Agenda Packet 12-10-18 Meeting - REVISED

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General Fund Transactions and Fund Balance Information For the Main Subfund of the General Fund, the MBWC adjustment is $10,387,970. The MBWC adjustment is largely due to a combination of higher revenues than anticipated ($6.2 million) and departmental underspending ($3.8 million). For actual revenues received in FY18, the following set of factors resulted in higher than anticipated receipts: • Taxes were $4.1 million over estimates, including: o Property Taxes were $3.9 million higher than estimated, $2.8 million of this amount was due to a property tax settlement with Comcast; o $0.3 million in additional local marijuana tax revenue; and o Contributions-in-Lieu-of-Taxes were lower than estimated by $0.1 million. • License and Permits revenue was $0.2 million higher than anticipated; • Intergovernmental revenue was $0.7 million above estimates; • Charges for Services revenue was approximately $0.1 million below expectations; and • Miscellaneous revenues were above budget estimates by nearly $1.3 million, largely as a result of $0.6 million from the sale of the Hoots and 901 Franklin properties, as well as $0.3 million in higher-than-projected investment interest revenues. On the expenditures side, based on historical trends it was anticipated that departmental underspending would be around 1.0%, or approximately $1.5 million. Total underspending after accounting for funds allocated to cover the budgeted reserve for encumbrance was closer to $3.8 million, which has been requested for reappropriation to continue work on projects that have been approved in prior budgets (see following page). This amount of underspending is largely attributable to several long-range projects that take time to implement. The reserve for encumbrance represents a reserve for prior fiscal year encumbrances (contracts that were in effect but not completed as of June 30). Prior fiscal year encumbrances were budgeted at $2,985,375 but only $2,126,870 was actually needed, leaving $858,505 available for appropriation. This Supplemental Budget includes a total of $1,118,217 in other General Fund (Main Subfund) revenue increases. These revenues include grants rebudgeted from the prior fiscal year, new FY19 grants, reimbursements for overtime incurred to assist with state fires, rideshare business license revenue, and reimbursement from the Urban Renewal Agency for personnel costs associated with district operations. Operating budget appropriations for the departments receiving these revenues are increased by the same amount. For more information about FY18 results, the FY18 Ending Working Capital and the Ending Fund Balance for the General Fund, see Attachment D of the Agenda Item Summary on the Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2018. Attachment D includes information and highlights about FY18 results from the FY18 Comprehensive Annual Financial Report. 2 December 10, 2018, Meeting – Item 5