TITLE
Recommendation to direct City Manager to implement mandatory General Fund budget saving targets for Fiscal Year 2018 for all departments at the maximum level possible without eliminating jobs or programs. Further, direct City Manager to work with the Department of Financial Management to provide a mid-year progress report of such budget savings efforts to the City Council.
BACKGROUND
The City's Fiscal Year 2018 (October 1, 2017 through September 30, 2018) Proposed Budget, inclusive of all funds, totals $2.6 billion, including $553.7 million for the Capital Improvement Program (CIP).
Based on current projections, we are anticipating shortfalls of $10.4 million in Fiscal Year 2019 and $8.7 million in Fiscal Year 2020 for the General Fund, which accounts for approximately 17% of the total budget and which provides much of the resources for critical core City services.
For instance, the General Fund includes police patrol, fire response, parks, streets and sidewalk repair, and library services. Most other funds and resources are restricted by law for other purposes and cannot be used to support these basic functions.
DISCUSSION
As outlined during the March 14, 2017 presentation to the City Council on the General Fund Fiscal Outlook, the City Manager issued mid-year General Fund budget savings targets to City Manager departments to generate savings at year-end for three stated reasons: 1. To ensure Fiscal Year 2017 budget remains in balance with revenues; 2. To generate funds for one-time needs; and 3. To prepare for future deficit years by initiating savings now.
The City Manager also suggested that non-City Manager departments consider participating in a budget savings target calculated at one-half percent (0.5%) of the total Fiscal Year 2017 General Fund, less one-times. Yet, this target was entirely voluntary and could be used for reallocations of resources within funds, offset adjustments or other minor changes.
The City's current budget clearly de...
Click here for full text