65B - MID-YEAR BUDGET UPDATE - Laserfiche WebLink

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Fiscal Year 2018-19 Mid -Year Budget Update February 5, 2019 Page 6 As a reminder, 2/3 of the Commercial Cannabis tax revenue or $5.2 million was earmarked for Youth and Enforcement programs. No expenditures for Youth Programs and Cannabis Enforcement have been incurred through December 31, 2018, as no Commercial Cannabis tax revenue has been collected. Below is a summary of the Commercial Cannabis revenue and expenditure plan as adopted: Finally, there are other projects and budget assumptions have not been implemented through December 31, 2018. Specifically, minimal expenditures have been Incurred in the Public Works Agency -Sanitation program related to enterprise compliance through December 31, 2018 budgeted at approximately $1.6 million. In addition, forecasted labor savings of $1.5 million has not been realized and an adjustment to the appropriated budget is recommended. Non -General Fund Exoenditures: Gas Tax Expenditures As a result of the lower than anticipated Gas Tax revenues (see above), we will need to reduce the expenditures by the same amount. Staff will work with Public Works to identify the impacted projects. City Services As a result of cannabis enforcement efforts of illegal dispensaries, settlements have been collected in the amount of $137,500. To continue enhancing these efforts, these monies are recommended to be utilized for staff training and contracts related to the cannabis program. As additional fines are collected, these monies will be collected and appropriated in future budget years. General Fund Balance Summary The Fiscal year 2018-19 Budget began with a planned $10.2 million use of General Fund balance. After Midyear revenue and expenditure adjustments, the estimated use of general fund balance has been decreased to $0.6 million, as outlined below. L. w Fiscal Year Budget Actual/Expected Revenue 2018-19 $7.8 million $0.6 million Expenditure General Fund 2018-19 <$2.6 million> <$2.6 million> Expense Enforcement 2018-19 <$2.6 million> $0.0 million Expense Recreation 2018-19 <$2.6 million> $0.0 million Finally, there are other projects and budget assumptions have not been implemented through December 31, 2018. Specifically, minimal expenditures have been Incurred in the Public Works Agency -Sanitation program related to enterprise compliance through December 31, 2018 budgeted at approximately $1.6 million. In addition, forecasted labor savings of $1.5 million has not been realized and an adjustment to the appropriated budget is recommended. Non -General Fund Exoenditures: Gas Tax Expenditures As a result of the lower than anticipated Gas Tax revenues (see above), we will need to reduce the expenditures by the same amount. Staff will work with Public Works to identify the impacted projects. City Services As a result of cannabis enforcement efforts of illegal dispensaries, settlements have been collected in the amount of $137,500. To continue enhancing these efforts, these monies are recommended to be utilized for staff training and contracts related to the cannabis program. As additional fines are collected, these monies will be collected and appropriated in future budget years. General Fund Balance Summary The Fiscal year 2018-19 Budget began with a planned $10.2 million use of General Fund balance. After Midyear revenue and expenditure adjustments, the estimated use of general fund balance has been decreased to $0.6 million, as outlined below. L. w