The Staff Report for the October 26th Finance Committee meeting provided some good news on the preliminary results for the fiscal year ended June 30, 2021. Revenues totaled $17.2 million exceeding the most recent budget of $16.4 million, and expenditures totaled $13 million, which were less than the most recent budget of $13.3 million. The transfers to Special Funds and Project costs were also lower than expected by $398,000. As a result, the City’s cash flow improved by $1.4 million. This improved cash flow resulted in General Fund Reserves totaling $7.3 million including a contingency Reserve of $4.6 million as of June 30, 2021.
Measure Q Revenues totaled $2.3 million compared to $2.0 million in the most recent budget. Measure Q expenditures were also lower than budget resulting in a Measure Q Reserve total of $3.3 million as of June 30, 2021.
These numbers do not include an insurance reimbursement totaling $3.5 million related to a claim that was settled for the same amount, so there is no impact on the City’s results.
Based upon these favorable results and improved General Fund Reserve levels, Staff is recommending to the Finance Committee and the City Council that a portion of the Contingency Reserves be used to replenish funds that were depleted during the Covid budget process. Staff is specifically recommending a transfer of $822,500 to the Pension Reserve, $178,350 to the Equipment Replacement Fund and $100,000 to the Housing Reserve Fund.
If these transfers are approved the Contingency Reserve will still be $3.4 million, which represents an 82 day Contingency Reserve.
These are positive trends that will hopefully continue as the economy improves and the City continues to keep expenses under control.