Report to Mayor and City Council
Tuesday, November 16, 2021
Discussion
SUBJECT:
Title
FISCAL YEAR 2021-2022 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 (2021-2022) based on actual revenue and expenditures for the July 1 through September 30, 2021.
II. RECOMMENDATION
Recommendation
Receive and File the First Quarter Fiscal Year 2021-2022 Report.
Body
III. ALTERNATIVES
TAKE another action deemed appropriate by the City Council.
IV. BACKGROUND
The City of Carson is projected to end Fiscal Year 2020-2021 with an estimated General Fund Balance Reserve of $60.1 million as illustrated in the following table:
Beginning Fund Balance Reserve
$45,184,396
Revenues
$94,236,789
Expenditures
$79,320,185
Excess of Revenues Over Expenditures
$14,915,604
Ending Fund Balance Reserve
$60,100,000
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. The chart below provides a five-year fund balance trend for the General Fund.
The $60.1 million reserve includes a surplus of $32.5 million above the City Council's reserve policy requirements as a result of several factors. Revenues exceeded expectation even amid COVID-19 pandemic. Specifically, sales taxes totaled $30 million, which is $4 million above forecast (due mainly to increases in online and ecommerce transactions). The City also received $5.3 million in proceeds from the sale of property (former Corporate Yard) located at 2390-2410 Dom...
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