DISCUSSION:
General Fund’s Financial Status - Updated FY 2022-23 Budget Based on the actual FY 2022-23 ending balance, revised revenue projections, and adopted appropriations, we are expecting a recurring balance of $8.1 million (see detail contained within the FY 2022-23 Budget Matrix in Attachment 2). This balance is considerably higher than the $6.8 million projection during the first-quarter report, due to certain revenue streams trending above expectations. Staff is expecting an available balance of approximately $35.4 million in the General Fund at fiscal year-end, pending the approval of the mid-year budget adjustments discussed later in this report.
Fiscal Year 2022-23 General Fund Revenues
For the first six months of the fiscal year, the General Fund received $78,558,559 in recurring revenue, which represents 37.5% of the revised revenue forecast. For perspective, revenues for the first six months of FY 2021-22 were at $72,811,377 and 37.9% of forecast.
The economy appears to be more resilient than expected but there will still be challenges such as inflation and labor shortages, which will affect different sectors of the economy at different times. Growth is expected in 2023 but not at the levels experienced in FY 2021-22 with the rapid recovery of the economy following the initial impacts of the COVID-19 Pandemic (Pandemic). After reviewing Burbank’s second quarter FY 2022-23 receipts, staff is recommending adjustments to Utility User’s Tax (UUT), in-lieu of tax, service charges, interest, and parking fines. The net total for the mid -year adjustment s is a n increase of approximately $1.4 million. The total combined adjustments between the first quarter report to City Council in November and mid-year adjustments are approximately $7.7 million.
Table 1 outlines the adjustments to FY 2022-23 recurring General Fund revenue projections by category. This is the best estimate of General Fund revenue available at this time, which is based on actual receipts during the first half of the year.
Table 1 - General Fund Recurring Revenues as of December 31, 2022
Sales Tax: The California Department of Tax and Fee Administration (CDTFA) has released sales tax information for sales occurring in the third quarter of the calendar year 2022. After corre cting for one -time adjustments , traditional (Bradley Burns) sales tax receipts for the third quarter increased by 6.6% compared to the same quarter in the prior year. As the Federal Reserve continued to ramp up the interest rates in an effort to curb inflation, consumers maintained spending levels on a broad array of goods. Home furnishings and specialty stores were largely responsible for the growth in general consumer goods as people shopped in person. As studios returned to full production schedules, equipment sales in the motion picture industry boosted business -industry receipts. Restaurants experienced strong growth as increased menu prices, consistent desire to dine out, and strong tourism contributed to the gains. The cost of crude oil kept fuel prices high during the third quarter , with jet fuel sales at the Hollywood Burbank airport contributing to the growth.
The City’s Transactions and Use Tax (TUT) revenues, which are derived from Measure P, experienced similar positive results to the Bradley Burns tax receipts. New car sales and restaurants contributed the most to the growth. Of the $20 million that was received in sales tax for the first six months of FY 2022-23, $5.4 million was generated from TUT revenue, which represents the General Funds 50% share of Measure P funds.
Due to the factors mentioned above, our consultants from HdL Companies have revised their FY 2022-23 forecast for Burbank to reflect an increase in sales tax revenue above and beyond their initial projections for the year . Staff made adjustments during the first quarter report and is not recommending additional adjustments at this time.
