Item 38 - Fiscal Year 2021-2022 General Fund - First Quarter Budget Update

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Receive and file the FY 2021-2022 General Fund - First Quarter Budget Update December 21, 2021 Page 9 2 3 6 1 be included in the Mid-Year Report. The requested funding for the position is estimated at $79,980 for the remainder of the fiscal year with the full annual amount to be included in the FY 22-23 budget. Furthermore, staff recommends adding one full-time employment staff attorney position in the City Attorney’s Office to provide labor relations support for investigations and contract negotiations to provide cost savings. The utilization of in-house staff will minimize the cost of using outside contract attorneys. Human Resources will provide a final recommendation of appropriate job classification which will be included in the Mid- Year Report. The requested funding for the position is estimated at $94,080 for the remainder of the fiscal year with the full annual amount to be included in the FY 22-23 budget. As of September 30, there is a total of 154 total vacancies (Exhibit 1), of which, 124 are funded vacant positions and 30 are subject to the hiring freeze. Positions subject to the hiring freeze provided $2.9 million in savings in the current year budget. At this time, staff proposes to release $0.8 million of the hiring freezes to improve service to the public, with an estimated FY21-22 cost of $0.4 million for the remainder of the year. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT On December 9, the City finalized the FY20-21 financial statements and the independent auditor issued a “clean” opinion. A complete report of the audited financial statements is scheduled for presentation to City Council on January 18, 2022. A summary of the June 30, 2021 ending General Fund balance follows. Amounts to be spent in FY21-22 for continued appropriations and encumbrances $4,042,487 18% Policy Reserve 63,083,968 Available for one-time spending 42,289,528 Total General Fund Balance at June 30, 2021 $109,415,983 If City Council approves the staff recommendation, the 18% Policy Reserve will increase to an estimated $64,354,356 at June 30, 2022 and the remaining available balance for one-time spending will be $16,364,140. A summary of the FY21-22 General Fund budget updated with new sales tax and property tax estimates follows. Recurring FY21-22 Budget FY21-22 Updated Revenue $340,944,200 $357,524,200