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CITY OF SAN LEANDRO <br />MEMORANDUM <br />DATE: January 15, 2009 <br />TO: Steve Hollister, City Manager <br />FROM: Perry Carter, Interim Finance Director <br />SUBJECT: Review of General Fund Revenues and Expenditures -Mid Year 2008-09 <br />Attached for your review is an analysis of major revenue and expenditure accounts for the <br />General Fund at mid year fro 2008-09 (July through December). The purpose of the review is to <br />provide a look at key General Fund revenues and expenditures for 2008-09, and how they are <br />being impacted by current economic conditions. <br />The attached schedule presents revenue and expenditure information for the General Fund for the <br />prior and current year: From left to right, the first column presents actual revenues and <br />expenditures for the fiscal year 2007-08. The second column presents the adopted budget for the <br />current fiscal year, 2008-09. The third column presents updated revenue projections presented to <br />the Finance Committee in October of 2008 for 2008-09. The fourth column is an update of both <br />revenues and expenditures for 2008-09 and is titled, January 2009 Update. The final column <br />shows totals for all revenues and expenditures as adjusted by both the October 2008 and January <br />2009 updates. <br />Revenues: <br />A quick look at column 4, the January 2009 Update, indicates that the General Fund will <br />experience a further revenue short fall for 2008-09 of approximately $2.5 million. Five main <br />revenue sources account for the projected revenue downturn. These key revenues are discussed <br />briefly below: <br />Sales Tax-this revenue is responsive to the ups and downs of the economy and not <br />surprisingly is falling short of projections. More specifically, San Leandro is <br />experiencing declines in the major economic categories of General Retail, Business to <br />Business, and Transportation, and Construction. Based on collections through the mid <br />year and estimates by the City's Sales Tax consultants, staff is reducing this revenue an <br />additional $1.7 million to bring the new estimate for the year to $20.1 million. <br />Real Property Transfer Tax-All San Leandro real estate transactions are charged a <br />real property transfer tax of $6.00 per thousand dollars of value. This revenue source is <br />dependant on real estate activity within the City and continues to suffer as does the local <br />