CC 2020-06-09_11b FY 2020-21 Preliminary Budget_PP
Consideration of Preliminary Fiscal Year 2020-21 Budget
6/9/2020
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Purpose
Preliminary Budget Introduction
Opportunity to provide an overview of budget
Review key revenue and expense assumptions
Discuss impacts of COVID-19 on City finances
Provide additional direction to staff
Determine General Fund reserve percentage (18% - 20%)
Budget adoption is scheduled for June 23, 2020
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Budget Development
Use of Budget Balancing Strategies to address current year shortfall
April 14th & April 28th City Council Meetings
Status Quo for all departments as baseline
Annual versus Biennial Budget
Budget development impacted by COVID-19
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Highlights
Total Budget $37.8 million per year
General Fund approximately $18.1 million
General Fund Reserve balance within policy limits
No future cost of living increases were built in salaries and benefits
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Highlights (continued)
No additional CalPERS retirement prepayment
No budgeted stimulus monies for Coronavirus relief efforts
Five Cities Fire Authority contribution unchanged
Reduced Local Sales Tax revenues to fund Capital Improvement Projects
General 2% inflation (unless contract specifies)
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The City’s FY 2020-21 Operating Budget
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FY 2020-21 General Fund Revenues by Source
$17.7 Million
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General Fund Revenue
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General Fund Tax Revenue
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FY 2020-21 Revenue Assumptions
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FY 2020-21 Preliminary compared to FY 2019-20 Adjusted Budget
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Recreation Services’ Revenue Assumption
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General Fund Expenditures by Type
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Expenditures by Function – General and Local Sales Tax Funds
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FY 2020-21 Expense Assumptions
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FY 2020-21 Preliminary compared to FY 2019-20 Adjusted Budget
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Local Sales Tax
Commitment to fund transportation projects, infrastructure improvements, public safety needs, and facility upgrades to meet American with Disability Act (ADA)
Decrease in revenue of 10% or $224,000
Funding $2.1 million in CIP projects and Public Protection $821,000
Approximately 2.7 million in unfunded projects (excl water and sewer)
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New CIP Projects in FY 2020-21
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New CIP Projects (Cont)
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General Fund Reserve
City’s Fiscal Policy – Goal is 20% General Fund Reserve, or at a minimum 15%
Reserve percentage calculated taking General Fund Available divided by total General Fund Expenditures
FY 2020-21 Preliminary Budget General Fund Reserve stands at 18%
To reach 20% General Fund Reserve goal would require approximately $269,000 in reduced expenditures or increased revenues
Staff has identified a number of cost savings that, if desired by Council could be implemented to achieve the 20% General Fund Reserve goal
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Cost Savings
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Council Direction
Changes to Preliminary Budget assumptions
Determine General Fund Available Reserve %
Other Changes
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Consideration of Preliminary Fiscal Year 2020-21 Budget
Thank You
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FY 2019-20 Fcst vs FY 2020-21 Preliminary
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