Finance Highlights 2009 0120 V1 - Laserfiche WebLink

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°E ~~~~~~yd~ ~, - ~ ~ City of San Leandro °6q oa~~~`~ Quarterly Performance Report Ending December 31, 2008 EXECUTIVE SUMMARY GENERAL OVERVIEW AND ECONOMIC OUTLOOK General Fund Revenues and Expenditures. At the mid-year point we see that we are still experiencing an economic slowdown. The impact to General Fund revenues has been significant and immediate. For example: • Sales tax revenue has slowed significantly and is not expected to meet budget for 2008-09. Staff is now estimating annual revenue at $20.1 million, down from $22.6 million, a shortfall of $2.5 million. • Property tax revenue has slowed due to the downturn in the housing market. Staff has revised the original estimate to $17.0 million, down from $17.5 million, a shortfall of $500k. • The 911 fee revenue will begin collections again in January 2009. Due to the loss of revenue between October and December staff has revised the estimate to $1.7 million, down from $2.5 million, a shortfall of $800k. • The Real Property Transfer Tax has also slowed and is not expected to meet budget. This revenue is directly tied to real estate activity in San Leandro. The continuing downturn in the real estate market has caused staff to change this revenue estimate from $3.0 million to $2.9 million, a shortfall of $100k. • Business License tax has been relatively stable over the years and is adjusted annually for inflation. Staff believes that this revenue source will not meet budget for the year. Staff is now estimating $2.9 million, down from $3.0 million, a shortfall of $100k. • In the Other Taxes category for Franchise Taxes and Transient Occupancy taxes, staff has reviewed the revenue sources and is now estimating these revenue sources to be $4.6 million, down from $4.7 million, a shortfall of $100k • Revenue/Money and Property includes interest income from investments. Interest rates have declined significantly since the preparation of the 2008-09 budget. Staff is now estimating $1.8 million, down from $2.3 million, a shortfall of $500k. • Based on the reductions noted above the General Fund could experience a revenue shortfall for 2008-09 of approximately $4.6 million In addition to reviewing revenues, staff has also reviewed expenditures through mid-year and it appears that savings are developing in several categories. In particular, Salaries and benefits may come in under budget by approximately $1.0 million. The primary reason for this savings is the "soft" hiring freeze implemented earlier this year. Similarly, a curtailment of certain expenditures such as travel and training is contributing to a savings in the Supplies and Services categories of some $402,000. Finally, the Fire Chief indicated at his last quarterly review of the