Laserfiche WebLink
The CAFR for the year ending June 30, 2017 provides a financial account of those activities, <br />organizational elements, and City functions for which the City Council provides policy direction and <br />general oversight. It presents financial information on the activities of the City itself and the <br />component units of the City upon which the City Council is authorized to impose its will. The <br />operating nature of the City’s component units determines how they are reported in the financial <br />statements. The activities of component units that provide financial benefit or create financial burden <br />for the City are blended within the City’s general financial statements. Component units that have no <br />discernable financial impact upon the City are presented separately. <br />ECONOMIC CONDITION OF THE CITY <br />The City of San Leandro has a diverse and strong economy, with its business community comprised <br />of varied businesses ranging from neighborhood coffee houses and fine restaurants, large food <br />processing centers, and regional shopping opportunities, to cutting edge technology. While the <br />economic base has dramatically changed from its agricultural early years, San Leandro continues to <br />expand on its sound business base with the ongoing development of such projects as a multi-family <br />housing development, a new high-rise office complex, and the continuing revitalization of downtown <br />San Leandro. <br />The recession resulting from the global financial and credit market meltdown in late 2008 has had a <br />direct and dramatic impact on the City’s local revenues. However, current data indicates median home <br />prices are $610,000, near the median price at the 2006 peak. The unemployment rate is 3%. <br />The City’s General Fund supports many of the City’s key services, such as public safety, library and <br />parks and recreation. Revenue to this critical fund, generated largely from sales and property taxes, <br />has grown to higher levels due to voter-approved tax measures in 2014 and 2016. Low mortgage rates <br />have spurred investment in housing. The improving housing market, which represents 63% of the <br />City’s tax roll, led to a 4.5% growth in taxable assessed value for Fiscal year 2016-17. However, due <br />to the loss of a large taxpayer (One Source Supply) and an extraordinary sales tax allocation from the <br />State in FY 15-16, sales tax declined 1.4% in the City. With the passage of Measure HH (0.5% sales <br />tax increase) effective April 1, 2015, the half-cent sales tax added $11 million sales tax revenue in the <br />fiscal year. <br />City operations are also supported by other funds, including enterprise funds. Key enterprise funds <br />include the Water Pollution Control Plant and Shoreline Enterprise Funds. Both of these funds have <br />seen revenues slightly improving over the last year. The Water Pollution Control Plant Enterprise fund <br />was established to account for the City’s sewers, which protect public health and preserve water quality <br />through collection, treatment, and disposal of the community’s wastewater and wastewater solids. <br />Program revenues to this fund in 2016-17 totaled $13.1 million, a 5% increase from the prior year. <br />The Shoreline Enterprise Fund was established in 2002-03 and combined the Marina Enterprise and <br />the Golf Course Enterprise Funds. Program revenues to this fund in 2016-17 totaled $2 million, a 17% <br />increase from the prior year. <br />467