TITLE
Recommendation to receive the Mid-Year Budget Performance Report and defer discussion until the City Council Budget Workshop planned for June 13, 2006.
DISCUSSION
This report provides an update on the City’s Fiscal Year 2006 (FY 06) budget and operational performance through March 31, 2006. The report covers a broad spectrum of financial information for all funds and departments with multi-year comparisons, charts and graphs to provide a clear picture of the City’s financial situation. While the focus of the financial report is the General Fund, exceptional performance (both positive and negative) in other funds is highlighted where applicable.
Summary
FY 06 is the third year of the City’s Financial Strategic Plan (Plan). As such, over $92 million in structural budget solutions have been included in the General Fund and related funds budgets over the past three fiscal years. These solutions, which have included the reduction of programs, services and positions, as well as increased revenue and cost recovery, have placed a substantial strain on the organization as it downsizes and becomes more efficient. While resources required to provide public safety, infrastructure maintenance, library, recreation and other general government services have been reduced significantly, public demand for services continues to grow. As a result, departments’ ability to remain within appropriation limits while providing high quality service will be a continued challenge as the City implements the Plan and restores equilibrium between the services it provides and the resources available to support them.
As of March 31, 2006, the total adjusted General Fund expenditure budget was $369.8 million, with budgeted revenue of $361.8 million. The difference between budgeted revenue and expense reflects the use of fund balance. After six months of the fiscal year, overall revenue and expenditures are on target. With 50 percent of the fiscal year complete, approximately 52.7 percen...
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