TO:
Honorable Mayor and Members of the City Council
THROUGH:
Mark Danaj, City Manager
FROM:
Bruce Moe, Finance Director
Henry Mitzner, Controller
Libby Bretthauer, Financial Analyst
SUBJECT:Title
Fiscal Year 2014-2015 Third Quarter Budget Status Report (Finance Director Moe).
RECIEVE REPORT
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council receive and file this report.
Body
FISCAL IMPLICATIONS:
Based on updated projections for FY 2014-2015, the General Fund is estimated to have a year-end surplus of $729,469; an increase from prior projections of approximately $256,000.
Through the end of April (Third Quarter plus one month) all other funds are trending as expected with the exception of the Insurance Reserve Fund, which has continued to experience unusually high claims activity above budgeted levels. These trends in the Insurance Fund were identified and reported to the City Council early in FY 2014-2015, and again at mid-year budget.
Given the volatility in the Insurance Fund, and the fact that there are still two remaining months of activity to report in the current fiscal year, staff is deferring any recommended transfers or appropriations until further, fully informed analyses may be performed. Factors that may contribute to the final Insurance Fund results include any reductions in reserves from cases that may be settled (thereby improving the results) or continued high claims activity which would negatively impact the fund.
In lieu of incremental adjustments at this point in the fiscal year, staff believes it is prudent to defer and fully understand the impacts for the entire year, and perform a one-time adjustment to rectify the FY 14-15 budget. Staff will return to the City Council after the close of FY 2014-2015 with a full analysis of the Insurance Fund activity and recommendations for any appropriations and/or fund transfers.
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