Fiscal Year 2019-20 narrative Budget

The April 25, 2019 study session provides the opportunity for the City Council to discuss and for the public to provide input on the Fiscal Year 2019-20 Narrative Budget and 5-Year Financial Forecast.  The City continues to benefit from a strong local economy that is stimulating development and significant property tax growth.  Most economists currently believe the State and regional fundamentals of employment and job growth are strong and that the chance of a recession over the next 24 months is possible but low.  Although it is uncertain when the next economic slowdown will occur, based on history, it is certain there will be another one in the future.  Consequently, the forecast assumes there will be an economic downturn beginning the Fiscal Year 2020-21 and continuing into Fiscal Year 2021-22.  The Narrative Budget Report details the City Manager's recommendations for Fiscal Year 2019-20, supplements to reserves, and continuing contributions to the California Public Employees' Retirement System (CalPERS).

Fiscal Year 2019-20 Budget Schedule:

    April 25, 2019 Study Sessions:

• Proposed Fiscal Year 2019-20 and Planned Fiscal Year 2020-21 through 2023-24 Capital Improvement Program (CIP)     

• Fiscal Year 2019-20 Narrative Budget and 5-Year Financial Forecast

    June 11, 2019 Public Hearing:  Proposed Budget for Fiscal Year 2019-20

    June 18, 2019 Public Hearing:  Budget Adoption for Fiscal Year 2019-20 including CIP Funding

Fiscal Year 2019-20 Narrative Budget Report

Fiscal Year 2018-19 ADOPTED Budget

The City is benefiting from the continued strong economy resulting in significant property tax growth.  The total Adopted Budget for Fiscal Year 2018-19 is $328.1 million in revenues and $359.2 million in expenditures.  Expenditures are greater than revenues, as some expenditures such as capital projects, are funded from existing available resources.  Continuing to focus on adding resources where most needed and to the extent the long-term budget will allow, additional positions are added for Fiscal Year 2018-19.  A total of 12.5 net positions are ongoing positions and there are a net of 15.0 new positions.  In addition, the Fiscal Year 2018-19 Adopted Budget details the supplements to reserves, continuing contributions to CalPERS, and two new reserves for Transportation and Sea Level Rise.

For the General Operating Fund (GOF), the Adopted Budget includes $1.7 million in new ongoing expenditures and $4.9 million in new limited period expenditures.  These increases will support ongoing services and key priorities identified by the City Council.  Including the recommendations for new spending, a positive ending balance of $3.7 million is projected for Fiscal Year 2018-19.  Positive operating balances are projected through Fiscal Year 2020-21, in the GOF 10-year Financial Forecast, but assumes deficits will return with the next recession.

The Annual Budget, Water, Wastewater and Trash and Recycling Rates, and Various City Fees were presented to the City Council at a public hearing on Tuesday, June 12, 2018 and adopted at the second public hearing on Tuesday, June 19, 2018.

FY 2018-19 Adopted Budget

FY 2018-19 Adopted Budget Presentation

FY 2018-19 Proposed Budget

FY 2018-19 Proposed Budget Presentation

FY 2018-19 Narrative Budget Report

FY 2018-19 Narrative Budget Report Presentation