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Finance director: enterprise funds may not be tapped to cover general-fund shortfalls
Summary
Finance Director Lakita Sutton told the public that self-supporting enterprise funds cannot be transferred to the general fund to cover a shortfall; she also said the city has about $32 million in general-fund reserves (roughly nine months) that could be drawn down if necessary.
During a public question-and-answer, a meeting participant asked whether the city could move money from enterprise funds such as the public utility fund into the general fund to cover a gap. Finance Director Lakita Sutton responded that the city "cannot transfer anything from the other funds to the general fund to make up any difference," clarifying that enterprise funds are self-supporting and have their own net position.
Sutton also described the city's general-fund reserves, saying the city begins with "about 9 months worth of reserve" and a fund balance of roughly $32,000,000. She said the city's charter requires presenting a balanced budget and that, while drawing down the fund balance is possible, it is not the city's typical practice.
