FY2027 Adopted Budget

C. Fund Balance It is part of the City’s Financial & Fiscal Policies that the General Fund’s unassigned fund balance shall not fall below twenty-five percent (25%) of total revenues and transfers in and not grow greater than thirty-five percent (35%). This policy also states that fund balance in excess of thirty percent (35%) of revenues and transfers in will be transferred to the City’s Emergency Fund, used to retire outstanding debt, used to provide property tax relief, or be used for facility replacement. General Fund unassigned fund balance was transferred into the Emergency Fund starting in fiscal year 2014. Transfers into the Emergency Fund have totaled $6.4 million from fiscal year 2014 through fiscal year 2025. Emergency Fund’s estimated balance is $5.4 million at the end of fiscal year 2027. A transfer of $162,400 is planned in fiscal year 2026 to a newly established Community Response Reserve Fund. The uses of these funds has not yet been determined by City Council. General Fund unassigned fund balance was also transferred into the Facility Master Plan Reserve, within the General Fund, in the fiscal year 2019 and fiscal year 2020 at $2 million each year. In fiscal year 2021 and 2022, $4 million and $5 million was transferred, respectively. A transfer of $4.7 million was completed for fiscal year 2023. A transfer of $5 million is planned in the fiscal year 2026 revised budget. This fund is budgeted to be completely used in 2027 for facility capital projects. General Fund’s unassigned fund balance is relied upon to provide cash flow during the first quarter of the fiscal year as the majority of property taxes are not received until October/November. The following chart demonstrates how expenditures have exceeded receipts in the first three months over the past ten years. 3 Months @ Sept. 30 Receipts Expenditures Shortfall FY2026 $ 11,348,231 $ 18,628,508 (7,280,277) $ FY2025 9,679,726 18,513,886 (8,834,160) FY2024 9,467,480 22,229,714 (12,762,234) FY2023 10,961,006 15,985,058 (5,024,051) FY2022 11,282,036 17,424,535 (6,142,499) FY2021 9,621,807 14,521,703 (4,899,896) FY2020 9,517,460 15,862,567 (6,345,107) FY2019 9,833,115 15,455,184 (5,622,069) FY2018 7,859,044 14,422,373 (6,563,329) FY2017 7,917,409 15,727,049 (7,809,640) FY2016 10,402,991 13,341,071 (2,938,080)

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