Elk Grove City Council unanimously approved the June 2022 budget for fiscal year 2022-23.
Since the proposed budget was previously presented during the May 25 board meeting, it has gone from 293 million projected to 294 million.
Shay Narayan, the city’s budget manager, told the council why there was a nearly $ 1 million increase in that proposal.
“(City staff) have adjusted and refined our asset seizure funds for our police and our police grant funds on what we are going to spend next year compared to this year,” he said.
“There’s a lot more transfer in grant financing and asset seizure financing than we thought, so we wanted to incorporate it. There’s also a new loan between funds from the Laguna Ridge Park rate fund.”
Another change since last month has been the removal by city staff of about $ 670,000 in funding planned for the future Sun Grove Park.
With fiscal year 2021-22 at $ 273 million, the recently approved budget shows an increase of $ 21 million, or 7.7% more than the previous budget.
One of the main reasons for this increase is the transfer of funds from unspent capital projects from fiscal year 2021-22 to fiscal year 2022-23. Consequently, this increase is not representative of a large increase in new spending.
Within the budget, the council also approved a $ 86 million General Fund for fiscal year 2022-23. That figure is up $ 7.3 million – or 9% – from the previous fiscal year.
Among the major cost drivers for this increase are six new jobs, general salary and benefit increases, single equipment purchases, and increased funding for the Small Business Incentive Program.
The largest categories of General Fund revenue, as projected for fiscal year 2022-23, are sales tax and property tax.
Key issues in the recently approved budget include maintaining and improving service levels for Elk Grove residents, and focusing on priorities such as affordable housing and homelessness, public safety, traffic, and economic development.
The budget also provides a sustainable fiscal plan that aligns with its structurally balanced budget plans for the next five years.
Among the assumptions regarding the five-year projection of the city’s General Fund is that the city will experience a 2% annual growth in its sales tax revenue.
Narayan mentioned that revenues from the city’s General Fund are expected to increase by 3.1% during fiscal year 2022-23.
He added that while there is a decline in program revenue in that category, the city is expected to have an increase in overall revenue.
As for General Fund spending, Narayan noted that while spending on that fund has historically been on the rise, the city expects a 2.5% drop in spending from that fund in fiscal year 2022-23.
Compensation costs are expected to increase by $ 8 million in this category by the end of this year due to the incorporation of the six new positions in the city and the belief that there will not be many vacancies in the city positions.
Fiscal year 2021-22 included a $ 12 million decrease in the General Fund through the transfer of funds from that fund to the Capital Reserve Fund. Those transfers were previously approved by the city council.
The projected General Fund is expected to be aided by continued growth in sales tax and property tax revenues rather than vehicle license fees.
Growth in property tax revenues may be driven by an increase in the value of real estate, new construction, annexations, and additional property taxes on real estate activity.
In the fiscal year 2022-23 budget it is important that it is expected to continue to experience increases in its reserves, depending on the City General Fund’s reserve policy.
Elk Grove Mayor Bobbie Singh-Allen shared his thoughts on Elk Grove’s budget and economic outlook.
“Hopefully, we will continue to have a positive economic outlook, so that some of those (economic) concerns do not materialize,” he said. “But I’m proud that our city is ready for such a storm to come.”
Deputy Mayor Darren Suen shared a similar comment.
“I know there’s a lot of uncertainty out there, but at least it’s good to know that our municipal budget, with the reserves, is still well funded,” he said.
Elk Grove City Council approves $294M city budget for 2022-23 | News Source link Elk Grove City Council approves $294M city budget for 2022-23 | News