75A-1 - PH ADOPT BUDGET - Laserfiche WebLink

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Public Hearing to the Proposed FYI 9-20 Budget June 4, 2019 Page 5 The FY19-20 budget process began in January 2019, when departments started developing supplemental budget requests. The Budget Office implemented new budgeting software this year to improve the internal process. Previously, the City budgeted using Excel spreadsheets. Departments submitted their initial requests using the new system in March. In April, the Acting City Manager and budget staff met with each department to walk through the requests and to provide feedback. Staff updated the draft requests, and in May, the new City Manager met with each department head to hear justifications for supplemental requests totaling $43 million. The proposed budget includes the following components. 1. General Fund revenue estimates from the Budget Office. 2. General Fund expenditures based upon the FY18-19 budget plus decisions already made by City Council (e.g. increases built into approved contracts), and supplemental requests supported by the City Manager. Exhibit 2 includes a reconciliation from the FY18-19 budget to the FYI 9-20 budget. 3. Internal Service Fund revenues and expenses, balanced using estimated service levels provided to the General Fund and restricted funds. Examples include Fleet and Building Maintenance, General Liability and Workers Compensation, Information Technology, and Public Works Project Management. 4. Special Revenue Fund (restricted monies) estimated revenue and expenditures based on available money and allowable activities. Examples include grant funds, Gas Tax, and the Housing Authority. 5. Capital Improvement Projects Funds (restricted monies) estimated revenue and expenditures based on available money, allowable projects, and recommendations from the Capital Improvement Plan. Examples include grant funds and Measure M money. 6. Enterprise Fund (restricted monies) revenue and expenses based upon expected service activity. Examples include water, sewer, and refuse collection. "Available money" includes revenue already received (fund balance), revenue we expect to receive (recurring taxes and per capita allocations from other governmental agencies), and grant revenue that has been awarded (as documented with an award agreement). We do not include revenue that is uncertain for the coming fiscal year, such as grants not yet awarded or developer fees not yet received. The City Council adopts appropriations (the expenditure budget) by Ordinance one fiscal year at a time. The Budget Office monitors revenues throughout the fiscal year, and may adjust its revenue estimates midyear with a report to City Council. General Fund Ten -Year Outlook The Ten -Year Outlook starts with the proposed budget in year 1, and applies the following assumptions for years 2-10. The Ten -Year Outlook is only one potential scenario, and actual results will vary. 75A-1-5