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File Number: 21-005 <br />budget. <br />General Fund <br />The General Fund finances the operations of the City having no special or dedicated revenue <br />sources and pays for basic municipal services. Before presenting the 1st quarter financial <br />performance, this report provides the City Council an overview about the FY 2019-20 financial <br />results and significant financial transactions and updates for FY 2020-21. The analysis is helpful <br />in assessing the City’s financial condition and planning for the upcoming mid-year budget review <br />and FY 2021-23 budget development. <br />Summary of (Last) Fiscal Year 2019-20 Financial Results <br />General Fund revenues totaled $117.5 million for the Fiscal Year ended June 30, 2020. <br />Revenues were in line with budget but $1.3 million lower than the prior year actual. The <br />year-over-year decrease was due to the shutdown of economic activities. The decrease was <br />mainly attributed to the decline in sales tax revenue of $1.2 million and in real property transfer tax <br />revenue of $1.6 million, partially offset by the increases in property tax, cannabis tax, and other <br />revenues. Instead of a usual growth, the City’s top revenue source sales tax decreased by 3% <br />from prior year due to the COVID-19 pandemic. <br />General Fund expenditures totaled $113.0 million, or $10.7 million lower than budget. <br />Expenditures were comparable to the prior year actual. Due to the shelter-in-place orders, <br />certain City programs and activities were closed or deferred. Of the $10.7 million unspent <br />budget, approximately $4.4 million will be carried over to Fiscal Year 2020-21 in the forms of <br />carryover requests and rollover of unspent encumbrances. Please refer to the expenditure <br />adjustments section below for details. The savings/unspent budget were primarily from staffing <br />savings of approximately $3.0 million, savings from the Alameda County Fire contract for $1.9 <br />million, and lower than anticipated spending of professional services for $1.9 million. <br />The City achieved positive financial results due to prudent spending and early implementation of <br />strategies to control costs in light of the COVID-19 pandemic. The implementation of soft hiring <br />freeze helped the City achieve additional staffing savings. All city departments achieved savings <br />except for Non-Departmental, which incurred expenditures related to the COVID-10 pandemic. <br />The General Fund surplus for FY 2019-20 is $4.5 million. Of this amount, $3.0 million is not <br />available for spending due to the following reasons: <br />·$1.1 million in unrealized investment gains - the City intends to hold its investments until <br />maturity. Therefore, the gains are not available resources for budget purposes. <br />·$500,000 in one-time licensing fees from the Port of Oakland - this payment is earmarked <br />for non-general fund operations. <br />·$1.4 million in carryover requests for services and programs - this amount represents <br />deferred purchases that will be carried over to FY 2020-21. Please refer to the budget <br />adjustments discussed below. <br />The remaining $1.5 million is available fund balance. The City’s policy for the Prioritization <br />Page 2 City of San Leandro Printed on 1/14/2021 <br />49