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City of San Leandro <br />Meeting Date: October 21, 2013 <br />Staff Report <br />Agenda Section:File Number:13-502 CONSENT CALENDAR <br />Agenda Number:8.D. <br />TO:City Council <br />FROM:Chris Zapata <br />City Manager <br />BY:David Baum <br />Finance Director <br />FINANCE REVIEW:David Baum <br />Finance Director <br />TITLE:Staff Report for the 2012-13 Year-End Preliminary Budget Review <br />SUMMARY AND RECOMMENDATION <br />This report provides an update on the 2012-13 budget performance for all City funds through <br />June 30, 2013 and unaudited year-end results for the General Fund and the City’s other <br />operating funds. This report is for information only, and no action is required. <br />BACKGROUND <br />The City Council adopted the 2012-13 budget on June 4, 2012. As reported to the City <br />Council in May 2013, revised revenue and expenditure projections at the third quarter showed <br />a $1.8 million improvement to the original forecast. Unaudited results now indicate a $3.2 <br />million increase to the General Fund undesignated fund balance as compared to the original <br />estimate of a $1.0 million shortfall. <br />Economic conditions indicate recovery despite 8.9% statewide unemployment. The statewide <br />median single family home price is $441,000, an increase of 28% over the prior year. San <br />Leandro’s fiscal conditions have improved over original projections , the City’s unemployment <br />rate is 7.4% and the median home price is $400,000, a 32% increase over the prior year <br />according to Trulia .com. Lower mortgage rates have spurred investments in housing. The <br />improving housing market, which represents 63% of the City’s tax roll , resulted in a 4.9% <br />increase in assessed value in Fiscal Year 12-13. Lower interest rates have also boosted <br />purchases of large ticket items, such as automobiles and home improvements, which boosted <br />sales tax revenue by 11% in the City. <br />DISCUSSION <br />The report provides the City Council with a summary of revenues and expenses through June <br />30, 2013, including modified year-end projections, with the books closed but prior to the <br />Page 1 City of San Leandro Printed on 10/15/2013