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Approve FY 2022 Excess Fund Balance Appropriation.
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Staff:
Department:
Amy Oland, Director
Business Management
Recommendation(s):
That the Council approve the $4 million appropriation from the FY 2022 excess fund balance to address facilities, maintenance, equipment, vehicle replacements, and Council initiatives.
Key Issues:
The Town finished FY 2022 in an incredibly strong financial position. We attribute this to the following factors:
* Conservative budgeting practices - The Town was extremely conservative going into the FY 2022 budget as there were still numerous factors that we did not know how the pandemic would impact.
* Unexpected sales tax growth - We anticipated a 2.5% increase from prior year collections, but we actually saw an 11.7% increase over prior year sales tax revenues.
* Personnel savings - The Town typically experiences $2-3 million in personnel savings each year due to about 10% of the Town's regular positions (60-70) being vacant due to natural attrition from turnover, retirements, etc.
Available fund balance is the amount remaining after all commitments for future expenditures, required reserves defined by State statutes, and previous designations have been calculated. The Town strives to maintain a targeted available fund balance of 22% of General Fund expenditures (including transfers). The total fund balance at June 30, 2022 was up by $1,937.965 (from $34.4 million to $36.3 million). The available fund balance is up by $1.2 million (from $21.0 million to $22.2 million). The amount of fund balance that is available to appropriate at the end of FY 2022 is $6.69 million (31.5%). Staff recommends only appropriating $4.0 million of the $6.69 to ensure we finish FY 2023 at or just above the 22% target.
We discussed a funding allocation with Council at a Work Session on March 1st. Based on the feedback we received, we made some adjustments (removed website redesign $50K and fiscal impact study $70K and reallocat...
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