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Fiscal Year 2022-23 First Quarter Budget Report and Proposed Appropriation
<br />Adjustments
<br />November 15, 2022
<br />Page 2
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<br />The General Fund balance at June 30, 2022 is $16 million more than estimated during
<br />the FY 2022-23 budget process primarily due to FY 2021-22 revenue performance.
<br />Staff proposes spending adjustments totaling $3.3 million, offset by $1.4 million of
<br />revenue, for a net fiscal impact of $1.9 million. If the City Council approves the
<br />recommendations, the General Fund balance available for spending may be $19.9
<br />million. Considering the effects of pending recession and the Cannabis tax rate
<br />reductions, staff does not recommend any further appropriations from the available
<br />$19.9 million. In addition, staff recommends preserving a spendable balance sufficient
<br />to fund the City’s $13 million contribution to the forthcoming Third & Broadway project if
<br />the developer meets the December 31, 2022 deadline for closing escrow.
<br />General Fund Summary with Proposed Adjustments
<br />Original
<br />FY 2022-23
<br />Budget
<br />Proposed First
<br />Quarter
<br />Adjustments
<br />Updated
<br />Estimate
<br />Beginning Balance at July 1,
<br />2022
<br />$97,462,861 $16,046,683 $113,509,544
<br />Revenue Estimate $390,132,940 $1,420,000 $391,552,940
<br />Appropriated Spending $(403,596,760)$(3,283,364)$(406,880,124)
<br />Pension Trust Set-Aside $(7,748,811)$(7,748,811)
<br />Estimated Ending Balance at
<br />June 30, 2023
<br />$76,250,230 $14,183,319 $90,433,549
<br />Less: 18% Reserve $70,223,929 $255,600 $70,479,529
<br />Estimated Spendable
<br />Balance
<br />$6,026,301 $13,927,719 $19,954,020
<br />The First Quarter budget and actual revenues and expenditures are included in Exhibits
<br />1 and 2. The First Quarter vacancy report is included in Exhibit 3.
<br />DISCUSSION
<br />During the FY 2022-23 budget process, staff estimated the June 30, 2022 General Fund
<br />balance to be $97.5 million, which enabled the City to add $23.2 million of one-time
<br />spending to the FY 2022-23 budget. The resulting estimated June 30, 2023 General
<br />Fund balance was $76.2 million, including the 18% Reserve of $70.2 million and $6.0
<br />million available to spend.
<br />The FY 2021-22 audit is not complete, but staff estimates that the General Fund
<br />balance at June 30, 2022 will be approximately $113.5 million after accounting for
<br />budget carryovers. This is $16 million more than originally estimated. The additional
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