TITLE
Recommendation to receive and file the Fiscal Year 2016 First Budget Performance Report. (Citywide)
DISCUSSION
This report includes information on the City’s Fiscal Year 2016 (FY 16) budget performance through January 31, 2016 for all funds.
Summary
At the end of the first period ending January 31, 2016, no significant issues have been identified with any City funds, which have not previously been reported. The drop in worldwide oil prices has lowered the General Fund revenue estimates from its Uplands Oil transfer; however, with higher than anticipated revenue in other areas, as well as expenditure savings from departments, projections are currently showing the General Fund ending within budget.
General Fund
As discussed during the November 17, 2015 and March 8, 2016 Budget Outlook presentations, worldwide oil prices have experienced a dramatic drop, resulting in adverse oil revenue impacts. The FY 16 adopted budget oil projections are based on $55/barrel, while current oil forecasts project that oil will average $35/barrel in FY 16 reducing the estimated transfer to the General Fund from $11.5 million to $7.4 million. However, as previously reported, there are some additional General Fund revenue items that are anticipated to come in above budget that can help mitigate this challenge, including higher sales tax and transient occupancy tax. Additionally, on December 22, 2015, all General Fund departments were requested to save 0.5 percent of their budgeted appropriation to help generate savings at year-end. Currently, overall General Fund expenditures are projected to achieve these requested savings. The current revenue projections and the 0.5 percent savings target are anticipated to offset the lower Uplands Oil revenue transfer and to allow ending the year with the anticipated temporary surplus of $675,000, which the City Council has allocated to the Capital Projects Fund for one-time projects.
Updated projections for FY 16 year-end will be pr...
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