CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Receive the report on the City's 2019 Financial Priorities and Budget Development
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DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Finance Director
BOARD/COMMISSION REVIEW:
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BACKGROUND:
Financial Priorities Overview
The City's budget process is guided by the City's mission statement, ends policies, goals and financial principles. To assist in initial creation of the 2019 budget, staff seeks City Council's guidance on financial priorities, including citywide service levels, long-term financial goals, and short-term financial impacts.
This review of policies and the City's financial principles is necessary due to competing initiatives in the City's budget and the recognition that not all goals and principles can be met under current budgetary conditions. The feedback provided by Council will guide staff in the development and presentation of a budget that highlights the financial and service level priorities of Council.
To assist Council, below is background on the City's 2018 financial performance to date, updated financial projections and an overview of financial priorities.
DISCUSSION:
2018 Financial Performance to Date
Overall, the City performed close to expectations in the second quarter for both revenues and expenses. Major items highlighted in the Q2 financial report attachment account for the difference between projections and actuals; other differences are attributable to timing issues.
* Citywide revenues came in at $212.9 million, which is 47.2% of budget. This is a 4.6% deviation from 2017 revenues and less than a 1.0% difference from projections.
* Citywide expenses came in at $180.7 million, which is 40.9% of budget. Expenses were 0.9% higher than 2017 and 6.6% lower than budget projections.
The below chart displays the revenues and expenditures among the City's major fund categories. It indicates where the City is in comparison to the total budget an...
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