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Adjustments affecting multiple funds
<br />There are a number of recommended adjustments that flow through multiple
<br />funds. Those adjustments include a reduction in projected interest income,
<br />reduced contributions to the replacement plan, adjustments to inter-fund charges,
<br />and updated personnel cost estimates.
<br />Interest income is recommended to be reduced due to the overall pooled cash
<br />portfolio yield trending lower than originally anticipated. When the budget was
<br />adopted the portfolio yield was 4.8% and it was anticipated that it would fall to
<br />4.5% in the 2008-09 fiscal year. Based on YTD experience, the current yield is
<br />4.1% and the recommendation assumes that rate may fall to an annual average
<br />of 3.4%. Temporary reductions in contributions (accruals) to the replacement
<br />plan are also recommended. The replacement plan has a 20 to 30 year funding
<br />horizon. Accumulated reserves in the replacement plan will remain adequate for
<br />at least the next 10 years and temporary adjustments to the accruals allow for
<br />budget smoothing over time by increasing or decreasing contributions to
<br />reserves in any given year depending on available funding. Personnel cost
<br />adjustments also affect multiple funds and the adjustment to personnel costs
<br />recognizes actual projected salary costs versus original budget, turnover,
<br />reclassifications, reorganizations, and MOU adjustments.
<br />General Fund Adjustments
<br />2008-09 General Fund Revenues are estimated to be $(4,487,738), or 4.47%
<br />below the original budget approved in June 2007. This shortfall is expected to
<br />occur in primarily three revenue sources; property taxes, sales taxes, and
<br />development services fees.
<br />Table 2
<br />Summary of General Fund Revenue Adjustments
<br />General FundAdopted UpdateAdjusted
<br />RevenuesBudgetRequestBudget
<br />
<br />Property Tax51,157,024(2,280,668)48,876,356
<br />
<br />Sales & Use Tax22,448,551(776,685)21,671,866
<br />
<br />4,254,585(1,326,140)2,928,445
<br />rvices Fees
<br />Development Se
<br />
<br />22,456,062(104,245)22,351,817
<br />Other Revenues
<br />
<br />Total 100,316,22295,828,484
<br />)
<br />(4,487,738
<br />Recommended adjustments to General Fund revenues include reducing
<br />estimated property taxes by $(2,280,668), reducing estimated sales taxes by
<br />$(776,685), reducing estimated development services fees by $(1,326,140), and
<br />various other reductions totaling $(104,245). Further details of these revised
<br />estimates are included in Table 3.
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