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File #: 2020-3701    Name:
Type: Presentation Status: Filed
File created: 9/21/2020 In control: Finance and Budget Committee
On agenda: 10/12/2020 Final action: 10/12/2020
Title: Fiscal Sustainability Concept #1 - Establish a Target Amount
Attachments: 1. Presentation, 2. Employee Fiscal Sustainability Ideas Survey Responses
Related files: 2020-3579
Title
Fiscal Sustainability Concept #1 - Establish a Target Amount

Body
Issue/Request:
Fiscal Sustainability Concept #1 - Establish a Target Amount

Key Issues:
For the FY21 Budget, the City forecasted having revenues less than expenditures by approximately $5.6 million, which would require the City to spend down the General Fund Reserves by that amount. This has allowed the City to operate the entire FY21 period without significant adjustments to current levels of service, expenditures, or revenues. City staff is committed to working with the City Council to use this time to review, analyze, and plan for projected long-term impacts of the COVID-19 pandemic. This presentation is a continuation of the fiscal sustainability analysis and discussion with the City Council.

An important fiscal sustainability concept is to establish a "target amount". This is the estimated difference between revenues and expense. The target amount will be determined by reviewing and analyzing trends, and projecting out future revenues and expenses. This presentation will focus on the General Fund revenues through the first quarter of FY21.

Proposed City Council Motion:
Not applicable. This presentation is for informational purposes.

Background:
For the City of Lee's Summit, "fiscal sustainability" means that basic City services can be provided in a resilient manner, while maintaining a level of revenues that consistently meets or exceeds projected expenditures.

Impact/Analysis:
An analysis of budgeted revenues to actual revenues for the first quarter of FY21 was conducted on the following General Fund revenues: property tax, sales tax, franchise taxes, motor vehicle taxes, and ambulance fees. These revenues account for approximately 85% of all General Fund revenues. Specific information about each of the revenues is supplied in the presentation. In summary, actual revenues through the first quarter of FY21 for sales tax, franchise taxes, motor vehicle taxes, and ambulanc...

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