Sales Tax 58,548,585$ 54,417,033$ 4,000,000$ 58,417,033$ 20,418,869$ 35.0% Property Tax 63,295,371 61,786,895 1,500,000 63,286,895 17,491,703 27.6% Utility Users Tax 16,391,931 16,312,400 910,000 17,222,400 8,750,876 50.8% Services Charges - Intra City 13,360,309 13,499,790 13,499,790 6,715,845 49.7% Services Charges 21,608,257 18,405,990 530,000 18,935,990 9,857,594 52.1% In Lieu of Tax 8,484,508 8,728,076 375,000 9,103,076 4,555,906 50.0% Interest/Use of Money 2,602,548 2,271,472 200,000 2,471,472 1,277,129 51.7% Parking/Traffic/Other Fines 1,666,688 2,002,000 (632,000) 1,370,000 542,418 39.6% Transient Occupancy Tax 10,525,619 10,048,000 500,000 10,548,000 4,492,138 42.6% Building Permits/License Fees 7,420,263 5,593,503 5,593,503 2,331,138 41.7% Transient Parking Tax 3,691,234 3,339,000 360,000 3,699,000 1,116,561 30.2% Business Taxes 2,378,814 2,400,000 2,400,000 364,945 15.2% Franchises 1,487,933 1,471,179 1,471,179 280,489 19.1% Intergovernmental Revenues 631,575 1,558,715 1,558,715 362,947 23.3% TOTAL RECURRING REVENUE 212,093,634$ 201,834,053$ 7,743,000$ 209,577,053$ 78,558,558$ 37.5%
RECURRING REVENUE
CATEGORY
ACTUAL
RECURRING FY
2021-22
ADOPTED
RECURRING FY
2022-23
REVISED
RECURRING FY
2022-23
ACTUAL
RECURRING
12/31/22
% OF
REVISED
REC'D
CHANGE
FROM
ADOPTED
Property Tax: A total tax of 1% is levied on the Assessed Value (AV) of property as determined by the Los Angeles County Assessor. The City of Burbank receives approximately 18.5% of the 1% levy on AV . Compared to FY 202 1-22, the AV for the entire City increased by 8.5%. General Fund related AV increased by 6.8%. The City received a recent quarterly report for home sales in Burbank from our property tax consultant, HdL Coren and Cone. The median sales price of a detached single -family residential home in Burbank for the fourth quarter of 2022 was $1,100,000; this is a 7% decline from the third quarter of 2022. HdL projects that the market will balance out and growth will occur again once interest rates stabilize.
Transient Occupancy Tax (TOT): The pent -up demand for domestic leisure travel continues although not fully recovered to the pre -Pandemic levels. Burbank’s hotel occupancy rate for December 2022 was 63.3% compared to 70.4% in December 2021.
TOT revenues for the first six months of FY 2022-23 are $4.5 million, an increase of 7.3% over the same period from the prior year. Chart 1 shows the hotel occupancy rates from FY 2019-20 through December 2022.
Chart 1 – Burbank Hotel Occupancy Rates
Transient Parking Tax (TPT): With a majority of the parking tax revenue derived from parking lots at or directly servicing the Hollywood Burbank Airport, the City’s TPT revenue is dependent on the travel demand. Activity around the Airport has experienced a rebound from the Pandemic due to the pent -up demand for leisure travel. Passenger counts at the Airport for 202 2 from January through December have increased by 58% over the same period in 202 1. Chart 2 compares the airport passenger counts for FY 2019-20, FY 2020-21, FY 2021-22, and FY 2022-23 to date.
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JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN
FY 19-20 FY 20-21 FY 21-22 FY 22-23
Chart 2 – Hollywood Burbank Airport Passenger Counts
Utility User’s Tax (UUT): The City of Burbank collects a 7% tax on qualifying electricity, natural gas, and telecommunication utility charges. Unlike many other cities, Burbank does not assess UUT on water or video services. The adopted 6% rate increase combined with increasingly warmer summer temperatures and a return to in person work for some of Burbank’s largest employers has resulted in UUT revenues trending above FY 2022 -23 projections. The recent national cold snap also contributed to these increased revenues as the price of natural gas increased significantly in recent months.
Revised UUT projections reflect an increase of $910,000 in revenue from the originally adopted FY 2022-23 projection.
In-Lieu of Tax: The In-Lieu of Tax is a 7% charge on retail electric sales collected from Burbank Water and Power instead of paying other taxes and fees that a private utility would pay to the City. The General Fund receives 5.5% and the Street Lighting Fund receives the remaining 1.5%. Sim ilar to the UUT, the In -Lieu of Tax is trending above projections due to an increase in price and consumption of electricity. In-Lieu of Tax is projected to be $375,000 more than the FY 2022-23 adopted revenue forecast.
Service Charges: Service Charges experienced an increase of 13.8% for the first half of the fiscal year compared to the prior year. Most notable in this category are increases to passport revenues, emergency transport services, and recreation activities. Leisure travel has rebounded from the Pandemic with an increase in the demand for new passports or renewals. Passport revenues for the first half of the ye ar are on track to exceed the adopted forecast for FY 2022 -23. Emergency transport services are 15% higher for the first six months of FY 2022-23 compared to the same period in FY 2021-
22. Athletic fees have increase d 39.6% for the first six months of FY 2022 -23 when compared to the first six months of FY 2021 -22. Based on the positive growth in these revenues, an increase of $530,000 in Service Charges is forecasted for FY 2022-23.
