DATE: December 15, 2015
TO: Mayor and City Council
FROM: Director of Finance
SUBJECT
Title
FY 2015 Preliminary Year-End General Fund Review
End
RECOMMENDATION
Recommendation
No action required. Staff is requesting that the City Council reviews and comments on this report.
Body
BACKGROUND
The Finance Department is currently working with the City's external auditor (Maze and Associates) to develop and finalize financial statements for the period ending June 30, 2015 (FY 2015). The results of the audit and the FY 2015 Comprehensive Annual Financial Report (CAFR) will be presented to the Budget & Finance Committee at the January 13, 2016 meeting. This report contains preliminary year-end results for the General Fund. Please note that final amounts as conveyed in this report may change somewhat through the audit process.
The City Council adopted the FY 2015 Operating Budget on June 24, 2014, initially projecting a General Fund gap (and use of General Fund Reserves) of $5.06 million. This projection was modified over the course of the fiscal year, with a second quarter (mid-year) projected gap of $8.06 million as presented to City Council on March 17, 2015. The large increase in the projected gap was primarily due to the negotiated agreement with Hayward Police Officers Association ($1.4 million) and a settlement with Dutra Enterprises ($2.2 million) - neither of which were included in the Adopted Budget.
Current FY 2015 results indicate that the General Fund will end with a negative balance of $1.6 million (see Attachment I). While this is an improvement from original and revised gap projections, it still indicates a continuing gap between revenues and expenditures. The reason for the reduced FY 2015 gap is a combination of higher than anticipated revenues and expenditure savings. However, even with higher revenues and lower expenditures, there is not enough total General Fund revenue to cover total General ...
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