CCMIN010411 - Laserfiche WebLink

2009. Therefore, the City will more than likely receive more than it is budgeting in sales tax, which will be reviewed mid -year. Hotel /Motel Tax: In FY 2009/10, the City received $2.7 million. Budgeted for FY 2010/11 is $2.5 million. For the first quarter, revenues were received in October which was slightly higher than October 2009, and staff will bring this forward mid -year for Council review. Business License Tax: In FY 2009/10, $2.6 million was received, and the same amount budgeted for FY 2010/11. The City receives a majority of its revenues in January during renewal and staff will review this more closely mid -year for any warranted increases. General Fund Expenditures: To date, 19.1% of the budgeted expenditures had been incurred which compares to 25 %. Therefore, the City is well within its General Fund budget, and any adjustments can be made mid -year. Water Operating Fund: 6.2% of revenues have been received to date, as there is a timing issue with utility funds. August/September revenues were May /June /July billings and funds are accrued back to the prior year. Regarding expenditures, 14.3% of budgeted expenditures have been incurred, which is well within budget. Zone 7 costs are also billed in arrears, and this is the reason they are below what is actual in the first quarter. Sewer Operating Fund: Revenues to date are 13.6 %, and similarly, they bill in arrears. Expenditures are well within the budget, but a large cost is the DSRSD transfer or pass- through of regional sewer treatment fees. There tends to be a lag when revenues are received while expenditures are incurred, and this is the reason the expenditures are somewhat understated. Golf Operating Fund: Revenues in the first quarter were 31% of the budget, or $1.3 million, as compared to 25% which is positive. However, a golf course is seasonal and more revenues are received July through September versus January to April. For FY 2009/10, $1.29 million was received or as compared in FY 2010/11, 1.4% higher. Rounds of golf are comparable to 2009/10 and there were 19,751, or 30.8% of what is budgeted. Next Steps: Staff will return at the first meeting in February with FY 2009/10 California Annual Financial Report (CAFR) for Council acceptance, and at the second meeting in February for the FY 2010/11 mid -year budget update for adoption. In the March /April timeframe, staff will begin discussions with the Finance Committee, preparing five -year forecasts, have been preparing organizational assessments and plans for pension reform to be shared with the hopes of bringing this forward in public workshops. In the May /June timeframe, discussion, review and adoption of the two -year budget for the FY 2011/12 time period. Councilmember McGovern cited positive results of sales tax from $15.4 to $16.2 million. However, sales tax over the last 9 years has actually gone from a record high of $21.7 million to $16.2 million. Ms. Wagner indicated that in 2001 when 9/11 occurred, it did not take long to recover after the incident. However, staff anticipates a longer period of time to recover sales tax and is forecasting conservatively. The majority of loss has been in automobile sales and staff believes it will take 5 -7 years to get back to those levels. Staff will work with the Finance Committee to forecast assumptions. Councilmember Cook- Kallio cited the City's conservative budgetary measures and careful work for many years, and acknowledged staff's leadership. City Council Minutes Page 14 of 15 January 4, 2011