HomeMy WebLinkAbout0011_1_2015-16 Mid-Year Budget Staff ReportREPORT TO CITY COUNCIL
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: GRANT YATES
CITY MANAGER
DATE: JANUARY 26, 2016
SUBJECT: FISCAL YEAR 2015-16 MID-YEAR OPERATING BUDGET
STATUS REPORT – GENERAL FUND
RECOMMENDATIONS
Staff recommends that the City Council approve the attached Resolution 2016 - ___
approving the Fiscal Year 2015-16 Mid-Year Operating Budget, as reflected and
adjusted in the attached Exhibits.
BACKGROUND
The City is presenting its FY2015-16 Mid-Year Budget review of the General Fund.
Tthe City’s Budget Committee reviewed the FY2015-16 Mid-Year Revised budget for
the General Fund. Please note that a review and status report update for Special
Revenue Funds, Capital Project Funds, and other funds will be presented as part of the
process for the FY2016-17 Operating Budget and Capital Improvement Plan Budget,
which includes a comprehensive workshop in May 2015.
The downturn in the economy continues to challenge many cities throughout the state
and Lake Elsinore is no exception. While the economy is showing signs of improving
and the development activity momentum is building within the City, it is critical that we
continue to operate in a fiscally prudent manner, maintain current public safety service
levels, and continue providing key services that our citizens have come to expect. As
such, the FY2015-16 Mid-Year Operating Budget Status Report proposes to maintain
current services through June 30, 2016, maintains the Uncertainty Reserve at 17.5%,
and establishes a path towards development of the FY2016-17 Operating Budget and
the Five (5) Year General Fund Financial Plan. Included as attachments to this report
FISCAL YEAR 2015-16 MID-YEAR OPERATING BUDGET STATUS REPORT – GENERAL FUND
January 26, 2016
Page 2 of 4
are several schedules illustrate (in a tabular format) the current status of the FY2015-16
Mid-Year Budget for the General Fund, as follows:
Exhibit A – Resolution 2016- ___ including the attached financial
schedules Summary of Revenues, Expenditures, and Change in Fund
Balances – General Fund - FY2015-16 Mid-Year Annual Operating
Budget
Exhibit B – Budget Calendar for FY2016-17
DISCUSSION
Revenues:
At mid-year, the City is anticipating a net increase in recurring operating revenues of
$557;577, from $37,363,449 to $37,921,026. The estimated revenue adjustments are
as follows:
Estimated Adjustments to Revenues:
Sales Tax $ 104,884
Property Tax (40,700)
Franchise Tax (5,588)
Building Permit Fee 54,638
Property Transfer Tax 42,750
Other Licenses & Permits 11,722
Intergovernmental 59,300
Fees (151,379)
Fines and Forfeitures 68,050
Investment Earnings 5,000
RDA SB211 Pass Through 45,000
Other Miscellaneous Revenue 363,900
$ 557,577
The largest revenue decrease of $151,379 is due adjustments in plan check submittals
for landscape plans. All of the remaining revenue adjustments are as a result of
changes in user fee estimated revenues based upon activity year-to-date and
projections to year end.
FISCAL YEAR 2015-16 MID-YEAR OPERATING BUDGET STATUS REPORT – GENERAL FUND
January 26, 2016
Page 3 of 4
Expenditures:
Appropriations: The total decrease for mid-year appropriations is $100,221.
Departments were requested to reduce or maintain costs within their existing
appropriations, except for minor changes within individual line items.
Estimated Appropriation Adjustments:
City Manager 30,000$
Finance 182,731
Human Resources (47,250)
Police Services (90,260)
Engineering (13,000)
Public Works/Weed Abatement 10,000
Park Maintenance 3,000
Community Center (50,000)
Campground 75,000
100,221$
The FY2015-16 Mid-Year changes include:
A Citizen Survey ($30,000 increase to City Manager Budget)
Upgrade one Senior Planner position to Principal Planner
Upgrade one Associate Planner position to Senior Planner
Upgrade one Office Assistant I to Office Assistant 3
Add a Business Process Analyst to Administrative Services
Move an Account Specialist Position from Police to Administrative
Services
The position upgrades will be funded within existing appropriations. The Campground
funding was increased to fund costs related arborist expenditures due to safety
concerns and funding staffing costs through June 30, 2016.
Regarding Police and Fire Services appropriations, the City is maintaining existing
levels of service, nevertheless, the modifications noted are related directly to effectively
managing the operating expenditures within budget line items including training, fees,
supplies, and other line items. In addition, the City Manager will be working closely with
the departments to further reduce expenditures before June 30, 2016.
FISCAL YEAR 2015-16 MID-YEAR OPERATING BUDGET STATUS REPORT – GENERAL FUND
January 26, 2016
Page 4 of 4
GENERAL FUND BALANCE RESERVES
The General Fund Balance Reserves at June 30, 2016 would reflect the following as a
result of the proposed Mid-Year adjustments, as follows:
Nonspendable:
Deposits and prepaid items 1,100,000$
Loans Receivable 1,000,000
Designated:
Uncertainty reserve 6,862,241
Undesi gnated:
Unallocated reserve 1,332,281
Total Fund Balance (net) 10,294,521$
FISCAL IMPACT
While the City is beginning to benefit from the improving economy, the development of
an accurate, balanced and achievable budget is critical to establishing a solid
foundation to manage the anticipated growth and demand for services within and by the
community. In developing and implementing a comprehensive operating budget plan,
the factors impacting the City’s operations and financial condition are numerous, and
while the City’s General Fund is still in a vulnerable condition, efforts will continue to
monitor operating activities closely to ensure the General Fund’s resources are
programmed appropriately.
The FY2015-16 Mid-Year Budget Report is one of the first steps in beginning the
FY2016-17 budget preparation process. The City Manager will be proactively working
with each department to develop and present a balanced budget to the Mayor and City
Council that moves the City forward in achieving its financial goals as part of the
FY2016-17 Budget process. The overall fiscal impact of the FY2015-16 Mid-Year
Operating Budget for the General Fund is as follows:
Revenue adjustments 557,577.38$
Appropriation adjustments 100,220.60
Net change/(impact) ‐ FY2015‐16 Mid‐Year 457,356.78$
Prepared by: Jason Simpson
Director of Administrative Services
Approved by: Grant Yates, City Manager