Title
Receive and accept the FY 2018-19 Budget End-of-Year Report from the County Administrative Office.
Report
RECOMMENDATION:
It is recommended that the Budget Committee receive and accept the FY 2018-19 Budget End-of-Year Report from the County Administrative Office.
SUMMARY:
The Budget End-of-Year Report (BEYR) evaluates year-end fiscal performance in comparison to the County's budget, as adopted and modified by the Board of Supervisors. Production of the BEYR is a collaborative effort between the County Administrative Office and departments following year-end closing adjustments overseen by the Auditor-Controller. Financial data analyzed in the BEYR is unaudited and subject to final adjustments.
The general fund end-of-year results are favorable, with an operating surplus of $29.4 million that allowed the County to rebuild the Strategic Reserve. The Strategic Reserve is now at $66.5 million, or 9.9% of FY 2019-20 adopted general fund revenues. The surplus is a testament of the County's conservative management culture and the continuous monitoring of its finances with oversight of the Board and its Budget Committee.
DISCUSSION:
The BEYR begins with an analysis of the countywide performance of the general fund, followed by detailed analysis of departmental performance and the financial position of other major funds.
The general fund ended FY 2018-19 with revenues of $656.1 million and expenditures of $626.7 million, resulting in an operating surplus of $29.4 million. The operating surplus was primarily driven by higher discretionary revenue earned compared to budget and lower than budgeted expenditures. Key outcomes include:
* Discretionary revenue performed strongly, led by cannabis revenue totaling $15.4 million, $11.6 million more than the new program's conservative budget estimate;
* Cannabis revenue exceeded amounts budgeted for program operations by $11.7 million, with the surplus placed in the cannabis assignment;
* Other forms of discretionary...
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