65A - RECIEVE AND FILE FY 2019-20 GENERAL FUND MIDYEAR

Home Browse Search

Receive and file Fiscal Year 2019-20 General Fund Mid -Year Update February 18, 2020 Page 5 Finance and Management Services Agency: The Agency is proposing to add a full-time Business Tax Collector -Inspector related to oversight of Cannabis business. The position performs pre -audit review/analysis of tax calculations, collection of tax and regulatory fee payments, assesses penalties/interest and actively communicates with potential and current businesses. This position will be primarily funded by the Cannabis Public Benefit fund (85%), with the remainder to be funded by the General Fund. Currently, the City only has 2 Business Tax Collector -Inspector positions to monitor more than 30,000 businesses in the City, which generate a total of $13 million in annual tax revenue. Over the last 18 months, one of those positions has been primarily dedicated to Cannabis business activity, leaving only one full-time position to monitor 30,000 businesses. Approval of this request, to align Cannabis tax enforcement with the funding source, will restore a second full-time position to the large portfolio of other business activity. General Fund Expenditures FY 2019-20 Overall, year-to-date General Fund department expenditures are tracking 3% less than budget, which is within normal parameters based upon past history. Noteworthy items follow. • The City is currently reviewing its internal charges to departments to ensure compliance with outside regulations and best practices. Until the study is complete, an estimate of the charges has been used as a placeholder for actual expenditures. • Fire Department expenditures include two payments in July (for July and August), and monthly payments thereafter. • The Police Department is carefully monitoring its budget, and expects the existing expenditure appropriations to be sufficient for department operations. Proposed Appropriation Adjustments As part of the mid -year report, staff recommends a variety of budget adjustments (Exhibit 3) that includes workforce changes, administrative corrections, and other budget requests. Below are key highlights: GENERALFUND Public Works Agencv The City is undergoing an energy retrofit project including energy efficient lighting, window shading and environmental controls to reduce energy costs. The Public Works Agency (PWA) has identified leaky windows in City Hall that are in need of repair prior to completing the window shading installation. PWA has estimated that the costs for this project will be approximately $89,000. Increase General Fund budget: $89,000 (one-time) Homelessness Efforts Public Works Agency (PWA) PWA continues to provide clean-up services in response to homelessness seven days a week by patrolling the City. As needed, major cleanup efforts are provided in the Santiago Creek area and along the railroads. To ensure continuity, PWA is requesting a budget increase of $80,000, as the current allocation for existing contracts will be exhausted prior to the end of the year. Increase General Fund Budget: $80,000 (one-time) 65A-5