City of Cypress

Overview

• From FY2017-18 through FY2020-21, revenues grew at a low annual average rate (0-3%), below historic long-term inflation (3%). 
• During that period, expenditures grew at a moderate average annual rate (3-6%), above revenue growth and similar to long-term inflation (3%), limiting reserves.
• The California Auditor ranked the City’s financial risk as 233 out of 423 (1 is riskiest) in FY2019-20.
• The amounts of the City’s Budget Stabilization Reserve was not reported in its budget or audits.
• While the indicators (based on available financial audits) show sound finances, the City’s FY2022-23 budget reports that the budget “is effectively balanced, but dogged by a modest, stubborn structural deficit that limits the City’s options to absorb cost increases or enhance community service levels.”