RES 98092 - Laserfiche WebLink

Honorable Mayor and Members of the Council: . BACKGROUND Attached (previously submitted) is the mid-term Operating and Capital Improvement Program budgets for the upcoming fiscal year. As you are aware, at the start of this fiscal year, a two- year budget was adopted which is in effect until June 30, 1999. However, a year alter the mid- term adoption of each two-year budget, staff prepares a mid-term update highlighting the status of operating and capital revenue and expenditures. The attached document meets that intention and includes recommended amendments to both the Operating Budget and the CIP. As indicated in the mid-term budget, because staff intends to maintain the planning integrity of the two-year funding process used for both the Operating Budget and the CIP, it did not do an extensive reprioritization of the capital improvement and/or operating expenditures included in the previously approved FY1998-99 budgets. Rather, it was determined that the essential framework of 1998-99 budget adopted by the City Council last June would be adhered to for the upcoming year. However, as a result of staffs mid-term review, it is necessary to make a number of amendments to the originally adopted version to reflect the impact of costs beyond the control of the City, necessary high priority projects, and/or efficiency improvements. The mid-term budget contains recommendations regarding these amendments. OPERATING BUDGET Overall, net income in the operating funds for 1998-99 is $746,000 more than originally projected. In the General Fund, net income in 1998-99 is projected to be $950,000 more than originally adopted. Revenue in the General Fund is projected to be $3.9 million more than the projections made last fiscal year, resulting in General Fund revenue projections being increased from $46.6 million to $50.5 million. The largest increases are for property taxes ($910,000), sales tax ($2.27 million), hotel/motel tax ($380,000), and business license tax ($149,000). A detailed discussion of General Fund revenues is included on pages 3 through 6 of the mid-term budget. Staff is recommending an additional $2.56 million in General Fund expenditure appropriations. Of this amount, a net $974,000 relates to personnel expenditures, including $608,000 for PERS retirement rate increases. Staff is recommending some small changes to personnel staffing as outlined on page 7 of the mid-term budget, including increasing hours for some part-time positions, converting a contract position to limited term, and adding more temporary hours. Staff is also recommending that the hours of a part-time Accounting Assistant in the Business License program be increased, but this recommendation was inadvertently omitted from the midterm narrative. Staff is recommending that $100,000 of the staffing changes be-funded from carryover 1996-97 Public Works and Building Department revenues. The balance of the recommended General Fund expenditure amendments relate to non- personnel expenditures, and total $1.58 million. Included are recommended increases for SR 98:172 2