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JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN
FY 19-20 FY 20-21 FY 21-22 FY 22-23
Interest/Use of Money: Interest earnings have increased for the first half of FY 2022-23 by 165% when compared to the first six months of FY 2021-22, buoyed by rising interest rates and a growing Citywide cash balance. According to the latest Treasurer’s report to the City Council, as of September 2022, the average rate of return year to date (YTD) is
2.12% and the projected yield for FY 2022-23 is 1.5%. Staff is recommending increasing this category by $200,000 for FY 2022-23.
Parking/Traffic/Other Fines: Revenues for mid-year 2022-23 are at 27.1% of revenues received from the adopted projection compared to 30.5% received for the same period of the prior year. The decline is attributable to staffing challenges that have impacted the provision of parking enforcement services and associated revenues. Due to lower than anticipated revenues received to date, staff recommends reducing this revenue projection by $ 632,000 for FY 20 22-23. Revenues are anticipated to increase towards the end of the fiscal year due to the implementation of a pilot parking enforcement program with a private vendor.
Fiscal Year 2022-23 General Fund Expenditures
As of December 31, 2022, 49.1% of the General Fund’s recurring appropriations have been expended, coinciding with the general expectation of 50% for the halfway point of the fiscal year. For perspective, 48.3% of recurring appropriations were expended for the same period last year. Table 3 provides budget to actual results by department for the General Fund expenditures at the end of the second quarter. Expenditures for two departments are trending above expectations six months into the fiscal year:
Fire Department expenditures are trending above expectation at 51.6%, due to higher overtime costs necessary to backfill vacancies and reimbursable strike team participation.
Non-Departmental expenditures are well above the general 50% expectation due to large payments within this expenditure category. The first is the $8 million payment made to the California Public Employees’ Retirement System (CalPERS) in July as part of the City Council’s multi -year pension funding plan. The second is the annual $4.7 million General Fund Infrastructure Funding Commitment transfer to the Municipal Infrastructure Fund 534. Lastly, $1.2 million in one -time General Fund contributions and $5.8 million from the American Rescue Pl an Act (ARPA) funding were transferred to the Information Technology Fund 537 for the implementation of 24 major citywide technology projects approved by the City Council during the budget adoption process.
Table 2 - General Fund Expenditures as of December 31, 2022*
EXPENDITURE APPROPRIATIONS EXPENDITURES PERCENT
NO. CATEGORY FY 2022-23 as of 12/31/2022 EXPENDED
1 City Attorney 4,684,880 2,266,142 48.4%
2 City Clerk 2,520,636 746,028 29.6%
3 City Council 816,410 322,168 39.5%
4 City Manager 2,990,737 1,232,693 41.2%
5 City Treasurer 919,317 395,412 43.0%
6 Community Development 19,023,092 6,045,367 31.8%
7 Financial Services 6,430,894 2,762,551 43.0%
8 Fire 40,437,783 20,868,598 51.6%
10 Library Services 9,278,274 3,990,003 43.0%
11 Management Services 7,588,299 2,675,183 35.3%
12 Non-Departmental 25,233,328 20,631,367 81.8%
13 Parks and Recreation 30,729,592 13,893,106 45.2%
14 Police 65,448,864 31,625,416 48.3%
15 Public Works 19,326,195 8,153,877 42.2%
TOTALS 235,428,303 115,607,911 49.1%
*Appropriations include all carryovers as well as any additional General Fund budget amendments approved by the City Council since the adoption of the FY 2022-23 Budget. The original General Fund adopted budget totals $219,630,830.
Mid-year Budget Adjustments
As was previously discussed, departments were asked to identify necessary adjustments to their budgets resulting from changed circumstances and/or unanticipated expenses that exceed their budget authority. Each of the requested adjustments (both appropriations and revenues) are itemized and described in detail and can be found in Attachment 4.
General Fund appropriatio n requests total $ 2,650,539 and are offset by revenue adjustments and the use of restricted funding of $ 916,507 for a net impact of $ 1,734,032.
Requests include additional funding for the Fire Department to conduct a 2023 Firefighter Recruit Academy with 21 recruits anticipated to graduate in June 2023 . The Parks and Recreation Department is requesting additional funding for the DeBell Golf Course program due to an increase in events and tournaments, which is revenue offset by fees. In addition, the Community Development Department (CDD) is also requesting plan check consulting services to comply with Assembly Bill (AB) 2234 requirements to complete plan check reviews for residenti al projects . CDD is also requesting funds for the upgrades, maintenance, and repair of the Downtown Burbank area to revitalize and improve the aesthetics and quality of life for businesses, residents, and community members.
