Page 376 - 2020-21 Budget Summary

BUDGET STABILIZATION FUND

The Mayor and Council established the Budget Stabilization Fund as part of the 2009-10 budget process. The purpose of the
Budget Stabilization Fund is to set aside savings during periods of robust economic growth that can then be drawn upon to
stabilize revenues during economic downturns. In 2011, Charter Amendment P added the Budget Stabilization Fund to the
Charter. In March 2014, Administrative Code Section 5.120.4 was adopted, which established the rules of the Fund. The Fund's
rules, as stated in its accompanying policy, were revised in January 2020 (C.F. 19-0600-S171). This Fund is comprised of
excess revenue from seven economy-sensitive taxes, Property Tax, Utilities Users’ Tax, Business Tax, Sales Tax, Transient
Occupancy Tax, Documentary Tax, and Parking Users’ Tax, pursuant to the Administrative Code. When growth in the
cumulative receipts from these taxes exceeds the Average Annual Ongoing Growth Threshold (the average ongoing annual
growth over the prior 20 years), the budget must include a deposit into the Fund. For every one half percent that revenues
exceed the Average Annual Ongoing Growth Threshold, five percent of the value of that excess revenue must be deposited into
the Fund, not to exceed 25 percent of the growth. Similarly, when growth of these receipts falls short of the Average Annual
Ongoing Growth Threshold, the Budget may include a withdrawal from the fund in the amount of five percent of the revenue
shortfall for each one percent of growth below the Growth Threshold.

Actual Estimated Estimated
2018-19 2019-20 2020-21
Cash at Beginning of Fiscal Year
$ 94,442,986 $ 105,247,573 Cash Balance, July 1............................................................................. $ 114,187,573

$ 9,000,000 $ 7,000,000 Reserve Fund........................................................................................ --
-- -- Transfer out............................................................................................ --

1,804,587 1,940,000 Interest................................................................................................... 1,994,000

$ 105,247,573 $ 114,187,573 Total Receipts...................................................................................... $ 116,181,573
DISBURSEMENTS
$ -- $ -- Transfer to Budget................................................................................. $ --
$ -- $ -- Total Disbursements............................................................................ $ --

Cash at Close of Fiscal Year
$ 105,247,573 $ 114,187,573 Cash Balance, June 30........................................................................ $ 116,181,573

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