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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 $1,204,442, primarily due to
<br /> upward revisions to the Other Taxes, Development Fees, and Other Revenues
<br /> categories as a result of increased building activity, economic recovery in hotel/motel
<br /> activity and business license fees, increase in recreation revenues and the legal
<br /> settlement with CalTrans. Staff is also recommending an increase in Transfers Out of
<br /> $2,830, reflecting a higher subsidy for the Senior Transportation program. Increases in
<br /> expenditures of $228,513 are the net result of increases in non-personnel expenditures
<br /> partially offset by reductions in personnel expenditures.
<br /> As a result of these changes, the 2012/13FY General Fund Contingency will increase
<br /> by $712,756 to $722,036. If these funds remain unspent at year end, the City Council
<br /> will approve where these funds will be allocated. Overall, the City will continue to have
<br /> a balanced budget with $25.3 million in reserves in the General Fund.
<br /> Table 1. General Fund Overview
<br /> Adjustments General Fund 2012/13FV
<br /> 2012I13FY Approved by Midyear Budget Contingency Recommended
<br /> Midterm Budget_ City Council Adjustments Increase Midyear Budget
<br /> Beginning Fund Balance $ 25,332,533 $ - $ - $ - $ 25,332,533
<br /> Plus Revenues 89,693,904 386,176 1,204,442 - 91,284,522
<br /> Transfers In 37,274 - - - 37,274
<br /> Transfers Out 2,437,632 - 2,830 - 2,440,462
<br /> Less Dpenditures 87,293,546 646,519 228,513 712,756 88,881,334
<br /> Ending Fund Balance_ $ 25,332,533 $ (260,343) $ 973,099 $ (712,756) $ 25,332,533
<br /> General Fund Revenues
<br /> Table 2 identifies the recommended revenue adjustments ($1,204,442) based on the
<br /> current conditions and economic factors. More detailed information regarding historical
<br /> trends in major revenues can be found in Attachment B. The following is a summary of
<br /> these adjustments:
<br /> Description Amount
<br /> Property Taxes $ 83,010
<br /> Sales Tax (446,679)
<br /> Other Taxes 493,918
<br /> Development Services Fees 575,664
<br /> Recreation 202,246
<br /> Miscellaneous Revenues 227,230
<br /> Other Revenues 69,053
<br /> Total $1,204,442
<br /> Page 2 of 6
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