Finance Highlights 2009 0519 - Laserfiche WebLink

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CITY OF SAN LEANDRO MEMORANDUM DATE: May 18, 2009 TO: Steve Hollister, City Manager~'v FROM: Perry Carter, Interim Finance Director SUBJECT: Review of General Fund Revenues and Expenditures -Through April 2009 Attached for your review is an analysis of major revenue and expenditure accounts for the General Fund through April 30, 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 April of this year and is through March 31, 2009. The fourth column is an update of both revenues and expenditures for 2008-09 based on April data and is titled, April 2009 Update. The final column (column 5) on the right shows totals for all revenues and expenditures as adjusted by the previous updates. While there are some changes in staff's estimates for individual revenue and expenditure accounts, for 2008-09, there is no impact to the Net Revenue (Expenditure) estimate. Previously, staff had estimated a Net Expenditure for the General Fund for 2008-09 of $8.0 million. This estimate remains unchanged. Revenues: A quick look at column 4, the April 2009 Update, indicates that the General Fund will experience a further revenue short fall for 2008-09 of approximately $300,000. Two revenue sources continue to underperform for the year and one revenue source is being revised upward. More specifically, the Utility Users Tax continues to lag behind. Staff is performing a detailed analysis of this account, but tentatively it appears that the reduction of the Telephone rate from 6% to 5.7 % is having an impact. The 911 Fee also is falling short of budget. A review of this revenue shows that the full extent of discontinuing the tax (which was subsequently reinstated as a result of the 2008 election) may have been understated. Staff continues to perform a detailed review of this revenue source. Finally, staff was too conservative in estimating investment earnings and is adjusting this revenue upwards by $200,000.