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Overview of City Finances
<br /> The current year budget, 2010/11 FY, is the 2nd year of the City's two -year budget. This
<br /> budget was originally adopted in June 2009 and the General Fund operating budget has
<br /> been revised and updated over the past eighteen months in order to maintain a balanced
<br /> General Fund budget. The reduction in General Fund revenues from the adopted
<br /> budget in June 2009 to the Mid -Year total $3,385,231 as shown in the table below.
<br /> Recommended Revised Revenue
<br /> Adopted Budget Budget Estimates
<br /> Revenue Source 2010/11 Amendments MidYear 2010/11
<br /> Property Taxes 49,462,808 (1,065,200) 48,397,608
<br /> Sales Tax 16,827,960 (520,338) 16,307,622
<br /> Hotel /Motel Tax 3,315,000 (415,000) 2,900,000
<br /> Development Services Fees 2,878,473 (834,354) 2,044,119
<br /> Interest Income & Rents 740,335 (480,000) 260,335
<br /> Interfund Revenues 3,566,127 (349,176) 3,216,951
<br /> Other Revenues 12,704,866 278,837 12,983,703
<br /> Total 89,495,569 1 (3,385,231)1 86,110,338
<br /> Property taxes are projected to be approximately $1 million less than originally budgeted
<br /> in June 2009; however, they are only slightly less ($140,000) than the 2009/10FY
<br /> actuals. Sales & Use taxes have decreased the most of all City revenues, from their
<br /> peak in 2006/07FY of almost $22 million to $16.3 million in 2010/11FY. Hotel /Motel tax
<br /> has also declined from its peak in 2007/08FY of $3.4 million to $2.9 million this year.
<br /> Finally, development fees (building permits, planning and inspection fees) have
<br /> decreased from a high of $4 million in 2007/08FY to $2.0 million in the current year.
<br /> The revised revenue estimates along with offsetting adjustments to expenditures and
<br /> transfers to keep the budget in balance were approved by the City Council on March 15,
<br /> 2011 as recommended in the Mid -Year 2010/11FY Budget update. That report is
<br /> attached for your reference. While the primary focus of this report is the City's General
<br /> Fund, which receives revenue from a range of taxes and fees, also addressed are other
<br /> City funds including Special Revenue Funds where revenues are restricted for specific
<br /> purposes and Enterprise Funds, such as sewer and water operations, which receive
<br /> funding primarily from user fees.
<br /> Attached is the 2010/11 Mid -Year Operating Budget update report which summarizes
<br /> various adjustments to revenues and expenditures in order to maintain a balanced
<br /> budget without the use of City's reserves.
<br /> Attachments:
<br /> 1 - PUSD Budget Solutions for 2011 -2012
<br /> 2 - City of Pleasanton 2010/11FY Mid -Year Operating Budget Update
<br /> Page 2 of 2
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