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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 $1,753,175, primarily due to
<br /> increases in the Property Tax, Sales Tax, Hotel/Motel Tax and Business License Tax
<br /> categories. These increases are attributed to a continued improving housing market and
<br /> increased economic activity throughout the City. Staff is also recommending an
<br /> increase in Transfers Out of $5,000, reflecting a higher subsidy for the Senior
<br /> Transportation Program and a decrease in Transfers In to the General Fund from the
<br /> Callippe Golf Course operations of $20,000, reflecting an increase in Callippe
<br /> maintenance expenses. Increases in expenditures of $856,831 are the net result of
<br /> increases in personnel and non-personnel expenditures.
<br /> As a result of these changes, the 2013/14FY General Fund Contingency will increase
<br /> by $828,344 to $849,895. 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 $13.042 million in reserves in the General Fund.
<br /> Table 1.General Fund Overview
<br /> 2013/14FY
<br /> 2013/14FY Adjustments Midyear General Fund Recommended
<br /> Original Approved by Budget Contingency Midyear
<br /> Budget City Council Adjustments Increase Budget
<br /> Beginning Fund Balance $ 13,041,582 $ - $ - $ $ 13,041,582
<br /> Plus Reenues 92,414,679 145,347 1,753,175 - 94,313,201
<br /> Transfers In 899,954 - (20,000) - 879,954
<br /> Transfers Out 2,458,446 - 5,000 - 2,463,446
<br /> Less Expenditures 90,856,187 188,347 856,831 828,344 92,729,709
<br /> Ending Fund Balance $ 13,041,582 $ (43,000) $ 871,344 $ (828,344) $ 13,041,582
<br /> General Fund Revenues
<br /> Table 2 identifies the recommended revenue adjustments ($1,753,175) based on
<br /> current conditions and economic factors. More detailed information regarding historical
<br /> trends in the major revenue categories can be found in Attachment B. The following is
<br /> a summary of these adjustments:
<br /> Increase
<br /> (Decrease)
<br /> Description Amount
<br /> Property Taxes $1,100,000
<br /> Sales Tax 330,000
<br /> Other Taxes(TOT, Business License) 340,000
<br /> Development Services Fees 98,950
<br /> Other Revenues (115.775)
<br /> Total $ 1,753,175
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