Budget In Brief

Much like a savings account, Budgeted Reserves are excess resources saved from prior fiscal years. The FY 2022-23 Budget contains the use of reserves totaling $13,088,386 million, of which, $758,795 will be utilized by operating funds (Streets Maintenance and Sewer Operations). The remaining $12.3 million of reserve usage will be used to primarily fund projects. The following details the use of reserves:

The cash reserve policy for the General Fund requires that a minimum of two (2) months of the annual expenditures be held in cash. The FY 2022-23 General Fund Budget includes 3.9 months of cash reserve, which equates to approximately $14.5 million. Cash reserves is a calculation of the ratio of cash and cash equivalents to the total individual fund annual expenditures. The specific purpose of the reserves is to provide funding to meet operational appropriation requirements in the event that the City experiences shortfalls in the level of anticipated revenues or unanticipated expenses.

After accounting for all proposed resources and expenditures, the FY 2022-23 Fund Balance will be approximately $226.9 million, which is an increase of 26% or $46.5 million from the FY 2021-22 Budget of $180.4 million.

In total, the FY 2022-23 Budgeted salaries and benefits are expected to increase by 18%, or $3.6 million from the FY 2021-22 Budget. This increase can be attributed to the 4.5% cost of living adjustment (COLA) for both the represented and non-represented employees, benefit changes, and 12% staffing increase.

The FY 2022-23 Budget proposes 192.85 full-time equivalent (FTE) City employees. Refer to Section E – City Position Summaries for a complete discussion of position changes, as well as the status of the individual CalPERS plans.

The total allocation for all Capital Projects in all funds in FY 2022-23 is $54.1 million. These projects include streets, storm drainage, facilities, water, and sewer projects. For an in depth review of all CIP projects, refer to Section G – CIP.