ACTION REQUESTED:
Title
Communication from the City Manager and Finance Director/Comptroller with a Request to RECEIVE and FILE the 2022-2023 BIENNIAL BUDGET.
Body
BACKGROUND: 11/23 Update - Report backs will be provided to Council under separate communication and attached to this item upon completion.
Based upon the motions and actions that Council took on 11/9 and 11/16 and the reduction of $25,000 of pension related expenses that will not be spent, the recommended 2022-2023 Biennial Budget is as follows:
Council Revisions to Biennial Budget
2022
2023
Revenues
$257,001,529
$239,523,824
Council Revisions
($1,604,274)
($2,305,000)
Revised Revenues
255,397,255
237,218,824
Expenses
261,356,598
242,272,779
Council Revisions
988,427
($91,125)
Revised Expenses
262,345,025
242,181,654
Increase (Decrease) in Fund Balance
(4,355,070)
(2,749,438)
Council Revisions
(2,592,000)
(2,213,390)
Increase (Decrease) in Fund Balance
($6,947,770)
($4,962,828)
With the removal of the pension expenses that will not be spent, the state of the public safety pension budget is reflected below:
Year
General Fund Balance
General Fund Pension Transfer
Pension Property Tax
Pension Obligations
Police
Pension
Obligations
Fire
Pension
Fund
Balance
2022
$75,720
$6,427,623
$14,871,293
$14,533,557
$13,234,528
($1,979,070)
2023
$97,599
$7,624,956
$15,168,718
$15,405,570
$14,028,600
($2,059,594)
The shortfall within the pension funds is $4,038,664 over the next two years. Over the last two weeks, staff presented Council 5 options to balance the public safety pension budget. They include:
Option 1: Cut expenses by $4.130 million over 2 years.
Option 2: Lower the pension contribution by $2.2 million and cut expenses by $1.930 million over 2 years.
Option 3: Lower the pension contribution by $2.2 million and set aside $1.93 million of 2021 excess revenues to cover pension obligations in 2022 and 2023. (Rejected by Council 5-5-1)
Option 4: Lower the pens...
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