Legislative Public Meetings

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File #: 20-0714   
Type: Report to Council Status: Public Hearing/General Business
Meeting Body: City Council
On agenda: 10/13/2020
Title: Receive and File the FY 2020/21 First Quarter Budget Update and Approval of Budget Modification No. 8 in the Amount of $1,932,000 to Appropriate CARES Act Funding
Attachments: 1. DRAFT Presentation to Council 20201013
REPORT TO COUNCIL

SUBJECT
Title
Receive and File the FY 2020/21 First Quarter Budget Update and Approval of Budget Modification No. 8 in the Amount of $1,932,000 to Appropriate CARES Act Funding

Report
REPORT IN BRIEF
This report summarizes the year to date financial position of the City's major funds, including an update on the receipt of revenue and current status of expenditures. Overall, the City's financial position is tracking as planned in the FY 2020/21 Budget and ended the year slightly better than planned for FY 2019/20. Information early in the year is not yet fully available, especially revenues, which lag by approximately a month.

The City has been approved to receive $1,932,000 in CARES act funding from the State to help offset the fiscal impact of the City's COVID response. Staff is recommending that Council Receive and File the First Quarter Budget Update and approve Budget Modification No. 8 to appropriate the CARES Act funding to the Budget Stabilization Fund.

BACKGROUND
As part of the FY 2020/21 Budget Adoption, staff committed to providing a report to Council detailing the current financial condition of the City on a quarterly basis. This is the first of these reports. This update compares the FY 2020/21 Adopted Budget with actual revenues and expenditures year to date. In addition, this report provides a preliminary review of the FY 2019/20 year-end financial results.

Information early in the fiscal year, especially on revenues, is not yet fully developed. Many sources of revenue aren't received until several months into the year. For example, Transient Occupancy Tax (TOT) for September, is not due to the City until the end of October. Another example is Business License Tax, which will appear low until the second half of the fiscal year after renewals occur. While operating expenditures tend to trend more evenly due to regular payroll costs, some expenditures also develop further into the year. For example, large bills like water pur...

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