21 - Laserfiche WebLink

BACKGROUND The proposed budget is the City's comprehensive financial plan for all programs and services for the 2013/14FY and 2014/15FY. Staff is recommending that the Operating Budget be adopted as presented at the Council meeting on June 4, 201:3. DISCUSSION The Operating Budget maintains core service levels, and addresses all new program and project initiatives prioritized by the City Council. Careful planning and a diversified local economy have allowed us to balance the Operating Budget without reductions in services. Even with our impressive financial position compared to most municipalities, the City's budget for the next several years should be closely monitored to ensure that our operating position remains positive. The length and depth of the current economic recovery and the extent to which revenues may continue to rebound and grow in future years is unknown with any amount of certainty. Additional takeaway cif local revenues by the State in order to balance the State's budget is another unknown. There is also much to be optimistic about, for the City is well positioned to capitalize on the economy as it continues to improve. The City is moving forward with the development of the Pleasanton Gateway Project, Staples Ranch, numerous housing projects and working with the Pleasanton Downtown Association and the Economic Vitality Committee to stimulate the resurgence of public and private development in the downtown area. How the City Is Meeting Its Budgetary Challenges The Operating Budget as presented is balanced. Given that, the City will continue to maintain reserves of $12.2 million in the General Fund for unforeseen emergencies. These funds can be called upon if needed to keep the Operating Budget balanced. Overall, the Operating Budget is projected to be $162.2 million in 2013/14FY and $167.0 million in 2014/15FY which represents a 27% decrease and a 25% decrease, respectively, from the 2012/13FY Midyear Budget. This is mainly due to the transfer of the finance/accounting function for the Livermore-Pleasanton Fire Department joint powers authority to the City of Livermore and the payoff of the golf course debt. In accordance with adopted fiscal policies the City has adequate reserves for replacement of equipment and renovation of facilities, self insured liability, workers compensation, and retiree medical costs. The City's long-term goal is to maintain the annual contributions to these reserves and to rebuild the General Fund Reserve from its current level of 13% of revenues to 20% of revenues. OPERATING BUDGET Overview The Operating Budget for the 2013/14FY and 2014/15FY is: • balanced Page 2 of 5