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
FY 2016-2017 Budget Status Report; Presentation of FY 2017-2018 Operating Budget Modifications for the Second Year of the Biennial Budget (Finance Director Moe).
RECEIVE REPORT
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Recommended Action
RECOMMENDATION:
Staff recommends the City Council receive a report on the status of the Fiscal Year 2016-2017 budget, and recommended modifications for the second year (FY17-18) of the biennial budget.
(Please note that the associated PowerPoint presentation for this report will be posted on Monday, May 1, 2017)
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FISCAL IMPLICATIONS:
Current trends indicate the City's FY 2016-2017 General Fund operating budget will finish the year with revenues exceeding expenditures by $832,228. Taking into account year-end projections and anticipated transfers to the Insurance, Street Lighting and Storm Water Funds, staff projects an unreserved General Fund balance of $3.4 million at fiscal year-end.
Other funds are trending within projections with the exception of the Insurance Fund. Substantial activity in Workers' Compensation continues beyond expectations. Currently, the Insurance Fund is running over budget by approximately $574,000. Staff will return to City Council later in the year with a clean-up appropriation to adjust for the excess activity. Council may recall that in FY 2015-2016, Council approved annual transfers from the General Fund to the Insurance Fund of $667,000 over three years ($2 million total) which is scheduled to end after FY 2017-2018. If not for the projected savings from the move to the new insurance pool, and the resulting $1.1 million savings, further immediate General Fund transfers would be necessary to address the Workers Compensation cost trends.
The fiscal year 2017-2018 budget...
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