City staff reports that Glendora is on track with its Strategic Plan of maintaining a stable budget, with a larger estimated surplus added to the estimated surplus in the original adopted budget.
The estimated contingency adopted on July 1, 2014, was reported at $145,362. An improving economy is reportedly giving the city a midyear adjustment increase of $185,043 to the contingency, staff said, translating to an estimated ending fund balance of $10,204,682.
Property taxes and sales taxes both improved this year, which staff said is a good indicator of the economy’s health.
General fund revenues from animal licenses also increased after citywide canvassing resulted in revenue generated after the identification of more than 3,200 unlicensed dogs and delinquent dog licenses.
The budget for general fund expenditures increased by $344,962. Some of the bigger expenditures include $50,000 for additional k-rail; $119,652 for increases in tree maintenance, weed abatement and increased demand for community classes; $100,000 for impacts generated by MOU agreements and personnel upgrades; and $252,386 to cover administrative costs for the police department’s Avoid the 100 operations, Office of Traffic Safety cell phone grant and transfer to the worker’s compensation fund, staff reported.
Municipal budgets are very dynamic, including Glendora’s and that staff uses its best estimates when including certain aspects, such as a capital project budget, staff said. The mid-year process is needed to make necessary changes to reflect accepted accounting standards.
State and federal budgets, which are developed after Glendora establishes a budget, sometimes force staff to alter the estimates established in a city budget.
Case in point, the city is expecting a more than $300,000 reduction in gas tax revenue, reportedly linked to lower gas prices and the increase of fuel efficient vehicles statewide. The loss would typically fund 100 percent of the city’s Street Division activities, which may result in the use of general fund monies to support those projects, staff said.
The update will be delivered as part of the City’s Strategic Plan to maintain fiscal health by reporting on financial trends and actions that have developed after the approval of the 2014-2015 budget.
The midyear budget report will be discussed in greater detail at the City Council meeting, scheduled for Tuesday, March 10, at 7 p.m. in the City Council Chambers, 116 E. Foothill Blvd.