The City Council has reviewed and given direction on all components which are included in the proposed Fiscal Year 2018-19 Operating Budget at the Budget Workshop on May 15, 2018.  The Proposed Fiscal Year 2018-19 budget document contains an overview message from the City Manager, summary schedules, the fund balances of each operating fund, a comprehensive review of revenues, and expenditure breakdowns by department.
 
Budget Recap

The Fiscal Year 2018-19 Proposed Budget adheres to City Council policy. The General Fund budget is balanced, revenues exceed expenditures, and the General Fund reserves exceed the minimum 8 - 10%.   In fact, the reserve balance is 22% of the estimated expenditures for FY 2018-19.

Budget Resolution
A change in the Budget Resolution is being proposed.   This change will continue to allow the City Manager to administratively move budgets from one account to another within the same Fund and Department.   Previous language limited which accounts could be moved administratively. For example, salary savings in a department budget could not be moved to pay for other operating expenses in a departments budget.  This change now allows that adjustment.  Budget movement between Departments and/or Funds and all additional appropriations will still require City Council approval.  Additionally, the Budget Resolution specifically authorizes the outstanding encumbrances as approved by the City Manager or designee to be appropriated to the FY 2018-19 budget.

Revenues
Beginning in FY 18-19, In-County Host Fees will now be deposited into the General Fund (110)  and the Out-of-County Host Fees will be deposited in the Community Benefit & Economic Development Fund (140).  Host fee revenue is generated for every ton of trash deposited in the the Alpha-Olinda Landfill.   Because In-County deposits are prioritized ahead of Out-of-County and the revenue stream tends to be more consistent, it is more appropriate to place these revenues into the General Fund (110).

Overall, total operating revenue (excluding the Capital Improvement Program) is anticipated to decrease as compared to FY 2017-18 estimates.

Expenditures
Overall, department operating expenditures have decreased as compared to FY 2017-18 estimates.   The City’s mission is to provide quality services with the resources available.  However, this organization continues to be challenged to maintain the current level of service and additional duties with existing staff.   For FY 2018-19, no Cost of Living Adjustment (COLA) has been budgeted for employees.

Funds
New for Fiscal Year 2018-19 is the creation of the Paramedic Services Fund (174). This fund is used to account for revenues received and expenditures made for the City's Paramedic Services Program.  This fund does not include any eligible department or Citywide overhead costs.  Previously, the Paramedic Program was accounted for within the General Fund.  In order to better track expenditures and revenues, the Paramedic Program will be accounted for in a separate fund.  Revenues are collected on the property owner’s tax bill.   However, the program is not self-supporting and must be supplemented with General Fund (110) revenues.

A copy of the Fiscal Year 2018-19 Proposed Budget is available in the City Clerk's Office for review or click the link below to review the document online.

http://www.ci.brea.ca.us/95/City-Budget