HomeMy WebLinkAbout01 - SS-1 - Fiscal Year 2016-2017 Budget Study Sessi - 5/10/2016CITY COUNCIL STUDY SESSION REPORT
MEETING DATE: May 10, 2016
ITEM NUMBER: 1
SUBJECT: FISCAL YEAR 2016-17 BUDGET STUDY SESSION
DATE: May 4, 2016
FROM: FINANCE DEPARTMENT
PRESENTATION BY: STEPHEN DUNIVENT, INTERIM FINANCE DIRECTOR
FOR FURTHER INFORMATION CONTACT: STEPHEN DUNIVENT, INTERIM FINANCE DIRECTOR,
(714) 754-5243
RECOMMENDED ACTIONS:
Provide comments and direction on the FY 16-17 Preliminary Operating and Capital
Budget and concept for CPI adjustment of fees.
BACKGROUND:
The FY 16-17 budget development process officially started on January 6, 2016 with a
kickoff meeting including the CEO, Finance Department Staff and department
representatives. Since that meeting, departments prepared their budget requests and
submitted them to the Finance Department for review. Finance Staff prepared revenue
projections and forecasts, reviewed departmental requests and met with the departments
to discuss their budget requests. These meetings were followed by joint budget hearings
involving the CEO, Finance Department and department representatives. Out of these
discussions and further meetings, a Preliminary FY 16-17 Budget was developed.
ANALYSIS:
As a quick overview, here is the preliminary budget for FY 16-17 for all funds compared
to the FY 15-16 adopted budget:
Table 1
PRELIMINARY BUDGET- ALL FUNDS
Approprations/
Adopted
Preliminary
Increase (Decrease)
All Funds
FY 15-16
FY 16-17
Amount
Percent
Operating Budget
$ 119,009,800
$ 120,809,731
$
1,799,931
1.5%
Transfers Out
9,416,140
7,752,242
$
(1,663,898)
-17.7%
Capital Budget
25,763,929
15,994,334
$
(9,769,595)
-37.9%
Total
_
$ 154,189,869
$ 144,556,307
$
(9,633,562)
-6.2%
The General Fund provides 81% of the total operating budget for all governmental
funds. The total preliminary General Fund budget is $117 million, an increase of $2.2
million or 1.9% from the current year adopted budget.
The attached City Chief Executive Officer's Budget Message provides highlights of the
financial and budget policies and how they relate to this preliminary budget, a description
of the budget preparation and balancing process, overview charts of the City-wide budget
and the General Fund, a brief financial outlook, budget highlights, a recap of reserves and
an overview of capital improvement projects.
The attached FY 2016-17 Operating & Capital Budget in Brief includes additional
summary charts, analysis of changes in the primary funding sources and expense
categories, a brief discussion of internal service funds, a review of capital improvement
project expense trends over the past ten years and a recap of use of fund balances in
certain special funds.
The attached Summary of Requested Capital Improvement Projects displays the 71
requested projects by category and funding source. The far right column indicates the
recommended projects.
The attached Budget Addendum displays recommended changes to the FY 16-17
Preliminary Budget amounts based on changes that were approved after the budget book
printing deadline.
Lastly, recommended for discussion is the concept of delegating to the CEO the ability to
update City fees annually using a consumer price index (CPI) factor.
The next steps in the FY 16-17 budget process include the following events:
• May 19, 2016 5:30 p.m. Community Budget Meeting
• June 21, 2016 5:45 p.m. City Council budget hearing and adoption
ALTERNATIVES CONSIDERED:
Staff considered many options for the use of funds including requested budget increases
and capital improvement projects. Options were evaluated and assigned priorities.
Recommended budget amounts are balanced to estimated available resources.
CONCLUSION:
As presented, this represents a balanced budget for the coming fiscal year without the
use of General Fund reserves and provides the highest level of service to the
community within existing financial resources. Council consideration and public input
regarding the FY 16-17 Preliminary Operating and Capital Budget will provide valuable
information as the City prepares for budget hearings and adoption in June.
2
Stephen Dunivent th6mais R. Hatch
Interim Finance Director City CEO
Attachments:
1. Citv Chief Executive Officer's Budaet Messaae
2. FY 2016-17 Operating & Capital Budget in Brief
3. Summary of Requested Capital Improvement Projects
4. FY 2016-17 Proposed Budget Addendum
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