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File #: 2020-3475    Name:
Type: Discussion Item Status: Agenda Ready
File created: 5/13/2020 In control: Finance and Budget Committee
On agenda: 5/18/2020 Final action:
Title: Discussion on the City Manager's FY21 Budget.
Attachments: 1. City Manager Budget Presentation 05-18-20, 2. Budget Summary reports-General Fund, 3. Budget Summary reports-Enterprise and Internal Service Funds, 4. Budget Summary reports-Parks and Recreation funds, 5. Other Funds Budgets, 6. Responses to Questions from F&BC members
Related files: 2020-3450, 2020-3501
Date Action ByActionResultAction DetailsMeeting DetailsVideo
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Title

Discussion on the City Manager's FY21 Budget.

 

Body

Issue/Request:

Discussion on the City Manager's FY21 Budget.

 

Key Issues:

At the Finance and Budget Committee meeting on May 11, 2020, the City Manager presented the proposed FY21 Budget.  The proposed General Fund revenues total approximately $70.3 million and the expenses total approximately $76.2 million.  There are 552.18 full-time equivalent positions budgeted in the General Fund.  The total proposed expenditures for all Funds is $234,694,044.

 

Proposed City Council Motion:

Not Applicable.

 

Background:

The FY21 Revenue forecast was presented to the Finance and Budget Committee on April 13, 2020, and to the City Council on April 14, 2020.  The Presentation of the City Manager's FY21 Budget was presented to the Finance and Budget Committee on May 11, 2020.  That presentation did not include the information for the Parks and Recreation funds.  The presentation has been updated to include the proposed budgets for the Parks and Recreation funds.

 

Impact/Analysis:

The City anticipates that it will end FY20 with a General Fund Reserve Balance of approximately $27,729,680. The City is forecasting to have revenues less than expenditures in the General Fund by $5,898,615.  As a result, this would require the City to spend down the General Fund Reserves by that amount ($5,898,615), and the anticipated General Fund Reserve Balance to end FY21 would be approximately $21,831,065 (which is 28.6% of the operating expenditures). 

 

City Ordinance No. 7428, which outlines the General Fund Reserve Balance Guidelines, states that City Ordinance No. 7428, which outlines the General Fund Reserve Balance Guidelines, states that the General Fund balance shall be maintained in an amount equal to that of at least two (2) average months of regular general fund operating revenues or expenditures, whichever is greater (16.67%) based on the prior fiscal year, to address emergencies and provide for economic stability.  Based off of this ordinance the General Fund Reserve Balance would need to be at least $12,703,592.  As it can be seen from the above analysis, the anticipated General Fund Reserve Balance to end FY21 of $21,831,065 would still be greater than the requirements of the ordinance.

 

Other Information/Unique Characteristics:

The Public Hearing for the FY21 Budget will be on June 9, 2020, at the City Council meeting.  The budget ordinances will also be on the June 9, 2020, City Council agenda for the first reading.

 

Presenter

Stephen Arbo, City Manager

Chris Clubine, Management Analyst

 

Recommendation

Recommendation: Not Applicable.

 

Committee Recommendation

Committee Recommendation: [Enter Committee Recommendation text Here]