HomeMy WebLinkAbout2002-12-03 - AGENDA REPORTS - MID YEAR BUDGET REVIEW (2)CITY OF SANTA CLARITA
INTEROFFICE MEMORANDUM
TO: M Ferry& Cuncilmembers
FROM: ;en4skfp,4y
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DATE: December 3, 2002
SUBJECT: FISCAL YEAR 2002-03 MID -YEAR BUDGET REVIEW
RECOMMENDED ACTION
City Council review and discuss proposed mid -year budget adjustments.
BACKGROUND
Each year at this time, City staff takes the opportunity to evaluate the adopted budget and
economic outlook for the remainder of the year. It is critical to perform the mid -year review
of the budgetary and financial position to ensure that any deviations from the initial budget
projections are addressed in a manner which is proactive rather than reactive. It is also at
this time that staff reviews its priorities and requests appropriations for activities that
have become a priority, but are currently not funded.
Although the Santa Clarita economy is remaining strong, the State's economy is continuing
to experience a slowdown. Current reports indicate that the State will be experiencing a
deficit of $21 billion going into the 2003-04 budget year. The Governor is planning to begin
addressing this deficit through a special session on December 9, 2002, aimed at reducing
the deficit by $5 billion through spending reductions in the current year. While we have
not yet experienced any direct impact of the state budget crisis, it is possible our revenues
will be impacted in the coming year. Based on this information, staff recommends
addressing these concerns by increasing reserves during this mid -year budget process.
KRP:DS:hds
Council%mdy -ss Sdee02.do
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