Report to Mayor and City Council
Tuesday, December 06, 2022
Discussion
SUBJECT:
Title
FISCAL YEAR 2022-2023 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 (2022-2023) based on actual revenue and expenditures for the July 1 through September 30, 2022.
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 2021-2022 with an estimated General Fund Balance Reserve of $104.6 million as illustrated in the following table:
Beginning Fund Balance Reserve
$59,399,074
Revenues
$133,881,867
Expenditures
$88,645,190
Deficit/Surplus
45,236,677
Ending Fund Balance Reserve
$104,635,751
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 #1 provides a five-year fund balance trend for the General Fund.
The $104.6 million unaudited reserve includes a surplus of $85.3 million above the City Council's reserve policy requirements. The increase in reserve balance can be attributed to underspending in personnel budget, the collection of Measure K Transaction Tax ($14 million), collected 36% more in Utility Tax ($3.3 million) compared to FY 20-21, collected 44% more in Fines and Fees ($3.3 million) compared to FY 20-21, and an Oil Tax Penalty payment of $11.2 million received.
The audited fund balance will be available upon the completion of t...
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