During a recent government meeting, officials discussed the management of the disaster contingency fund, which is mandated by the city charter to be at least 7% of the total current annual budget. The conversation highlighted the complexities surrounding the fund's operation, particularly how excess funds are handled and the implications for future budgeting.

Officials clarified that if the required 7% is not utilized in a given year, it automatically rolls back into the general fund. This mechanism has raised concerns about whether the city has been adequately maintaining the fund since it has not been fully funded since 2009. The charter stipulates that any excess funds at the end of the fiscal year must be transferred back to the general fund, which has led to confusion about the fund's intended purpose and management.

The discussion also touched on the need for clarity from auditors regarding how to calculate the 7% requirement, especially concerning pass-through revenues, such as the 3.80 agreement sales taxes. Officials are seeking guidance on whether these revenues should be included in the calculations for the disaster fund.

Additionally, the city aims to improve its overall fund balance, targeting a goal of 25% in the coming years. Currently, the fund balance hovers around 11-12%, which officials noted is insufficient for long-term financial stability. The meeting underscored the importance of establishing a clear strategy for funding the disaster contingency fund and improving the city's financial health to avoid potential cash flow issues in the future.

As the city navigates these financial challenges, officials emphasized the need for a structured approach to budgeting and fund management to ensure compliance with the charter and to prepare for unforeseen disasters.