Laserfiche WebLink
<br />Honorable Mayor and Members of the Council: <br /> <br />BACKGROUND <br /> <br />The purpose of this report is to present the status of the Operating Budget and Capital <br />Improvement Program (CIP) budget for the first quarter (ending September 30, 2005). <br />Because of time constraints with staff simultaneously preparing the 2004-05 <br />Comprehensive Annual Financial Report, the first quarter update has been delayed to <br />this point. The delay in presenting this report has no particular repercussions, as this <br />report primarily reflects actions that the City Council has already taken. Only a few <br />minor or routine budget amendments are being recommended. However, it is useful <br />to update all the financial tables presented herein as they will be used as the basis for <br />preparing the midyear 2005-06 (MY06) and midterm 2006-07 (MT07) budget updates <br />that staff has just now begun to undertake. <br /> <br />DISCUSSION <br /> <br />OPERATING BUDGET <br /> <br />Quarter 1 2005-06 Recommended Amendments <br /> <br />The worksheet shown in Appendix A on page A-3 summarizes the recommended <br />Quarter 1 amendments for the 2005-06 Operating Budget. <br /> <br />Recommended new Quarter 1 Operating Budget amendments include updating the <br />projected beginning fund balances with the actual fund balances from yearend 2004- <br />05 (YE05). In total, the beginning fund balances are being increased by $16.0 <br />million. However, of this $16.0 million, the City Council has already approved <br />amendments and carryover appropriations totaling $8.7 million, and has set aside $3.8 <br />million in the General Fund Capital Projects Reserve, as will be discussed in more <br />detail below. The remaining increases to fund balance are spread among numerous <br />Funds, and reflect yearend results as presented to the City Council as part of the 2004- <br />05 Fiscal Yearend Financial Report (SR05 :300). <br /> <br />Furthermore, in an effort to respond to the City Council's comments made during the <br />budget adoption last spring 2005, staff is recommending that the Capital Improvement <br />Program (CIP) presentation be simplified by moving smaller, more routine <br />expenditures to the Operating Budget. First, staff is recommending that debt service <br />expenditures previously shown in the CIP be moved to the Operating Budget. For <br />2005-06, this includes debt service payments for water projects ($727,706), sewer <br />2 <br /> <br />SR06:085 <br />