Title
Adoption of Resolution Amending the Fiscal Year (FY) 2017-18 Budget. (Finance 2410)
Body
To: Honorable Mayor and Members of the City Council
From: Jill Keimach, City Manager
Re: Adoption of Resolution Amending the Fiscal Year (FY) 2017-18 Budget
BACKGROUND
This report updates Fiscal Year 2017-18 financial projections for the General Fund and proposes current year budget amendments for various City funds to reflect and respond to the City's current financial condition.
The discussion below is presented in the following sections:
I. General Fund Revenues
II. General Fund Expenditures
III. Pension/OPEB Funding Status and Policy
IV. General Fund Annual Activity and Forecast
V. Non-General Fund Programs
DISCUSSION
The City Council adopted the FY 2017-18 budget on June 7, 2017. Since adoption, the budget has been selectively amended for specific programs, primarily for capital project activity. At this time, staff recommends approving a series of amendments to the FY 2017-18 General Fund budget based upon year-to-date activity and updated revenue projections. A short list of non-General Fund program budget amendments is also recommended for approval. To provide context for these recommendations, updated General Fund projections are provided for the upcoming FY 2018-19 budget year and for a 5-year forecast period through 2022.
I. General Fund Revenues
As shown in the following graph and as detailed in Exhibit 5, General Fund revenues in FY 2017-18 are projected to increase by $7 million and to reach $99 million in total. This revenue increase is substantially driven by $4 million of unusual property transfer tax proceeds from the sale of two high-value real estate parcels. Updated revenue projections for a 5-year forecast period through 2022 range from $96 to $99 million.
> Property Tax and related taxes are projected to be $1.6 million higher than the original budget. As detailed in Exhibit 6, the County Assessor has increased assessed v...
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