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Page 11 of 15 <br />The Cemetery Fund is another enterprise fund that is currently operating at a major deficit <br />largely due to the cost of cemetery maintenance increasing each year while revenues <br />generated from sales of burial plots have decreased in the last three years. At the current pace, <br />the Cemetery Fund will likely run out of fund balance over the next two to four years. Staff is <br />exploring opportunities to increase revenue streams and will present recommendations at a <br />future date. <br /> <br />Table 10. Cemetery Fund– Amended Budget vs. Actual <br /> <br /> <br />Internal Service Funds <br />Internal Service Funds account for the financing of goods or services provided by a department <br />to other departments on a cost-reimbursement basis; examples of this are the Retirees Medical <br />Reserve Fund, the Repair and Replacement Funds, and the Self Insurance Fund. These funds <br />not only account for current year expenditures but also long-term liabilities of the City. These <br />liabilities may not result in actual expenditures in the short term but will result in future <br />expenditures for the replacement of equipment or the payment in the future for retiree <br />employee medical benefits. In accordance with the City’s adopted financial policies, the City <br />recognizes costs as they accrue, and sets money aside to fund future expenditures, rather than <br />allowing these costs to accumulate and become a future financial burden. <br /> <br />Retirees Medical Reserve Fund. The FY 2022/23 actual revenues and expenditures reflect <br />the 2021 OPEB actuarial study recommendations and actual retiree medical payments. <br /> <br />As shown in Table 11 below, actual revenues were $1.0 million less than the amended budget <br />due to reduced actual expenses. Actual expenses, including transfers, were approximately <br />$1.5 million less than budgeted, which is related to unused retiree medical benefits that occur <br />when eligible retirees have their medical benefits provided through another means such as a <br />spouse or another job. The Retirees Medical Reserve Fund does not require a fund balance. <br />Staff will monitor the level of activities in FY 2023/24 and propose to make necessary <br />adjustments to utilize the fund balance of $0.5 million. <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />Page 263 of 270