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BACKGROUND
<br /> Annually staff presents the year-end financial report (Report) to Council for approval.
<br /> The Report summarizes the actual results of the financial activities for the fiscal year
<br /> and details changes in reserves and recommended budget amendments or
<br /> adjustments. The City's Comprehensive Annual Financial Report (CAFR) is still in
<br /> progress; therefore, the financial information included in this Report is based on
<br /> unaudited figures. The audited information will be presented to City Council in the CAFR
<br /> once the City's independent auditor has issued its opinion and the CAFR has been
<br /> reviewed by the Audit Committee. All of this is expected to occur in January or February
<br /> 2021. Any changes to the information presented in this Report as a result of the audit
<br /> will be brought to Council's attention at that time.
<br /> DISCUSSION
<br /> The following discussion addresses the General Fund, Enterprise Funds, and Internal
<br /> Services Funds.
<br /> General Fund
<br /> As shown in Table 1, in FY 2019/20 actual revenues received were greater than the
<br /> Midyear budget by $718,690 or one percent. The Midyear budget is the original budget
<br /> plus all budget amendments approved by Council through June 30, 2020. Transfers
<br /> In/Out (net transfers) were $249,739 less than the Midyear budget and Expenditures
<br /> were $3.4 million or three percent less than the Midyear budget. Overall, inflows of cash
<br /> exceeded outflows of cash by $4.3 million. A detailed explanation of these variances is
<br /> included in Tables 2, 3, 4 and 5 in this Report.
<br /> Table 1. General Fund Amended Budget to Actual Revenues, Expenditures &Transfers
<br /> FY 2019/20
<br /> FY 2018/19
<br /> General Fund Actual Revised Actual Variance
<br /> Re%enues $126,031,456 $123,634,609 $124,353,299 ($718,690)
<br /> Net Transfers (11,577,560) (3,691,837) (3,442,098) (249,739)
<br /> Expenditures (113,376,990) (117,183,245) (113,806,097) (3,377,149)
<br /> Difference $1,076,906 $2,759,527 $7,105,104 ($4,345,578)
<br /> Staff is recommending allocating the $4.3 million surplus as follows:
<br /> Rainy Day Fund $3,545,713
<br /> Reserve for Crisis Response Program 800,000
<br /> Total FY 2020/21 Surplus $4,345,578
<br /> The proposed allocations boosts the City's Rainy Day fund from $5 million to $8.5
<br /> million that will be available to help balance the FY 2020/21 budget in the event
<br /> revenues are less than estimated.
<br /> The $800,000 will be available to fund a Crisis Response Program that will provide
<br /> specialized resources to respond to those in acute mental health crisis that is not
<br /> currently available today. The current response model requires dispatching a police
<br /> officer to all mental health related calls without the benefit of a trained and licensed
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