City Council Agenda and Packet 2018 07 12 SP BUDGET

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SUBJECT: BUDGET RETREAT DATE: JULY 12, 2018 PAGE 2 OF 17 The first column of amounts summarizes the General Fund revenue and expenditure projections that were developed in the Fall of 2017. The second column of amounts summarizes the actual audited amounts for fiscal year 2017. The final column calculates a positive or negative variance between the actual amounts and the original projections. For the General Fund, the 2017 ending fund balance is $7,797,336, which is $1,636,836 greater than the projection. This is mainly due to a 9% "turnback" amount. The term "turnback" has been used in the past to refer to a positive actual -to -budget variance for fund expenditures. The positive actual -to -projection variance for fund expenditures for the General Fund is 7%. Determining the budget carry forward amendments for all funds is the second step in developing the 2019-2024 Capital Improvements Plan and the 2019-2020 Biennial Budget. Since part of the positive ending fund balance variance for 2017 is due to unfinished projects that will be completed in 2018, it is appropriate to reduce the variance by the carry forward budget amendment that was approved on June 5. This is not a significant factor when analyzing the General Fund, but may be very significant when analyzing funds that contain large amounts of capital outlay. The remaining Net Variance amount shown in the preceding table ($1,527,066) can be thought of as the unanticipated amount of additional fund balance at the beginning of 2018. The following tables present the same actual -versus -projection analysis for the City's main operating funds that contain a large amount of capital expenditures: • Open Space & Parks Fund; • Capital Projects Fund; • Consolidated Utility Fund; and • Golf Course Fund. CITY COUNCIL COMMUNICATION 3