Finance Highlights 2009 0120 v2 - Laserfiche WebLink

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Mayor Santos inquired about the Special Assessments and whether or not Capital Improvement Projects with fund balances were still committed and Sr. Accountant Galvin stated that they were. Mayor Santos asked that this be noted in future documents. Carter explained that the CIP funds were restricted and he would provide a list to him of the projects. Mayor Santos also asked for a list of all outstanding claims and judgments. Committee Recommendation Committee recommended taking to Council for approval. 2. Budget Updates Carter updated the Committee on the current Revenue and Expenditure status as of December 31, 2008. In October 2008, staff reported that revenues would be down $2.1 million by fiscal year end. Unfortunately as revenue from Sales, Real Property Transfer, Business License, Franchise, Transient Occupancy, and Property Taxes continue to decline, staff estimates a shortfall of an additional $2.5 million, bringing the total deficit to $7.5 million. Expenditures are carefully being reviewed and Carter reported a $1 million savings in salaries; $400k saved in travel and training; and $ l OOk from fire services. By end of this fiscal year, staff anticipates a fund balance of $11.6 million. Community Development Director Sims stated that the new Wa1Mart was expected to bring in $125k - $150k in new sales tax however the biggest section of sales tax decline was from business to business sales. City Manager Hollister reiterated that losses in revenue will impact budget planning for fiscal year 2009-10. Mayor Santos and Councilmember Prola expressed their concern in reducing travel and training for all. Mayor Santos stated that much is gained by attending conferences and is concerned that resources and contacts can be lost. Prola stated his concern is that employees may jeopardize their jobs by not complying with the necessary training to properly fulfill their duties. City Manager Hollister stated that all mandatory training was allowed and only unnecessary conferences were being cut. Prola also recommended offering voluntary reduction of employees' work hours before contemplating any layoffs. Mayor Santos indicated that the Federal Government was going to pass a bill that would provide cities with police and environment funding and therefore expressed his desire for staff to hold off in making any cuts until then. Budget & Compliance Manger Perini presented a PowerPoint Presentation of a Preliminary Summary of Budget Reductions with information provided by each department. Perini explained that each department was asked to provide reductions of 5%, 7%, and 10%. 3. Discussion Regarding FY 2007-08 Final Budget Adjustments Carter provided a summary and explanation of the year end budget adjustments for fiscal year 2007-08, which total $1,130,707. 2