Develop a long term strategy to stabilize the Unassigned Fund Balance and maintain the fund balance policy.

Projected fund balance beyond 2023 is projected to be increased in the Solid Waste fund due to rate changes implemented by the City Council. This strategy will ensure funds are available to meet ongoing operational needs, offset the costs of projected infrastructure improvements and continue to build reserves for the closure/monitoring of individual landfill cells. The objective is to allow for steady increases in rates and avoid the spiking of rates.

Projected fund balance beyond 2023 is projected to be reduced as surplus appropriations and revenues that exceed projections become smaller. The UFB range was amended by the City Council to 15% to 19%. UFB is used on an annual basis to offset the tax rate and smooth out tax spikes. Smaller amounts of UFB will be available to offset the tax rate in subsequent years. Present drawdown projections place the UFB at the minimum range as early as 2027. The 2024 and 2025 Budgets have reduced amounts of UFB used to offset the tax rate while UFB funds have been appropriated and transferred to Capital Reserve Funds for equipment in the following departments-Fire, DPW, Police and Recreation, Arts & Parks. These cash reserves will allow for the purchase of vehicles/equipment reducing the requirement for debt financing and future spikes in tax rates. Additionally, surplus appropriations and actual revenues received have exceeded expectations resulting in positive replenishment of the UFB. The short, mid and long term strategy of reducing the amount of funds from the UFB used to reduce property taxes on an annual basis and using excess funds beyond the approved UFB range to fund capital reserve funds has been implemented.