05 - Laserfiche WebLink

General Fund Transfers The Operating Budget includes annual General Fund transfers by $2.5 million in FY 2021/22 and $5 million in FY 2022/23 to the Capital Improvement Program (CIP). In addition to this, the General Fund transfers include operating subsidies to the Paratransit program, Storm Drain Fund, and Cemetery Fund as well as transfers from the General Fund to the Water and Sewer Funds to fund the senior and low-income water and sewer discounts. Under Proposition 218, one classification of water customers cannot subsidize another. Therefore, if the City desires to provide senior and low-income discounts to their customers, they must fund the discounts through the City's General Fund. Finally, the FY 2021/22 budget transfers out $2.7 million to the Rainy Day Fund and transfers in $2.5 million from the Rainy Day Fund in FY 2022/23 to help balance the budget. CONCLUSION The proposed Two-Year Operating Budget is balanced. The Operating Budget provides funding for the programs and goals identified as priorities by the City Council. Staff recommends that the Council adopt the Operating Budget as presented. The budget book will be finalized upon receipt of the signed City Council resolution approving the FY 2021/22 and FY 2022/23 Operating Budget. Staff will continue to monitor the progress of the economy, review revenues and expenditures and report back to the Council during the mid-year budget reviews and a detailed FY 2022/23 mid-term update with recommended adjustments based on actual trends. Submitted by: Approved by: 17\ Tina Olson Nelson Fialho Director of Finance City Manager Attachments: 1. Resolution Page 5 of 5