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1 1 1 vH yNL y City Manager's Budget Message Reorganization of the Public Works and Planning Building Departments into a single department with an emphasis on permit streamlining and better communication and coordination among operating departments and the public. Creation of an Operations Services Department to more effectively manage maintenance activities and provide additional oversight of environmental issues. Zoning Code Update. The City will be moving forward with an update and streamlining of the Commercial and Industrial sections of the Zoning Ordinance to more accurately reflect current business uses and to streamline the process of approving new businesses, thus providing more efficient application of the zoning code and creating a more business friendly process Public Outreach. The City will continue to disseminate information regarding City policies and services to Pleasanton residents and businesses through the use of newsletters, information brochures, the Internet, televised public meetings, and cooperation with the media. Revising the agreement with the current contractor, Lifetime Tennis, who operates the Tennis Center, to include the remaining duties performed by City staff such as cashiering, registration, and custodial services. This action will result in a more cost effective operation and be consistent with the public private partnership model used for the Callippe Preserve Golf Course where all the operational responsibilities are performed by a contractor under a management agreement with the City. IN SUMMARY INTRODUCTION The economic recession has had a significant impact on General Fund revenues. Over the past seven years (2001 -02 through 2007 -08), the City had been experiencing sustained revenue growth (General Fund revenues increased from $71 million in 2002 to over $94 million in 2008), due mainly to an expanding commercial and residential property tax base, expanding retail and business license tax bases, and renewed growth in the hotel tax. During 2008 -09 revenues declined 4.4% and are expected to decline another 2.9% in FY 2009 -10 before they are projected to begin a slow recovery in FY 2010 -11. The City of Pleasanton has only experienced a decline in total General Fund revenues once in the past decade, in 2001 -02. Even during other downturns in 1990's when sales tax and other business and development revenues slowed, General Fund revenue continued to grow due mostly to increasing property tax revenue. For the first time, Pleasanton is experiencing very little growth in assessed values and the impact is evident on property tax revenues. Staff is taking a cautiously optimistic approach to the FY 2010 -11 budget, but each month and each quarter will be closely monitored to react to variances in budgeted revenues to actual revenues. Our General Fund reserves remain intact and the conservative financial contingency planning done in the past year will help us weather any additional unknown wildcard such as further State shifts of local property tax. The FY 2009 -10 and FY 2010 -11 budget includes contributions to the Reserve for Economic Uncertainties that maintain it at 10% of annual revenues, which is consistent with the City's fiscal policies.