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CITY OF SAN LEANDRO/ <br /> REDEVELOPMENT AGENCY OF THE CITY OF APPROVED AND <br /> SAN LEANDRO FORWARDED <br /> STAFF REPORT TO CITY COUNCIL/ <br /> REDEVELOPMENT AGENCY <br /> i <br /> DATE: February 22, 2011 tephen L Hollister <br /> City Manager/Executive Director <br /> TO: Stephen L. Hollister <br /> City Manager/Executive Director <br /> BY: Tracy Vesely <br /> Finance Direc 1.- ;11/44 <br /> SUBJECT PROJECT/PROJECT DESCRIPTION <br /> MATTER OF FY 2010 -11 MID -YEAR BUDGET REVIEW AND RECOMMENDED <br /> BUDGET ADJUSTMENTS. <br /> SUMMARY AND RECOMMENDATION <br /> This report provides an update of the FY 2010 -11 budget performance for all funds through <br /> December 31, 2010, with a revised year -end forecast for the General Fund and the City's other <br /> revenue funds. In addition, the report includes mid -year budget adjustments for 2010 -11 funded <br /> from new revenues and available fund balances. <br /> Pending the outcome of the February 18, 2011 Finance Committee meeting, staff recommends <br /> that Council adopt the resolutions approving a net budget adjustment to the FY 2010 -11 Adopted <br /> Budget of $3,541,163. <br /> BACKGROUND <br /> City Council adopted the FY 2010 -11 budget on June 6, 2010. When Council adopted the budget, <br /> it was balanced with significant General Fund expenditure reductions. Even with these sizeable <br /> expenditure reductions, the budget projected a shortfall of almost $3 million and an ending <br /> balance of $1.3 million. As initially discussed last December, revised revenue and expenditure <br /> projections modestly improve this original forecast. <br /> The economy is recovering at a very slow pace, with continued low employment rates and a <br /> dragging housing market. Statewide, local governments are still experiencing declines in their <br /> revenues. San Leandro's fiscal conditions have improved slightly over original projections, but <br /> the future remains uncertain — in part due to the State's $25.4 billion deficit. The Governor's <br /> balancing plan would hurt San Leandro, particularly the proposed elimination of all of the State's <br /> redevelopment agencies. Staff will continue to monitor the State budget developments and <br /> provide Council with updated information as it is available. In the meantime, we are considering <br /> some "what ifs" regarding the possible budget scenarios to assist in our planning for the FY <br /> 2011 -12 budget. We will be discussing budget impacts related to State budget decisions and <br />