Report to Mayor and City Council
Tuesday, June 18, 2019
Discussion
SUBJECT:
Title
PUBLIC HEARING TO CONSIDER ADOPTION OF RESOLUTION NO. 19-120, ADOPTING THE FISCAL YEAR 2019-2020 BUDGET IN THE GENERAL FUND AND SPECIAL REVENUE FUNDS (CITY COUNCIL)
CONSIDER RESOLUTION NO. 19-123-CSA, ADOPTING THE FISCAL YEAR 2018-19 BUDGET FOR THE CARSON SUCCESSOR AGENCY (SUCCESSOR AGENCY)
CONSIDER RESOLUTION NO. 19-121-CHA, ADOPTING THE FISCAL YEAR 2018-19 BUDGET FOR THE CARSON HOUSING AUTHORITY (HOUSING AUTHORITY)
CONSIDER RECEIPT OF 2019 CAPITAL IMPROVEMENT PLAN (CITY COUNCIL)
Body
I. SUMMARY
The City Council has held 4 budget workshops and provided direction to staff for the Fiscal Year 2019-2020 budget. The Public Hearing Notice was published on June 8th, and the draft budget has been on file with the City Clerk's Office for public viewing since June 11th. The proposed budget resolutions are attached to this staff report and ready for the City Council to consider adoption.
The City Council is asked to consider adopting a $2.9 million deficit budget for the General Fund. The proposed deficit is equivalent to 3.4% of General Fund revenue. The General Fund balance is estimated to be $23.5 million at the end of Fiscal Year 2019-2020; which is approximately $5.1 million higher than the City Council policy reserve of $18.3 million (or 20% of budgeted expenditures).
The Fiscal Year 2019-2020 projected deficit was further reduced by the expected one-time revenue from Tesoro Community Benefit Agreement Milestone payment, and the 3% vacancy rate applied to the personnel budget ($1.1 million decrease).
The structural budget deficit persists as the City's expenditures increase faster than its revenues. For example, the Sheriff contract is increasing by $1 million (or 5%) overall based upon the same number of service units. The City's CalPERS unfunded liability payment for Fiscal Year 2019-2020 will total $7.3 million which is $2.4 million increase compared to Fiscal Year 20...
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