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FY 2010-11 Mid -year review and budget adjustments February 18, 2011
<br /> DISCUSSION
<br /> At the mid -point of the current fiscal year (FY 2010-11), we are providing Council with a
<br /> summary of revenues and expenses through December 31, 2010 - with modified year -end
<br /> projections. We are also including recommendations for a number of mid -year budget
<br /> adjustments due to actions that have occurred during the year which require budget recognition
<br /> and necessitate modifications to the annual adopted budget (e.g., new grants, capital improvement
<br /> project appropriations, etc.).
<br /> Second Quarter Budget Review
<br /> Now that we have a full six months of actual revenue and expenditure data, we are better able to
<br /> analyze year -to -date trends and year -end projections. Below is an analysis of revenues and
<br /> expenditures for the City's General Fund and other key revenue funds.
<br /> General Fund Revenue
<br /> As previously reported to the Finance Committee and to City Council, staff is recommending
<br /> some positive net revenue adjustments based on year -to -date actual receipts. In total, mid -year
<br /> projections indicate a net increase of General Fund revenues over the Adopted Budget
<br /> projections of about $1.4 million - largely attributed to a correction in sales tax revenues as
<br /> discussed below. While this is a positive adjustment to the Adopted Budget projections, the
<br /> overall revenues are significantly lower than prior years, and staff will continue to closely
<br /> monitor revenue trends.
<br /> FY 2011 FY 2011 $
<br /> (in thousands) Adopted Adjusted Variance Variance
<br /> Taxes:
<br /> Property Taxes 15,300 15,400 100 0.7%
<br /> Sales Tax 17,850 19,516 1,666 9.3%
<br /> Utility Users Tax 9,635 9,798 163 1.7%
<br /> Document Property Transfer Tax 2,444 2,444 - 0.0%
<br /> Business Licenses 3,940 3,940 - 0.0%
<br /> 911 Tax 2,500 2,600 100 4.0%
<br /> Other Taxes 4,199 4,264 65 1.5%
<br /> Subtotal Taxes 55,868 57,962 2,094 3.7%
<br /> Other Revenues:
<br /> Licenses & Permits 1,726 1,726 - 0.0%
<br /> Use of Money & Property 1,219 1,058 (161) -13.2%
<br /> Revenue From Other Agencies 1,146 1,050 (96) -8.4%
<br /> Service Charges 2,252 2,301 49 2.2%
<br /> Other Revenue 4,320 3,863 (457) -10.6%
<br /> Subtotal Other Revenue 10,663 9,998 (665) -6.2%
<br /> Subtotal Operating Revenue 66,531 67,960 1,429 2.1%
<br /> Operating Transfers 500 500 - 0 0%
<br /> Total General Fund Revenue 67,031 68,460 1,429 2.1%
<br /> Property Taxes (+$100,000)
<br /> Property Taxes revenues declined last fiscal year - a direct result of the economy and real estate
<br /> downturn. The FY 2010 -11 Adopted Budget reflects a conservative estimate based on this
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