CC 2017-02-28_12b FY 2016-17 Mid Year Presentation
Mid-Year Budget Report
Fiscal Year 2016-17
2/28/2017
1
Purpose
Review revenues and expenditures during the first six months of the fiscal year to determine appropriate adjustments
Highlight any major changes that have occurred since budget adoption
Update the budget with audited results of prior fiscal year
Typically General Fund focused
2/28/2017
2
Key Points
Mixed results and financial challenges, particularly Water and Sewer
General Fund balance is strong and is projected to be 34% of appropriations at year-end
A few budget adjustments are recommended at this time
Long term challenges remain
2/28/2017
3
Water & Sewer
Drought revenues continue to be lower than projected
Evaluating options for capital and/or operating expenditure reductions
Reassessment of Stage 1 Emergency in April
Strong, but diminishing, reserves
2/28/2017
4
Top Revenue Performance
2/28/2017
5
Expenditures by Department
2/28/2017
6
Mid-Year Expenditure Requests
3/3/2017
7
Mid-Year Expenditure Requests
Streets Fund - $50,000 for winter storm damage
Parkside Landscape Maint Fund - $6,000
Traffic Signal Improvement Fund - $1,700
Water Fund - $32,000
Fire Protection Impact Fee Fund - $81,000**
Downtown Parking Fund – ($18,700)
3/3/2017
8
Revenue Adjustments
$128,400 additional revenue anticipated
Property tax, planning/building fees
Most revenues are consistent with prior year trends
3/3/2017
9
Long Term Challenges Remain
Updating 10 Year Forecast
Positive local economic activity
CalPERS changes and impacts
Future Diablo Nuclear Power Plant closure
Water supply
2/28/2017
10
Arroyo Grande
Diverse revenue stream
Strong General Fund Reserve balance
Engaged citizenry
Smart, dedicated staff
2/28/2017
11
Recommendation
Approve detailed budget adjustments listed in the Mid-Year Budget Report
Approve Schedule A
Approve requests for additional appropriations, including an additional $10,000 for the diesel exhaust removal project
2/28/2017
12
2/28/2017
Questions
13