Report to Mayor and City Council
Tuesday, March 21, 2017
Discussion
SUBJECT:
Title
FISCAL YEAR 2016-17 MIDYEAR BUDGET REPORT (CITY COUNCIL/ HOUSING AUTHORITY/SUCCESSOR AGENCY)
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I. SUMMARY
II. RECOMMENDATION
Recommendation
1. Resolution No. 17-025, A RESOLUTION OF THE CITY OF CARSON CITY COUNCIL AMENDING THE FISCAL YEAR 2016-17 BUDGET IN VARIOUS FUNDS OF THE CITY.
2. Resolution No. 17-09-CHA, A RESOLUTION OF THE CARSON HOUSING AUTHORITY BOARD AMENDING THE FISCAL YEAR 2016-17 BUDGET.
3. Resolution No. 17-08-CSA, A RESOLUTION OF THE CARSON SUCCESSOR AGENCY BOARD AMENDING THE FISCAL YEAR 2016-17 BUDGET.
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III. ALTERNATIVES
TAKE another action deemed appropriate by City Council.
IV. BACKGROUND
On February 28, 2017, the FY15-16 audited financial statements were issued; and on March 7, 2017, they were presented to City Council. Now that we have actual balances as of June 30, 2016, staff was able to complete the Midyear budget analysis.
General Fund
The results of the FY15-16 audit included an $8.0 million accrual of a liability for judgments and settlements incurred after June 30, 2016. The single largest of these items was the Colony Cove mobile home rent control judgment of $7.5 million. The City is appealing the judgment; and if it is reversed, the liability will also be reversed, increasing the General Fund balance by $7.5 million.
The $18.7 million fund balance reflects the Colony Cove liability. The balance also includes restricted monies that should be transferred to special revenue funds. These inter-fund transfers were presented to City Council during the FY16-17 budget process; but have not yet been made pending the final outcome of FY15-16.
With this report, staff is recommending a series of amendments; including revised revenue estimates, additional appropriations due to increased service activity, and various inter-fund transfers. Following is a summary of the impact of these recommendations to the General Fund. Original Budg...
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