Agenda Item Wording:
title
Receive the FY 2023/24 mid-cycle financial report.
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Deadline for Action: 6/30/2023
Submitting Department: Finance and Technology Services
Contact Name and Phone Number: Renee Nagel, Finance Director x4475, renee.nagel@visalia.city Amee Swearingen, Financial Analyst x4170, amee.swearingen@visalia.city
Department Recommendation:
Receive the FY 2022/23 mid-cycle financial report.
Background Discussion:
In April 2023, staff presented to Council budget projections for FY 2022/23 and 2023/24 for all operating funds. On off budget years, staff brings a Mid-Cycle report in June which reports any updates to the current fiscal year and the upcoming fiscal year. No significant changes have been made to the budget projections since the Mid-Year presentation to Council in April 2023 for FY 2022/23. The projection for FY 2023/24 builds upon the 2022/23 budget forecast and expected growth in revenues and expenditures. The growth projection for the General Fund's two primary revenue sources (79% of total revenues) for FY 2023/24 is the following:
Budget Projection
* Sales Tax 2.0% 1.0%
* Property Tax 2.0% 3.0%
Sales Tax revenue is the most volatile because it is based on consumer spending. This projection is also being conservative due to the continued rise in inflation. The continued splurge spending that is occurring has been good for the economy and is one of the biggest reasons that a recession has not begun. However, economists predict this extra spending will have to slow down as the cost of living continues to rise and disposable income becomes less.
The expenditure forecast for FY 23/24 assumes the following:
* Wages - 2.5% increase (this increase was approved by Council on 5/15/23)
* Salaries and Benefits - Assumes zero vacancies for full time employees and hourlies.
* PERS - The Employer Contribution rate plus the Unfunded Liability Payment assumes a pro...
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