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File Number: 12 -055 1. Presentation by City's Independent Auditor on the Comprehensive Annual Financial Report (CAFR) for the Year Ended June 30, 2011 Finance Director James O'Leary introduced Mark Wong of the firm Maze & Associates, independent auditors that performed the audit for the Comprehensive Annual Finance Report (CAFR) for the Fiscal Year Ended June 30, 2011. Mr. Wong presented to the Finance Committee a brief summary and informed the Committee that the City of San Leandro has again received a clean unqualified opinion letter. Mr. Wong gave credit to the Finance Department's staff, Carla Rodriguez and Christine Galvin, as the financial statements are prepared by the department. The Committee thanked Mr. Wong for his time. 2. Discussion Regarding 2011 -12 Mid -Year Financial Report as of December 31, 2011 for the General Fund, Redevelopment Funds, Enterprise Funds, and Internal Service Funds Mr. O'Leary presented the Mid -Year Financial Report as of December 31, 2011 for the General, Special Revenue, Enterprise, and Internal Service Funds. At the previous request of the Committee, the format of the report has been amended to include additional information. There are two columns that have been added: an "Adjusted Budget" column was added to the period ending December 31, 2011 to provide the Committee with current estimates of what the budget will be for the full year; the second column is for the year- ending June 30, 2011 and provides a year -end percentage of the budget, to indicate how the year actually ended. Mr. O'Leary compared the Total Taxes revenue between fiscal years 2011 -12 and 2010 -11. For the same period, December 31 st, revenues are at 41 % of the adopted budget for both years however for 2011 -12, the adopted budget is $6 million more than in 2010 -11. Therefore, the revenue is higher. Mr. O'Leary also pointed out that the City has received a one -time Real Property Transfer Tax of $600,000 for the sale of Lakeside Apartments. Mayor Cassidy questioned what the percentage of RPTT would be had we not received the money from Lakeside. Mr. O'Leary stated that the City would be on track with the adopted budget. Mr. O'Leary reported that based on the first half of the fiscal year, total revenue will exceed the expenditures by a significant amount. Mayor Cassidy inquired about Sales Tax revenue. Mr. O'Leary stated that data has not yet been received from the State, as they are two months behind, and revenue for the last quarter would most likely not be received until March. Although the data has not been received, it appears as though the economy is getting better, as indicated by our analyst. Vice Mayor Gregory inquired about fees and when they are figured into the budget, e.g. Kaiser permit fees. Community Development Director Sims stated that for the most part, there will be no further permits issued for the Kaiser development. Mr. Sims stated that due to the increase in inspections, he has submitted a request to the City Manager's Office for a part -time inspector. The personnel cost for a part -time inspector would be much less then the anticipated revenue. Mayor Cassidy inquired about Business License revenue as it appeared to be lower than the previous year. Mr. O'Leary stated that it was too soon to tell as the 2012 renewals had just City of San Leandro Page 2 Printed on 211512012