Interfund Transfers are transfers into the General Purpose Fund (GPF) from other funds. They can be made for a variety of reasons and have various objectives. These transfers are usually one-time payments or scheduled payments for a limited time.
In FY 2021-22 and FY 2022-23, the GPF is expected to receive approximately $97.71 million and $51.62 million, respectively, in Interfund Transfer revenue.
Included in Interfund Transfers is one-time funding from the Federal American Rescue Plan Act (ARPA). In total, the City is going to receive $192 million which can be spent to backfill revenue loss due to COVID-19. Given the siginificant deficits projected across a number of funds in Fiscal Year 2020-21, the City Council passed Resolution No 88574 C.M.S., amending the FY 2020-21 Adopted Midcycle Budget accepting and appropriating $58.5 million in ARPA funds to close the FY 2020-21 budget deficit, replenishing required reserves in the GPF, and aiding select funds that were negatively impacted by COVID-19. The resolution further directed that if the City receives RETT revenue in the estimated amount of $10.5 million in FY 2020-21 and the Third Quarter RETT revenue forecast exceeds the Second Quarter revenue forecast, the excess amount will be used to close the GPF deficit. This would allow more ARPA funds to be available to fund the Fiscal Year Year 2021-23 biennial budget. This proposed budget includes an additional $10 million from ARPA contingent on the receipt of the estimated RETT revenue and contingent on the results of Third Quarter revenue forecast.