Item Coversheet
CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
Staff Report 

June  16, 2020
ORDERS OF BUSINESS

TO:

Honorable Mayor and City Council Members 
SUBMITTED BY:

Sharon Friedrichsen - Director, Contracts and Budgets
APPROVED BY: 

Chip Rerig, City Administrator
SUBJECT:

Resolution 2020-040 Adopting the Fiscal Year 2020-2021 Operating Budget

 
RECOMMENDATION:

Adopt Resolution 2020-040 Adopting the Fiscal Year 2020-2021 Operating Budget.

BACKGROUND/SUMMARY:

The purpose of this agenda item is for Council to consider adopting the Fiscal Year 2020-2021 (“FY 20-21”) Operating Budget.  Carmel Municipal Code Section 3.060.010 states “prior to the beginning of each fiscal year, the City Council shall adopt a budget for expenditures and anticipated revenues.'' The fiscal year begins on July 1, 2020.


The FY 20-21 Recommended Budget totals $19.7 million, which consists of the General Fund Operating Budget ($18.5 million) and debt service ($1.2 million).  Due to budgetary constraints, no funding is allocated for capital projects or vehicle and equipment purchases.  The FY 20-21 Budget authorizes 92.14 full-time equivalent (FTE) positions, but includes funding for 72.48 FTE. This reflects restoring the funding of 1 FTE (Maintenance Worker/Gardener) since the FY 20-21 Budget was presented to Council on June 2, 2020; however, it does not result in an increase in budgeted expenditures as the contract service line item within Public Works has decreased to offset the associated salary and benefit expenses.  Anticipated Citywide revenues, including revenues that have restricted uses, total approximately $19 million.  However, estimated General Fund revenues total $17.4 million, which requires the use of approximately $1.1 million of prior years savings, or Fund Balance, in order to balance the FY 20-21 Budget.  


As part of the budget process, City staff received a variety of questions and communications regarding the FY 20-21 Budget. The questions and associated responses, as well as other correspondence, is included as attachments to this staff report.


FISCAL IMPACT:

The FY 20-21 Recommended Budget proposes to use approximately $1.1 million of General Fund balance in order to fund planned expenditures.

PRIOR CITY COUNCIL ACTION:

Council held public meetings on the proposed Fiscal Year 2020-2021 and Five Year Capital Improvement Program on April 7, 2020 and May 5, 2020 and held public meetings on the Fiscal Year 2020-2021 Budget on May 12, 2020 and June 2, 2020.

ATTACHMENTS:
ATTACHMENTS:
Description
Attachment #1-Resolution 2020-040_Adopt FY 20-21 Budget
Attachment #2-FY 20-21 Budget Questions and Responses
Attachment #3- Budget Question #1-2008 Library MOA
Attachment #4- Budget Question #2-SCC2020CityFundingOutline (1)
Attachment #5-Budget Question #3-SCC 2020-21 Fixed Expenses
Attachment #6-Budget Question #5-SCC FY 2019 2020 Approved Budget Overview
Attachment #7-Budget Question#6-FY 20-21 Recommended Budget-Outside Services
Attachment #8- Budget Question #17-Monterey Symphony Request
Attachment #9- Budget Question #17-Symphony Sunset Center Inc. Analysis 052920