Tom McGreal | Chair, Finance Committee
The City Council reviewed an updated Budget proposal for the fiscal years ended June 30, 2020 and June 30, 2021 at the May 20th Council meeting. The updated Budget incorporated feedback from the Finance Committee and the Budget Workshops conducted over the past month. The final Budget is scheduled to be submitted to Council for approval in June.
Below are some highlights from the latest version of the proposed Budget:
• The City has a balanced budget and the Contingency Reserves are being increased to 21% for fiscal year 2020 and 22% for fiscal year 2021. This means the City will maintain unrestricted contingency reserves that represent 76 days and 80 days of expenditures respectively. The plan is to increase the contingency Reserves to 90 days over the next few years.
• The Budget will be in compliance with the Finnell Plan each year. The final changes are still in process but Operating Expenses are budgeted to grow at 1% for Fiscal year 2020 and just over 2% for fiscal year 2021. Revenues are budgeted to grow at 4.9% and 3.7 % for the two budget years. The only new source of Revenue will be an increase in the Transient Occupancy Tax from 12.5% to 13%, which was previously authorized by the voters.
• Capital Improvement Projects will total $1.5 million in fiscal 2020 and $1.4 million in fiscal 2021. Special Projects will total $.8 million in fiscal 2020 and $.5 million in fiscal year 2021.
• These Budget results, the Contingency Reserves and the Finnell Plan have been achieved without including the Measure Q Revenues, which are being separately reserved for Undergrounding, Downtown Streetscape, and Shores Park development.
• The Pension Reserve established by the City to ensure that we can meet our long-term Pension obligations will total $3.6 million by the end of fiscal year 2021 (including the Water and Wastewater Pension Reserves).
• The City continues to work on the ten-year forecast as a planning tool for an environment of modest revenue increases and tight expense control.
This is a solid budget that maintains City services while controlling expenses, providing for a healthy level of project funding and building strong reserves.