Finance Highlights 2011 1021 - Laserfiche WebLink

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File Number: 11 -314 Works Director Bakaldin, Deputy Finance Director Rodriguez, Budget and Compliance Manager Perini, Sr. Accountant Galvin, Administrative Assistant III Perez Public Present: None The meeting was called to order at 8:15 a.m. 1. Discussion Regarding Quarterly Financial Report as of September 30, 2011 for 2011 -12 General Fund, Special Revenue Funds, Enterprise Funds, and Internal Service Funds Budgets Interim Finance Director O'Leary reported to the Finance Committee the quarterly financial report as of September 30, 2011for all funds. Mr. O'Leary reported the total revenue for the first quarter of FY 2011 -12 is 10% of the General Fund budget, which is slightly higher than the percentage at the same time last year. Expenditures are currently 23% of the budget amount, which Mr. O'Leary states as being on track. Sales, Property, and Utility User Taxes remain steady however there has been a slight decrease in Real Property Transfer Taxes as sales have continued to decline. The increase of revenue is mainly due to the increase in Charges for Services as well as Licenses & Permits due to the Kaiser construction. Mr. O'Leary also reported on the revenue and expenditures of the Special Revenue, Enterprise, and Internal Service Funds budgets as well. Councilmember Gregory requested that a graph be provided in the next report for a better view of revenue and expenditure trends. Mayor Cassidy inquired about the Public Education & Government Access Fee (PEG). Mr. O'Leary stated that the PEG revenue came in late last year and this fiscal year, the City will be receiving funds for the entire year. PEG fee is charged through Comcast and AT &T. 2. Review of City Council Reserve Policy and Discussion Regarding General Fund Reserves as of June 30, 2011 Mr. O'Leary reported to the Committee that a transfer of $1.5 million from the General Fund fund balance to the Self Insurance Fund was approved by the City Manager to facilitate the preparation of the City's 2010 -11 financial statements and is requesting that the Committee forward to City Council for confirmation. Mr. O'Leary explained to the Committee the necessity of the transfer. Mr. O'Leary also stated that, based on a policy established by City Council, reserves should be at 20% of the balanced budget. Due to the economic downturn, the City Council has approved using reserves over the years to balance the budget, and therefore the reserves have declined. Mr. O'Leary would like to move $2 million from the General Fund fund balance to increase reserves to 16% of the balanced budget. Mayor Cassidy stated that perhaps Council should consider putting the $2 million into the Self Insurance Fund to assist with future claims. Mayor Cassidy would also like a report City of San Leandro Page 2 Printed on 11/1/2011