The Finance Department recommends council approval of the use a sum not to exceed the amount currently in the Budget Stabilization Fund and the transfer of some or all of those funds to the Federal / Local / State Pass Fund, in accordance with the City’s Financial Policies (Ordinance No. 2020-999, as may be amended from time to time) which include the following provision:
“C4. In addition to the Fund Balance, the City shall maintain a separate Budget Stabilization Fund in an amount not less than the greater of (a) 1% of Adopted Budget General Fund expenditures (excluding debt service payments and transfers for pay-as-you-go (PAYGO) capital expenditures) or (b) $20 million, which may be used in accordance with the definition of the fund. Transfers necessary to meet this requirement shall occur by July 31 of each fiscal year. Any proposed use of the Budget Stabilization Fund shall be accompanied by a justification to City Council and shall require approval from two-thirds of the City Council present and voting. When an event causing use of the Budget Stabilization Fund has concluded, the City shall allocate sufficient funds by the end of the second subsequent full fiscal year to restore the Budget Stabilization Fund to at least minimum levels.”
JUSTIFICATION:
Additional funds are needed to assist with expenditures related to 2021 Severe Winter Storm Emergency, including first responder overtime, debris removal, and other recovery costs. While it is expected that this funding will be reimbursed up to 75-90% by FEMA, the timing of that reimbursement is uncertain.
Per the financial policy, the City shall allocate sufficient funds by the end of the second subsequent full fiscal year to restore the Budget Stabilization Fund to at least minimum levels by the end of FY2023.
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Tantri Emo
Chief Business Officer/Director of Finance