FY 2021-22
Budget Status Update
Fourth Quarter
Item 15.2
December 13, 2022
General Fund - Revenues
Budgeted Revenues = $250.3 million
Actual Revenues = $297.2 million
• $12.9 million increase compared to 3rd
Quarter report
• Sales Tax +$7.4 million
• Franchise Tax +$974,000 • Utility User Tax +$955,000 • Investment Proceeds +$1.4 million • Revenues from Other Agencies +785,000
2 General Fund - Revenues
3 General Fund - Expenditures
Budgeted Expenditures = $300.9 million
Actual Expenditures = $281.4 million
•$3.9 million less than 3rd Quarter report
•Most departments came in under
budget, largely due to:
• Vacancy savings
• Unspent contingency fund
4 General Fund - Expenditures
FY 2021-22 General Fund
Overview (unaudited)
Revenues $46.9 million
•18.7% more than budget
Expenditures $19.5 million
•6.5% less than budget
Accounting Adjustments ($1.0 million)
Variance from Budget $65.4 million
Long-Range Financial Plan
7 Threats and Weaknesses
•Pension/CalPERS
•Labor Negotiations with 5 more units
•Inflation
•Supply Chain
•Cost of goods and services
•Interest rates
•Housing market
•Limited ability to fund large capital
projects
Uses of $65.4 Million Budget
Variance (Dollars in Millions)
Description New $$ Cumulative
Labor
Negotiations
Frontload COLA
Lump Sum Payment
$16.0
FY 2022‐23
Budget Adds
Enhanced Services $2.1
Contingent
Payment
(result of higher
revenues)
+$2.5 $3.6
Formula Reserves Working Capital 16.67% +$10.3 $47.2
Known Contingency +$13.5 $55.3
Total $44.4
Net Budget Variance ($65.4)
Balance for Council Discussion $21.0
General Fund Reserve
Policy and Targets
• Reserve & Fund Balance Policy ‐ General Fund
• Targets set in June 2022
• Policy ‐ $21 million would be split 95% to
Risk‐Based and 5% ($1.05 million) to Council
projects
Reserve Categories Reserve Targets
Working Capital (16.67%) $47.2 million
Known Contingency $55.3 million
Risk‐Based $72.2 million
Total $173.4 million
Recommendation for
$21 million (Dollars in Millions)
Description Amount Cumulative
Increase Risk‐Based Reserves $5.8 $10.8
Add to Pension Trust
(planned in FY 2021‐22)
$10.0
Council Discretionary Project
Funds
$5.2 $5.7
Total $21.0
Community
Improvements
• Playground Replacements
• Game Court Resurfacing
• Stribley Park Field Re‐Lighting
• Tree and Stump Removals
• Cricket Pitch at Anderson Park
• Five Mile Creek Hyacinth Removal
• Fencing at Lower Sac Bridge over Mosher Slough
• Teen Impact Center Roof Replacement
Other Recommended
Budget Actions
• Allocate vacancy savings of $291,120 from
Other Administration to:
‐ City Clerk $ 82,120
‐ Office of Violence & Prevention $123,000
‐ Economic Development $ 86,000
• Authorize budget amendment to cover FY
2021‐22 overage:
‐ Increase expenditure appropriation of $18,000 in
the Downtown Marina Fund (640) from fund
balance
FY 2021-22 4th Quarter Report
Recommendation
• Accept FY 2021‐22 budget status report
• Allocate vacancy savings budget
• Authorize FY 2021‐22 budget amendment to
cover overage in the Downtown Marina fund
• Authorize reserve for Contingent Payment
• Authorize a remittance to Public Agency
Retirement Services (PARS) from General Fund
• Authorize FY 2021‐22 General Fund
appropriation of $5,667,000 for Council priority
projects
• Allocate General Fund Balance to reserves