TO:
Honorable Mayor and Members of the City Council
THROUGH:
Mark Danaj, City Manager
FROM:
Bruce Moe, Finance Director
SUBJECT:Title
Introduction of Fiscal Year 2015-2016 Proposed Operating Budget (Finance Director Moe).
RECEIVE REPORT
Line
_________________________________________________________
Recommended Action
RECOMMENDATION:
Staff recommends that the City Council receive a presentation of the Fiscal Year 2015-2016 Proposed Operating Budget.
Body
FISCAL IMPLICATIONS:
The City's fiscal year (FY) 2015-2016 budget includes expenditures across all funds totaling $120,552,546. The General Fund is balanced with revenues of $63,706,793 and expenditures of $63,328,305, resulting in a projected surplus of $378,488.
The FY 2014-2015 year-end General Fund balance is estimated to be $18.6 million. The FY 2015-2016 budget projects a General Fund balance on June 30, 2016 (after net transfers out) of $18.1 million. Fund balance is estimated to decrease by $506,125 primarily due to General Fund subsidies for Storm Water ($841,266) and Street Lighting/Landscape Districts ($217,649). Within the fund balance, $16.7 million has been designated to policy and economic uncertainty reserves. The balance of $1.4 million is unreserved and available to be allocated for one time purposes at the direction of the City Council.
DISCUSSION:
By way of an overview of the budget, staff recommends that City Council review the City Manager's Budget Message, located in the Introduction Section of the budget document. It serves as an executive summary for the spending plan for FY 2015-2016. Staff will present the budget highlights during the Council meeting.
A five year forecast (FY 2016-2020) is being prepared and will be provided in advance of the City Council meeting. A detailed explanation of the forecast will be presented during the budget overview. The projection will take into account known changes on the horizon (such as CalPERS pension contribution rates) as well as staff estimates on less definitive areas such as revenue growth, workers compensation and medical costs. It covers all City funds and includes the five year capital improvements plan projects.
New Processes & Public Engagement
In January, the City Council adopted new, expanded Budget Policies. These principles address fiscal integrity, revenues, reporting, civic engagement, capital budgeting and other standards, which when applied, provide guidance in the creation and execution of the spending plan before you (the policies are presented in the Appendix of the budget document).
In February, the City conducted a statistically valid resident satisfaction survey, which provided valuable feedback and information on what the City does well, and where improvement may be needed. This type of feedback is so important to gaining an accurate and full perspective of what all of our residents need and want from their local government.
In March, we held a Community Budget Priorities Meeting, the purpose of which was to gauge residents' opinions on the current allocation of resources and services, and how we might improve in the new budget. Over 150 people joined this first-ever forum, which received positive feedback from those in attendance. Like the survey, this information has proved valuable during the creation of the FY 2015-2016 budget.
Most recently, invitations were mailed to households announcing the budget meeting schedule, which as is follows:
May 5 Budget Introduction - 6:00 PM - City Council Chambers
May 7 Council Budget Study Session #1 - 6:00 PM Police/Fire Conference Room
Scheduled departments: Police, Fire
May 11 Council Budget Study Session #2 - 6:00 PM Police/Fire Conference Room
Scheduled departments: Human Resources, Parks & Recreation, Management Services, Finance, Information Technology
May 21 Council Budget Study Session #3 - 6:00 PM Police/Fire Conference Room
Scheduled departments: Community Development, Public Works (Including CIP)
May 26 Council Budget Study Session #4 - 6:00 PM Police/Fire Conference Room
Scheduled: Outstanding Items and Wrap Up (if necessary)
June 2 Final Review Prior to Adoption - 6:00 PM - City Council Chambers
June 16 Public Hearing and Adoption of Budget - 6:00 PM - City Council Chambers
These dates have been included on the City's calendar of events for which e-notifications have been sent. An advertisement was also included in The Beach Reporter.
CONCLUSION:
Staff is pleased to present the Proposed Operating Budget for FY 2015-2016, and looks forward to receiving City Council direction.
Attachments:
1. Proposed Fiscal Year 2015-2016 Operating Budget
2. Letter inviting residents to budget meetings
3. Parks & Recreation Profit & Loss Estimates
4. Ten Year General Fund Comparison with FTE