Agenda Item Wording:
title
Review Fiscal Year 2022/23 mid-year financial report with recommended budget appropriations.
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Deadline for Action: 4/17/2023
Submitting Department: Finance and Technology Services
Contact Name and Phone Number: Renee Nagel, Finance & Technology Director 713-4375 Amee Swearingen, Financial Analyst 713-4170
Department Recommendation:
Review Fiscal Year 2022/23 mid-year financial report with recommended budget appropriations.
Recommended appropriations by Fund:
General Fund:
1. Appropriate funds for capital projects in the amount of $225,000 in 22/23 and
$75,000 in 23/24.
Internal Service Funds:
Vehicle Replacement Fund
1. Appropriate $28,000 to replace wrecked Police motorcycle.
Background Discussion:
The City adopted the 22/23 & 23/24 Budget in June 2022. The budget is based on the prior years spending and is adjusted based on estimated cost increases and any new or changed programs. Annually the Finance Department presents a mid-year budget report to City Council that compares the budget to the current financial status for the General Fund, Measure T Fund, Measure N Fund, and the Enterprise Funds. This report also allows adjustments to be made to operations or capital projects if needed.
As shown in this report, the majority of the City's funds are healthy and well-managed. General Fund revenues are up in the major revenue categories, and departments are controlling their expenditures where practical, and working to enhance revenue collection where possible. Overall, the City continues to be in good financial shape. However, like all government agencies throughout California, the City is faced with higher contributions to fund pension obligations, technology cost increases, higher costs due to inflation, and the threat of a recession.
Economic Outlook
Visalia's economy continues to be strong despite the historically high inflation. Over the last two years, the average annual inflation rate has been 7% and this rate ...
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