Report to Mayor and City Council
Tuesday, December 05, 2023
Consent
SUBJECT:
Title
FISCAL YEAR 2023-2024 FIRST QUARTER FINANCIAL REPORT (CITY COUNCIL).
Body
I. SUMMARY
The Finance Department performs an ongoing review of the City's financial performance and provides updates on the General Fund results to the Mayor and the City Council. This report represents the City's financial condition in the current Fiscal Year (2023-2024) based on actual revenue and expenditures for the July 1 through September 30, 2023.
II. RECOMMENDATION
Recommendation
Receive and File.
Body
III. ALTERNATIVES
TAKE another action that the City Council deems appropriate.
IV. BACKGROUND
The City of Carson is projected to end Fiscal Year 2022-2023 with an estimated General Fund Balance Reserve of $222.9 million.
Fund balance is the City's "reserve"; it provides a measure of the City's ability to mitigate future risks associated with providing important services in times of economic uncertainties. To provide funding for emergencies, the City Council has adopted a policy that requires fund balance to be maintained at a minimum level equal to 20% of the General Fund's budget. Exhibit #2 provides a five-year fund balance trend for the General Fund.
The $222.9 million unaudited reserve includes a surplus of $79 million above the City Council's reserve policy requirements. The $143M of restricted monies are composed of 421K Non-spendable which is inventory, $27M Restricted which are Capital Projects, $24M in Committed which is monies for economic uncertainties, and $91M Assigned are for self-insurance and Oil Tax Audit Lump Sum Payments (see Exhibit #1). The increase in reserve balance can be attributed to underspending in departmental budgets. The revised budget for Fiscal Year 2022-2023 was $118M, total spending for Fiscal Year was $104M at the end of Fiscal Year 2022-2023 which accounted for 88% of the City Operational Budget being spent ($14M unspent). Additionally for General...
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