GENERAL FUND LONG-RANGE PLAN (cont)

costs are projected to increase 10% per year based on cost increases that the Town has seen since it became self-insured.

Capital outlay costs vary from year-to-year and are minimal to include improvements to Town buildings and equipment for operations, such as police and parks maintenance equipment. The projects included in the Town Facilities Master Plan can be found in the Capital Renewal and Replacement Reserve Fund. Transfers out also vary based on the cash needs in other funds that are supported by the General Fund.

Based on this model, the fund balance in the General Fund falls under the required 25% in 2028. The amount of cash required varies since the requirement is a percentage of expenditures. The Town will have to review the timing of projects, modify expenditures and/or identify new revenue sources to build up the fund balance to maintain the legally required reserves.