Reso 2013-029 - Laserfiche WebLink

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14 GENERAL FUND BUDGETARY HIGHLIGHTS The General Fund had a net increase of General Fund revenues over the final budget projections of about $3.2 million, largely attributed to the increase in sales tax revenues. Current General Fund revenues performed slightly higher by 4.9% compared to the previous year. Revenues totaled $76.1 million, an increase of 4.4% from the budgeted amount. As previously discussed, the increase in property and sales taxes, licenses and permits, and other revenues positively impacted the City’s General Fund revenues. The City continues to be fiscally responsible and continues to maintain fiscal sustainability. The expenditures for fiscal year 2011-12 increased by $26.6 million due to the refinancing of the $24 million Public Safety Side Fund with a lower interest rate than the current 7.75% with CalPERS. The refinancing will also have a net present value savings of approximately $1.4 million for the life of the Pension Obligation Bond that will mature in 2024. Despite a very modest increase in revenues, active management of expenditures allowed the General fund to end the fiscal year with an operating deficit of $1.2 million. Unemployment continues to remain high and adversely impacts the labor market and consumer remains cautious in their spending pattern. There is a modest improvement in consumer confidence as seen in the increased sales tax revenues. However, the financial environment is unknown in the future. It is important for the City to build the reserves that has been utilized in the past for future economic uncertainties.