HomeMy WebLinkAboutCC AG PKT 2008-06-09 #SAGENDA STAFF REPORT
DATE: June 9, 2008
TO: Honorable Mayor and City Council
THRU: David Carmany, City Manager
FROM: Robbeyn Bird, CPA
Director of Administrative ServiceslTreasurer
SUBJECT: BUDGET WORKSHOP
SUMMARY OF REQUEST:
Receive and file budget report and direct staff to proceed with changes to the
fiscal year 2008-09 budget.
BACKGROUND:
• At the April 21st meeting, Council directed staff to return at a future meeting with
a report discussing the City's financial position. This report projects revenues,
expenditures and fund balance of the General Fund through June 30, 2008. In
addition, it addresses various capital needs of the community.
The revenue projections through June 30, 2008 are $25.8 million or $1.3 million
over budget. The primary reason for the increased revenue is due to higher than
budgeted sales tax.
Expenditures are projected to be approximately $8.5 million under budget or
$22.1 million. Of that $8.5 million, $5.1 million will be carried over for various
capital projects.
Based on these projections, general fund balance will be $29.2 million at the
fiscal year ending June 30, 2008 calculated as follows:
FUND BALANCE -JUNE 30, 2007
REVENUES
EXPENDITURES
FUND BALANCE -JUNE 30, 2008
25,531,863
25,827,200
(22,129,619)
29,229,444
Of this $29.2 million fund balance, the City has limitations on some of the money
based on fiscal policies set by the City Council during the budget hearing
• process. The following table shows reserves and designations of fund balance:
Agenda Item S
Page 2
• Fund Balance:
Reserved for Encumbrances 100,000
Unreserved:
Designated
for:
Fiscal Policy 5,532,400
Economic Condition 1,750,000
Compensated Absence 700,000
Capital Project Reserve
Carryover 5,100,000
Undesignated 21,147,044
The adopted budget for 2007/08 and 2008/09 requires that the City maintain a
designation of the General Fund's fund balance of 20% to 25% of operating
expenditures to maintain the City's credit worthiness and cash flow requirements.
The $5.5 million is 25% of operating expenditures. In addition, a designation of
$1,750,000 for changes in economic conditions was also adopted during the
budget process. Capital projects approved for the 2007/08 fiscal year that have
not been completed will be carried over to Fiscal Year 2008/09 in the amount of
$5.1 million. This results in projected undesignated fund balance of $21.1
million.
The City has several unmet capital needs as will be discussed in review of the 5
year Capital Improvement Plan by the Director of Public Works totaling $9.2
million for Fiscal Year 2008/09.
FINANCIAL IMPACT:
Based on the approval of the 5 year Capital Improvement Plan, staff will prepare
a budget amendment for consideration at the July 14th City Council meeting.
RECOMMENDATION:
Receive and file budget report and direct staff to prepare a budget amendment
for the capital projects as approved in the 5-Year Capital Improvement Plan.
SUBMITTED BY:
.1,~.~d
Robbeyn ird, CPA
• Director of Administrative Services
NOTED AND APPROVED:
~~ ~~
David Carmany, City Manager
REVISED
• AGENDA STAFF REPORT
DATE: June 9, 2008
TO: Honorable Mayor and City Council
THRU: David Carmany, City Manager
FROM: Robbeyn Bird, CPA
Director of Administrative Services/Treasurer
SUBJECT: BUDGET WORKSHOP
SUMMARY OF REQUEST:
Receive and file budget report and direct staff to proceed with changes to the
fiscal year 2008-09 budget.
BACKGROUND:
At the April 21st meeting, Council directed staff to return at a future meeting with
a report discussing the City's financial position. This report projects revenues,
expenditures and fund balance of the General Fund through June 30, 2008. In
addition, it addresses various capital needs of the community.
The revenue projections through June 30, 2008 are $25.8 million or $1.3 million
over budget. The primary reason for the increased revenue is due to higher than
budgeted sales tax.
Expenditures are projected to be approximately $8.5 million under budget or
$22.1 million. Of that $8.5 million, $5.0 million will be~carried over for various
capital projects.
Based on these projections, general fund balance will be $29.2 million at the
fiscal year ending June 30, 2008 calculated as follows:
FUND BALANCE -JUNE 30, 2007
REVENUES
EXPENDITURES
FUND BALANCE -JUNE 30, 2008
25,531,863
25,827,200
(22,129,619)
29,229,444
Agenda Item S
Page 2
Of this $29.2 million fund balance, the City has limitations on some of the money •
based on fiscal policies set by the City Council during the budget hearing
process. The following table shows reserves and designations of fund balance:
Fund Balance:
Reserved for Encumbrances 100,000
Unreserved:
Designated for:
Fiscal Policy 5,532,400
Economic Condition 1,750,000
Compensated Absences 700,000
Capital Project Reserve Carryover 5,000,000
Undesignated 16,147,044
The adopted budget for 2007/08 and 2008/09 requires that the City maintain a
designation of the General Fund's fund balance of 20% to 25% of operating
expenditures to maintain the City's credit worthiness and cash flow requirements.
The $5.5 million is 25% of operating expenditures. In addition, a designation of
$1,750,000 for changes in economic conditions was also adopted during the
budget process. Capital projects approved for the 2007/08 fiscal year that have
not been completed will be carried over to Fiscal Year 2008/09 in the amount of
$5.0 million. This results in projected undesignated fund balance of $16.1
million.
The City has several unmet capital needs as will be discussed in review of the 5 •
year Capital Improvement Plan by the Director of Public Works totaling $9.2
million for Fiscal Year 2008/09.
FINANCIAL IMPACT:
Based on the approval of the 5 year Capital Improvement Plan, staff will prepare
a budget amendment for consideration at the July 14th City Council meeting.
RECOMMENDATION:
Receive and file budget report and direct staff to prepare a budget amendment
for the capital projects as approved in the 5 Year Capital Improvement Plan.
SUBMITTED BY: ~ NOTED AND APPROVED:
~~
Robbeyn ird, CPA David Carmany, ity Manager
Director of Administrative Services
•