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CITY COUNCIL FINANCE COMMITTEE <br /> December 21, 2010 <br /> 4:00 p.m. — 5:30 p.m. <br /> San Leandro City Hall <br /> 835 East 14 Street <br /> San Leandro, California <br /> (Sister Cities Gallery) <br /> HIGHLIGHTS <br /> • <br /> Committee Members: Mayor Santos, Councilmember Prola, Councilmember Souza <br /> City Staff Present: City Manager Hollister, Assistant City Manager Marshall, Finance <br /> Director Vesely, Deputy Finance Director Rodriguez. Budget & <br /> Compliance Manager Perini, Accountant II Galvin, Administrative <br /> Assistant 111 Perez <br /> Public Present: Charles Gilcrest, Dave Johnson, Steven Tavares <br /> • <br /> The meeting was called to order at 4:03 p.m. <br /> 1. Discussion Regarding FY 2009 -10 Final Year -End Results and FY 2010 -11 Year -to- <br /> Date Budget Status <br /> Finance Director Vesely provided a summary to the Committee of the FY 2009 -10 General Fund <br /> results as reflected in the Comprehensive Annual Financial Report (CAFR) for the fiscal year <br /> ended June 30, 2010. Vesely reported a year -end operating shortfall of $6.6 million, $800,000 <br /> less than originally anticipated, and an ending fund balance of $4.6 million. Councilmember <br /> Souza clarified that this does not include the $5 million Council Emergency Reserves. Vesely <br /> confirmed that this balance also does not include the $3.1 million in Kaiser Community Impact <br /> Funds. <br /> Vesely reported that the passing of Measure Z will generate a projected revenue increase of <br /> about $4 million annually. Unfortunately the new quarter cent Sales Tax increase will not begin <br /> until April 1, 2011 and therefore revenue may not be realized until the beginning of FY 2011 -12. <br /> Vesely also reported that Property Tax revenues are trending slightly better than anticipated <br /> (increase of $400,000 for FY 2010 -11), and adjustments have been made to the current year <br /> revenue estimates. In addition. Vesely reported that Sales Tax revenues will see an increase this <br /> fiscal year due to an adjustment made by the State Board of Equalization in late September 2010 <br /> (increase in FY 2010-11 of $1.7 million: a one -time adjustment of $700,000 and a recurring base <br /> correction of $1 million). Therefore. in consideration of these revenue changes, offset somewhat <br /> by some projected revenue decreases and cost increases related to restoration of some programs <br /> funded by Measure Z revenues, staff estimates that FY 2010 -11 may end the year with an <br /> operating shortfall of $2.2 million (Budget was adopted with a $3 million shortfall) and an <br /> 1 <br />