Budget Questions I Hope to Get Answers to – Fund Balance

The fund balance is basically savings as I understand it. Funds not allocated for expenses. Currently the City of Tampa has a fund balance of roughly $72M. At least projected for the end of fiscal year 2023.

So, how much do we save each year?

Good question. According to this page in the budget

The City has established a policy of maintaining a minimum fund balance amount equal to at least 20% of the budget for the combined General Fund and Utilities Services Tax Fund.

For FY24 the General Fund budget shows $671M in expenditures. The Utilities Services Tax fund for FY24 shows $115M in expenditures. Additionally, there are $22M in Utilities Services Tax Capital Improvements fund. Total of $945M in expenses. Twenty percent would be $189M.

However, on summary of revenues, expenses and fund balances for the General Fund it states

20% of combined operating expenditures for combined General Fund and Utilities Tax Fund.

Note the addition of “operating expenses”. In the proposed budget, there are $113M in Operating Expenditures. $115 thousand for Utility Tax. Twenty percent of that is $22M.

Again, that’s what we want to keep in reserves. We have $72M. ($78M projected at end of FY24)

We claim to have a 23% fund balance. I’d like to know what we have twenty-three percent of.

I’d also like to understand where those reserve funds are. The overview shows all revenue coming in going out. Are reserves deducted before it becomes revenue or are reserves somewhere in expenses?