HomeMy WebLinkAbout1984-03-20; City Council; N/A; 1984-85 budget up-dateCITa OF CARLSBAD - AGENDA BILL
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MTG. 3-20-84
DEPT. FIN
TITLE:
1984-85 BUDGET UP-DATE ClTY A*!,
CITY MOR.
RECOMMENDED ACTION:
If Council desires by minute motion, direct staff to set a general
fund budget target of a specific amount, and direct the Manager to
include a contingency account in the 1984-85 budget of an amount
equal to approximately 10% of the general fund budget.
ITEM EXPLANATION:
The City Council annually receives a budget up-date prior to the
commencement of staff work on the budget to allow Council to
provide some basic direction to the City Manager and staff.
Council has historically set spending limits, given specific
direction for inclusion of certain programs and has addressed the
need for a contingency account and at what level this account is to
be funded.
The Council may wish to review the attached staff report and to
take the above action at this meeting. Council will also have an
opportunity to review the budget progress and the end of April, May
and again for review of a final document in June.
Council may request additional up-dates at any time.
FISCAL IMPACT:
The above action has the result of guiding the Manager's budget preparation process by setting targets or goals. There is no
irrevocable fiscal impact from this action. The final budget will
not be adopted until late June, 1984.
The recommended figures shown in the staff report reflect an increase of about 5% in general fund expenses plus a 10% contingency account.
EXHIBITS :
1984-85 Budget Up-date
March 16, 1984
1984-85 BUDGET UI-DATE '
By now, our 1984-85 budget figures are beginning to fall into place. The chart below gives you basic information about the City's general fund for 1983-84 and 1984-85. to have a margin available for the council to use for accomplishing some of the goals which may have been set aside for the past four or five years.
This chart shows that we can expect for the first time in a long time,
CITY OF CARLSBAD REVIEW OF BUDGET POSITION
GENERAL FUND
(In mil lion dollars)
1983-84 AND 1984-85
Beginning Estimated Estimated End i ng Year Bal ance Revenues ExDenditures Balance
1983-84 $ -0- $14.2 $12.7 $1.6
19 84 -85 $ -0- (1) $16.1 $14.7 (2) $1.4
(1) It is assumed that the year end balance will be transferred to the Capital
Construction Fund as has been the practice in past years.
(2) Includes $1.4 million contingency (10% of budget)
As you can see, during 1983-84, we are expecting to end the year with a savings
or balance of about $1.6 million. This is a combination of $1.3 million in
revenue above the original budget and savings on expenditures of about $300,000.
This may be appropriated at year end to the General Capital Construction Fund if
desired.
For 1984-85, the City General Fund can expect revenues of about $16.4 million,
an increase of $2.2 million or about 16% over 1983-84. Major increases exist in Property Tax - $586,000; Sales Tax - $376,000; Vehicle-in-lieu Fees - 5910,000; Cigarette Tax - $140,000; and Development Related Fees - $500,000.
The City can expect to receive a major increase in general fund revenues
primarily because the State will returning the Vehicle-in-lieu Fees and
Cigarette Tax subventions to local governments as well as speeding property tax
col lect ions by implementing new 1 ien date provisions.
The Council should be cautioned that if the bills now under consideratoin in the
legislature do not pass, we will not receive about $1.3 million in 1984-85 that is currently in the 1984-85 revenue estimates.
The 1984-85 expenditure estimates for the General Fund are based on actual data
through February, 1984. The 1984-85 figures assume that the economy will
maintain the present low inflation rates and that the Council will desire a 10%
contingency account. There will be better data on expenditure estimates as we get into the budget process.
The available balance at year end, 1984-85, will be about $1.4 million. The Council should consider which projects, goals and objectives the staff may be asked to accomplish in addition to the regular day-to-day process of running the City. We will fund these new projects from this balance and present them as part of the budget for Council review.
In past years we have asked Council to set a spending target for staff. Although this was necessitated by very tight funding levels, Council may wish
to continue their practice into 1984-85. If so, it is recommended that Council
set a target for expenditure and a desired level of contingency funding. The
figures on the above chart reflect an appropriate increase in funding of 5%
overall plus a $1.4 million contingency account for Council control.
Council may give staff direction on this issue at their March 20, 1984 meeting.