AgdaPkt 2018-02-26 Joint SA PFA - Laserfiche WebLink

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7.A - Page 1 REPORT To the Honorable Mayor and City Council From the City Manager February 26, 2018 SUBJECT FY 2017-18 Mid -Year Budget Study Session and Proposed Process for Development of the FY 2018-19 Budget RECOMMENDATION Accept an update on the FY 2017-18 Budget and provide direction on the recommended approach for development of the FY 2018-19 Budget; establish, by motion, June 11, 2018 as the date on which the City Manager shall submit a proposed budget to the City Council; and approve, by motion, the dates for City Council action on the FY 2018-19 Budget as set forth in this staff report BACKGROUND The Mid -Year Budget Study Session provides an opportunity for the City Manager and staff to update the City Council on the major financial factors affecting the City's current fiscal year budget, and make recommendations for developing next fiscal year's budget. As such, there are three major components to this staff report: FY 2017-18 Mid -Year Budqet Update: This portion of the staff report includes highlights of FY 2017-18 budgetary performance based on actual results through January 31, 2018, including both the General Fund and Capital Improvement Program Fund. (A separate staff report is included on tonight's City Council consent agenda for the FY 2017-18 Mid -Year Budget Amendments in both the General Fund and Capital Improvement Program Fund.) 2. FY 2018-19 Financial Sustainabilitv Plan: This report provides detailed information on the Financial Sustainability Plan, which guides development of the FY 2018-19 Budget and the next five years. 3. Preliminary Five -Year General Fund Forecast: The Preliminary Five -Year Forecast (Attachment 1) discusses significant factors affecting the General Fund's major revenue sources (property taxes, sales taxes, transient occupancy taxes, development -related revenue, and other significant revenue sources) and expenditures (pension and retiree health liabilities, workers' compensation, and employee wellness).