Page 45 - FY 2022-23 Supporting Information

2022-23 PROPOSED BUDGET
FOUR-YEAR GENERAL FUND BUDGET OUTLOOK (OUTLOOK) FOOTNOTES

(7) Transient occupancy tax revenue from hotels and short-term rentals for 2022-23 through 2023-24 reflect a
return to pre-pandemic growth with subsequent years reflecting historical growth.

Parking Occupancy tax assumes high growth in 2022-23 through 2024-25 receipts to reflect a return to pre-
pandemic levels following an extended period of business and event closures and restrictions. 2025-26 and
2026-27 assume historical growth.

The Power Revenue Transfer estimate for 2022-23 is provided by the Department of Water and Power based on
assumptions for estimated 2021-22 Power System revenue. The final transfer amount may be adjusted to conform
to actual 2021-22 Power System revenue in accordance with audited financial statements. Outgoing years
assume an average of amounts transferred since a transfer limit was established.

(8) The American Rescue Plan Act (ARPA) fiscal recovery funds received in 2021-22 represented the City’s
second tranche of $639.5 million out of a full allocation of $1.28 billion. ARPA funds were one-time revenues and
are not continued in 2022-23.

(9) Revenue from the Special Parking Revenue Fund (SPRF) represents the projected surplus that may be
available to transfer to the General Fund after accounting for debt service and other expenditures associated with
the maintenance, upgrades, and repairs of parking structures, meters, and related assets. The annual base-level
surplus is $23.5 million. Any amounts above this are considered one-time receipts and deducted from the
estimated revenue growth for the following fiscal year. The transfer in 2021-22 was budgeted at $8.5 million and
the 2022-23 Budget assumes a $30.4 million surplus available for transfer. Subsequent years assume the base
transfer amount of $23.5 million.

(10) The Outlook does not include any transfers from the Budget Stabilization Fund (BSF).

(11) The transfer from the Reserve Fund in 2022-23 is $105.6 million, which is $20.5 million more than the 2021-22
amount. The Outlook does not assume any transfers in subsequent years.

ESTIMATED GENERAL FUND EXPENDITURES:

(12) General Fund Base: The General Fund base carries over all estimated General Fund expenditures from the
prior year to the following fiscal year.

(13) Incremental changes to the Base: The 2022-23 amount reflects funding adjustments to the prior fiscal year
General Fund budget. The expenditures included for subsequent years represent major expenses known at this
time and are subject to change.

(14) Employee Compensation Adjustments: The 2022-23 amount includes employee compensation adjustments
consistent with existing labor agreements, as amended, and all other required salary adjustments. Fiscal years
2023-24 through 2026-27 reflect restoration of one-time salary reductions from the prior year and full-funding for
partially financed positions. The Outlook does not include projections for future compensation adjustments from
future labor agreements, although it does include a two percent annual increase to account for natural salary
growth. Most current agreements expire in 2022-23 or 2023-24.

29