City Council
MEETING DATE: 10/28/2015
TITLE:
Title
General Fund Year End Review 2014/2015
End
FROM:
Tami Scott, Administrative Services Director
RECOMMENDATION:
Recommendation
This is a presentation only, no action required from the City Council
Body
BACKGROUND:
The full presentation is attached for your review. At the conclusion of this presentation you will note the City’s General Fund Balance or “Savings Account” has grown. We are doing better and stabilizing; however, since a disproportionate amount of our core General Fund Revenue comes from auto related sales and services, which is considered an extremely volatile industry, it is essential we grow our “Savings Account” to a minimum amount of our budgeted expenditures.
For Example- “Sales Tax”, “Transactions and Use Taxes” & “Vehicle License Fees” provide a combined total $13.8 million dollars or 41% of our General Fund Revenue. Of this, $10.5 million or 76% is generated from auto related sales and service.
The auto industry is one of the first industries to be impacted during an economic downturn and would have a considerable impact on the City’s “Savings Account” making it that more important to grow our General Fund Balance. For this reason, the City Council established a General Fund Balance Policy (“Savings Account”) target of 50% of budgeted expenditures to achieve by 2020 to be better able to plan for such volatility.
This past year we were fortunate to receive some one time monies that have moved us towards achieving this target sooner than expected. With conservative projections, not spending one time monies and managed growth, we expect to achieve this target within the timeframe outlined.
DISCUSSION:
None
FISCAL IMPACT:
None
ATTACHMENTS:
Presentation