DATE: February 19, 2020
TO: Council Budget and Finance Committee
FROM: Director of Finance
SUBJECT
Title
FY 2020 Mid-Year Budget Review & General Fund Long Range Financial Model Update
End
RECOMMENDATION
Recommendation
That the Council Budget and Finance Committee reviews and provides comments on the FY 2020 Mid-Year Budget review and General Fund Long Range Financial Model Update.
End
SUMMARY
This report presents the mid-year review of the FY 2020 Adopted Budget, and an update to the General Fund Long Range Financial Model (model) presenting proposed changes and projected 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.
Proposed FY 2020 mid-year expenditures net a total increase of $5.7 million in General Fund expenses. Of this amount, $5.1 million is related to previously authorized and approved appropriations, and proposed FY 2020 mid-year expenditure requests total increase of $0.6 million. The proposed FY 2020 mid-year expenditures are largely one-time in nature. The tables below detail the key changes in General Fund expenditures related to previous Council authorized and approved appropriations, and proposed new FY 2020 mid-year requests:
|
Previous Council Approved Appropriations |
FY 2020 Impact ($) |
|
Illegal Tobacco Sales Enforcement Program - Overtime |
$9,703 |
|
Salary Plan Update |
$243,039 |
|
Personnel Expenses |
$252,742 |
|
City Center Demolition |
$4,401,150 |
|
City parking enforcement vehicle/equipment |
$95,000 |
|
Security Services - Maple/Main Development Site |
$142,000 |
|
Byrne Grant Appropriation |
$42,492 |
|
Delinquency Prevention Network (DPN) Contract |
$8,950 |
|
Contract Services - Strategic Planning Services |
$108,881 |
|
Community Development Block Grant |
$4,000 |
|
Non-Personnel Expenses |
$4,802,473 |
|
Previous Council Approved Appropriations Subtotal |
$5,055,215 |
|
Proposed Mid-Year Request (NEW) |
FY 2020 Impact ($) |
|
Delete/Add Finance Tech. (1.0) for Admin. Secretary (1.0) (Finance) |
($6,474) |
|
Personnel Expenses |
($6,474) |
|
Latent Print Case Management Software (Police) |
$33,000 |
|
Contract Services (Finance) |
$20,000 |
|
Contract Services (Human Resources) |
$59,000 |
|
Software - NeoGov Implementation (Human Resources) |
$22,000 |
|
Hayward Area Shoreline JPA - Contribution (Development Services) |
($12,000) |
|
Consultant Services (Development Services) |
$400,000 |
|
PERB Settlement Adjustment |
$7,393 |
|
Library Expenses to be Reimbursed by Literacy Council |
$7,184 |
|
Transfer-Out to Facilities Management Fund for Library Expenses |
$70,000 |
|
Transfer-Out to Facilities Capital |
$28,000 |
|
Transfer-Out to Hayward Area Shoreline JPA |
$12,000 |
|
Non-Personnel Expenses |
$646,577 |
|
Proposed Mid-Year Requests (NEW) Subtotal |
$640,103 |
|
|
|
|
TOTAL GENERAL FUND EXPENSES |
$5,695,318 |
General Fund revenues are expected to exceed the originally projected amount by $3.5 million. Changes in revenue projections are detailed in Table 2. Key changes in the General Fund revenues are as follows:
|
Projected increase in Sales Tax over budgeted amounts |
$3,711,881 |
|
Projected decrease in Cannabis Tax below budgeted amount |
($250,000) |
If mid-year requests are approved as proposed, the FY 2020 Revised Budget would result in a projected shortfall, requiring the use of $1.9 million in General Fund Reserves for FY 2020.
ATTACHMENTS
Attachment I Staff Report
Attachment II General Fund Long Range Financial Model Update - Proposed
FY 2020 Mid-Year