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Since November, the PUSD has been working diligently to identify spending reductions
<br />and revenue enhancements in response to State actions. Attached are communications
<br />providing an overview of the spending reductions approved by the Board of Trustees,
<br />important dates relating to layoffs, and the parcel tax ballot for the June 2, 2009
<br />election. Contact information for the Governor and our legislators is also provided.
<br />Overview of City Finances
<br />The current year budget, FY 2008-09, is the 2"d year of a two-year budget. This budget
<br />was originally adopted in July 2007 and the General Fund operating budget has been
<br />revised twice necessitated by the need to lower revenue estimates and make offsetting
<br />adjustments to expenditures and reserves to keep the General Fund budget in balance.
<br />The total reduction in the original General Fund revenue estimates total $9,409,938 as
<br />shown in the table below.
<br />
<br />
<br />Revenue Source
<br />July 2008
<br />Revision
<br />January 2009
<br />Revision Total FY
<br />2008-09
<br />Revisions
<br />Property Tax (2,280,668) (649,969) (2,930,637)
<br />Sales Tax (776,685) (1,757,688) (2,534,373)
<br />Documentary Transfer Tax (130,000) (150,000) (280,000)
<br />Hotel/Motel Tax 307,643 (600,000) (292,357)
<br />Business License Tax (65,008) (250,000) (315,008)
<br />Development Services Fees (1,326,140) (1,040,252) (2,366,392)
<br />Other Revenues (216,882) (474,289) (691,171)
<br />Total (4,487,740) (4,922,198) (9,409,938)
<br />The most recent changes to the operating budget of $4,922,198 were approved in
<br />January 2009 as recommended in the Mid-Year FY 2008-09 Budget update. That
<br />report is attached for your reference. While the primary focus of this report is the City's
<br />General Fund, which receives revenue from a range of taxes and fees, also addressed
<br />are other City funds including Special Revenue Funds where revenues are restricted for
<br />specific purposes and Enterprise Funds, such as sewer and water operations, which
<br />receive funding primarily from user fees.
<br />Most, if not all, California cities are experiencing a reduction in general revenues that
<br />are reflective of issues in the overall economy and the real estate market. Pleasanton is
<br />not immune to this situation and has experienced revenue reductions that warrant the
<br />aforementioned reductions. Fortunately, the City maintains financial policies that are
<br />effective in controlling the immediate impact of this financial downturn. In general,
<br />these policies allow budget re-balancing actions without causing immediate impacts to
<br />city services. Some examples of these policies include the establishment of specific
<br />reserve accounts for addressing temporary recessions and economic uncertainty,
<br />conservative investment practices and ongoing quarterly financial reviews. Financial
<br />policies also require the maintenance of various replacement renovation funds for future
<br />obligations that provide ongoing replacement of equipment, vehicles, streetlights, traffic
<br />signals and to make major repairs and renovations to buildings, parks and medians to
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