Title
Receive a Summary of Proposed Budget for Fiscal Years 2015-16 and 2016-17. (Finance 2410)
Body
To: Honorable Mayor and Members of the City Council
From: John A. Russo, City Manager
Re: Receive a Summary of Proposed Budget for Fiscal Years 2015-16 and 2016-17
BACKGROUND
A slide show summary of the proposed General Fund budget and forecast for fiscal years 2015-16 and 2016-17 is attached. Staff requests that the City Council provide direction regarding preparation of the General Fund budget for fiscal years 2015-16 and 2016-17 in anticipation of the budget hearing on June 2, 2015.
DISCUSSION
Staff has prepared an initial proposed budget and forecast for fiscal years 2015-16 and 2016-17 covering the General Fund (Attachment A). As presented at the March 17, 2015 Council meeting, a series of workshops have been scheduled on April 16, April 29 and May 12, 2015 to allow the Council and the public to discuss the budget in detail. Consideration of a resolution to adopt the budget covering all City and Successor Agency funds is scheduled for the June 2, 2015 Council meeting.
General Fund Preliminary Budget
This is the first budget in the last three years where departments were not required to cut their budgets in order to arrive at a balanced budget. Moreover, although the General Fund preliminary available fund balance is declining in the next five years, it will not only remain positive, it will conform to the City's 20% fund balance reserve policy over that same five year period. This is a stark change from the projections of the last budget, when the General Fund balance was estimated to be zero after five years. This is the beneficial result of previous cuts made to get expenditures under control, and also a sign of the improving economy.
Economic Outlook
The U.S. economy has been showing signs of slow but steady improvement. The national economy grew 5% in the third quarter 2014 and 2.6% in the fourth quarter 20...
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