Title
Budget Workshop for Fiscal Years 2021-22 and 2022-23 to Provide Direction that will be Incorporated into Budget Adoption Hearing Materials for City Council Consideration in June 2021. (Finance 2410)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
The City Manager is proposing a General Fund Budget of $113,416,578 in FY 2021-22 and $116,708,943 in FY 2022-23. The total proposed budget for all funds is $267,771,826 in FY 2021-2022 and $270,283,176 in FY 2022-23. Due to the City entering its second year in the pandemic, this budget includes several unique elements.
The proposed budget does not include the approximately $29 million that the City is expecting to receive over the next two years through the Federal American Rescue Plan Act (ARPA). We anticipate City Council providing direction on priorities for the ARPA once the City receives the Treasury guidance.
In addition, the City is currently facing a tight operating budget in the General Fund while also attempting to balance continued demands in several areas, including but not limited to, addressing Mental Health calls in a different way in the future and continued pressures created by continuing the City's Homelessness programs.
Finally, the City Manager is recommending out of the $14 million positive fund balance set aside at the end of FY 2019-20 that is scheduled to prepay future pension costs, that City Council allocate up to $10 million of those funds to prepay pension costs and allocate $4 million over the next two years as carry-forward funds to pay for programs included in the General Fund.
Alternatively, the City Council could appropriate a portion of the ARPA funds in place of the funds from the positive fund balance or provide direction to reduce operating costs through elimination of specific programs. In addition, the City Council could reduce the prepayment from the recommended $10 million to increase funding in specific programs.
The City Manager ant...
Click here for full text