ACCOUNTING FOR GOVERNMENTAL AND NONPROFIT ORGANIZATIONS HANDOUT PROBLEM 2 Score Name Section Problem (10 points) The finance director of the City of Minnetonka is making estimates for the budget for the upcoming fiscal year ending June 30, 20X0. The attached information is available for the budget for the General Fund. The fund balances in the General Fund at the end of fiscal year 20W9 are expected to be $1,250,000. The city wants at least S1,600,000 at the end of fiscal year 20X0 to provide financing for fiscal year 20XI operations. REQUIRED: ) Prepare the revenues budget for fiscal year 20X0. Show a supporting (2) Prepare an expenditures budget, excluding salaries and wages, for fiscal year (3) What amount can be spent for salaries and wages in the 20XO budget based computations 20X0. Show supporting computations. upon the information in the problem? Show computations. What percentage increase or decrease will this be assuming that any change would be "across the board"? CITY OF MINNETONKA INFORMATION FOR PREPARING REVENUES AND EXPENDITURES BUDGETS FOR FISCAL YEAR 20X0 Estimated Amount For Fiscal 20W9 Expected Change For Fiscal 20X0 Revenues: Property Taxes State Grants Federal Grants Other 5.0% increase 3.0% increase 60,000 decrease 25,000 increase 2,500,000 850,000 600,000S 325,000 S Expenditures Salaries and Wages Utilities Maintenance Capital Purchases Debt Service Other 2,500,000 450,000 00,000S 400,000 S 200,000 S Dependent on money available 5.5% increase 25,000 increase 35,000 increase 25,000 increase 2.5% increase 50,000