Item #03
Date: June 21, 2022
To: Mayor and City Council
From: Jennifer Styczynski, Finance Director
Jim Schaad, City Manager
Subject: Adopt the City of Marysville’s Fiscal Year 2022-23 Budget and Appropriation Limits Recommendation:
Pass a Motion to 1) approve the Fiscal Year 2022-23 Budget, 2) adopt the Budget Resolution number 2022-XX, 3) approve the corresponding appropriation limits and 4) adopt the Appropriation Limits Resolution number 2022-XX.
Rationale for Recommendation:
Chapter 2.10.040(6) of Title 2 of the Marysville Municipal Code requires the City Manager to prepare and submit the preliminary annual operating and capital improvement budget to the council prior to June 30 of each year. The budget preparation process includes a thorough analysis of all revenue and expenditures for all City operating funds. It is standard and required by State law for local government to annually or bi-annually adopt an operating budget and appropriation limit for the fiscal year.
State law requires adopting a resolution that limits the level of most appropriations from tax sources that the state and most local government entities are permitted to make in any given year. The limit for each year is equal to the limit of the prior year, adjusted for changes in the cost-of-living and population.
Background:
On May 17, 2022, the first of two Fiscal Year 2022-23 Budget Workshop was presented by staff to the City Council. The week ending May 27, 2022, the City Manager and the Finance Director held one-on-one budget sessions with each Council Member as requested and in addition answered Council questions by phone as needed. Subsequently, on June 7, 2022, staff presented the proposed budget and requested direction from Council. Per Council feedback, no changes were made to the budget presented on June 7, 2022.
The City of Marysville Fiscal Year 2022-22 Proposed Operation Budget includes $29.27 million in expenditures and $29.91 million in revenues. This is comprised of the City’s six Governmental fund type categories (General Fund, Special Revenue Funds, Debt Service Funds, Capital Project Funds, Fiduciary Funds, and the Enterprise Funds). As of June 30, 2022, the City’s Starting General Fund Balance (unaudited) is projected at $9,343,397 with a projected June 30, 2023, Ending General Fund Balance of $9,292,522. For Fiscal Year 2022-23, General Fund revenue and expenditures are projected to be $16.36 million and $16.41million, respectively for a projected deficit of $50,875.
Item #03
Discussion & Analysis:
The attached Executive Summary for the FY 2022-23 Budget offers greater details regarding the proposed budget. With no changes and/or additions to the budget since the June 7, 2022 City Council presentation, all budget details in the Executive Summary are a relevant and accurate portrayal of the proposed and staff proposed budget for Fiscal Year 2022-23.
Fiscal Analysis:
Adopting this budget will allow City management to expend City funds per Council approval and as outlined in the proposed Fiscal Year 2022-23 budget and based on projected revenues and expenses.
Attachments:
1. Resolution 2022-XX – Adopting a Fiscal Year 2022-23 Budget
2. Resolution 2022-XX – Adopting an Appropriations Limit for Fiscal Year 2022-23
3. Fiscal Year 2022-23 Appropriations Limit
4. Detail Budget Sheets
5. Executive Summary