DEPARTMENT: Office of Management and Budget
DEPARTMENT HEAD: Justina Tate
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Budget Policy Issues Discussion FY 2020 Budget
SUMMARY:
On June 12 and June 13, 2019, the City Council will be presented with information on several topics in preparation for the June 21, 2019 City Council Budget Goal Setting Session for the FY 2020 Budget.
These sessions are an added opportunity for City Council to be briefed on upcoming budget policy issues in advance of the Budget Goal Setting Session. This will allow time between these sessions and June 21, to provide any additional information to the City Council requested. By adding these two sessions to the budget calendar, the City Council will have time to deliberate and to provide direction to the City Manager regarding service delivery priorities and financial policies that will guide the preparation of a balanced Fiscal Year 2020 Proposed Budget.
During the last State legislative session, several bills were passed that significantly impact the City's revenue outlook. SB 1152 was passed and will change the compensation the City receives for use of the public right-of-way from telecommunication and cable companies. The impact is estimated to be a reduction in base revenue to the City of approximately $7.3 million annually beginning on September 1, 2019. More significantly, SB2 passed and will lower the current property tax rollback rate from 8% to 3.5% with a three year carryforward.
These events have drastically altered the financial parameters that the City has historically operated within. As such, staff will present recommended financial policies for consideration that focus on addressing these new parameters.
Financial Policies: Financial policies establish policy guidance on the financial management of the organization and are critical to maintaining a strong financial position through flexibility to adapt to changing economic conditions. Fin...
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