Report to Mayor and City Council
Tuesday, May 07, 2019
Discussion
SUBJECT:
Title
FISCAL YEAR 2019-2020 BUDGET WORKSHOP #2 (CITY COUNCIL)
Body
I. SUMMARY
This is the 2nd of 3 planned budget workshops, prior to a public hearing in June 2019 to consider adoption of the proposed Fiscal Year 2019-2020 budget. One purpose of this workshop is to receive direction from City Council on the proposals that would change the current budget structure.
The General Fund projected deficit is currently $4.6 million, or 5% of annual revenue. This report also includes a first look at the 2019-2020 Capital Improvement Plan. The highest priority projects have been matched with available restricted funding sources, for a balanced mix of roadway and park projects. There is no General Fund money in the draft budget for capital projects.
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 $4.6 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 Proposed Budget
Revenue
$74,248,741
$74,572,223
$76,167,709
$86,919,816
$88,963,112
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)
($4,563,047)
* Sales Tax (one-third of General Fund revenue) is expected to increase by 3% compared to Fiscal Year 2018-2019 due mainly to a continued surge in new car sales. An operational change at a loc...
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