Fiscal Year 2013-2015 Special Budget Meeting

ATTACHMENT FY 2013-2015 BUDGET HIGHLIGHTS Page 5 Measures Taken During Last Five Years Over the past five years, the City has made significant strides in stabilizing our finances. We have:  Instituted strong fiscal controls and strengthened financial policies;  Maintained solid credit ratings which reflect strong financial management practices, a deep and diversified economic base, positive cash flows and liquidity levels, and healthy general fund reserves;  Fully funded the General Fund reserve to meet the level mandated by City Council policy for the first time in five years;  Paid down 28% of our negative fund balances, which have gone from $138 million to $99 million over a three-year period (this is internal debt that comes from borrowing between funds); and,  Planned for anticipated additional fiscal impacts from the dissolution of Redevelopment and compliance costs associated with the Negotiated Settlement Agreement. IV. BUDGET OVERVIEW Total City Budget This FY 2013-15 Budget Proposal contains appropriations totaling about $1 billion per year for the next two years across all funding sources. The General Purpose Fund accounts for approximately 41% of the City’s total budget. It pays for essential programs and services such as police and fire protection, libraries, senior centers, recreational programs, elected offices and municipal business functions. It also includes some restricted funds such as ballot measure earmarks. For FY 2013-14, the proposed General Fund budget is about $430.16 million (Table 2). The remainder of the City’s budget is comprised of funds that are restricted for special purposes such as grant programs, sewer services, bond-funded projects, capital projects and debt payments. Restricted funds come from grants, fees, bonds, or revenues that are collected for a specific purpose. Table 2: Proposed Budget: Revenues and Expenditures Summary (in Millions) FY 2013-14 FY 2014-15 Revenues Expenditures Revenue Expenditures GPF $ 430.16 $ 430.16 $ 457.40 $ 457.40 All- Funds* $ 1,052.69 $ 1,039.01 $ 1,071.70 $ 1,060.58 * The revenues in All-Funds exceed the All-Funds expenditures due to Council’s policy to amortize the repayment to negative funds created in prior years.