Recommended FY 2022-2024 Operating Budget and CIP

The chart below shows the General Fund Reserves Forecast as of this Recommended Budget compared to the forecast at the City Council Goal Setting Workshop in January 2022:

General Fund Reserves Forecast

60%

52%

47%

50%

53%

44%

51%

50%

42%

46%

40%

39%

30%

32%

26%

20%

20%

10%

0%

20-21 Actual

21-22 Amended

22-23 Rec

23-24 Rec

24-25 Forecast

25-26 Forecast

26-27 Forecast

27-28 Forecast

GF Six Year Forecast at Goal Setting

GF Six Year Forecast

Fund Balance Minimum Level 15% of Revenues

Fund Balance Goal 25% of Revenues

Development Services Fund

The Covid-19 global pandemic has had an adverse impact on development services related revenue. However, the impact was mostly due to the restrictions imposed by the public safety health order that was subsequently lifted. Development activities resumed in earnest to meet the growing demand. However, with costs continuing to outgrow the revenue, staff engaged a consultant to conduct an updated fee study of Planning and Land Development Engineering to update the fees which were last updated in 2017. The updated fees were approved by the Council and went into effect in March 2022. The fund is budgeted with revenue of $6.2 million and $6.3 million for FY 22-23 and FY 23-24, respectively. Even with updated fees, the fund is still anticipated to have an on-going annual deficit mainly because of certain activities that are not meant to be full cost recovery such as public counter/general information services, strategic initiatives, and special projects, as well as other

BUDGET MESSAGE 23