8E Consent 2015 0217 - Laserfiche WebLink

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File Number: 15-033 DISCUSSION The adopted budget incorporates the estimated revenues and planned expenditures for all funds. The attached 2014-15 Mid -Year Financial Report as of December 31, 2014 provides the revenue and expenditure summary for the General Fund, Special Revenue Funds, Enterprise Funds, and Internal Service Funds. The following discussion focuses on variances from the revenue and expenditure plans and allocations contemplated in the budgets. General Fund The General Fund finances the operations of the City that have no special or dedicated revenue sources and pays for basic municipal services. Projected 2014-15 General Fund expenditures total $87.7 million. Expected revenues of $86.3 million, including $1.4 million contributed from fund balance, finance the anticipated expenditures. Total mid -year revenue in 2014-15 amounts to $34.5 million, 41 % of total budget (compared to 41 % in 2013-14). This year's estimated revenues are higher by nearly $4.8 million. Expenditures at mid -year amount to $37.9 million, 44% of the budget (compared to 46% in 2013-14). This year's estimated expenditures are higher by $6.3 million. Highlights from mid -year activity in the General Fund and other funds are set forth below. General Fund Revenue • Property Tax (47% of budget compared to 49% in 2013 -14) -The current year's budget for property tax revenue is $626,000 greater than budgeted in 2013-14. The first payment of property tax from the secured roll by Alameda County was received in December 2014 in which the City received $8.7 million compared to $8.7 million in December 2013. Property taxes are expected to remain flat for 2014-15. • Sales Tax (41 % of budget compared to 41 % in 2013 -14) -The current year's budget for sales tax revenue is $2.9 million higher than budgeted in 2013-14. Overall, sales tax increased by 10% from the same period last year and represents an 11 % increase in local sales tax receipts and a 10% increase in the Sales Tax Backfill payment. • Property Transfer Tax (45% of budget compared to 51 % in 2013-14)- Property Transfer tax decreased in the first half of the fiscal year by 12% due to the increased level of sales of commercial property in 2013-14. Because Property Transfer tax is tied directly to the sale of real property it is difficult to predict and can vary from year to year. • Business License Tax (10% of budget compared to 11 % in 2013-14) - Mid -Year reflects a decrease of $39,000 (8%) due to the timing of payment processing. Renewals are sent in December and processing can be delayed depending on staffing levels and the holiday closure. The third quarter will reflect a more comparable analysis. • Charges for Services (54% of budget compared to 47% in 2013-14) - Charges for Services increased by 16% in the first half of the year primarily due to inspection fees charged for development in the City including the Bridge Housing Development at San Leandro Crossings. • Interest & Property Income (61 % of budget compared to 65% in 2013-14) - Interest City of San Leandro Page 2 Printed on 2111/2015