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BACKGROUND
<br /> Pleasanton has a reputation for being one of the most financially stable and fiscally
<br /> responsible cities in California resulting from years of careful financial planning,
<br /> extensive budget oversight and fiscally conservative governance. In an effort to
<br /> maintain this position, staff has regularly monitored expenditures, cautiously forecasted
<br /> revenues and has made recommendations to address changes as quickly as possible in
<br /> order to maintain a balanced Budget.
<br /> DISCUSSION
<br /> General Fund Overview
<br /> It is recommended that revenue estimates be increased by $2,616,207, primarily due to
<br /> upward revisions to the sales tax and development fees categories. Staff is also
<br /> recommending a net increase of $260,000 in transfers out mainly due to lower than
<br /> anticipated revenue at the City's Callippe Preserve Golf Course causing an additional
<br /> subsidy from the General Fund ($330,000). Increases in expenditures of $2,161,208
<br /> are mainly due to increases in retiree healthcare contributions and a higher than
<br /> anticipated level of development activity. As a result of these changes, the 2011/12FY
<br /> General Fund Contingency will increase by $191,499 to $736,118. If these funds remain
<br /> unspent at year end, City Council will approve where these funds will be allocated.
<br /> Overall the City will continue to have a balanced budget with $25.3 million in reserves in
<br /> the General Fund.
<br /> Table 1. General Fund Overview
<br /> 2011I12FY Adjustments General Fund 2011/12FY
<br /> Adopted Approved by Midyear Budget Contingency Recommended
<br /> Budget City Council Adjustments Increase Midyear Budget
<br /> Beginning Fund Balance $ 25,332,533 $ - $ - $ - $ 25,332,533
<br /> Plus Revenues 87,334,465 51,856 2,616,207 - 90,002,528
<br /> Transfers In 37,274 - - 37,274
<br /> Transfers Out 2,895,519 - 260,000 - 3,155,519
<br /> Less E'enditures 84,476,220 55,356 2,161,208 191,499 86,884,283
<br /> Ending Fund Balance $ 25,332,533 $ (3,500) $ 194,999 $ (191,499) $ 25,332,533
<br /> General Fund Revenues
<br /> Table 2 identifies the recommended revenue adjustments based on the current
<br /> conditions and economic factors. More detailed information regarding historical trends in
<br /> major revenues can be found in Attachment B.
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