AgdaPkt 2018-12-03 Joint SA PFA - Laserfiche WebLink

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6.H. - Page 1 of 15 /<;i-ik Redwood CityI California Founded 1967 A&/ DATE: December 3, 2018 SUBJECT STAFF REPORT To the Honorable Mayor and City Council From the City Manager FY 2017-18 year-end budget update and adjustment to FY 2018-19 budget RECOMMENDATION 1. Receive Information on Topics Raised During FY 2018-19 Budget Adoption 2. Adopt Resolution Approving the Appropriation and Transfer of FY 2017-18 Year -End Funding, and Restoring Certain FY 2018-19 Budget Reductions STRATEGIC INITIATIVE Government Operations BACKGROUND On June 25, 2018, the City Council held a Public Hearing and adopted the FY 2018-19 Budget. The FY 2018- 19 Adopted Budget addressed the City Council's strategic priorities and policy direction on fiscal sustainability by relying on ongoing revenue to fund ongoing expenses, using one-time revenues for one- time expenses, maintaining adequate reserves, and addressing long-term liabilities. During the budget hearing, the City Council asked staff to return with additional information on certain topics, which are included in this staff report. The Adopted Budget included recommended uses for an anticipated FY 2017-18 General Fund operating balance, with the stipulation that the City Council would make a final determination on use of these funds after the year-end close and final audit determination. Recommendations in this report are consistent with the City Council -endorsed policy of using one-time funds to pay down liabilities and to support Council priorities that do not require ongoing commitments. The City Council took a forward -thinking and prudent approach to addressing the City's fiscal challenges through adoption of the Financial Sustainability Plan (FSP), which included reducing operating costs and increasing revenue in order to balance the City's budget over the next five years. Operating cost City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org 165