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Report Regarding Study Session on the Bi-annual FY 2019-21 Budget. (Justin Lovell, Financial Services Manager)
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RECOMMENDATION
Recommendation
It is recommended that the City Council provide feedback to staff in preparation for City Council budget approval on June 26, 2019.
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BACKGROUND/DISCUSSION
On May 1, 2019, the Budget Standing Committee of the City Council, comprised of Councilmember Mark Addiego and Councilmember Flor Nicolas, reviewed the proposed budget and their comments have been incorporated into the attached proposed FY 2019-21 operating budget.
Beginning with Fiscal Year (FY) 2017-18, the City made the strategic shift away from a one-year operating budget cycle to a biennial operating budget cycle. Fiscal Year 2019-20 represents the second biennial operating budget. The biennial budget provides a two-year outlook with the first year presented to City Council for budget approval and the second year presented as a business plan, subject to adjustment.
Citywide Overview
The Finance Department maintains 44 different funds for the tracking of City's revenues and expenses. The largest fund, the General Fund, is discussed in greater detail below. Excluding Internal Service Funds and Capital Improvement Program (CIP) projects, the City is anticipated to receive $167.3 million in revenues and have $142.1 million in operating expenditure. The majority of operating surplus is dedicated to CIP funding. The CIP will be presented as a separate item to the City Council.
General Fund
The General Fund is the City's primary operating fund, serving as the funding source for City Administration, Police, Fire, Library and Parks and Recreation services. Changes in principal General Fund Revenue types are discussed in detail below.
General Fund Revenues
Overall, General Fund total revenues are projected to be $112.6 million excluding transfers in, a $7.2 million increase in revenues in FY 2019-20 compared to the FY 2018-19 adopted budget. The...
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