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File #: 2019-1092    Version: 1 Name:
Type: Discussion Status: Agenda Ready
File created: 11/27/2019 In control: City Council
On agenda: 3/17/2020 Final action:
Title: FISCAL YEARS 2020-2021 ANNUAL BUDGET WORKSHOP #1 - BUDGET POLICY ISSUES (CITY COUNCIL)
Attachments: 1. Exhibit A Mobile Home Rent Review, 2. Exhibit B Bus Refurbishment, 3. Exhibit C Carriage Crest Park Reopening, 4. Exhibit D Upgrading Community Center Public Space, 5. Exhibit E Corporate Yard Moving Expenses, 6. Exhibit F Mobile Stage, 7. Exhibit G Part-Time Parks Staff, 8. Exhibit H Teen Summer Day Camp, 9. Exhibit I Transportation Bus Reimbursement, 10. Exhibit J Insurance Premiums, 11. Exhibit K Information Technology Professional Services, 12. Exhibit L Information Technology Software & Hardware Needs
Date Ver.Action ByActionResultAction DetailsMeeting DetailsVideo
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Report to Mayor and City Council
Tuesday, March 17, 2020
Discussion


SUBJECT:
Title
FISCAL YEARS 2020-2021 ANNUAL 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 2020 to consider adoption of the proposed Fiscal Year 2020-2021 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 structural 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 2020-2021 based on information received to date. Collection of the tax began in January 2018 and the estimated revenue may grow depending on the results of the ongoing Audits when concluded. Using the minimum estimate for now, the Fiscal Year 2020-2021 General Fund deficit may still be about $5.4 million without further changes to the budget structure.


* 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 1.5% for most parcels and decrease for the oil refineries.
* Personnel expenditures are expected to increase by 5% ($1.7 million) for Fiscal Year 2020-2021.
* The Sheriff contract for law enforcement (one-quarter of General Fund expenditures) will increase by 5.5% ($1.05 million) overall based upon the same number of service units.
Although the City's General Fund Reserve for Economic Uncertainties is fully funded, the structural budget deficit has not yet been cured; and the City's major revenue sources are not increasing as fast as expenditures.
Without new revenue sources, the City must continue to determine ...

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