CC 2016-06-14_12b Budget Update PresentationBudget Update Report
June 14, 2016
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Update revenue projections using the latest data
Recommend adjustments to expenditures as appropriate
Provide direction for second year of Biennial Budget
Purpose
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General Fund expenditures are expected to exceed revenues, as previously projected
Fund balance remains in excess of minimum policy
As we experience economic improvement, many challenges remain.
We are continuing to gather data that will allow the Council to make well informed decisions in the next two-year budget plan.
Summary
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Citywide expenditures FY 2015-16 = $45.4 Million (includes CIP carryovers)
Citywide expenditures FY 2016-17 = $42.5 Million
Citywide Budget
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Citywide Revenues $41.6M
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Citywide Expenditures $42.5M
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Property tax increases by 4.25% or $175,000
Sales & Use tax increases by 4% or $139,700 (after triple flip impacts)
TOT increases by 3.5% or $33,600
No changes assumed for fee studies yet
FCFA costs are based on FCFA Preliminary Budget
Salary/benefit costs – contractually obligated amounts or 2.5% increase
Workers compensation premium reduction of $21,300
General Fund Budget Assumptions
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Transportation Revenues
Supplemental funding to replace lost gas tax
Countywide ballot measure for local transportation projects
Animal control costs and a new animal shelter
Future challenges and unmet needs
Infrastructure (parks, streets, facilities)
Technology
Vehicle/equipment replacements
Operational items (General Plan update, unfunded positions)
Long-term liabilities (PERS, Brisco debt service)
Unknown Factors
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General Fund Summary
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General Fund Expenditure Changes
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Recommended Adjustments
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Recently reviewed financial status on May 10, 2016
Current revenue levels will not sustain the funds
Impact of drought on water consumption
Rate Increases proposed for Water and Sewer Funds
Water & Sewer Funds
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Recommended Adjustments
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Capital Improvement Program
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Local Sales Tax Fund Changes
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Approve detailed budget adjustments listed in the Budget Update Report
Adopt a resolution approving the FY 2016-17 Budget
Recommended Action
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Questions
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