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HomeMy WebLinkAbout65A - RPT - MID-YEAR BUDGET REVIEW0 � • 0 CITY COUNCIL MEETING DATE: FEBRUARY 4, 2014 TITLE: ADOPTION OF FIVE YEAR FORECAST CITY MAN GER RECOMMENDED ACTION Adopt the revised five year forecast. DISCUSSION CLERK OF COUNCIL USE ONLY: -:• : ril ❑ As Recommended ❑ As Amended ❑ Ordinance on 1" Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER At the January 13, 2014 Finance, Economic Development and Technology Committee, I announced that the City's fiscal position and forecast has improved significantly. All major revenue sources such as Sales Tax and Property Tax have exceeded budget expectations resulting in a much improved economy. With revenues projected to increase by 3% annually and maintaining expenses relatively flat, the City's revised projections have erased a negative outlook (originally projected to begin in fiscal year 2015 -16) to a positive forecast for the next 5 years. Furthermore, given the new revenue and expenditure trends, the City is projected to meet its goal of 20% reserves (or the equivalent of $41 million) by fiscal year end 2015 -16. FISCAL IMPACT There is no fiscal impact associated with action. However, adoption of the forecast would enable consideration of funding for the Strategic Plan upon adoption. City Manager 65A -1 65A -2