Mid-Year Budget Savings Funds Traffic Enforcement
Published: February 25, 2020
On Wednesday, February 19, the City Council approved Fiscal Year (FY) 2019-2020 mid-year budget adjustments. Every year, a mid-year review of the annual operating budget is completed in order to determine appropriate adjustments based on new and/or updated information that was not available when the proposed budget was approved in June of the previous calendar year. The FY 2019-2020 budget was approved in June 2019 with a deficit of over $798,000. In summary, the mid-year budget adjustment report was very positive, as recommended adjustments resulted in a net increase to the previously estimated General Fund reserves amount by $800,059 because the projected increases in revenue exceeded the projected increases in expenditures during this mid-year budget review. This projected net increase will officially balance the FY 2019-20 General Fund budget. The projected increases in revenue were largely due to property tax and sales tax projections that exceeded initial budget estimates. Additionally, Water Fund working capital is projected to increase by $188,788 while Sewer Fund working capital is projected to increase by $635,439 due to debt service cost savings from the refinancing of the 2009 Water and Sewer Funds Enterprise Revenue Bond.
At the time the FY 2019-2020 budget was approved, the contract rate with Riverside County Sheriff’s Department was estimated to increase by 5%. The County now believes that the contract rate will increase by only 2.25%. Based on staff recommendations, the City Council voted to utilize this projected cost savings to fund 1) one additional dedicated Traffic Officer for the remainder of the fiscal year beginning March 1, 2020 and 2) overtime for DUI saturation, pedestrian and school zone traffic enforcement. In order to further increase customer service and handle increased workload, additional expenditures were approved to upgrade a Code Enforcement Officer position and an Administrative Clerk position in the Administration Department/City Clerk’s Office from part-time to full-time.
In summary, the recommended adjustments resulted in:
- General Fund: $800,059 net increase to projected fund balance
- Water Fund: $188,788 increase in working capital
- Sewer Fund: $635,439 increase in working capital
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