Report to Mayor and City Council
Tuesday, February 20, 2018
Discussion
SUBJECT:
Title
FY17-18 MIDYEAR FINANCIAL REPORT AND CONSIDER ADOPTION OF RESOLUTION NO. 18-015 TO AMEND THE FY17-18 BUDGET (CITY COUNCIL)
Body
I. SUMMARY
The Midyear Budget Report summarizes the status of the City's General Fund for the FY17-18 budget at the halfway point. The report includes new revenues received, and expenditures approved by the City Council after the adoption of the budget. It also includes budget savings from FY16-17.
Noteworthy events occurred since the adoption of the budget, including the passage of Measure C by the Carson electorate (the Business License Tax on certain petroleum mixing, blending and refining companies). Revenues from Measure C remain unknown, since the revenue collection process is just underway. The City Council also negotiated significant new revenues from Andeavor in the Community Benefits Agreement, however Andeavor's remaining payments to the City are on hold due to litigation involving the refiner and an environmental group. There is a perception among some that since Measure C passed, the City has solved its budget issues. This far from the reality.
The Midyear budget adjustment includes a pending sale of City owned surplus property for $4.5 million. However, staff continues to recommend caution as the City prepares the FY18-19 budget. Without significant service reductions, new revenues or the combination of both, the City will remain in a General Fund budget deficit. The revised Five-Year Model predicts budget deficits for the next five years. This City has adopted eight deficit budgets in the last eleven years.
II. RECOMMENDATION
Recommendation
1. RECEIVE and FILE this report.
2. ADOPT Resolution No. 18-015, A RESOLUTION OF THE CITY OF CARSON CITY COUNCIL AMENDING THE FISCAL YEAR 2017-18 BUDGET IN THE GENERAL FUND, COMMUNITY DEVELOPMENT BLOCK GRANT FUND, AND SPECIAL EVENTS FUND.
1.
Body
III. ALTERNATIVES
TAK...
Click here for full text