2023-24 Budget - Laserfiche WebLink

Home Browse Search

In situations above where you see a negative net (ex: General Fund, Airport Fund, Municipal Court Security Fee, etc.), this Fund has existing carryover and/or reserve funding available. The Revenue line shows the new revenue raised, while the Expenditure line shows the possible expenditure of both new revenue and reserve and/or carryover. In other cases, a positive net is shown when the City foresees more collection than expense, but these are primarily in Special Funds which have very restricted and narrowly defined expense options. The primary focus of our attention is the Operational Funds which are Funds #1, 3, 10, and 45. General Fund (#1) shows utilizing General Fund Reserve to fund capital requests (one-time expenses). Despite using some of the reserve, the City will still be able to maintain its minimum 4 month reserve balance. It is important that the City utilize its full allowable growth under S132 to keep up with the rising costs of non -capital expenses. The reserve should only ever be used to fund one-time purchases while reoccurring expenses are covered through annual revenue. The City must also be careful never to utilize too much of the reserve such that we dip below our minimum 4 month balance. This must be forecasted over an entire year as the reserve fluctuates given revenue does not all come in equal and regular increments, thus there must be an ability to cash flow while maintaining a 4 month balance. The Airport Fund (0) shows utilizing a small portion of reserve to help fund our share of a TxDOT capital project. The Water and Sewer Fund (#10) and Landfill and Sanitation Fund (#45) are our two primary business accounts and those are both balanced (new revenue = expense). It is important to note that the City has not raised its Solid Waste Rates in over a decade, therefore as costs have risen, we have decreased the subsidy to the General Fund (primarily used to help offset street maintenance costs). It is foreseen that in FY24/25, we will have to increase our rates as we will run out of subsidy to turn back to Fund 45. This may be a moot point as the City is currently considering proposals for privatizing its solid waste service which will change these affected accounts. Of final note, it is not critical that non -operational funds be balanced as we can only spend what is in the account and on things that are eligible contractually and/or lawfully. In addition, even if we do not have an amount budgeted, or not enough shown, we can still access the available funds within the non -operational fund when needed. City of Paris Charter — Article V — Section 43(3) "An analysis ofproperty valuations. " Page 17 of 23