2000 AGN MAY 30 I01 - Laserfiche WebLink

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I CITY OF COLTON AGENDA REPORT FOR PUBLIC HEARING OF MAY 30, 2000 TO: Honorable Mayor Pro -Tempore and City Council Members APPROVAL: Henry Garcia, City Manager r FROM: Al Holliman, Finance Directo SUBJECT: Amendment and/or Ratification of Fiscal Year 2000/01 Operating Budgets DATE: May 24, 2000 BACKGROUND The City of Colton is approaching its second year (2000/01) of the present two-year budget. Because Colton is a general law city, the budget must be approved or ratified via a public hearing by July 1 of each individual year. The current two-year budget document is valid and binding (subject to ratification), and a new separate document for 2000/01 is not required or necessary. Any budget adjustments approved by the City Council for 2000/01 will be evidenced by a resolution (attached) and entries made to the City's financial system. DISCUSSION/ANALYSIS Revenues: At the February 29, 2000 mid -year budget review for fiscal year 1999/2000, the City Council approved increases in General Fund revenue estimates totaling $1,151,444. This resulted in a total General Fund estimate of $18,877,898 (the original estimate was $17,726,454). Appropriations resulting from the revenue increase were limited to "one- time" expenditures and a transfer to reserves. It is generally not advisable to increase appropriations for "ongoing" expenses at mid -year, because it is often not determinable if the revenue increases are permanent or temporary. As a few more months pass, and year- end approaches, the permanency of the revenue changes becomes more predictable. After analyzing; ten months of data through April 30, 2000 staff is reasonably comfortable that the increased revenue estimate of $18,877,898 for fiscal year 1999/2000 is reliable. Using a conservative 2% inflation assumption for fiscal year 2000/01, the revised 2000/01 revenue estimate is $19,255,456 ($18,877,898 x 1.02). This results in an increase of $1,476,422 for 2000/01 ($19,255,456 versus 2000/01 original estimate of $17,779,034) which can be used for ongoing appropriations. Item #1