Finance Highlights 2007 0619 - Laserfiche WebLink

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. Quarterly payments will be made in arrears in the month following the quarter ends. . Relocation of fire permitting and inspection staff closer to the City's building inspection staff. Baloca explained that effective July L 2007, Alameda County Fire Districts (ACFD) will bill the City quarterly in arrears with the first payment being made in October 2007. Baloca further explained that ACFD is currently having an independent audit performed and believes the field work may have already been completed for FY 2004-05. Baloca will submit the completed financial audit report to the Finance Committee upon its completion. 5. Review of 3rd Quarter Budget Monitoring Report Finance Director Baloca reported on the City's Third Quarter 2007 performance. As of the third quarter, the City's General Fund contingency reserves are anticipated to be replenished to City Council's policy level of 20% of General Fund operating expenditures. However, the $2.4 million 911 Fee remains a revenue-at-risk. There have been unfavorable rulings against Union City and Stockton, which is scheduled to be appealed in the near future. Factors that improved the City's overall finances: a) Sales tax revenue is expected to exceed the City's previous 3% growth projections over the prior year b) Early repayment of the 2004 VLF Gap loan. c) LAIr's investment yield as of March 31, 2007 was at 5.17%, which is 1.14% higher than a year ago. d) Property assessed valuation increased 9.38% as compared to the 7% growth estimated a year ago. e) Bay Area CPI of 3.2% improved over the prior year index of 2.9%. f) One time reimbursement of $1 million from prior year advance life support services were received and used to replenish fire capital replacement reserves and to replace a fire engme. g) All fund operating expenditures are at 59.5% of budget as of the 3rd quarter which is approximately 15% below budget. h) General Fund expenditure is $2.2 million under budget. i) Overtime is at 79%, which is slightly higher than prior year by $1OK. In response to Starosciak's request for clarification on how credits are paid, Jermanis explained that the credits are applied quarterly to the pre-payment made by the City to ACFD in the following month. In response to Grant's concern on revenue and expenditure variances. Baloca clarified that some of the revenues are paid twice a year or quarterly and may show a high variance from budget. Baloca provided assurance that the revenues will be received closed to projections and that the variances primarily reflect timing of when cash is received by the City. Regarding expenditures in the Recreation department, Baloca explained the seasonal effects as to why year-to-date expenditures are currently lower than budget. 4 G\FINC'OMM\1[l()"07 Mmlltes\CITY _ COUNC'ILFIN ANC'E. COMMITTEE 06.19 07 due