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CITY OF SAN LEANDRO MEMORANDUM • DATE: September-24,2-04-0 December 21, 2010 TO: Steve Hollister, City Manager FROM: Tracy Vesely, Finance Direct r,� SUBJECT: General Fund Budget Update At the September 21, 2010 Finance Committee meeting, staff provided preliminary General Fund results for the FY 2009 -10 fiscal year. This report provides the final results as currently reflected in the unaudited Comprehensive Annual Financial Report (CAFR) for the fiscal year ending June 30, 2010, as well as an overall budget update. The attached table provides a summary of key revenues and expenditures. General Fund Highlights FY 2009 -10 When Council adopted the FY 2009 -10 budget in June 2009, an operating shortfall of $3.95 million and an ending fund balance of $10.1 million was anticipated. This amount excludes Council's Emergency Reserve of $5.0 million. As discussed throughout the fiscal year, revenues declined well below the adopted budget projections, specifically Sales Tax and Property Tax revenues. Staff periodically updated the Finance Committee and City Council, with the most recent update this past September, when staff presented preliminary year -end results for the 2009 -10 fiscal year. • When Council adopted the current year's budget (FY 2010 -11) in June 2010, the budget assumed an FY 2009 -10 operating shortfall of $7.3 million and an ending fund balance of $3.8 million — an adjustment from the FY 2009 -10 Adopted Budget. • At the September 21, 2010 Finance Committee meeting, staff provided an update to these projections, anticipating an operating shortfall of $6.5 million and ending balance of $4.5 million. • While we are still awaiting final, audited financials, unaudited results for FY 2009 -10 are very similar to those presented in September. The 2009 -10 fiscal year ended with an operating shortfall of $6.6 million and ending balance of $4.6 million. While