FINANCIAL HIGHLIGHTS OF THE 2023 BUDGET (cont)

Expenditures by Category

Total expenditures are $7.8 million lower in the 2023 Budget as compared to the 2022 Projected Actuals. Most of this variance is due to a transfer of $24.4 million to the Capital Renewal and Replacement Reserve Fund in 2022. The 2023 budgeted transfer declined to $8.2 million based on the available cash reserves.

Another significant variance of $6.8 million is in Salary and Benefits. The budget assumes all positions will be filled for the full year, while the 2022 Projected amount reflects vacancies that have occurred throughout the year. The 2023 Budget also includes 5% performance pay increase and police step increases, funding to implement the 2023 compensation study recommendations and increased healthcare costs. Finally, purchased services are increasing $1.3 million to account for inflation in repair and maintenance and the cost of community programs. Utilities and internal services are also increasing due to inflation.