4A Public Hearing 2010 0607 - Laserfiche WebLink

Home

Proposed City Budget -Page 2 of 3 - June 7, 2010 General Fund Operating Revenues continue to decline since the peak fiscal year 2006-07 when revenues were $78.1 million. The Proposed Budget for the General Fund revenues are projected to be $66.5 million, an $11.6 million decrease. The General Fund Operating Expenditures continue to decrease from the peak fiscal year 2008-09 when expenditures were $78.1 million and now projected to be $69.6 million in 2010-11. Fortunately, with Council guidance and City staff efforts the General Fund shortfall from revenues is diminishing in the proposed 2010-11 budget over the past two years. Consequently, both significant cuts to departmental expenditures and one-time allocations of resources to the General Fund for 2010-11 were recommended. In addition, aone-time transfer of $0.5 million from the City's Self Insurance Fund to the General Fund is included in the 2010-11 proposed budget. Overall, the expenditure budget proposed for 2010-11 totals $125.2 million. The City's General Fund accounts for $70.0 million, the Redevelopment Agency, $15.2 million, Enterprise activities, (Water Pollution Control, Environmental Services, Shoreline Fund and Storm Water Fund) $12.9 million and all other activities, $27.1 million for 2010-11. CITY COUNCIL AND FINANCE COMMITTEE REVIEW City Council established budget goals and strategies during the January 2010 Council Retreat. On March 2, 2010, the preliminary budget was presented to the Finance Committee for review and direction. The City Council reviewed the preliminary budget at a work session on March 22, 2010 which reflected General Fund reductions across all departments. On April 12, 2010, during the City Council Work Session, City Council directed staff to add back funding for a ladder truck company for the second half of 2010-11. Similarly, Council directed staff not to layoff any full-time staff and to include funding for the 10 positions so identified through December 31, 2010. This would allow the City Council to re-evaluate at mid- year whether there are sufficient revenues to continue funding for these expenditures. The City Manager's Proposed Budget for 2010-11 includes the City Council directives and was distributed to Council on May 27, 2010. Current City Council Policy • Article V of the City of San Leandro Charter requires the City Manager to submit the Proposed Budget to the City Council at least thirty-five days prior to the beginning of each fiscal year and for Council to adopt the Budget following a Public Hearing, by no later than June 30~'. Previous City Council Actions • March 22, 2010 City Council held a Budget Work Session on the proposed 2010-11 budget. • April 12, 2010 City Council held afollow-up Budget Work Session on the proposed 2010-11 budget. • May 3, 2010 City Council held a Public Hearing and approved the increases in fees and charges for services by City departments for fiscal year 2010-11 and the annual CPI adjustment to the City's EMS Tax, 9-1-1 Tax and the City's Business License Tax.