TITLE
Recommendation to receive and file the Fiscal Year 2017 Second Budget Performance Report. (Citywide)
DISCUSSION
This report includes information on the City’s Fiscal Year 2017 (FY 17) budget performance through May 31, 2017, for all funds.
Summary
As of May 31, 2017, no significant concerns have been identified with the City’s restricted funds, and any funds that are showing year-end estimates that exceed budgeted appropriations will be resolved with planned budget adjustments that will be presented to the City Council later in FY 17. However, General Fund revenues are not coming in as anticipated. This is primarily due to a large unplanned one-time drop in residual property tax revenues as described below. As mentioned in the first performance report on April 4, 2017, the City is taking a precautionary approach to managing the budget by requesting City Manager Departments to save 0.5 percent of their total FY 17 General Fund budget, less any one-times, due to the various uncertainties. In light of the revenue shortfall, departments have been asked to save additional funds above the original 0.5 percent, but the additional department savings are not factored into the year-end estimate at this time. If savings are not sufficient, the City may need to use the operating reserve to end the year in balance. It is the City’s goal to manage expenses to cover any revenue shortfall. Therefore, the City could ultimately end the year with a small surplus. This report summarizes the General Fund performance, and provides additional details on the status of other funds. Please see Attachment A for a breakdown of citywide expenditures by fund.
General Fund and Uplands Oil Fund Overview
Based on current estimates as of May 31, 2017, it is anticipated that the General Fund will end the year with zero funds available and Uplands Oil Fund with $0.3 million. As mentioned in the March 14, 2017 Fiscal Outlook, a year-end surplus for any one-times is not expected due ...
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