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File #: [22-0142]    Version: 1 Name:
Type: Discussion Item Status: Passed
File created: 2/12/2022 In control: Town Council
On agenda: 2/23/2022 Final action: 2/23/2022
Title: Approve FY 2021 Excess Fund Balance Appropriation.
Attachments: 1. Draft Staff Presentation, 2. Staff Presentation, 3. Council Questions with Staff Response, 4. Emails from the Public, 5. AN ORDINANCE TO AMEND THE TRANSITIONAL HOUSING PROGRAM PROJECT ORDINANCE (2022-02-23/O-3), 6. AN ORDINANCE TO AMEND “THE ORDINANCE CONCERNING APPROPRIATIONS AND THE RAISING OF REVENUE FOR THE FISCAL YEAR BEGINNING JULY 1, 2022” (2022-02-23/O-2)
Related files: [22-0004], [22-0103]

Approve FY 2021 Excess Fund Balance Appropriation.

Maurice Jones, Town Manager
Manager's Office
Amy Oland, Director
Business Management

That the Council approve the $4 million appropriation from the FY 2021 excess fund balance to address affordable housing/human services, maintenance, vehicle replacements, street resurfacing, software purchases and bike-ped safety improvements.

Key Issues:

In spite of the challenges of the pandemic, the Town finished FY 2021 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 2021 budget as we recognized that there were numerous factors that we did not know how the pandemic would impact.
* Unexpected sales tax growth - We anticipated a 5% decline from prior year collections, but we actually saw a 15.7% 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. However, as a result of the hiring freeze, we had $5.9 million in personnel savings in FY 2021.

Total fund balance at June 30, 2021 was up by $7,028,454 (from $27.3 million to $34.3 million). Available fund balance is up by $5.9 million (from $15.1 million to $21.0 million). The amount of fund balance that is available to appropriate at the end of FY 2021 is $7.9 million (35.3%). 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). FY 2021 expenditures were much lower than is usual as a result of budget cuts and personnel sa...

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