TITLE
Recommendation to receive and file the Fiscal Year 2017 First Budget Performance Report. (Citywide)
DISCUSSION
This report includes information on the City’s Fiscal Year 2017 (FY 17) budget performance through January 31, 2017 for all funds.
Summary
As of January 31, 2017, no significant issues have been identified with any City funds. On the whole, the General Fund revenues and expenditures are projected to end the year within appropriation. The City, however, is taking a precautionary approach to account for some potential uncertainties related to oil revenue, Measure A revenue, negotiations, and medical marijuana implementation.
General Fund
On September 13, 2016, the City Council adopted a structurally balanced FY 17 budget. General Fund revenues are showing that several key revenue streams, such as Utility Users Tax and Franchise Fees, are currently less than anticipated. The Financial Management Department will continue to closely monitor these revenues. On the positive side, as discussed during the March 14, 2017 Fiscal Outlook presentation, the price of oil is currently higher than budgeted in FY 17. FY 17 Adopted Budget oil projections are based on $35 per barrel, yet oil has priced at between $45 and $50 per barrel. It is important to note, however, that there continues to be volatility in the market. Additionally, City oil revenue is dependent on more than just the price. Other key factors affecting revenue include production levels, exploration and production costs. Steady or growing revenues such as oil and property tax may help mitigate the impacts of other General Fund revenues that may potentially come in under budget in FY 17. This will continue to be closely monitored and reported throughout the year.
Additionally, the General Fund is anticipated to receive an estimated $35.6 million in new Sales and Use Tax revenue due to the historic passage of Measure A that will maintain and enhance public safety services, and make a sign...
Click here for full text