For City Council Meeting [October 26, 2021]
TO: Honorable City Council
APPROVAL: Marcus Fuller, City Manager
FROM: Arron Brown, Deputy City Manager
Stephen Erlandson, Director of Finance
Title
Request City Council to: (1) Receive a Presentation Providing an overview of the Preliminary General Fund Ending Fiscal Year 2020-2021, (2) Adopt Resolution No. 7791 Amending the Fiscal Year 2021-22 Fiscal Budget, and (3) Adopt Resolution No.7792 Updating the Citywide Class and Compensation Table for Full-Time and Part-Time Employees.
(ACTION)
Body
BACKGROUND
On August 11, 2020, Council approved adopted the FY2020-21 budget, on March 9, 2021 Council updated the Budget with the Mid-Year presentation. Staff is in the process of preparing the FY 2020-21 close. In an ongoing process to enhance the City's financial transparency this staff report represents the preliminary findings as presented herein.
ANALYSIS/DISCUSSION
The General Fund ended Fiscal Year 2020-21 in a sound financial position. Due to higher than projected revenues in Sales Tax (discussed below) in conjunction with significant expenditure savings, the fiscal year is currently anticipated to end with an estimated surplus of $23.2 million. This estimate is based on unaudited numbers that may change slightly as a result of the annual audit process currently underway and scheduled to be completed early next year. However, based on past experience, the City's unaudited numbers are often an accurate predictor of the final balance of the General Fund.
Sales Tax Revenue
The City has several logistics-based warehousing centers that either operate through a subsidiary or are wholly owned by the vendor. In the case of a fulfillment center that is operated by a subsidiary or third-party, the sales generated at that site is not considered a "point-of-sale" and the local sales taxes generated by those sales are remitted to the state, collected, and disbursed through a "County Pool" with each City and the Co...
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