On June 27, 2017, Council adopted the City's two-year budget for FY 2017-18 and FY 2018-19.  The budgets are based on a framework that includes unfunded liability impact, budget cuts, and other cost containment initiatives, some revenue growth, and use of one time available funds.   The FY 2018-19 budget appropriation totaled $192,332,181, which included a capital expenditure budget of $10,441,835. 

Staff has conducted a mid-biennial review and budget adjustments are needed in operating and capital improvement expenditures to the second year of the two-year budget.  The FY 2018-19 proposed budget amendment includes the implementation of a 5 percent budget reduction (excluding sworn police and fire personnel) to the General Fund, as well as adjustments to the capital improvement plan, grants, water operations, and other minor adjustments.  The FY 2018-19 proposed amended budget totals $197,078,292, which includes a capital expenditure budget of $16,499,805.  The capital expenditure budget increased by $6.1 million from additional available funding, such as Measure M2, gas tax, and various grants.

In accordance with the plan presented for City Council consideration, the following Resolutions amending the Fiscal Year 2018-19 budget are attached:

• A Resolution of the City Council of the City of Garden Grove amending the basic services, cable services, grant services, water services, capital improvements, special assessments relating to street lighting, Main Street and the Parking District, Tourism Improvement District, and Park Maintenance District Budgets for Fiscal Year 2018-19
  
  
• A Resolution of the City Council of the City of Garden Grove adopting an appropriations limit for Fiscal Year 2018-19 implementing Article XIII B of the State Constitution pursuant to Section 7900 et. seq. of the Government Code.
  
  

• A Resolution of the City Council of the City of Garden Grove appropriating fund balances as of June 30, 2018, to reserves for future year reappropriation.
  
  

• A Resolution of the City Council of the City of Garden Grove reappropriating certain Fiscal Year 2017-18 Project Balances and Encumbrances for the Fiscal Year 2018-19.
  
  

The following reports are submitted for approval:

• Water Supply Program Budget for Fiscal Year 2018-19.

Adoption of these Resolutions will provide the funding needed for vital City services.

It is recommended that the City Council:

• Approve the attached Resolutions and Water Supply Program and that these items be acted on simultaneously unless separate discussion and/or action is requested by a Council Member.