Attachment 5From: Phil Koen <pkoen@monteropartners.com>
Sent: Monday, June 04, 2018 10:08 PM
To: Rob Rennie; BSpector; Marcia Jensen; Marico Sayoc; Steven Leonardis
Cc: Laurel Prevetti; Jak VanNada
Subject: Agenda Item #5
Attachments: Agenda Item # 5 - FY 2019 Budget.pdf
Dear Town Council,
Please find attached two exhibits which are foundational to the resolution which approves the FY 2019 budget.
The first exhibit is schedule C-9 which was in the FY 2019 Budget package. It shows a consolidated view of the Town's FY
2019 planned revenues, expenditures and decrease in fund balances. Please note that the budget calls for a decrease of
$9,730,814 in fund balances, which is the largest decrease in recent history.
The second exhibit is the corrected version of Exhibit A which was attached to the proposed resolution. Unfortunately
the exhibit is misleading in that it does not show that the total use of fund balances to be $9,730,815. Rather the exhibit
suggests that the total use of fund balances is $3,756,682.
The Staff has incorrectly included the use of $5,974,133 in General Fund Reserve balances as an element of revenue. By
doing this, they have inflated the revenue number and correspondingly understated the total use of fund balances. All of
the use of fund balances should be grouped in the Total Source of Fund Balances total.
I wanted to point this out to you so the Town Council was fully aware of the financial impact on the Town's fund
balances of the resolution under consideration. It is critical that the Town Council fully understand the proposed budget
and have undertaken a deliberative process to arrive at an informed judgement. To approve this budget without a full
understanding and without having undertaken a deliberative process is a violation of the public trust. I am sure each of
you fully understands your obligations and responsibilities.
would also like to point out that Exhibit A was only made available to the public at approximately 8am on June 4. This is
less than the 72 hours that is required for public disclosure. I have been told by the Town Attorney that legally this is not
a problem, but in the spirit of proper disclosure I would suggest that this resolution be postponed to the next Town
Council meeting to allow members of the public adequate time to comment.
Thank you.
Phil Koen
1
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TOTAL EXPENDITURES
Beginning Fund Balance
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TOTAL TOWN REVENUES BY FUND AND TOTAL TOWN EXPENDITURES BY FUND
TOWN REVENUES & OTHER FUNDING SOURCES
Ge.- neraI Fund
Designated One -Time Use of General Fund Reserves
Special Revenue Funds
Internal Service Funds
Trust & Agency Funds
Capital Project Funds (does not include carryforwards)
Successor Agency Funds
TOTAL TOWN REVENUES & OTHER FUNDING SOURCES
2018/19
Proposed
Budget
5,974,133 "
624,074
4,362,795
78,650
6,549,106
3,828,2
$63, , 11 $
Estimated
Budget
Revision
2018/19
Recommended
Budget
4,362,795
78,650
6,549,106
3,828,296
$ 63,
1
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Designated One -Time Use of the General Fund Reserves during FY 2018/19 S V v
Payments to the Town IRS 115 Trust Fund
Transfer to Capital Projects (GFAR)
Transfer to Equipment Replacement Fund
Total
$ 3,184913
Z335,220
454000
$ 5,974133
TOTAL TOWN EXPENDITURES, TRANSFERS OUT & CARRYFORWARD APPROPRIATION
General Fund $47,522,071 $ - $ 47,522,071
Special Revenue Funds 672,312 672,312
Internal Service Funds 6,306,524 6,306,524
Trust & Agency Funds 73,500 73,500
Capital Project Funds (does not include canyforwards) 9,131,757 9,131,757
Successor Agency Funds 3,831,229 3,831,229
TOTAL TOWN EXPENDITURE & OTHER FUNDING USES $67,537,393 $ $ 67,537,393
GENERAL FUND SOURCE(USE) OF FUND BALANCES
OTHER FUNDS SOURCE(USE) OF FUND BALANCES
TOTAL SOURCE(USE) OF FUND BALANCES
$ 815,719
(4,572,401
$ (3,7 82) $
""
$ 815,719
(4,572,401) ••
$ (3,756,682)
** Other Funds source(Use) represents planned one-time uses of InternalService Fund, Specal Revenue Fund,
Trust Fund, and Capital project Funds primary for infrastructure and equipment investment.
eitC
ATTACHMENT 3 TO ADDENDUM
ATTACHMENT 1
EXHIBIT A