TITLE
Recommendation to receive and file the Fiscal Year 2018 First Budget Performance Report. (Citywide)
DISCUSSION
This report includes information on the City’s Fiscal Year 2018 (FY 18) budget performance through January 31, 2018, for all funds.
Summary
As of January 31, 2018, no significant issues have been identified with any City funds that have not been previously reported. For the General Fund, there are some underperforming revenues, which may be offset by well performing revenues and by planned budget savings. However, revenues will also be adversely impacted by approximately $4.8 million due to water and sewer utility litigation. It is early in the year and staff will continue to monitor and evaluate revenues and expenses as more information becomes available, particularly as it relates to uncertainties related to oil revenue, cannabis-related revenue and costs, and other unanticipated revenue shortfalls and expenditure costs.
General Fund
On September 5, 2017, the City Council adopted a structurally balanced FY 18 budget. Currently, the General Fund revenues are showing that several key revenues streams are projecting to be less than anticipated, including the negative impact on utility revenue transfers of approximately $4.8 million due to water and sewer utility litigation. Other General Fund revenue streams, such as Utility Users Tax and Franchise Fees, are trending to come in less than anticipated. Cannabis-related revenues are anticipated to come in lower than projected due to licensed businesses taking longer to start operations than originally planned. On the positive side, there are other revenue streams trending to be better than budgeted and are helping to mitigate some of the negative revenue projections, including Sales Tax (non-Measure A) and Property Tax. The price of oil is another positive projection with revenues trending higher (at around $60 per barrel), than the budgeted $45 per barrel. However, the need to fund oil well ...
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