TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Steve S. Charelian, Finance Director
Libby Bretthauer, Financial Services Manager
Julie Bondarchuk, Financial Controller
Marcelo Serrano, Management Analyst
SUBJECT:Title
Presentation of the Fiscal Year 2022-2023 Proposed Operating Budget and Updated Financial Policies (Finance Director Charelian).
(Estimated Time: 45 Min.)
DISCUSS AND PROVIDE DIRECTION
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council receive this report on the Proposed Operating Budget for Fiscal Year (FY) 2022-2023 and Updated Financial Policies and provide direction.
FISCAL IMPLICATIONS:
The Proposed Budget for FY 2022-2023 includes revenues and expenditures for all of the City's Funds. The document includes conservative estimates for ongoing operations as well as planned projects in the Capital Improvements Plan (CIP).
The FY 2022-2023 General Fund Proposed Budget has a projected surplus of $1,210,209.
Revenues $86,453,227
Expenditures $85,243,018
FY 2022-2023 Proposed Budget Surplus $ 1,210,209
With the City's history of prudent planning and conservative approach to financial management, policy reserves were not drawn upon during the Great Recession or more recently during the pandemic. The City's current Financial Policy reserve is 20% of operating expenditures, or about $17.0 million in FY 2022-2023, which is greater than the Government Finance Officers' Association (GFOA) recommendation of "no less than two months (17%) of regular general fund operating revenues or regular general fund operating expenditures." In addition, the City Council has set aside $4.0 million as an "Economic Uncertainty" reserve.
After taking into account the projected operating surplus of $1,210,209 and net transfers out from the General Fund totaling $7.3 million, the General Fund Unreserved Fund Balanc...
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