Report to Mayor and City Council
Tuesday, April 18, 2017
Discussion
SUBJECT:
Title
FISCAL YEAR 2017-18 BUDGET WORKSHOP #2 (CITY COUNCIL)
Body
I. SUMMARY
This is the second of three scheduled budget workshops. The Council provided direction during the March 21st budget workshop on reserve policies and reserve levels, employee educational reimbursements, and reductions in the Cultural Arts Programs. Staff has prepared revenue estimates and compiled the draft expenditure budget; however the department directors have not met to review potential budget reductions and new revenues to recommend to the City Council.
The City Council Budget Subcommittee continues to review the budget as well, including examining the costs and revenues of Community Services programs. The General Fund budget deficit of $2.6 million in FY16-17 could grow to $7.0 million in FY17-18 if no significant changes are made to the draft budget by June 30th. Staff will continue to work with the City Council Budget Subcommittee to identify cost savings and new revenue in preparation for the third budget workshop scheduled for May 16th.
The City Council Budget Subcommittee has completed a review of the draft FY17-18 Capital Improvement Program, with an estimated funding shortfall of $6.8 million. During the oral presentation for this report, staff will walk through the capital project recommendations.
This report discusses a series of budget uncertainties and changes based on federal, state and county actions; which will also be highlighted during the staff presentation.
The draft 2017 Five-Year Model is attached to this report, and includes the draft budget for all funds of the City (see Exhibit A).
II. RECOMMENDATION
Recommendation
PROVIDE additional direction to Staff regarding the draft budget.
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III. ALTERNATIVES
TAKE another action deemed appropriate by City Council.
IV. BACKGROUND
Recap of the March 21, 2017 Budget Workshop #1
The City Council made the following decisio...
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