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Budget Investment Technology 2014/06/11City of Anaheim FINANCE DEPARTMENT June 11, 2014 TO THE HONORABLE CITY COUNCIL: The Budget, Investment and Technology Commission (Commission) is pleased to have the opportunity to present to you its comments and recommendations concerning the City's proposed annual budget. The Commission (previously known as the Budget Advisory Commission) was established by the City Council in 1991. This Commission is charged with the examination of the City's financial condition, policies and procedures, as well as the review of the annual budget proposed by the City Manager pursuant to Section 1.04.996 of Chapter 1.04 of Title 1 of the Anaheim Municipal Code. The Fiscal Year (FY) 2014/15 proposed budget marks the twenty-third proposed annual budget the Commission has had the opportunity to review. The Commission's first meeting in FY 2013/14 was in November 2013. At that meeting, the Commission began its review of the upcoming budget by having City staff give an update of recent economic conditions and how they were impacting the current year budget. The Commission received monthly TOT reports and periodic updates on the current year budget. The Commission met in April and May of 2014 to review the FY 2014/15 proposed overall budget assumptions. The proposed budget as reviewed by the Commission on June 11, 2014, continues to fund those core services that Anaheim's residents, businesses and visitors have come to expect. The Commission has reviewed the General Fund revenue assumptions, and believes that they are reasonable. The Commission believes the FY 2014/15 budget to be fiscally sound. Revenue estimates are based upon reasonable economic assumptions and the Commission supports staff's recommended citywide expenditures for FY 2014/15. Furthermore, while general economic conditions continue to improve, resources have become available for additional ongoing programming and one -time expenditures. The City of Anaheim again is 200 S. Anaheim Boulevard Anaheim, California 92805 TEL (714) 765 -5195 FAX (714) 765 -5260 www.anaheim.net ITEM NO. 04 entering the next fiscal year from a position of strength due, in large part, to the past and present conservative fiscal practices and the exemplary leadership of the City Council. While the Commission supports approval of the supplemental budget requests for ongoing and one -time funding for public safety and neighborhood enhancements, the commission recommends one -time sales fax revenues in fiscal years 2015/16 and 2016/17 due to the unwinding of the Triple Flip (State action) from 2004 be added to the General Fund reserve balance and not used for supplemental spending. The funding to be returned was revenue previously earned, covered by reserves, and it seems prudent to return that revenue back to reserves. The Commission hereby recommends the proposed budget for FY 2014/15 be adopted with the supplemental service enhancements. Respectfully submitted, ANAHEIM BUDGET, INVESTMENT AND TECHNOLOGY COMMISSION Patrick J. Pepper, (fhair Mr. AB Abdulrahman Mr. Trevor Austin Mr. Stephen Faessel Ms. Helen Garner Mr. Neil Malley Mr. Pat Pepper Not Present Mr. Andrew Cho Mr. Mark Mittmann