City of Salinas
Spendable (Unreserved) Fund Balance
General Funds
Fiscal Year 2022
January 11, 2022
Financial Policies
Financial Policies
Section II – Reserve Policies
General Fund Year-end carryover balances shall be allocated to reserves… until all desirable reserve levels are achieved. The Council may decide, on an exception basis, to use the carry over balances to offset revenue shortfalls that result from State and County budgetary actions. 2 Definitions & Terms
Spendable (Unreserved) Fund Balance (previously “Carryover Balance”) – fund balance not held in reserves or otherwise obligated. “General Funds” – the City’s primary operating funds, accounting for general purpose revenues, primarily from sales- & property-related taxes. For the City of Salinas, these funds include the General Fund, Measure E Fund, & Measure G Fund. 3 Definitions & Terms
Accrued Revenues – revenues due/earned during a fiscal period (e.g., year) but for which payment has not been received prior to the end of the period.
Accrued Expenditures (reflected in the calculation as “Accounts Payable”) – expenditures incurred during a fiscal period but for which payment has not been made prior to the end of the period. 4 Definitions & Terms
Obligations carried forward to the following fiscal period:
Encumbrances (Purchase Orders) – financial obligations for which funds have been committed but for which the related goods and/or services have not been received prior to the end of the fiscal period and, therefore, are carried forward (as appropriation adjustments) to be spent the following period.
Capital Improvement Program appropriations not obligated (i.e., encumbered) or spent prior to the end of a fiscal period and, therefore, carried forward to be spent the following period. 5 Estimated Spendable (Unreserved) Fund BalanceCurrent Calculation vs Previous CalculationJune 30, 2021 6 General Funds ReservesJune 30, 2021
7 Estimated Spendable (Unreserved) Fund BalanceCurrent Calculation vs Previous CalculationJune 30, 2020 8 Estimated Spendable (Unreserved) Fund BalanceCalculation using Future MethodJune 30, 2021 9 Previous Calculation
Fiscal Year 2021 Fiscal Year 2022 Fiscal Year 2023
(7/1/20 – 6/30/21) (7/1/21 – 6/30/22) (7/1/22 – 6/30/23) 10 AR 20 AE 20
AR 21 AE 21
AR 22 AE 22
Future/New Calculation
Fiscal Year 2021 Fiscal Year 2022 Fiscal Year 2023
(7/1/20 – 6/30/21) (7/1/21 – 6/30/22) (7/1/22 – 6/30/23) 11 AR 20 AE 20
AR 21 AE 21
AR 22 AE 22
Current/Transition Calculation
Fiscal Year 2021 Fiscal Year 2022 Fiscal Year 2023
(7/1/20 – 6/30/21) (7/1/21 – 6/30/22) (7/1/22 – 6/30/23) 12 AR 20 AE 20
AR 21 AE 21
AR 22 AE 22
Future/New Calculation
Fiscal Year 2021 Fiscal Year 2022 Fiscal Year 2023
(7/1/20 – 6/30/21) (7/1/21 – 6/30/22) (7/1/22 – 6/30/23) 13 AR 20 AE 20
AR 21 AE 21
AR 22 AE 22
Estimated Spendable (Unreserved) Fund BalanceCurrent Calculation Method – FY 21 vs FY 20 14 Estimated Spendable (Unreserved) Fund BalancePrevious Calculation Method – FY 21 vs FY 20 15 Estimated Spendable (Unreserved) Fund BalanceRevenues vs Expenditures – FY 21 16 Estimated Spendable (Unreserved) Fund Balance Primary Drivers – FY 21 17 Current/Transition Calculation
Fiscal Year 2021 Fiscal Year 2022 Fiscal Year 2023
(7/1/20 – 6/30/21) (7/1/21 – 6/30/22) (7/1/22 – 6/30/23) 6/23/2020
FY 2020-21 Budget
18 AR 20 AE 20
AR 21 AE 21
AR 22 AE 22