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HomeMy WebLinkAbout2011-05-24 City Council Item No. 17CITY QF i/`W LADE LSIHO DREAM EXTREMEn REPORT TO CITY COUNCIL TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: ROBERT A. BRADY, CITY MANAGER DATE: MAY 24, 2011 SUBJECT: FISCAL YEAR 2010-11 THIRD QUARTER BUDGET REPORT BACKGROUND The City on a quarterly basis reviews the status of the budget. The last budget report presented to the City Council was for the mid-year review, which was presented on March 8, 2011. This report will communicate the status of the budget for the period January 1, 2011 through March 31, 2011. DISCUSSION General Fund Revenue Based on our review and analysis of general fund revenues through the third quarter of fiscal year 2010-11, no adjustments to revenue are recommended at this time. General fund revenue is on track with City revenue projections. The following results were noted in our review of the following major revenue sources: 1. Sales Tax: Based on discussions with our sales tax consultant, the City's sales tax is been up 6.0% for calendar year 2010 vs. calendar year 2009. During that same time period, the State of California has shown a 0.5% increase and the Inland Empire a -4.3% decrease. 2. Building Permit Fee: The revenue received for building permit fees has continued to increase during the third quarter. All other revenue sources also appear to be in line with our current budget and should remain consistent through the end of the fiscal year at June 30, 2011. AGENDA ITEM NO. 17 Page 1 Fiscal Year 2010-11 Third Quarter Budget Report May 24, 2011 Page 2 of 2 General Fund Expenditures Based on our review and analysis of general fund expenditures through the third quarter of fiscal year 2010-11, no adjustments to expenditures are recommended at this time. Departments are within or below their budget targets. The following significant results were noted in our review of the expenditures: 1. Police services rate adjustment: The City was notified in March that the fiscal year 2010-11 hourly patrol rate will be adjusted down from $128.07 to $125.37. This reflects an actual 2.79% increase over the fiscal year 2009-10 rate of $121.97 vs. the budgeted 5% increase. The approximate savings to the City is $175,000. This rate change is subject to approval of the Riverside County Board of Supervisors and will be presented to them on Tuesday, May 24tH 2. Unemployment insurance payment: The third quarter unemployment insurance payment fell from $45,070 in the second quarter to $17,518 in the third quarter, a reduction of $27,552. The number of claimants changed from 13 to 9. In addition, at least two of the claimants on the third quarter payment have acquired new jobs in the fourth quarter. All other expenditures appear to be in line with our current budget and should remain consistent through the end of the fiscal year at June 30, 2011. SPECIAL REVENUE FUNDS AND CAPITAL IMPROVEMENT PLAN (C/P) There are no new recommendations for adjustments to the Special Revenue Funds or additional funding of capital projects in this third quarter report. An updated and detailed CIP will be presented with the fiscal year 2011-12 budget in June 2011. FISCAL IMPACT There is no fiscal impact. RECOMMENDATIONS 1. It is recommended that City Council receive and file this report. Prepared by: James R. Ril Director of Admi a Services Approved by: Robert A. Brady City Manager / Executive Directo Page 2