Kevin Biersack, Financial Services Director, provided an overview on the status of the City’s General Fund Year End Balance. He indicated that the City is closing the year with a $2.5M+ surplus for fiscal year (FY) 2022/2023, which brings the City’s General Fund “savings account” balance to more than $39 million.
He stated that it is essential that the City maintain its Fund Balance at a minimum target balance of 33% of budgeted expenditures. The City is ending FY 2022/2023 with a 58% Fund Balance reserve. The budget for the upcoming FY 2023/2024 was planned to retain a 53% Fund Balance reserve; however, the August 20, 2023, Tropical Storm Hilary event and the resulting expenditures provide a current projection of 38% Fund Balance reserve for the upcoming fiscal year. The City’s Forecast for this biennial budget cycle through June 30, 2025, projects an operating deficit and a Fund Balance reserve at 33%, reinforcing the Council’s historical decision to prioritize achieving a minimum Fund Balance reserve and to have a sufficient “savings account”.
He indicated that at the November 8, 2023, City Council Meeting, staff will present a variety of options for the City Council to consider amending the current budget.
The City Council provided comments and asked clarifying questions, which were responded to by staff.
This item was for information and discussion only, there was no formal action taken by the City Council.