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INCORPORATED
City Council Staff Report
February 19, 2013
ITEM
Staff Report: Fiscal Year 2012-13 Mid -Year Budget Review
BACKGROUND
Consistent with historic practice, staff brings forward a mid -year review of the City's operating
budget. The intent of this report is to review activities to date, including a close out of the prior
fiscal year, a review of the first half of the current fiscal year, and a revised projection of
revenues and expenditures for the second half of the fiscal year. In addition, the report
recommends two budget adjustments, and discusses significant financial events and activities
affecting the City.
This report represents the second budget report of the fiscal year. A 1st quarter report was
presented on October 16, 2012, consistent with the staff s commitment to provide quarterly
reports on the status of the budget in keeping with the strategic plan objective of fiscal
transparency.
DISCUSSION
Close Out of Fiscal Year 2011-12
One of the major activities in the first half of the fiscal year has been the closing of the books for
the prior fiscal year and completion of the comprehensive annual financial report ("CAFR"),
which will be presented to Council as a separate item on this agenda.
As a result of City Council's strong fiscal discipline and leadership, as well as a recovering
economy, the City's General Fund reserves have grown, with total fund balances increasing
nearly $4.4 million to $17.9 million from June 30, 2011 to June 30, 2012. Revenues plus
transfers in during FY 2011-12 totalled"$39.5 million, $2.1 million above budget, while
expenditures and transfers out combined were $35.1 million, $4.9 million less than estimated.
The General Fund's Spendable Fund Balance includes four subcategories:
o Restricted Fund Balance — amounts that can only be spent for specific purposes by a
binding legal document.