CC Resolution No. 15-100 Amending the Operating Budget for Fiscal Year 2015-16 RESOLUTION NO.15-100
A:RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
AMENDING THE OPERATING BUDGET FOR FISCAL YEAR 2015-16 BY
RATIFYING THE ADEQUACY OF ESTIMATED AMENDED REVENUES TO THE
GENERAL AND SPECIAL FUNDS TO COVER AMENDED APPROPRIATED
MONIES AND APPROPRIATING MONIES THEREFROM FOR SPECIFIED
ACTIVITIES AND ACCOUNTS
WHEREAS,the orderly administration of municipal government is dependent
on the establishment of a sound fiscal policy of maintaining a proper ratio of
expenditures within anticipated revenues and available monies;and
WHEREAS, the extent of any project or program and the degree of its
accomplishment,as well as the efficiency of performing assigned duties and
responsibilities,is likewise dependent on the monies made available for that purpose;
and
WHEREAS,the City Manager has submitted his estimates of amended
anticipated revenues,has determined that estimated amended revenues are adequate to
cover amended appropriations,and has recommended the allocation of monies for
specified program activities
NOW,THEREFORE,BE IT RESOLVED that the City Council does hereby ratify
that the attached anticipated amended resources are to be received in the General and
Special Funds listed in the attachment during fiscal year 2015-16 and that such resources
are sufficient to cover the attached amended appropriations.
BE IT FURTHER RESOLVED that there is appropriated from the General and
special funds the sum of money set forth as amended expenditures for those funds, to
be used for the purposes as expressed and estimated in the report before the City
Council.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Cupertino this 17th day of November 2015,by the following vote:
Resolution 15-100
Page 2
Vote Members of the City Council
AYES: Sinks, Chang, Paul, Vaidhyanathan, Wong
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST: APPROVED:
u
Grace Schmidt, ity Clerk Rod Sinks, Mayor, City of Cupertino
Resolution 15-100
Page 3
Attachment Al
Expenditure Adjustments by Fund
Fund Expenditure Amount
GENERAL FUND $10,300,831`
SPECIAL REVENUE FUNDS 14,555,187
[CAPITAL PROJECT FUNDS mm 6,715,413
ENTERPRISE FUNDS 1,169,204
INTERNAL SERVICE FUNDS
TOTAL EXPENDITURE ADJUSTMENTS ALL FUNDS $33,825,960
\ l /1/ FY 2015-16
J '
4,,„-r FIRST QUARTER REPORT
CUPERTINO
The following is the First Quarter Financial Report, submitted by the Administrative Services Department for the period
of July 1, 2015 to September 30, 2015 for the 2015-2016 Fiscal Year. It has been prepared to inform the City Council,
City leadership and the public of the City's fiscal status.
BACKGROUND
On June 2, 2015, the City Council adopted the Fiscal Year 2015-16 Final Budget for the City of Cupertino. This
spending plan of $118,565,638 for all funds reflected a 4% or $4,916,000 increase from the 2015-16 Proposed Budget
of $113,649,638. This is due to changes recommended by Council at the final budget hearing and adoption, mainly as
a result of the $6 million in additional funding for pavement projects and the removal of $3.7 million in capital
projects. The Final Budget is adjusted throughout the year. These adjustments include carrying forward
appropriations and encumbrances for obligations from the previous fiscal year, adjustments as part of Mid-Year
Financial Report, as well as adjustments approved as part of any separate Council agenda item. Combined, these
adjustments result in the amended operating budget of$152,391,598.
Proposed Budget thru the First Quarter I Amended Budget FY 2015-16 I Flow of Funds Chart(in Millions)
Counca and Conn,dssion:0.9
Administration:5.0 A
Law Enkrcement.11.0
Pubic Mars:5.71
Admin Services:5
Gavard Fund 77.6. Recreation:13.5
Proposed Budget 113.6
- Panning:22-0
1.7
sig
Special Revenue Funds:35.5 Pubk Works:.394
5 Friel Budget 4.9 Debt Service Funds:3.2 e
Enema:cantes:17.5 Capital Project Funds:15.7
anklets Funds:10.7 Ca ik Projects/Nan Departmental:49.0
1
'Carr/forward ApproprWbrn:15.6
Internal Service Funds.9.5
Council Approved Adjustment 0.8
GENERAL FUND UPDATE
General Fund Revenue, Expenditures and Fund Balance
$120.0 ----_--_
$100.0
$80.0
s6o.o
$40.0 yc �
s20.0 I
11 Kam I
$(20.0) 2
First Quarter Amended Year End First Quarter Amended Year End First Quarter Amended Year End First Quarter Amended
Actuals Budget Actuals Actuals Budget Actuals Actuals Budget Estimates Actuals Final Budget Budget
FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16
•Revenue $10.3 $66.7 $54.7 $8.3 $52.2 $73.9 $8.3 $88.4 $89.3 $10.2 $68.2 $68.2
a Expenditures $4.8 $66.0 $44.7 $4.8 $59.4 $64.4 $10.7 $99.0 $87.3 $4.4 $67.6 $77.5
•Fund Balance $5.5 $0.7 $9.9 $3.5 $(7.2) $9.5 $(2.5) $(10.6) $2.0 $5.9 $0.6 $)9.3)
1 To date the City has yet to have it books audited and revenue,expenditure,and fund balance totals listed in this report are preliminary and
subject to change after a full review by the City's auditors. City staff does not anticipate many if any changes from the auditors.
