TITLE
Recommendation to receive and file the Fiscal Year 2019 First Budget Performance Report. (Citywide)
DISCUSSION
This report includes information on the City’s Fiscal Year 2019 (FY 19) budget performance through January 31, 2019, for all funds.
Summary
As of January 31, 2019, no significant issues have been identified within any City funds that have not been previously reported. For the General Fund, while there are some revenues that are underperforming, there appear to be more revenues with a positive outlook to mitigate some revenue shortfall. General expenditure spending is trending within budgeted appropriation but staff is also monitoring a potential need for some unbudgeted one-time costs in FY 19. It is too early in the year to project whether there may be a net surplus at year-end, but staff will continue to monitor and evaluate revenues and expenses as more information becomes available.
General Fund
On September 4, 2018, the City Council adopted a structurally balanced FY 19 budget. Currently, the General Fund revenues are showing that several key revenues streams are projecting to come in over budget, which is helping to mitigate some revenue streams that are underperforming. Positive revenue trends include the following:
· The price of oil is budgeted at $55 per barrel in FY 19. Year-to-date, the average price per barrel has been $63 but has experienced large swings from $79 in early October to a low of $48 in December. If prices remain steady and do not fall again, additional revenues can be anticipated at year-end. This will be closely monitored, however, as there continues to be volatility in the market and other factors impacting oil revenues such as production levels, exploration, and production costs.
· Sales Tax (non-Measure A) is also expected to do better than budgeted, but not to the level of FY 18 actuals, which had significantly exceeded budget due to one-time use tax revenue from construction projects and a one-time ...
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