Finance Highlights 2009 0120 v2 - Laserfiche WebLink

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market. Revenue collections to date indicate that this revenue will fall short of budget by approximately $100,000. Business License Tax-The City's Business License Tax has been relatively stable over the years. Based on Council action taken a few years ago, this important revenue source is adjusted each year for inflation and generally, shows some dollar growth. Even though it is early in the annual renewal process, staff believes that this revenue source will not meet budget for the year. Consequently, based on activity to date, staff is reducing this revenue by $100,000 for 2008-09. Franchise Taxes and Transient Occupancy Tax-A review of the various franchise taxes and the City's Transient Occupancy Tax, totaling some $4.7 million indicates that budget will not be met for 2008-09. Based on collections to date, staff is reducing these revenues overall by $100,000. Revenue/Money and Property-This revenue category represents both investment income (interest income) and rental income to the General Fund. Since the budget for 2008-09 was developed, interest rates on allowed investments (the City cannot invest in equities) have declined significantly. Consequently, based on current rates and the expected decline in future rates, staff is reducing this revenue source by $500,000 for 2008-09. Together the reductions noted above indicate an additional revenue shortfall for San Leandro for 2008-09 of approximately $2.5 million. Expenditures: 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 fire contract that a savings of approximately $127,000 would be realized in 2008-09. Together these savings amount to approximately $1.5 million and will partially offset the revenue reductions discussed above. Staff will continue to monitor all revenue sources in the upcoming months, particularly for the General Fund, and assess any impact both to the current year and the upcoming budget year, 2009-10. Please let me know if you have any questions.