DEPARTMENT: Office of Management and Budget
DEPARTMENT HEAD: Maria Villagomez (OMB)
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT: FY 2015 Mid-Year Budget Adjustment
SUMMARY:
A mid-year budget adjustment is recommended to the FY 2015 Budget that will result in a revised budget based on actual revenues and expenditures for the six months of the fiscal year (October to March) and projections for the remaining six months of the fiscal year (April to September) in the General Fund and various Restricted Funds.
BACKGROUND INFORMATION:
As part of the City's financial management practices, the City Manager recommends a Mid-Year Budget Adjustment for City Council consideration annually. This Adjustment aligns revenues and expenses based on actual activity for the first six months of the fiscal year (October to March) and updated projections for the remaining six months of the fiscal year (April to September). The result of this adjustment is a revised Budget for the Fiscal Year.
City Council adopted a balanced budget on September 18, 2014 for the City's fiscal year that began October 1, 2014.
In November 2014, the City Council amended the FY 2015 General Fund Budget. This amendment increased the City's contribution to uniform employee healthcare coverage in the amount of $14,258,562 for FY 2015 by deferring Street Maintenance projects and adjusted the Police and Fire Budgets. This action maintained a balanced General Fund Budget for FY 2015 as required by law, while adhering to the City's adopted financial policies. This adjustment was necessary because the adopted budget included a reduction in uniform healthcare based on the police union's assurance to achieve a tentative agreement of the labor union contract by the end of October 2014. The City began meeting with the police union to negotiate a new collective bargaining contract in January 2014. To date, there is no agreement with the police union. Further, the fire union has refused to begin negotiations. ...
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