Report to Mayor and City Council
Tuesday, April 16, 2019
Discussion
SUBJECT:
Title
FISCAL YEAR 2019-2020 BUDGET WORKSHOP #1 - BUDGET POLICY ISSUES (CITY COUNCIL)
Body
I. SUMMARY
This is the first of three planned budget workshops, prior to a public hearing in June 2019 to consider adoption of the proposed Fiscal Year 2019-2020 budget. Initial draft budgets have been received from the departments. One purpose of tonight's workshop is to receive direction from City Council on the proposals that would change the current budget structure.
The City has an ongoing General Fund budget deficit. One relatively new revenue source that was anticipated to help close the deficit is the Oil Industry Business License tax, which is expected to generate at least $4.7 million for Fiscal Year 2019-2020 based on information received to date. Collection of the tax began in January 2018, and the estimated revenue may grow as additional information becomes available, or when audits are concluded. Using the minimum estimate for now, the Fiscal Year 2019-2020 General Fund deficit may still be about $5.4 million without further changes to the budget structure.
2015-16 Adopted Budget
2016-17 Adopted Budget
2017-18 Adopted Budget
2018-19 Adopted Budget
2019-20 Adopted Budget
Revenue
$74,248,741
$74,572,223
$76,167,709
$86,919,816
$87,943,766
Expenditures
($75,856,102)
($76,219,758)
($79,163,237)
($88,799,813)
($93,526,159)
Surplus/(Deficit)
($1,607,361)
($1,647,535)
($2,995,528)
($1,879,997)
($5,407,393)
* Sales Tax (one-third of General Fund revenue) is expected to decrease slightly due to expected cooling off for auto sales.
* Property Tax (one-fifth of General Fund revenue) is expected to increase by 2% for most parcels and decrease for the oil refineries.
* Personnel expenditures are expected to increase by 5% ($1.7 million) for Fiscal Year 2019-2020.
* The Sheriff contract for law enforcement (one-quarter of General Fund expenditures) will increase by 5% ($1 million) ov...
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