REPORT TO COUNCIL
SUBJECT
Title
Receive and File the FY 2021/22 First Quarter Budget Update
Report
REPORT IN BRIEF
This report summarizes the year-to-date financial position of the City's major funds, including an update on the receipt of revenue and current status of expenditures. Overall, the City's financial position is tracking as planned pursuant to the FY 2021/22 Budget, though based on limited information. FY 2020/21 is anticipated to end the year slightly better than planned.
BACKGROUND
In FY 2020/21, staff began providing a report to Council detailing the current financial condition of the City on a quarterly basis. This is the first of these reports for FY 2021/22. This update compares the FY 2021/22 Adopted Budget with actual revenues and expenditures through the first quarter of the fiscal year. In addition, this report provides a preliminary review of the FY 2020/21 year-end financial results.
Information on actuals, especially revenues, is not yet fully developed. Receipts tend to lag by a month. Many sources of revenue aren't received until several months into the year. For example, Transient Occupancy Tax (TOT) for September, is not due to the City until the end of October. Another example is Business License Tax, which will appear low until the second half of the fiscal year after renewals occur. Operating expenditures tend to trend more evenly due to regular payroll costs. Exceptions include large bills like water purchases with July expenses not paid until mid or late August. Consequently, each Quarterly Report will provide more context for the year-to-date status of revenues and expenditures.
EXISTING POLICY
Pursuant to Sunnyvale Charter Section 1305, at any meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by affirmative votes of at least four members so as to authorize the transfer of unused balances appropriated for one purpose to another, or to appropriate available revenue...
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