2 The additional$9.3 million in fund balance as of first quarter is to provide a funding source for prior year encumbrances and carryover
appropriations and Council approve budget actions of$9.3 million.
GENERAL FUND UPDATE (continued)
General Fund Classification of Fund Balance
CLASSIFICATION Amended Y/E Projection Final Budget First Quarter
2014-15 2014-15 2015-16 2015-16
Non Spendable 1.10 1.10 1.10 1.10
Restricted 0.76 0.76 0.76 0.76
Assigned 22.83 31.83 23.83 32.83
Unassigned 11.30 14.45 10.89 13.45
TOTAL FUND BALANCE 35.99 48.14 36.58 48.14
General Fund Revenue and Expenditure Trends Are General Fund Revenues and Expenditures on Trend?
High Low A FY 15-16
As of September 30, 2015, General Fund 20%
expenditures are $4.4 million; this represents 6% 18% 19%
of the budgeted appropriations. Expenditures 16%
at the first quarter point of the prior three years 14%
were between 7% and 12% of the final actual 12% -- 12%
expenditures, placing this year slightly below 10r — —
the range. General Fund revenues are at $10.2 8% 9%
7%
million; this represents 15% of the budgeted 6% — --___�____ ._ __.._____ 6,
revenue. Revenues at the first quarter point of 4%
the prior three years were between 9% and 19%, 2%
placing this year within this range.
0%
Revenue Expenditures
CURRENT ISSUES a CHALLENGES, RECOMMENDED FIRST QUARTER ADJUSTMENTS
Fund Department Recommended Adjustment Description
Expenditure Revenue Fund Balance
General Fund Rec.and Comm.Services (500,000) - 500,000 Transfer out of Parks Master Plan to Non-Depart.
General Fund Non Departmental 500,000 - (500,000)Transfer in of Parks Master Plan
General Fund Public Works 933,712 1,027,083 93,371 Budget Authority for 4 Leaf contract amendment
approved by Council on July 7
General Fund Public Works 47,810 - (47,810) Emergency storm drain analysis
Total General Fund 981,522 1,027,083 45,561
Special Revenue Public Works 460,986 460,986 - Budget Authority for increased Bubb,Elm&
McClellan Storm Drain/Sanitary Sewer Improvement
Project contract amendment approved by Council on
May 19
Capital Fund Capital Projects 500,000 500,000 - Transfer in of Parks Master Plan from the General
Fund
Total Other Funds 960,986 960,986 -
TOTAL ALL FUNDS 1,942,508 1,988,069 45,561
POTENTIAL MID-YEAR ADJUSTMENTS
Fund Department Recommended Adjustment Description
Expenditure Revenue Fund Balance
General Fund Law Enforcement 34,805 72,500 37,695 Addition of a part time Code Enforcement Officer
General Fund Rec.and Comm.Services 20,000 - (20,000) AED unit replacement
General Fund Rec.and Comm.Services unknown - - Relocation of staff to Quinlan Community Center
General Fund Administration unknown - - Postage for Cupertino Scene
General Fund Public Works unknown - - Turf reduction at public buildings
General Fund Public Works unknown - - Office space lease or trailer rental
Special Revenue Public Works 200,000 - - Additional funds for the Storm Drain Master
Plan Update Project
Internal Service Public Affairs unknown - - Contract Services
TOTAL ALL FUNDS 254,805 72,500 17,695
SUMMARY
The First Quarter Financial Report shows the City is well-positioned to move forward. City staff recommends
adjustments of $1.9 million in appropriations and $2 million in projected revenue resulting in an increase use of
fund balance of$45,561across all funds.