Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget Policy topic
No spam. Unsubscribe anytime.
Council reviews fund-balance policy allocations after strong year; staff to present transfer details in budget
Summary
Finance staff reviewed the city’s fund-balance policy and the allocation of excess revenues from the most recent audit, showing an ending general-fund balance increase to roughly $160 million and describing how excess funds were assigned to reserves and council-designated priorities.
City finance staff presented the fund-balance policy and the allocation of excess revenues after an audit, showing an increase in the general-fund balance and outlining how excess funds were distributed to required reserves and council-guided categories.
Kim reviewed the policy framework: the charter requires a 10% reserve (nonspendable), council policy sets an additional 15% commitment, and the fund-balance guidelines aim to maintain the undesignated portion at 50% of budgeted expenditures. After those policy requirements are satisfied, remaining excess was allocated to categories in council guidance, including Vision 2040 initiatives, infrastructure projects, economic development and a strategic reserve.
Staff summary and numbers: Kim walked council through the mechanics used to calculate beginning and ending fund balance. The beginning FY24 fund balance was about $144.7 million and the ending FY24 fund balance was roughly $160 million, an increase of approximately $15.3 million driven by revenues exceeding expenditures. Staff explained that the strategic reserve grew with the allocation process and showed how specific designations (for example, Vision 2040 assigned funds) were increased or decreased to reflect council priorities. Kim noted a minor print typo in an itemized request and said staff would correct the packet.
Council questions and guidance: Councilmembers asked clarifying questions about the structure and flexibility of the allocations, including whether assigned balances can be transferred back to the general fund in the future and how much of the balance is effectively reserved for potential litigation, tax roll changes or other contingencies. Staff said transfers from accumulated fees are possible if council later determines to reassign those funds, but bond proceeds are restricted.
Ending: Staff said they would incorporate the council direction in the FY26 budget materials and would show the proposed $5.5 million DUD transfer and the related line-item movement in the budget documents for formal consideration.
