In the August 31 piece, “Tale of Three City Budgets: Where the Income Comes From.” we incorrectly said that city of Sunnyvale is using reserve funds to balance the city budget. The story should have said that Sunnyvale has a balanced budget thanks to the city’s budget stabilization fund.
“To assist us in balancing our budget, the City maintains a unique Budget Stabilization Fund which is quite different from the City’s reserves,” Sunnyvale Communications Officer John Pilger explained in an email.
“While the City has never had to utilize its reserves, the Budget Stabilization Fund is used much like a rainy-day account. In good years the City pays into the fund; in leaner years money is withdrawn to balance the budget. The sole purpose of this fund is to rise and fall with the economy to keep the budget in balance. And, again, it is important to note this is not the City’s reserve fund.”