Finance Highlights 2010 0921 - Laserfiche WebLink

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CITY OF SAN LEANDRO MEMORANDUM DATE: September 21, 2010 TO: Steve Hollister, City Manager FROM: Perry Carter, Interim Finance Director A.-...- SUBJECT: Preliminary Financial Results for the General Fund for 2009 -10 Attached for your review (Schedule A), is an analysis of preliminary results of operations for the General Fund for 2009 -10. Schedule A consists of five columns, which are described briefly below (left to right): • 1 column- Actual revenues and expenditures for the General Fund for 2008-09 • 2" column- Amended budget for 2009 -10 (includes encumbrances and approved budget changes for 2009 -10). • 3 column -March 2010 Update, Estimated Actuals (May Finance Committee) • 4' column -June 2010 Update, Estimated Actuals (September 21, 2010 Finance Committee) • 5 ' h column- Adopted budget for 2010-11 As can be seen in Column (1) Actual 2005 -09. the General Fund ended the year with a revenue short fall, Net Revenue (Expenditure), of approximately 57.6 million. This loss coupled with the beginning fund balance and Other Resources /(Requirements) resulted in an Ending Designated Fund Balance of 510.074 million. Please note, this amount excludes Council's Emergency Reserve of 55.0 million. Consequently, the approximately S I0.1 million is the amount that was available to Council for future use and the amount recommended by staff to subsidize future targeted deficits as the City implemented a three year deficit "work out" plan. Up through May of fiscal year 2009 -10, staff updated the Finance Committee on the financial progress of the General Fund and the continued deterioration of certain revenues. More specifically Sales Tax and Property Tax revenues, among others, were not meeting expectations. Accordingly, staff reduced these revenue estimates in reports to the Finance Committee in July and November of 2009 and January and May of 2010. Staff has completed the prelimirary close of the City's financial records for 2009 -10 and is able to report actual revenues and expenditures for the fiscal year ended June 30, 2010. This information is presented in column 4, June Update, Est. Actuals 2009 -10.