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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 /> As described below, staff recommends increasing revenue estimates by $831,390 and
<br /> decreasing expenditure estimates by $1.2 million. As a result of these changes, staff
<br /> currently anticipates a $2.0 million General Fund surplus at the end FY 2018/19. Staff
<br /> recommends allocation of the anticipated $2.0 million surplus to the following Capital
<br /> Improvement Program (CIP) projects:
<br /> Division Street Capital Improvements $1,014,749
<br /> City Street Median Island Repair & Replacement' 1,014,748
<br /> Total Allocated Surplus $2,029,497
<br /> Table 1. General Fund Overview
<br /> FY 2018/19
<br /> FY 2017/18 Adjusted 'Recommended Mid-Year
<br /> Actual Budget Adjustments Budget
<br /> Revenues $121,066,577 $121,912,266 $831,390 $122,743,656
<br /> Net Transfers (8,640,929) (7,134,250) - (7,134,250)
<br /> Expenditures (107,029,453) (114,778,016) 1,198,107 (113,579,909)
<br /> Difference $5,396,195 $0 $2,029,497 $2,029,497
<br /> General Fund Revenues - Table 2 identifies the total recommended revenue net
<br /> increases of $831,390 based on revenues received to date. Those increases include:
<br /> Property Taxes ($1.2 million), Development Services Fees ($121,006), Interest Income
<br /> ($100,000), Permit Fees ($26,246), Sales Tax Safety ($40,000), Hotel Taxes
<br /> ($111,000), federal and state grants ($208,570) and Reimbursements related to
<br /> changing methodology of recording LPFD revenues ($552,680). These revenue
<br /> increases are off-set by the following anticipated revenues decreases: Sales Tax ($1
<br /> million), Franchise Fees ($143,628), Planning Fees ($39,150), Charges for Services
<br /> ($231,149) and miscellaneous net revenue reductions ($114,185).
<br /> The $1 million reduction to Sales Tax revenues reflects declines in sales tax receipts
<br /> related to business to business sales, general consumer goods, and the state and
<br /> county pools that have resulted in sales tax revenues remaining relatively flat rather
<br /> than increasing as originally projected.2
<br /> 1 Excluding median islands in the Hacienda Business Park.
<br /> 2 State and county pools include sales tax receipts related to on-line sales that are disseminated to local
<br /> jurisdictions based on their percent of sales tax revenues derived from non-internet sales.
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