RES 221318 - Laserfiche WebLink

13 City of Pleasanton Mid-Term Budget Update • FY 2022/23 The increase in net transfers is due to the transfer of $1.7 million to the Capital Improvement Program (CIP). The Rainy Day fund was established as part of the COVID-19 response in FY 2020/21 to help the City withstand revenue fluctuations. Allocations to this fund were made by reducing annual General Fund contribution to CIP from a $5 million average to a $2.5 million average. Based on current revenue projections, there is no new transfer budgeted to the Rainy Day Fund. Beginning FY 2022/23, the Rainy Day fund is being programmed to return the annual General Fund contribution for CIP budget back to the $5 million level as was in past practice. General Fund Reserves The General Fund reserves are projected to be $43.9 million at the end of FY 2021/22. This is made up of $33.8 million of General Fund and $10.1 million in the Rainy Day fund, as reflected in Table 2. This equals approximately 32.9 percent of the operating expenses. The City’s policy is to maintain minimum reserves equal to 20 percent of operating expenses, a maximum of 30 percent and a target of 25 percent. The FY 2022/23 original budget included the use of $400,000 from reserves for operating expenses and a transfer of $2.5 million from the Rainy Day fund to cover CIP allocations. The Mid-Term update includes an additional transfer out of $1 million from the Rainy Day fund to finance Council’s priority projects, bringing the transfer from Rainy Day fund to CIP to an amount of $3.5 million. This action will reduce the reserve to 30.0 percent of the operating expenses. Table 7Table 7 Changes to ResChanges to Reserves in FY 2022/23erves in FY 2022/23 General Fund Fund Balance Initial Balance at 6/30/2022 Recommended Adjustments FY 2022/23 Mid-Term Budget General Fund $33,788,571 ($400,000)$33,388,571 Rainy Day 10,133,310 (3,512,760)6,620,550 Total General Fund Reserve $43,921,881 ($3,912,760)$40,009,121