Finance Highlights 2009 1117 - Laserfiche WebLink

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CITY OF SAN LEANDRO MEMORANDUM DATE: November 17, 2009 TO: Steve Hollister, City Manager FROM: Perry Carter, Interim Finance Director ,~' BY: Mary Ann Perini, Budget & Compliance Manager SUBJECT: Review of Major General Fund Revenues - ls` Quarter 2009-10 Attached for your review is an analysis of major revenue accounts for the General Fund for the first quarter of 2009-10 (July through September). The purpose of the review is to provide an early look at key General Fund revenues for 2009-10, and how they are being impacted by current economic conditions. The schedule, Attachment A, presents operating revenue information for the General Fund for prior years, current year and subsequent updates. The following is a description of what each of the seven columns represents (from left to right): • 15` column -actual revenues for the fiscal year 2007-08 • 2°a column -actual revenues for the fiscal year 2008-09 • 3~d column -adopted budget - revenues for the current fiscal year 2009-10 (column a) • 4`~' column -the July 2009 updated revenue projections for current fiscal year (column b) • 5`h column -variance to budget from the July 2009 update (column c) • 6~' column -updated revenue projections for the current fiscal year (column d) • 7`h column -variance, positive or negative, between the July 2009 Revised 2009-10 Budget and the Updated Revenue Projections for 2009-10 (column e). A quick look at column (e), the Variance column, indicates that the General Fund will experience an additional revenue shortfall for 2009-10 of approximately $2.0 million. Three main revenue sources account for the projected revenue decline. These key revenues are briefly discussed below: • Property Tax - in July staff reported to the Finance Committee that the 2009-10 Property Tax revenue budget was being reduced from $17.255 million to $16.8 million. The revised estimate recognized lower than expected Property Tax revenue received in 2008-09. Subsequent to the July update, staff has received and reviewed assessed valuation information from the County for 2009-10. Unfortunately, the news is not good. Property Tax revenue continues to decline. Based on this most recent information, staff is reducing the Property Tax revenue from $16.8 million to $16.4 million; a further reduction of $400,000.