Finance Highlights 2009 0421 - Laserfiche WebLink

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CITY OF SAN LEANDRO MEMORANDUM DATE: April 21, 2009 TO: Steve Hollister, City Manager FROM: Perry Carter, Interim Finance Director` SUBJECT: Review of General Fund Revenues and Expenditures — Third Quarter 2008-09 Attached for your review is an analysis of major revenue and expenditure accounts for the General Fund through March 31, 2009. The purpose of the review is to provide a look at key General Fund revenues and expenditures for 2008-09, and how they are being impacted by current economic conditions. The attached schedule presents revenue and expenditure information for the General Fund for the prior and current year. From left to right, the first column presents actual revenues and expenditures for the fiscal year 2007-08. The second column presents the adopted budget for the current fiscal year, 2008-09. The third column presents updated revenue projections presented to the Finance Committee in October of 2008 for 2008-09. The fourth column is an update of both revenues and expenditures for 2008-09 for the period July 2008 through December 2008, and is titled, December 2008 Update. This information was presented to the Finance Committee in January of 2009. The fifth column is an update for revenue and expenditure for the period July 1, 2008 through March 31, 2009 and is entitled March 2009 Update. The final column on the right shows totals for all revenues and expenditures as adjusted by the previous updates. Revenues: A quick look at column 5, the March 2009 Update, indicates that the General Fund will experience a further revenue short fall for 2008-09 of approximately $1.2 million. Three main revenue sources account for the projected revenue downturn. These key revenues are discussed briefly below: Sales Tax—this revenue is responsive to the ups and downs of the economy and not surprisingly is falling short of projections. More specifically, San Leandro is experiencing declines in the major economic categories of General Retail, Business to Business, and Transportation, and Construction. Based on the most recent collection information and estimates by the City's Sales Tax consultants, staff is reducing this revenue an additional $800,000to bring the new estimate for the year to $19.3 million.