Estimated Beginning Fund Balance

+

$1,000,000

(A)

Estimated Revenue

+

5,000,000

(B)

Transfer Into the Fund

+

0

(C)

Total Available Funds

=

6,000,000

(A+B+C=D)

Estimated Expenditures

-

5,500,000

(E)

Transfer Out of the Fund

-

0

(F)

Estimated Ending Fund Balance

=

500,000

(D-E-F=G)

Effect on Fund Balance (Est Revenues + Transfers In Less Est Exp + Transfers Out)

 

(500,000)

((B+C)-(E+F)=H)

 

Assuming 1 penny generates $50,000                                     $500,000/$50,000 = $0.10
Assuming $1 million dollars is the optimal fund balance
desired, divide the effect on fund balance by the
value of the penny. This determines the tax increase needed.