DATE: March 15, 2016
TO: Mayor and City Council
FROM: Director of Finance
SUBJECT:
Title
FY 2016 Mid-Year Budget Review & General Fund Ten-Year Plan Update
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RECOMMENDATION
Recommendation
That the Council reviews the FY 2016 Mid-Year Budget Review and General Fund Ten-Year Plan Update, and adopts the attached resolution approving the amendment to the City of Hayward Operating and Capital Improvement Budgets for Fiscal Year 2016.
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SUMMARY
This report presents the mid-year review of the FY 2016 Adopted Budget and an update to the General Fund Ten-Year Plan. The review analyzes revenues and expenditures through the midpoint of the 2016 fiscal year (December 31, 2015), presents proposed changes, and projects year-end results based on current trends and data. While staff considers the entire City budget in its mid-year review , this report focuses primarily on the General Fund.
When City Council adopted the FY 2016 Budget in June 2015, the General Fund projected a balanced budget with no use of General Fund Reserves. The City has worked hard to keep the budget balanced; however, the unbudgeted increases in expenditures due to changes to the agreements between the City and many of the employee bargaining units, the settlement of claims levied against the City, as well as increases to other operating costs have made the task increasingly difficult. While revenue projections have increased, they have not kept pace with previously unbudgeted expenses. Revised projections now forecast a $5.7 million gap in FY 2016.
The mid-year analysis includes adjustments to several General Fund revenue categories resulting in an overall increase to revenues of about $7.9 million. Of this amount, $7.3 million is considered one-time and/or restricted revenue - and is discussed in further detail later in the report. Overall, the City's primary operating revenues show little change from the budgeted amounts adopted last June.
Mid-year expe...
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