Laserfiche WebLink
Page 3 of 15 <br />million, respectively. <br /> <br />It should also be noted the City fully spent $8.6 million of funding through the American <br />Rescue Plan Act of 2021 on various General Fund operations, including public safety, <br />community services, operations services, and economic development in FY 2021/22 and FY <br />2022/23. With this one-time federal stimulus funding no longer available in FY 2023/24, the <br />City’s overall revenue numbers were impacted. A one-time $2.0 million transfer from the Rainy <br />Day Fund, as well as $0.9 million in program reserves for Crisis Response, COVID Response, <br />and Strategic Plan Implementation were used to fund services and programs to balance the <br />General Fund budget. <br /> <br />The City budgets revenues and expenditures conservatively to ensure resources are available <br />to cover expenditures, as a significant portion of the City’s General Fund revenue is not <br />received until the third and fourth quarters of the fiscal year, such as business license tax, <br />property tax, and sales tax. Notably, the City’s fiscal policies and practices impact borrowing <br />costs for debt financing. In addition to financial results, rating agencies favorably view <br />proactive long-term financial planning and conservative budgeting practices. <br /> <br />While a balanced budget is required to be achieved every year, many critical funding needs <br />are omitted from the budget due to limited resources. As such, when one-time resources <br />become available, some of the funding gaps are reduced/filled to reduce future financial <br />burden. For FY 2023/24, staff recommends allocating available one-time resources toward <br />multiple funds that either have negative or inadequate fund balances. <br /> <br />Table 1. General Fund Amended Budget to Actuals and Budget Amendments <br /> <br /> <br />As mentioned above, the City has several ongoing funding needs that, in most years, either do <br />not get funded or are only partially funded due to financial constraints; FY 2023/24 was no <br />exception. Staff recommends a series of one-time adjustments, including transfers totaling <br />$7.9 million to various funds to address a negative fund balance issue and rebuild the Rainy <br />Day Fund reserve for capital deferred maintenance needs, as well as restoring reserves in <br />multiple Repair & Replacement funds and Insurance funds that are either already negative or <br />Page 232 of 658