Master Proposed Book FY2023

6. Contingency - A General Fund contingency amount is established each fiscal year for those unforeseen expenditures that arise following formal adoption of the annual budget. This amount is available for appropriation by formal amendment, subject to recommendation from the Finance Director and City Manager, and approval by City Council. Contingency is budgeted at one percent (1%) of General Fund expenditures (excluding transfers) - approximately $643,000 in fiscal year 2023. In fiscal year 2023, a new contingency was added within the Fire Department to begin preparing for the eventual addition of another fire station. 7. Transfers Out - This category is budgeted at $7.5 million in fiscal year 2021. One of the largest transfers out is from the transit property tax levy of $4.1 million that is being transferred into the Transit Fund. Other major transfers out include approximately $1.8 million to the Capital Projects Fund and $1,00,000 to the Affordable Housing Fund. The General Fund borrowed $2.1 million from the Landfill Cell Replacement Reserve during fiscal year 2019 to help construct portions of the new Public Works Facility. Principal payments are reflected as a transfer out. The following is a summary of that loan: 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 $6.15 million from fiscal year 2014 through fiscal year 2020. No transfer is being proposed in fiscal year 2022 or fiscal year 2023. Emergency Fund’s estimated balance is $5.1 million at the end of fiscal year 2023. 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, $4 million was transferred and fiscal year 2022 transfers are expected to be $5 million. This fund is assigned for implementation of the 2012 Facilities Space Needs Study and Master Plan. Loan Date Loan Amount Final Payment Principal Outstanding as of 6/30/22 Total Payment FY23 FY23 Principal FY23 Interest 2019 Public Works Facility Loan 6/30/2019 $ 2,100,000 2036 $ 1,800,160 $139,759 $ 113,531 $ 26,228

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