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HomeMy WebLinkAboutAgenda Report - May 5, 2010 J-03AGENDA ITEM :5;03 CITY OF LODI COUNCIL COMMUNICATION Im AGENDA TITLE: Presentation on Major Components of Fiscal Year 2010/11 Budget MEETING DATE: May 5,2010 PREPARED BY: City Manager RECOMMENDEDACTION: Receive presentation on major components of Fiscal Year 2010/11 Budget. BACKGROUND INFORMATION: The Fiscal Year (FY) 2010/11 budget will be balanced with revenues in excess ofexpenses. The budget has several components, policy decisions, and a major cornerstone. The major cornerstone of the FY 2010/11 budget is proposed labor agreements that prevent the necessity of lay- offs and major service reductions. Currently, management is meeting with all labor groups and agreements are expected to be reached soon. Until, at a minimum, tentative agreements have been reached, it is premature to release the FY 2010/11 budget. Again, it is expected that agreements are forthcoming in the very near future. A total of eight agreements need to be reached. The budget is on schedule to be ready for public review mid-May in time for adoption in early June. It is proposed, depending upon the status of the budget, to provide the Council with the basic information and major variables that make up the FY 2010/11 budget. For example: • General Fund Budget will be balanced without the use of reserves; • Status of unrestricted General Fund reserves; • Impacts of the Lodi Energy Center on the budget; • Unintended consequences of cutting costs in the FY 2009/10 budget —the build up of Compensatory Time Off; • Impact of increased cost for retirement and health insurance; • The proportionate distribution of the General Fund revenue among departments; • Efforts to reduce Police Department costs; • No proposed changes in funding for arts programs, 0 of July, economic development, and contributionto organizations; • Labor costs; and • Capital projects. FISCAL IMPACT: The All Funds budget expenditures for FY 2010/11 are $179,630,540. The General Fund is $41,321,750. Blair King City Manager APPROVED: Blair King, Cit an ger