FY 2018-19 and 2019-20 Adopted Operating and CIP Budget

The expenditures in the Recommended Biennial Budget are forecasted to exceed the projected revenues by $1.6 million in FY 18-19 and $0.8 million in FY 19-20 as the City continues to strategically invest accumulated fund balance in the community.

The General Fund’s fund balance is forecasted to decrease from $17.0 million at the conclusion of FY 17-18 to $11.8 million by the end of FY 27-28 primarily due to the aforementioned additional investments in the City’s infrastructure including streets, parks, and buildings, gradually increasing staffing levels in high priority areas, and addressing unfunded “Other Post-Employment Benefits” (OPEB) and California Public Employees' Retirement System (PERS) liabilities. The chart below illustrates the General Fund 10 Year Forecast reserve levels.

See “Funding Gap for Infrastructure and Services” below for a discussion of the City’s additional unfunded costs that are not included in the Recommended Budget.

General Fund 10 Year Forecast

50.0%

45.0%

41%

38%

40.0%

35%

34%

33%

35.0%

32%

31%

29%

30.0%

27%

25%

25.0%

23%

20.0%

15.0%

10.0%

5.0%

0.0%

YEP

Rec

Rec

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

Forecast

17-18

18-19

19-20

20-21

21-22

22-23

23-24

24-25

25-26

26-27

27-28

General Fund 10 Year Forecast

Fund Balance Goal of 25% of Revenues

Fund Balance Minimum Level of 15% of Revenues

20 RECOMMENDED BUDGET MESSAGE