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HomeMy WebLinkAboutMid Year ReviewCity Council Retreat February 3, 2017 AGENDA •Fiscal Policies •Mid-Year Review •Five Year Forecast FISCAL POLICIES •Debt Management Policy •SB 1029 Requirements •Fiscal Policy -Edits and Suggestions Mid-Year Budget Review FY 2016/17 FY 2016/17 Additional Revenues Budget Estimates Revenue Property Tax 11,331,350 11,900,092 568,742 Sales Tax 1,125,000 1,150,000 25,000 Other Taxes 3,162,113 3,152,113 (10,000) Fees, Licenses & Permits 1,486,680 1,555,578 68,898 Charges for Services 1,849,127 1,816,165 (32,962) Other Revenues & Transfers In 1,269,616 1,378,441 108,825 Total Revenues 20,223,886 20,952,389 728,503 FY 2016/17 FY 2016/17 Expenditure Expenditures Budget Estimates Savings Salary & Benefits 8,092,717 7,848,600 244,117 Operational Expenditures 11,815,534 11,695,883 119,650 Transfers Out 1,620,648 1,620,648 - Total Expenditures 21,528,899 21,165,131 363,767 Budget - Transactional Net Operations (1,305,013) (212,743) Plus: Budgeted Use of Reserves Environmental Reserve 50,000 50,000 Carryforward Reserve 28,085 28,085 Capital Improvement & Efficiency Reserve 1,410,648 1,410,648 Hillside Stability Reserve 210,000 210,000 Less: Reserve repayment Fiscal Stabilization Reserve (250,000) (250,000) Total Net Operations (Sources & Uses)143,720 1,235,990 GENERAL FUND FY 2016/17 Budget & Year End Estimates YE Estimated - Transactional Net Operations PROPOSED BUDGET ADJUSTMENTS •General Fund Streets Program: •Tree Maintenance Services •Vehicle & Equipment Replacement Fund: •Purchase vs Lease for 2 Electric Vehicles •Vehicle & Equipment Maintenance Fund: •JCB Tractor repairs FIVE YEAR FORECAST Revenue Assumptions •Property Tax •Sales Tax •Service Revenues •Business License •Franchise Fees •Interest Expenditure Assumptions •Salaries •Benefits •Operating Expenditures •Public Safety •Internal Service Funds FIVE YEAR FORECAST CalPERS Discount Rate •Determines what is presently needed (present value) for future obligation amount. •Discount Rate is a function of the following long term expectations: •Inflation •Real Rate of Return (above inflation) •Margin (built in buffer for adverse investments) Inflation 2.75% Real Rate of Return 4.75% Margin for adverse returns 0.00% TOTAL 7.50% FIVE YEAR FORECAST Factors that will impact rate increases: •Rate phase-in •Enhanced formulas •Plan maturity (retire to active ratios) •PEPRA and Tier 2 non-enhanced plans •Investment Returns UAL IMPACTS •UAL Increased by $2M with Assumption Change (now $5.1M) •UAL to increase again with lowering of discount rate •Required contribution unknowns •$500k contribution •Payoff timeframe •More information to follow