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Item $3$

Time Remaining $30$ minutes $8$ seconds$00$:$30$:$08$

The city council of Adel, IA passed its $2023$ fiscal year General Fund budget $($July $1,2022$ to June $30,2023).$ For fiscal year $2022,$ Adel closed the fiscal year with an operating deficit of $$590,000.$ Unassigned fund balance at June $30,2022$ was $$965,000,$ before applying the operating deficit. Adel has the following FY $2023$ budget adoption information:

Estimated Revenues:

Property Taxes $$1,214,000$

Fines and Forfeits $108,000$

Charges for Services $389,600$

Miscellaneous Revenues $119,000$

Totals $$1,830,600$

Appropriations:

Education $$839,600$

Public Safety $1,425,000$

Public Works $633,700$

General Government $1,879,000$

Totals $$4,777,300$

Estimated Other Financing Sources:

Transfers from State of IA $$3,645,300$

Proceed from bond issue $1,000,000$

Totals $$4,645,300$

Estimated Other Financing Uses:

Transfers to Debt Services Fund $$2,050,000$

Required:

$1.$ Prepare the entry to adopt the General Fund FY $2022$ budget. Ignore subsidiary ledgers.

$2.($a$).$ After recording the budget, can Adel, IA adopt the FY $2023$ budget? Explain.

$($b$).$ Is this a surplus or deficit budget? Address the budget relative to inter$-$period equity in your response. Write at least two sentences and include numbers to support your argument.