general fund balance will end the year at $4,418,637, which is $172,968 above a benchmark of two months of operating expenses, according to the budget's general fund summary. ^[1]

The City Council adopted the budget, Ordinance 2026-11, by a 4–0 vote on Aug. 11, 2026, with Councilmember Nike Peterson absent. ^[3]

The forecast

The budget estimates the general fund will begin the year with an unrestricted balance of $6,615,925. It plans $29,336,003 in expenditures against $27,138,715 in revenues and other sources and lists a $2,197,288 "Use of Available Reserves." ^[1]

Subtracting that use from the estimated beginning balance gives the forecast ending balance of $4,418,637. The budget lists a two-month operating expense figure of $4,245,669 and an "Amount Above Two Mnth Oper" of $172,968. ^[1]

The budget says available general fund cash at the end of fiscal 2027 "is 63 days of operating expenses, which exceeds the target of 2 months." It shows the forecast unrestricted balance as 17.7% of revenues. ^[1]

Deferred projects

The city manager's budget message says that, to maintain a minimum general fund reserve equal to 60 days of operating expenses, "approximately $1.8 million in projects were deferred or eliminated." A list of major budget changes also says the city "deferred or eliminated $1.8M of capital requests." The document does not list the deferred items. ^[1]

The message refers to a 60-day minimum, while the summary table measures the forecast against two months and reports 63 days. ^[1]

The budget says the general fund's "ongoing revenue marginally exceeds its operating expense." ^[1]

At the Aug. 11 meeting, the minutes say, staff described the planned drawdown of cash reserves as intentional and used for one-time expenses. ^[3]

The audited baseline

The fiscal 2025 audited report measures fund balance on a different basis. At June 30, 2025, the general fund's total balance was $7,144,030, of which $5,557,543 was unassigned. ^[2]

That balance fell $1,395,922 during fiscal 2025. The report attributes the decrease to "planned use of reserves for capital projects." ^[2][4]

Elsewhere, the report says unrestricted general fund balance was 24.29% of total general fund revenues and within the range set by state law. ^[5]