DeSoto FY21----FY22-Approved-Budget

CITY OF DESOTO, TEXAS EXPLANATION OF MAJOR CHANGES IN FUND BALANCE (Major Funds and Those with Fund Balance Changes of 10% or More) Beginning Fund Balance versus Projected Fund Balance - FY 2021 GENERAL FUND

General Fund Fund 101

At the beginning of Fiscal Year (FY) 2021, the City of DeSoto has a General Fund (GF) fund balance (FB) of $19,352,333. The General Fund will end the FY 2021 year with a projected FB of $18,181,343, which is a decrease of 6.6% throughout the year. This change in FB is attributed to slight increases in Property Tax and Sales Tax revenue, increases in Supplies and Services & Professional Fees, an increase in salary costs due to an across-the-board 1% salary increase for all city employees and also new positions added in order to maintain and enhance services to the public. The aforesaid FY ending FB is a reflection of operational expenses as well as one-time appropriations. Cataloged below is a representation of such one-time appropriations, which are allocated from Use of Fund Balance (101-098-001):

$ 150,000 Transfer to Economic Incentive $ 500,000 Transfer to Fund 412 for ERP Software $ 400,000 Transfer to Fund 479 – Capital Improvement $ 250,000 Transfer to Fund 108 – Stabilization Fund

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Stabilization Fund Fund 108

The Stabilization Fund was created in FY 2014, to address significant unanticipated expenditures that would otherwise negatively affect the General Fund. Expenditures from this fund are approved by the City Council. This fund will begin the FY 2021 year with a fund balance of $2,658,328 and is projected to end FY 2021 with a fund balance of $2,917,328. This represents an increase of 10.8% and is due to a $250,000 transfer into this fund this fiscal year. This fund will continue to carry a large FB, as a multi-year savings plan for unbudgeted, unanticipated expenditures in a future year.


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