Under the City Council’s direction, our fiscal policy is to pay recurring operating expenses with recurring revenue sources. The surpluses are one-time money. The events that create surpluses vary and are not a reliable base for paying for major recurring costs. The public safety surpluses primarily represent daily positions that were not filled. It is expected that changing two of those positions to full-time in FY2024 will reduce the unfilled positions and, thereby, reduce or eliminate the surplus in the fire department.
Even with 100% of property taxes going to the new fund, those taxes pay for less than half the cost. We will supplement the new fund with over $5 million from the General Fund. With no property taxes in the general fund, it will rely on less stable revenue sources to make up the difference.