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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 $2,294,460
<br /> and decreasing expenditure estimates by $1,686,463. As a result of these changes,
<br /> staff currently anticipates a $4 million General Fund surplus at the end FY 2019/20.
<br /> Staff recommends allocation of the anticipated $4 million surplus to the following:
<br /> General Fund Reserves $2,000,000
<br /> Capital Improvement Plan (CIP) Reserves 1,000,000
<br /> Repair and Replacement (R&R) Fund Reserves 980.923
<br /> Total General Fund Surplus Allocations $3,980,923
<br /> Table 1. General Fund Overview
<br /> FY 2019/20
<br /> FY 2018/19 Adjusted Recommended Mid-Year
<br /> Actual Budget Adjustments Budget
<br /> Revenues $126,031,456 $127.596,158 $2,294,460 $129.890,618
<br /> Net Transfers (11,577,560) (6,101,355) - (6,101,355)
<br /> Expenditures (113,376,990) (120,735,276) 1,686,463 (119.048,813)
<br /> Difference $1,076,906 $759,527 $3,980,923 $4,740,450
<br /> General Fund Revenues - Table 2 identifies the total recommended revenue net
<br /> increases of $2,294,460 based on revenues received to date. Those increases include:
<br /> Property Taxes ($924,000), Pleasanton Garbage Services (PGS) franchise rate reserve
<br /> calculation recently approved by Council ($2 million), Business License Tax ($322,000)
<br /> and Recreation Fees ($47,844). These revenue increases are off-set by the following
<br /> anticipated revenues decreases: Sales Tax ($200,000) and Planning reimbursements
<br /> that is off-set by reduced expenditures ($490,000).
<br /> The $200,000 reduction to Sales Tax revenues primarily reflects declines in sales tax
<br /> receipts related to autos and transportation, business to business sales and general
<br /> consumer goods that have resulted in sales tax revenues declining more than originally
<br /> projected.
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