Non-General Fund appropriation requests total $ 10,399,068 and are offset by revenue adjustments of $686,454 for a net impact of $9,712,614. $5.9 million of this amount relates to additional funding requested from the Burbank Water and Power Electric Fund to address
the increase in power supply costs related to supply chain issues, the Intermountain Power Project (IPP) coal shortage, and large increases in natural gas prices and power purchases.
The Community Development Department, is requesting Municipal Infrastructure funding to fund upgrades and improvements in Downtown Burbank . Lastly, funding is also being requested by the Public Works Department to cover increases in contractual, consulting, and material costs.
General Fund Financial Forecast
The purpose of the Financial Forecast is to provide insight on the potential long -term financial trends for the General Fund, allowing the City Council to make informed decisions today while fully understanding the future impacts of these decisions. Based on current assumptions as described below, staff expects that General Fund recurring revenue s will increase by an average of 3.4% over the next four years of our forecast. General Fund expenditures are projected to grow by an average of 4.4% over this same time period.
Projected Revenues
Forecasted revenues are driven by the parameters included in Attachment 3. Although the forecast assumes continued economic growth in FY 202 3-24 and beyond, it will not keep pace with the growth that the City experienced during the recovery from the Pandem ic.
Currently, the average revenue growth projected in the remaining four years of the forecast includes increases in Sales Tax by 2.2% and Property Tax by 4.0%. Forecasted revenues include modest increases to sales tax receipts with growth in restaurants and hotels and business and industry offset by a decline in fuel prices. Property taxes will have moderate growth as home values stabilize from the inflationary interest rates. Revenue projections included in the forecast are based o n staff’s best estimates and may be subject to fluctuations resulting from economic cycles and legislation . Staff will continue to monitor projected revenues periodically throughout the year and provide the City Council with updates as new information becomes available.
Projected Expenses
The two main drivers of expenditures for the General Fund are salaries and benefits, and most significantly the CalPERS rates that are applied to the base salaries. The forecasted expenditure growth assumes the following costs:
Memorandum of Understanding (MOU) Projected Costs:
Salaries and benefits currently comprise approximately 80% of the General Fund recurring budget. As such, the City’s MOU negotiation process for the various bargaining groups plays a significant role in determining the City’s financial position. Currently, all of the City’s bargaining groups have MOUs except for the Burbank City Employees’ Association (BCEA) and the Burbank Management Association (BMA). Aligning with the City Council’s Financial Policies related to employee compensation, the General Fund forecast includes assumptions for salary and benefit growth over the next five years based on projected market rates for all employee groups. Market rates are determined through salary and benefits surveys which compare the City’s job classifications to those of similar organizations throughout the region. The City of Burbank calculates the average salary paid for the compatible positions to determine whether em ployee salaries are at market v alue. The
Financial Policies also dictate that the City and employees evenly share 50% of the normal cost of the CalPERS pension benefits. This policy has been implemented in accordance with the provisions of each MOU.
Public Employees Retirement System (PERS) Costs:
Managing costs associated with CalPERS pensions continues to be a challenge for the City, leading to a significant fiscal constraint. In recent years, Burbank has taken measures towards mitigating pension cost increases including:
Sending additional discretionary payments to CalPERS above and beyond the City’s required contributions to decrease the City’s unfunded liability Establishing a Section 115 trust to offset future pension volatility Increasing employee contributions towards their pension rates Implementing the changes directed by the Public Employees’ Pension Reform Act (PEPRA) adopted by the State of California in 2012
In July of 2022, the City received the CalPERS actuarial reports for FY 2023-24. Based on the most recent reports, Burbank currently has an Unfunded Actuarial Liability (UAL) of just under $248 million across the City’s three pension plans , a decrease of $137 million from the previous year, due to CalPERS 21.2% investment earnings achieved in FY 2020 -21.
Subsequently, the funded status for the City’s three plans w as updated to 86.8% for Miscellaneous, 79.7% for Police, and 85.8% for Fire. Table 4 shows the actual CalPERS employer rates and UAL contributions for the three employee classifications for the previous fiscal year (FY 2021-22), the adopted fiscal year (FY 2022-23), and the projected employer rates and contributions for the following two fiscal years (FY 2023-24 and FY 2024-25).
