ACTION REQUESTED:
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Communication from the City Manager and Finance Director/Comptroller with a Request to RECEIVE and FILE the Assignment of General Fund Fund Balance, in the Amount of $4,038,664.00 for Funding of PENSION OBLIGATIONS, Assignment of General Fund Fund Balance in the Amount of $8,151,000.00 as a Transfer to the Capital Fund, and Assignment of $500,000.00 in General Fund Fund Balance in 2022 and 2023 for Potential DUE DILIGENCE on the Purchase of the Water System.
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BACKGROUND: As part of the 2022-2023 budget process, two fund balance assignment recommendations were made by staff and an additional assignment motion was made by Councilman Oyler. Staff recommended during the initial budget recommendation to use $8,151,000 in General Fund surplus in 2021 to pay down the City's negative fund balance in the Capital Fund. Subsequent to the initial recommendation, staff recommended using an additional $4,038,664 in 2021 General Fund surplus to offset the sunsetting of the Public Safety Pension fee in 2022. Councilman Oyler made a motion to assign $500,000 in General Fund Fund Balance in 2022 ($250,000) and 2023 ($250,000) in the event the City decides to go through the due diligence for the purchase of the water system.
The City's Financial policies allow the City Manager to make fund balance assignments during the year. The policy requires the City Manager inform City Council of that decision at the subsequent meeting after the action is taken.
FINANCIAL IMPACT: These actions will fullfil the budget that was passed by City Council on November 23rd.
NEIGHBORHOOD CONCERNS: N/A
IMPACT IF APPROVED: These actions will close the negative fund balance in the Capital Fund and keep public safety pension funding at budgeted levels. It will also ensure the City has the funds in place if Council decides to perform due diligence on the purchase of the water system.
IMPACT IF DENIED: The Capital Fund will continue to have a large negative ba...
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