RES 94042 - Laserfiche WebLink

Honorable Mayor and Members of the Council: BACKGROUND The purpose of this report is to present the status of operating and capital improvement budgets. Actual revenues and expenditures to dan: have been analyzed and compared to budgeted revenues and expenditures, respectively. Taking seasonal variations into account, projections for the next six months were then made to enable staff to update the budget for the entire fiscal year. Furthermore, since staff is in the process of preparing next fiscal year's operating budget and capital improvement program, updating the current year's projections provides a good starting point for projecting next year. OVERVIEW OF SECOND QUARTER 1993-94 Building permit revenue is nmning slightly ahead of staffs initial projections, but most development related revenues are under projections on an annualized basis. The County's last estimates of property tax revenues are slightly less than staffs adjusted projections. Without information about the Christmas quarter yet, it is difficult to know the status of sales tax revenues. The first quarter acmais were down 13%, but staff projected a decrease for that quarter, as explained in more detail below. However, the most recent annualized estimates made by the City's sales tax auditor, indicate that the original sales tax projection may be too high. Staff has been faced with balancing the 1993-94 budget, which reflects the loss of $1.1 million in new property tax revenue shifts thin year, combined with a $1.3 million loss as part of th~ ongoing effect of 1992-93 State budget tax shifts. This challenge continues to be met by filling vacant positions on a case-by-case basis; delaying the purchase of some equipment; sharing resources of both-personnel and equipment between departments; and closely reviewing overtime, temporary and contract personnel, materials and supply expenditures, and drawing on the established Temporary Recession Reserve as planned. DISCUSSION OF GENERAL FUND REVENUES Appendix B (starting on page 37) details all General Fund revenues by line item, comparing original projections with the recommended new projections. Appendix C (starting on page 45) summarizes the revenues by major type. A discussion of major revenues follows below. Property Taxes Property tax revenue projections were reduced by $1.1 million in the First Quarter 1993-94 Financial Report, to reflect additional tax shifts made by the State as a part of its 1993-94 budget. The County provided the City with an updated projection in March of property taxes. As a result of this latest projection, staff is reducing the revenue projections only sligh~y (by $50,000 net). Total property tax revenues are now projected to be $11.8 million. SR 94:100 2