Good morning, everyone.

The Sacramento City Council's budget and audit committee will come to order with the clerk.

Please call the roll.

Thank you.

Mayor Pro Tem Talamantes.

Councilmember Getta.

Here.

Council Member Vang.

And Mayor Steinberg.

I am here.

Councilman Gedday, would you please lead us in the land acknowledgement and the pledge of allegiance?

Everyone rise who can, please.

Please rise for the opening acknowledgments in honor of Sacramento's indigenous people and tribal lands.

To the original people of this land, the Nissanon people, the Southern Maidu, the Valley and Plains, Miwok, the Putwin Wintune people, and the people of the Wilton Rancheria, Sacramento's only federally recognized tribe.

May we acknowledge and honor the native people who come before us and still walk beside us today on these ancestral lands by choosing to gather together today in the act to practice of acknowledgement, appreciation for Sacramento's indigenous people's history, contribution, and lives.

Thank you.

Please uh face the flag, salute, pledge.

I pledge allegiance to the flag of the United States of America.

And for the Republic for which it stands one nation, under God, indivisible with liberty and justice for all.

Well, thank you, and a very good morning to you.

Uh today, I suppose uh begins the formal uh beginning of the city's FY uh 25 budget process.

And um, as you know, we face some significant challenges, and we're gonna manage those challenges together.

And this morning is a start.

Uh we we have a consent calendar before we get to the discussion calendar, and why don't we ask if there are any uh comments or issues uh or any items on the consent calendar.

If not, I would take a motion if there's no public testimony.

So move.

And mayor, I have no public comment on the consent calendar.

All right, if there are no no questions or comments, all in favor, please say aye.

Aye, opposed consent calendar passes.

Then let's go right to the heart of the matter.

Um item five, Mr.

City Manager.

Do you want to kick us off here?

Yeah, I will.

Uh, we're gonna start off with uh the consolidated annual it's the act for now, they changed the acronym annual comprehensive financial report first, and then we're gonna do the budget update and overview.

So I'll invite Osvaldo to come up first.

Um I'm just going to start with that.

Um, hello, my name is Osvaldo Lopez.

I'm the finance manager in the accounting division.

And today I'm pleased to share with you the year-end result for the fiscal year 23 and the annual comprehensive financial report, also known as the ACFRA.

The ACRA represent the city's financial conditions and the results of activities for the fiscal year that ended June 30, 2023.

As required by the governmental accounting standard board, or GASPI, the city implemented four new accounting and financial reports, a reporting standard this year.

You can see additional information about these accounting standards on page two of the staff report.

Now moving on into the financial results.

In fiscal year 23, General Fantax Revenue exceeded budget by 3.2 million as reflected on page three of the staff report.

Let me just put it here.

So uh this table here represents basically the differ the savings by departments or over expenditures.

Uh and then we have explanations of basically the departments that exceeded their um appropriation.

We explained that why why they did so.

Um coming back to the table on page two.

Um, as we can see, um other city of revenue exceeded the budgeted amount by 5.3 million.

Um, these amounts were offset by financial statement uh adjustments that are needed uh of four million.

So at the conclusion of the year-end process, 5.1 million in one-time resources were added to the available fund balance.

In addition to these 5.1 million, we carry forward um 0.4 million of available fund balance from the previous year, fiscal year 22, for a total of 5.5 million available fund balance at the end of fiscal year 23.

Now it is important to note that for uh financial statement purposes, we have to separate general fund and major U.

So this is just for general fund.

Um in addition to this 5.5 million for um major U fund, we have an additional 2.6 million in available fund balance as of June 30, 2023.

And we have the details of those amounts in page four of the staff report if you need additional information about that amount.

So we when combining general fund and measure you, we ended uh fiscal year 23 with 8.1 million um of available fund balance.

This is 7.4 million higher than the than the original forecast for fiscal year 24 of 700,000.