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NIMONAL CITY
INCORPORATED
City Council Staff Report
June 17, 2014
ITEM
Staff Report: Resolution of the City Council of the City of National City adopting a budget for
Fiscal Year 2015.
BACKGROUND
After a series of internal staff meetings, Neighborhood Council meetings, and City Council
workshops, staff presents for adoption the Fiscal Year 2015 Proposed Budget for the City of
National City.
FISCAL YEAR BUDGET
The City of National City is required to adopt a budget for the upcoming fiscal year on or before
June 30th of the preceding fiscal year. Preparation of the City's budget is a multi -step process,
occurring over several months. Budget preparation for Fiscal Year 2015 began in late January
2015 with direction to City departments to review their current year budgets, analyze forecasts
for the current fiscal year, and submit budget requests. Finance staff then met with
representatives from each department, again reviewing current year budgets, forecasts, and
requests for Fiscal Year 2015.
Direction and input from the City Council was sought through workshops occurring on April 29
and May 27, 2014. The April 29th workshop provided the Council with a summary of the Fiscal
Year 2015 Preliminary Budget, highlighting the economic and operational forces driving
variances between the adopted Fiscal Year 2014 appropriations and revenue estimates and
preliminary Fiscal Year 2015 projections. Staff also sought input and direction from the Council
regarding proposed additions to the preliminary appropriations. On May 27th, staff presented the
Fiscal Year 2015 Preliminary Budget in its entirety. Having incorporated the Council -authorized
changes from both workshops, as well as adjustments, corrections, and other refinements deemed
necessary staff now presents the City of National City Fiscal Year 2015 Proposed Budget for
adoption.
The proposed budget recommends General Fund revenues totaling $43,089,464 and expenditures
and transfers out totaling $47,307,647. The proposed budget recommends total revenues and
transfers in totaling $82,289,827 and expenditures and transfers out totaling $84,749,238.
FINANCIAL STATEMENT
The change in the fund balance of the General Fund expected as a result of projected revenues
and expenditures is a decreases of $4,218,183. However, due to the atypical surplus (excess of
revenues and transfers in over expenditures and transfers out) in the General Fund resulting from
Fiscal Year 2013 City operations, funds are available to address one-time or infrequent capital
Page 2
Staff Report: Resolution of the City Council of the City of National City adopting a budget for
Fiscal Year 2015.
June 17, 2014
and other needs of the City, many of which have been deferred for several years, including
maintenance on City facilities, the first phase of replacement of the City's aged fleet, and
funding City reserves. Without the addition of these capital expenditures, a General Fund
operating surplus would be anticipated.
Combining all Fiscal Year 2015 estimated City revenues and expenditures is expected to result in
an overall fund balance decrease of $2,459,411, due to the impact of the aforementioned one-
time or infrequent expenditures. Non -General Fund activities, as a whole, are expected to
produce a surplus of $1,758,772.
RECOMMENDATIONS
Accept staff's recommendations, adopting the City of National City Fiscal Year 2015 Proposed
Budget as presented.