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Page 1 of 15 Item #21 CITY COUNCIL AGENDA REPORT December 19, 2023 Finance TITLE: ADOPT A RESOLUTION TO ACCEPT THE FY 2022/23 YEAR-END OPERATING BUDGET REPORT, APPROVE BUDGET AMENDMENTS IN MULTIPLE FUNDS, AND DESIGNATE THE GENERAL FUND BALANCE SUMMARY This report presents the results of operations for the Fiscal Year 2022/23 Operating Budget (Budget) and recommends designations of the General Fund reserves. This information is unaudited; the audited information will be included in the City’s Annual Comprehensive Financial Report (ACFR) and will be presented to the City Council after the City’s independent auditor has issued its opinion on the ACFR, and it has been reviewed by the Audit Committee which is expected to occur in January/February 2024. If there are any differences in the financial information presented in this report and the ACFR as a result of the audit, those changes will be highlighted at the time the ACFR is presented to the City Council for acceptance. RECOMMENDATION Adopt a resolution to accept the Fiscal Year 2022/23 Year-End Operating Budget report, approve budget amendments in multiple funds, and designate the June 30, 2023, General Fund Balance. BACKGROUND Annually, staff presents the year-end financial report to the City Council for approval. The report summarizes the actual results of the financial activities for the fiscal year and details changes in reserves and recommended budget amendments or adjustments. The City’s ACFR is still in progress; therefore, the financial information included in this report is based on unaudited figures. The audited information will be presented to the City Council in the ACFR after the City’s independent auditor has issued its opinion and the ACFR has been reviewed by the Audit Committee. All of this is expected to occur in January/February 2024. Any changes to the information presented in this report as a result of the audit will be brought to the City Council’s attention at that time. DISCUSSION The following discussion addresses the General Fund, Enterprise Funds, and Internal Services Funds, examining amended budget versus actuals for FY 2022/23. The amended budget is the original budget plus all budget amendments approved by the City Council through June 30, 2023. General Fund Table 1 below summarizes the FY 2022/23 General Fund revenues, net transfers, and expenditures. Actual revenues were greater than the amended budget by $9.3 million or 6.5%. This excludes a net unrealized investment loss of approximately $1.7 million incurred in FY Page 253 of 270