Table 3 – City of Burbank Pension Costs FY 2021-22 – FY 2024-25
Classification
Actual
FY 2021-22
Actual
FY 2022-23*
Actual
FY 2023-24
Projected
FY 2024-25
Police 3% @ 50 Rate 23.10% 22.05% 24.01% 23.20%
Police Liability Payment $7,300,248 $8,152,664 $7,175,729 $7,064,000 Fire 3% @ 55 Rate 17.55% 17.71% 18.80% 18.40%
Fire Liability Payment $4,561,502 $5,028,014 $4,465,006 $4,306,000 Misc 2.5% @ 55 Rate 10.38% 10.00% 11.11% 10.90%
Misc Liability Payment $19,578,570 $21,224,820 $18,843,953 $18,221,000 * Amounts shown are the total amounts due for FY 2023-24 if the City were to pay CalPERS on a monthly basis. The City has completed the prepayment of the additional UAL payment to CalPERS which will result in a net savings of $1,661,016 citywide.
In July 2021, CalPERS reported a 21.3% net return on investments for FY 2020 -21. This investment return decreased the City’s UAL payment amount by $1.7 million for FY 2023 - 24 and increased the overall funded status of all three plans from an average of 72.9% to an average of 84.1%. Offsetting the investment gains was CalPERS’ decision to lower the
discount rate from 7% to 6.8%, as well as the adoption of new assumptions regarding retirement age, life expectancy, and salary inflation, all of which resulted in an increase to the normal cost rates for each plan. In July 2022, CalPERS reported a negative (6 .1%) investment loss for FY 2021-22. This loss will result in an increase to UAL payments in FY 2024-25 that will nearly negate the reduction the City received for FY 2023-24. The forecast accounts for the FY 2021 -22 CalPERS investment results but does not account for any potential losses in FY 2022 -23. Barring a complete turnaround in the stock market, it is unlikely that CalPERS will achieve its 6.8% expected rate of return for FY 2022 -23, which will impact the City’s pension costs beginning in 2025-26.
In July 2022, the City made an additional discretionary payment (ADP) of $12 million to CalPERS to complete the implementation of the City Council’s multi -year pension funding plan that was approved as part of the FY 2019 -20 Budget process to help reduce future pension obligations. Over a four-year period ending in FY 2022-23, the City has made $53 million in ADPs to CalPERS across all funds. The total General Fund portion of this contribution was approximately 68% ($36 million). In August 2022, CalPERS provided the City with an update of the UAL payment amounts for FY 2023 -24, which accounts for the July payment. The total citywide savings generated were over $1.6 million citywide ($1.1 million General Fund) from this fourth payment of our multi -year plan. In total, the City has achieved over $6 million in recurring annual savings as a result of the City Council’s pension funding plan. Staff will reevaluate various options to continue funding additional pension payments and provide a recommendation for the City Council’s consideration during the FY 2023-24 Budget process.
FY 2022-23 State Budget Proposal
In early January, Governor Newsom released his proposed budget for FY 202 3-24. This proposal serves as the beginning of deliberations in the State Legislature leading to final budget adoption in June 2023. The proposal calls for a $ 297 billion budget, with a General Fund total of $2 23.6 billion. After years of budget surpluses, the proposed budget is projected to have a deficit of $22.5 billion in FY 2023 -24. To deal with the deficit, the Governor proposes to delay funding for new programs, and in some cases tie new program implementation to future year revenue. The budget also shifts certain expenditures from the General Fund to other funds. The Governor’s proposal avoids major cuts, retains significant budget reserves, and maintains investments from previous budgets. The spiraling inflation and weakened stock market, particularly in the California -based tech sector, has clouded the economic forecast for the state, which depends heavily on capital gains from its wealthiest residents.
A few areas of new investment include flood protection and fund s to combat the fentanyl crisis by devoting $3.5 million for middle and high school campuses to stock overdose medications like Narcan. Homelessness remains the state’s number one priority. The proposed budget invests an additional $1 billion in local init iatives to curb homelessness.
Education and social service programs are largely protected from reductions, although funding for affordable student housing will be delayed. The budget proposes a plan to offer universal transitional kindergarten to all 4 -year-olds across the state. Areas of planned investment, which will see major cuts, include climate change programs and transportation.
Additionally, $3.9 billion in “trigger reductions,” or cuts from the budget would be restored in the future if economic conditions improve. The proposed forecast does not currently account for a recession. If economic conditions worsen, inflation drops more gradually than expected, or the Federal Reserve enacts policies to further slow the economy, the Administration may propose withdrawals from reserve accounts, as well as additional program reductions.
