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HomeMy WebLinkAboutCC AG PKT 2005-03-14 #I 1 • AGENDA REPORT DATE: March 14, 2005 TO: Honorable Mayor and Council Members THRU: John B. Bahorski, City Manager FROM: Pamela Arends -King, Director of Administrative Services /Treasurer SUBJECT: Fiscal Year 2004/05 Mid -Year General Fund Financial Update SUMMARY OF REQUEST: Staff requests Council receive and file report. BACKGROUND: The purpose of this report is to give the City Council a brief General Fund financial update for Fiscal Year 2004/05. At the time the Fiscal Year 2004/05 operating budget was adopted the General Fund was expected to have a net operating loss of $1,180,694 primarily due to the transfer of General Fund . undesignated fund balance for street improvements. Expenditures are expected to remain relatively the same as what was adopted, however, revenues are up significantly more than estimated when the operating budget was adopted. Staff expects Fiscal Year 2004/05 General Fund revenues will exceed estimated expenditures by $231,000. Estimated revenues are up due to the increase in sales tax from new businesses that moved to the City after the Fiscal Year 2004/05 operating budget was adopted, an increase in utility users tax revenue due to the cold and rainy winter, and the increase in business license revenue. The business license revenue is up significantly more than what was budgeted due to the increase in business license revenue from a major manufacturer and the dedicated effort by staff to ensure all businesses operating within the City have a business license. The expenditures for Fiscal Year 2004/05 are up due to the increase in liability and workers compensation insurance premiums and retiree medical and dental insurance premiums, however, all other expenditures are not expected to increase significantly. At the end of April 2005 staff will be providing the City Council and the public a mid -point budget review. The mid -point budget review will discuss in detail what the financial status of the City is expected to be at the end of Fiscal Year 2004/05 and any changes to the Fiscal Year 2005/06 budget. The five -year financial forecast will also be updated. Agenda Item I 1 RECOMMENDATION: Council receive and file report. Pamela Arends-King Director of Administrative Services/Treasurer NOTED AND APPROVED: _/, n : ahorski City anager