City Council Agenda and Packet 2019 07 16 Budget Retreat

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SUBJECT: 2018 YEAR -IN -REVIEW DATE: JULY 16, 2019 PAGE2OF7 The first column (Projection) summarizes the General Fund revenue and expenditure projections that were developed in the Fall of 2018. The second column (Actual) summarizes the final actual audited amounts for fiscal year 2018. The final column calculates a positive or negative variance between the actual amounts and the original projections. For the General Fund, the 2018 ending fund balance of $10,528,139 is $2,775,832 greater than the projection. This is mostly due to a 9.7% "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 10.8%. Determining the budget carry forward amendments is the second step in developing the 2020 Budget, the new 2019-2024 Capital Improvements Plan, and the new 2019-2024 Long -Term Financial Plan. Since part of the positive ending fund balance variance for 2018 is due to unfinished projects that will be completed in 2019, it is appropriate to reduce the variance by the carry forward budget amendment that was approved by Council on June 4. 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 ($2,629,112) can be thought of as the unanticipated amount of additional fund balance at the beginning of 2019. The following tables present the same actual -versus -projection analysis for the City's other main operating funds: • Open Space & Parks; • Historic Preservation; • Capital Projects; • Water Utility; • Wastewater Utility; • Storm Water Utility; • Consolidated Utility; and • Golf Course Fund. At the meeting, staff will present a PowerPoint presentation containing these tables and will lead the discussion on reserve levels, total turnback, and operational turnback. CITY COUNCIL COMMUNICATION