HomeMy WebLinkAbout02-16-2015 Item 13, Johnson�4
Council Memorandum
Date: February 16, 2016
COUNCIL MEETING:_ 07?_ --A- to
ITEM NO, ' X- —
FEB 1 G 2016
TO: Mayor and City C uracil ,
FROM: Derek Johnson, istant City M agel', and Interim Finance & IT Director
VIA: Katie Lichtig, City Manager
SUBJECT: Correction to Mid -Year Budget Review Report page A-11
Please see the attached correction to page A-11 of the Mid -Year Budget Review Report due to a
data entry error. The attachment provides a corrected General Fund Five -Year Forecast. There
are no other changes to the report.
The correction is to Ca1PERS costs for 2016-17 revised budget projection (line 22) and the 2017-
18 forecast (line 23). The Resources Over/(Under) Expense in Line 34 and the forecasted
Reserve Over/(Under) Policy Level shown in line 42 has been updated accordingly. The
correction and corresponding changes are highlighted in yellow.
It is important to note that the General Fund Five Year Forecast is not a budget, but a tool to
inform current and future decisions about the General Fund budget. The forecast remains
structurally balanced during and beyond the 2015-2017 Financial Plan with this correction. This
means that the forecast has the capacity to make investments in the City's Capital Improvement
Program, maintain General Fund programs and make progress to pay Ca1PERS normal and
unfunded liability costs with anticipated growth in operating expenditures. With the corrections,
in order to maintain an operating reserve at 20% of operating costs which is consistent with the
City's Financial Policies, $4.4 million is the maximum amount of one time reserves that should
be allocated to onetime expenses. Staff's recommendation is to consider this allocation in
conjunction with the 2016-2017 Supplemental Budget.
The next General Fund Five Year Fiscal Forecast will be presented as part of the 2016-2017
Supplemental Budget. Please contact Derek Johnson at 781-7112 if there are any questions.
\\chstore7\team\budget folders\2015-16 mid -year review\mid-year document\council memorandum 2015-16 mid -year review report.docx
City of San Luis Obispo - General Fund
FY 2015-16 Mid -Year Update
111000's
Five Year Fiscal
Actual
,•
Forecast
Budget
17,247
Revised
17,537
Budget
..
16,941
0.
17,118
Forecast
17,812
,:
18,435
,•0
19,078
1 Sales Tax 15,273
2 Measure Y/G Sales Tax
7,136
7,133
7,397
7,433
7,703
8,015
8,296
8,585
3 Sales Tax Prop 172
410
420
420
429
429
438
447
456
4 Property Taxes
9,632
9,726
9,726
10,106
10,106
10,500
10,909
11,335
5 Property Tax in Lieu of VLF
3,849
4,042
4,042
4,199
4,199
4,363
4,533
4,710
6 Transient Occupancy Tax
6,806
6,844
6,844
7,170
7,170
7,592
7,956
8,302
7 Utility Users Tax
5,211
5,506
5,506
5,671
5,671
5,841
6,017
6,197
8 Franchise Fees
2,790
1,540
1,540
1,557
1,557
1,596
1,636
1,677
9 Business Tax
2,203
2,339
2,339
2,395
2,395
2,455
2,516
2,579
10 Real Properly Transfer Tax
11 Subtotal Taxes
298
1 184
184
1871
187
1 191
238
199
12 Transfers In (Gas, TDA, CoS, Other)
0:
1,505
64,881
2,318
66,035
2,341
60,088:i•
2,371
2,371
2,371
2,371
2,371
13 Other Subventions & Grants
1,278
323
335
323
323
323
323
323
14 Development Review Fees
5,274
3,811
4,490
4,189
4,189
4,856
5,569
6,235
15 Rental Inspection Fees
146
146
280
280
461
472
484
16 Recreation Fees
1,881
1,646
1,646
1,646
1,646
1,679
1,713
1,747
17 Other Service Charges
1,875
1,738
1,738
1,750
1,750
1,777
1,803
1,830
18 Other Revenues
19 Subtotal Non -Tax Revenues
6971
12,610
543
10.525
553
11.249
5431
11,102
5341
0••
534
12,001
534
534
20 Total Resources
66 120
,6
66.785
67,190
67,629
70.804
,
21 Operating Expenses (excl PERS)'
44,576
47,146
47,610
48,562
49,071
50,264
51,958
53,984
22 PERS Normal Costs 2
4,322
3,727
3,833
3,944
4,052
4,175
4,298
4,418
23 PERS Unfunded Liability
24 Subtotal: •.57,072
3,536
5,680
5,629
6,309
58,814
6,246
59,369
6,987
61,425
7,794
64,050
8,649
67,051
25 Debt Service
5.312
3,015
3,015
3,048
3,048
3,235
3,305
2,928
26 Transfer to CDBG
73
147
147
154
154
154
154
154
27 Transfer to Insurance Benefit Fund
280
2,124
2,124
28 CIP - Fleet Replacement
533
1,229
1,229
613
613
604
471
640
29 CIP - IT Replacement
991
1,191
1,191
709
709
726
876
597
30 CIP - Major Facility Replacement
551
837
837
545
545
915
790
1,190
31 CIP-All Other
32 Subtotal: Operating Transfers
2,9181
10,658,
5,495
5,495
4,1531
4,1531
3,567
3,879
3,867
33 Total Expenditures
63.092
70,591,
68.036,
70626
34 Resources Over/(Under) Expenses
3,028
(5,085)
(4,325)
(046)i
(961]
178
246
216
35 Fund Balance, Beginning of Year
20,317
18,289
23,847
13,204
18,006
17,045
17,223
17,469
36 Encumbrances
(1,516)
37 Funding Adjustment
502
-
38 Ending Fund Balance
23,847
,•
18,006
12,358
17,046
39 Reserve @ 200 Operating Costs
10,4871
10,389
10,389
10,460
10,625
11,188
11,551
11,980
40 Adj for Debt Svc Reserve
(303)
(303)
(303)
(303)
(303)
(303)
(303)
(303)
41 Designated Reserve
42 Reserve •
(8,108)
(1,402)
,
(963)
6,351
(1,402)
193
(963)
5,154
(963)
4.769
(969)
4.651
(963)
4A38
Na es
1 PERS costs estimated based on CalPERS valuation reports and
are broken out to show contribution to normal cost
unfunded liability.
A-11