Revenue Stabilization Reserve Fund
Fund 05
Department Overview
In Fiscal Year 2018/2019, the Town Council adopted a change to the Fund Balance Policy to establish a minimum revenue stabilization reserve fund. In previous years, this reserve was reflected as a fund balance allocation in the General Fund. Town Council decided to move this Assigned Fund Balance for Revenue Stabilization out of the General Fund and into a new separate reserve fund to set aside funds to ensure the Town could respond to an unexpected drop in toursim-based revenue.
Revenue Stabilization Reserve funding is established at a minimum of 25% of TOT revenue budget. For example, a TOT revenue budget of $6,000,000 would translate to a Revenue Stabilization Reserve Fund balance of $1,500,000.
Fiscal Year 2021/2022 Accomplishments
- The Town Council approved a discretionary contribution into the Revenue Stabilization Reserve Fund in the amount of $250,000 during the reallocation of Fiscal Year 2020/2021 Unassigned General Fund Balance.
- Anticipate ending the fiscal year with a fund balance of about $2,300,000 which exceeds the current policy minimum of 25% of Transient Occupancy Tax revenue.
Fiscal Year 2022/2023 Goals and Objectives
- Continue to meet or exceed the minimum reserve amount per Fund Balance Policy. Current minimum is 25% of Transient Occupancy Tax revenue.
- Increase Fund Balance Policy minimum to 30% of Transient Occupancy Tax revenue.
Budget Highlights
- General Fund contribution may be possible during the reallocation of Fiscal Year 2021/2022 Unassigned Fund Balance after the close of the fiscal year.
Did You Know?
- Including investment earnings, fund balance as of April 30, 2022, is $2,299,137.