Page 466 - FY 2021-22 Proposed Budget

General Fund Cash Flow Borrowing

Current and Prior Year Experience

Due to the timing difference between receipts and expenditures, the Controller
annually requests issuance of Tax and Revenue Anticipation Notes (TRAN) to
ensure that the General Fund has sufficient cash to cover expenditures during
the first half of the fiscal year. The Controller also has the ability to initiate
Reserve Fund and interfund borrowing during the year for cash flow purposes.
Exhibit 6 illustrates cash flow borrowings for 2011-12 through 2020-21.

EXHIBIT 6

GENERAL FUND CASH FLOW BORROWINGS
FOR FISCAL YEARS 2011-12 THROUGH 2020-21
(amounts expressed in thousands)

Total Annual Cash Flow Borrowings
Fiscal Reserve Other
Year Fund Funds TRAN Total
2011-12 -- -- 400,000 400,000
2012-13 -- -- 425,000 425,000
2013-14 -- -- 400,000 400,000
2014-15 -- -- 350,000 350,000
2015-16 50,000 (1) -- 350,000 400,000
2016-17 -- -- 400,000 400,000

2017-18 50,000 (1) -- 400,000 450,000
2018-19 35,000 (1) -- 400,000 435,000
2019-20 -- -- 450,000 450,000
2020-21 -- 25,000 550,000 575,000

Annually, the Controller estimates an amount of borrowing needed to meet
City short-term cash flow requirements in the first half of the next fiscal year.
The Controller’s Office will work with the Mayor and City Administrative Officer
(CAO), as in prior years, to determine the amount of borrowing required as
better information becomes available. The cash flow borrowing requirement
in 2021-22 will likely be between $450 million to $550 million.

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