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BACKGROUND
<br /> Staff regularly monitors expenditures, cautiously forecasts revenues, and makes
<br /> recommendations to address changes as quickly as possible in order to maintain a
<br /> balanced Budget. The Midyear budget report helps staff address budget variances in a
<br /> timely manner.
<br /> DISCUSSION
<br /> General Fund Overview
<br /> Staff recommends increasing revenue estimates by$3,343,617 primarily due to increases
<br /> in the Property Tax, Hotel/Motel Tax, and Development Services fees. These increases
<br /> are attributed to a continued improving housing market and increased economic activity
<br /> throughout the City. Decreases in expenditures of $638,006 are the net result of adding
<br /> 7.0 Full Time Equivalent(FTE) positions and 11 FTE Over-hire Relief Firefighter positions
<br /> that are off-set by savings accrued through vacancies and reduced overtime expenses
<br /> as well as net increased non-personnel expenditures.
<br /> As a result of these changes, staff currently anticipates the General Fund to end FY
<br /> 2015/16 with a surplus of approximately $4 million. Of this, staff is recommending
<br /> $569,536 be allocated to the 10% Reserve for Economic Uncertainties, $1 million to the
<br /> City's Capital Improvement Program (CIP) funds, $1 million to the City's Repair and
<br /> Replacement Funds, and $1,419,587 to PERS Rate Stabilization Fund to prefund the
<br /> City's pension liabilities. Overall, the City will continue to have a balanced budget with a
<br /> total of$19.7 million in reserves in the General Fund.
<br /> After closing the FY 2015-16 budget and staff knows the exact amount of General Fund
<br /> surplus, we will recommend allocating portions of that surplus to all or some of the
<br /> following funds: (1) the PERS Rate Stabilization Fund to reduce the City's unfunded
<br /> liability, (2) the Workers Compensation Fund to address future known liabilities, (3) the
<br /> Repair and Replacement Fund, and/or (4) Capital Improvement Program ("CIP") funds.
<br /> Table 1. General Fund Overview
<br /> FY 2015/16 Adjustments FY 2015/16
<br /> Original Approved by Midyear Budget Adjusted
<br /> Budget City Council Adjustments Midyear Budget
<br /> Beginning Fund Balance $ 20,576,010 $ 20,576,010
<br /> Plus Revenues 106,461,744 $ 3,343,617 109,805,361
<br /> Transfers In 993,475 7,500 1,000,975
<br /> Transfers Out 6,442,524 $ 1,208,218 7,650,742
<br /> Less Expenditures 100,742,467 500,021 (638,006) 100,604,482
<br /> Ending Fund Balance $ 20,846,238 $ (1,708,239) $ 3,989,123 $ 23,127,122
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