The administration is continuing to implement the Road Repair and Accountability Act of 2017, Senate Bill 1 (SB-1), which provides funding for b oth state and local transportation infrastructure. SB-1 increased the gas fuel tax by 12 cents, providing a stable and ongoing increase in state transportation funding. The federal Infrastructure Investment and Jobs Act (IIJA) provided a large influx of fu nding for California to continue prioritizing transportation infrastructure. The City of Burbank is estimated to receive SB-1 funding of $2.6 million in FY 2023-24, which assumes the inflationary adjustment. Staff will continue to monitor developments in the state budget process and provide updates to the City Council as necessary.
FY 2023-24 Budget Development Process
The FY 2023-24 budget process is underway and City departments are currently working on their respective budgets. Staff is projecting a recurring General Fund balance of just under $6 million, due to the aforementioned increases to recurring revenues . However, the recurring balance is expected to decrease to $145,000 by the last year of the Five -Year Forecast due to rising expenses that continue to outpace revenue growth and the impacts of CalPERS investment losses affecting future pension costs. Staff will continue to focus on strengthening revenues and developing additional cost -saving initiatives to provide long- term fiscal stability and prevent future structural imbalances in the City’s financial forecast.
The City Manager’s Office is in the process of reviewing each department’s proposed budget and incorporating revisions as needed , with the goal of preparing a Proposed FY 2023-24 Budget for Council review in early May. Should City Council Members have specific requests for the upcoming fiscal year, staff encourages the City Council to inform them before the scheduled budget study sessions in May, to help streamline the review process and provide for adequate research time, if necessary.
Environmental Review
This activity includes amendments to the FY 2022-23 Adopted Budget and has no potential for resulting in either a direct or a reasonably foreseeable indirect physical change in the environment. A s such, is not a “project” subject to the requirements of the California Environmental Quality Act (CEQA) 14 Cal. Code Regs § 15378.
FISCAL IMPACT:
If approved, the requested mid-year adjustments for the General Fund will total $2,650,539 and are offset by revenue adjustments and the use of restricted funding of $ 916,507 for a net impact of $ 1,734,032. Overall, mid -year appropriation requests for all fun ds total $11,446,646 net of revenue (total appropriations are $13,049,607).
CONCLUSION:
For the past several months, the important question for the US Economy is whether a recession is on the horizon. Current predictions of a pending recession are mostly being driven by consumer confidence, as the overall economic data related to labor market s, industrial production, and retail sales is still showing growth. However, the recent Federal Reserve tightening to curb i nflation has impacted economic growth, and e conomists are forecasting an economic slowdown in 2023. As shown in Chart 3, the General Fund five - year financial forecast includes a balance of approximately $8.1 million for the current fiscal year. This balance decreases to $ 145,000 by FY 2 026-27 a s rising expenses outpace revenue growth and the impacts of CalPERS investment challenges affect future pension costs. It should be noted that there are several risks associated with our projections, including further potential changes to CalPERS assumptions, impacts of local development projects, and potential fluctuations in the overall economy.
Chart 3 - General Fund Financial Forecast FY 2022-23 through FY 2026-27
The City Council has consistently pursued sound fiscal policies and strategies like strengthening revenues, paying down pension liabilities, and working with labor groups to implement equal cost-sharing of pension costs. Additionally, to ensure that Burbank is well- positioned to address any future economic fluctuations and downturns, the City Council increased General Fund formal reserves from 20% to up to 25% as part of the FY 2022-23 budget adoption. In addition to the projected FY 2022 -23 year-end General Fund Balance $209.6
$217.1
$225.0
$232.1
$239.4
$201.4
$211.1
$222.8
$230.5
$239.2
$160
$170
$180
$190
$200
$210
$220
$230
$240
2022-23 2023-24 2024-25 2025-26 2026-27
Revenue Expenses
Balance: $8.1 $6.0 $2.3 $1.5 $0.1
of $35.4 million, Burbank’s working capital, emergency, and budget stabilization reserves total approximately $50.4 million. These funds will allow Burbank to make strategic investments to offset future costs and weather any potential econom ic slowdown over the next several years . Staff will continue to monitor any economic conditions or legislative actions that may impact the City’s financial position and provide updates to the City Council.
ATTACHMENTS:
Attachment 1: Resolution
Attachment 2: General Fund Projected Spendable Fund Balance for June 30, 2023 Attachment 3: General Fund Financial Forecast FY 2022-23 through FY 2026-27 Attachment 4: Mid-Year Appropriation Requests and Revenue Adjustments