Finance Highlights 2011 1202 - Laserfiche WebLink

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Despite the recession, the City's economy has remained relatively strong. The City has placed a strong priority on maintaining its industrial base — over twenty percent of the City's land area is zoned industrial — to take advantage of its close proximity to the Port of Oakland, Oakland Airport and two major highways. The City's industrial vacancy rates are among the lowest in the region and the City has become a hub for specialty and food manufacturing. San Leandro is also a net importer of sales tax revenue, due to the presence of its thriving regional shopping centers and the San Leandro Marina Auto Mall. In order to increase the local tax base, the City's Redevelopment Agency and a large number of local and regional car dealerships created the Marina Auto Mall, taking advantage a convenient location and access to Interstate 880. Today the Auto Mall is made up of [12] dealerships, and it has benefitted from industry consolidation and remained almost completely occupied. Efforts to revitalize the downtown area of the City have also begun to bear fruit, as major infrastructure upgrades and a branding and marketing program are bringing new retail activity to the City's historic core. Budget Process In accordance with applicable sections of the California Government Code and the City's Charter, an annual budget is adopted by the City Council no later than the first regular meeting in July for the fiscal year beginning July 1. As part of the budget process, all City departments submit budget requests for the next fiscal year. These requests are reviewed, and a final City Manager recommended budget showing estimated revenues and expenditures of the City is prepared. This proposed budget is transmitted to the City Council and made available to the public for review. Study sessions and a public hearing are conducted before final adoption of the budget by the City Council. The City Manager is authorized to approve appropriation transfers within any department up to a specified amount; however, any new appropriation or appropriation transfer between departments requires approval by the City Council. Several supplemental appropriations were necessary during the year and are reflected in the budget amounts in the financial statements. Expenditures may not legally exceed appropriations at the department level. Under the City Charter, all unexpended appropriations lapse at the end of the fiscal year unless they are lawfully committed, or are required by law to be continuously appropriated from year to year. Lawfully committed amounts include amounts legally encumbered at year end. Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary integration in the governmental fund types. Encumbrances outstanding at year -end are reported as reservation of fund balances since they do not constitute expenditures or liabilities, and re- appropriations in the subsequent year provide authority to complete these transactions as expenditures. The City Council reviews budget results at the mid -year review and at budget adoption. Redevelopment budgets are adopted annually along with an annual report. The ongoing review and long range planning focus for financial management provides numerous opportunities to identify and respond to changes in revenues and expenditures and in community priorities. A -7