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CC 2019-02-26_11a Supplemental No. 1_R MEMORANDUM TO: CITY COUNCIL FROM: JAMES A. BERGMAN, CITY MANAGER SUBJECT: SUPPLEMENTAL INFORMATION AGENDA ITEM 11.a. – FEBRUARY 26, 2019 CITY COUNCIL MEETING CONSIDERATION OF FISCAL YEAR 2018-19 MID-YEAR BUDGET REPORT DATE: FEBRUARY 26, 2019 Attached is correspondence received regarding the above referenced item. cc: City Attorney City Clerk FCFA Fire Chief Public Review Binder From: ROBERT OLSON < > Date: February 25, 2019 at 9:14:29 PM PST To: Jim Bergman <jbergman@arroyogrande.org>, Russom Caren Ray <crayrussom@arroyogrande.org>, <lgeorge@arroyogrande.org>, Kristen Barneich <kbarneich@arroyogrande.org>, <jpaulding@arroyogrande.org>, <kstorton@arroyogrande.org> Subject: Budget "Adjustments" Dear Mayor, City Manager and City Council Members, In reviewing the agenda for your meeting this Tuesday night, I noticed something that came up last year about this time and that I spoke to during public comment. It has to do with the city staff's request for several budget adjustments for the balance of the fiscal year. As with last year, the term "adjustment" isn't a very good descriptor of what is being requested. Adjustments, at least in my world, can be up or down. In this particular case, all of the adjustment requests are for more money - just as they were last year. There are none asking for less. Perhaps a better description for this exercise would be "mid-year budget increases." Semantics aside, I don't believe good budgeting review practice includes only considering the categories where more money is needed and ignoring those where less money will be necessary. In a budget as complex as Arroyo Grande's, it is 100% certain that, at this point in the year, there are spending categories that are running under budget and that the city's directors are virtually certain will end the year that way. These must be included in tomorrow night's budget review and balanced against the requests for additional funds. To ignore them is to give our residents only part of the story. We deserve to know both sides of the spending equation. Sincerely, Robert Olson