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Page 2 of 15 2022/23. Accounting for this unrealized loss, the revised net difference is $7.7 million or 5.3%. Transfers in and out (net transfers) were $0.2 million less than the amended budget. Actual expenditures were $3.2 million or 2.3% less than the amended budget. A detailed explanation of amended budget versus actuals is included in Tables 2, 3, 4 and 5 in this report. Actual investment loss is not expected as the City intends to hold its securities until maturity. However, the Governmental Accounting Standards Board (GASB) requires reporting of unrealized investment loss/fair market value adjustment in the ACFR. Additionally, based on new GASB implementations related to leases and subscription-based information technology arrangements (SBITAs), required adjustments resulted in actual revenue and expenditure numbers both increasing by approximately $1.4 million. The City was allocated almost $8.6 million funding through the American Rescue Plan Act of 2021; $4.3 million was spent in FY 2021/22, and remaining funds were spent in FY 2022/23 on General Fund operations, including public safety, community services, operations services, and economic development programs that provided local business support. As this one-time federal stimulus funding no longer available, a series of adjustments were made in developing the FY 2023/24 and 2024/25 budget, including reduced General Fund contributions to Capital Funds and Internal Service Funds. Actuals also include approximately $3.5 million in one-time transfer from the Rainy Day Fund to the General Fund. The City budgets revenues and expenditures conservatively to ensure resources are available to cover expenditures, as a significant portion of the City’s General Fund revenue is not received until the third and fourth quarters of the fiscal year, such as business license tax, property tax, and sales tax. While a balanced budget is achieved every year, due to limited resources not all funding needs are incorporated into the budget. When resources are available, these funding gaps are reduced/filled to reduce future financial burden. Table 1. General Fund Amended Budget to Actuals and Budget Amendments The City has several ongoing funding needs that in most years do not get fully funded due to financial constraints, and FY 2023 was no exception. Staff recommends a series of adjustments, including first restoring the General Fund’s unrestricted reserve to the 20.0% target level, which is approximately $29.6 million based on the Adopted FY 2023/24 General Fund Operating Budget, and establishing two new reserves - a Strategic Plan Implementation Page 254 of 270