Report to Mayor and City Council
Tuesday, March 21, 2017
Discussion
SUBJECT:
Title
FISCAL YEAR 2017-18 BUDGET WORKSHOP #1
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I. SUMMARY
This is the first of 3 budget workshops scheduled for City Council study of the draft FY17-18 budget. The other 2 workshops are currently scheduled for April 18th and May 16th. Budget adoption is scheduled for June 6th.
The FY17-18 budget process began in January, with departments preparing 1st drafts of their proposed expenditure budgets. The purpose of this workshop is to obtain City Council policy direction before recommendations are finalized. A draft budget will be presented to City Council on April 18th.
The Budget Subcommittee of the City Council (Mayor Pro-Tem Davis-Holmes and Councilman Hicks) met on March 16th to provide recommendations for this report.
II. RECOMMENDATION
Recommendation
RECEIVE the recommendations made by the Council Budget Sub-Committee from their March 16th meeting and PROVIDE direction on development of the draft FY17-18 budget.
The Economic Uncertainties Reserve will drop from 20% of the General Fund to 14.6%. ($15.5 to $11.3 million)
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III. ALTERNATIVES
TAKE another action deemed appropriate by City Council.
IV. BACKGROUND
Deficit Budget
The City Council adopted the FY16-17 budget with a $1.8 million deficit. Amendments have been made which increase that deficit to $3.2 million.
As reported on March 7, 2017, with the close of the FY15-16 books the General Fund balance decreased by $8 million; primarily due to recording the liability for the Colony Cove mobile home park rent control judgment. The City is appealing the judgment, and the liability may be reversed; which would increase the General Fund balance by $7.5 million.
The FY16-17 Midyear Financial Report is on this same agenda. If the City Council approves the staff recommendations, the revised estimate of the General Fund Balance is $12.8 million, calculated as follows.
The preliminary look at the budget indicate...
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