TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Steve S. Charelian, Finance Director
Henry Mitzner, Controller
Libby Bretthauer, Senior Financial Analyst
Marcelo Serrano, Management Analyst
SUBJECT:Title
Presentation of the Fiscal Year 2020-2021 Proposed Operating Budget (Finance Director Charelian).
DISCUSS AND PROVIDE DIRECTION
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council receive this report on the Proposed Operating Budget for Fiscal Year 2020-2021 and provide direction.
FISCAL IMPLICATIONS:
The Proposed Budget for FY 2020-2021 includes revenues and expenditures for all of the City's Funds. The document includes conservative estimates for ongoing operations as well as Capital Improvement Projects (CIP) previously presented to the City Council on May 7, 2020.
From initial projections compiled before March, total General Fund Revenues were reduced by nearly $5.5 million due to impacts of the COVID-19 Stay at Home order. Accordingly, staff proactively included significant budgetary reductions to minimize the General Fund deficit and impact on reserves.
As presented in the Proposed Budget, the General Fund has a projected deficit of $154,524. Any year-end budget deficit will draw upon unreserved fund balance just as previous budget surpluses have added to the balance.
Revenues $73,076,730
Expenditures $73,231,254
FY 2020-2021 Proposed Deficit ($154,524)
Like many local governments, our anticipated budget deficit is forcing difficult decisions that will affect service levels and programs. Furthermore, as COVID-19 conditions continue to fluctuate, our General Fund surplus/deficit estimate (i.e. the balance of revenues to expenditures) will change as we refine our projections and economic assumptions when new data is released.
The current projected deficit is the result of assumptions that economi...
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