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Staff Report —Fiscal Year 2012-13 Mid -Year Budget Review
February 19, 2013
o Committed Fund Balance — amounts that can be used only for the specific purposes
determined by a formal action of the City Council.
o Assigned Fund Balance — amounts that are designated by the City Council not requiring a
formal action (this authority has been delegated to the City Manager).
o Unassigned Fund Balance — the remaining spendable amounts.
The Unassigned fund balance grew approximately $3.6 million to more than $10.7 million,
primarily due to personnel savings and revenues exceeding the totals budgeted; however,
$911,581 of the growth is attributed to funds distributed to the City as a taxing entity from the
true -up payment of the Successor Agency to the Community Development Commission as the
National City Redevelopment Agency ("Successor Agency") and $712,337 to FY 2011-12
encumbrances carried forward. The $911,581 is being held pending outcome of litigation
regarding the legality of the true -up requirement. Adjusting for these amounts, the City's
unassigned fund balance, upon which the Contingency Reserve is based, would be $9.1 million,
24.2% of FY 2012-13 budgeted (General Fund) operating expenditures.
First Half of Fiscal Year 2012-13
Based on year-to-date actual revenues and expenditures and anticipated activities through year-
end, the General Fund is projected to end the year with an increase in fund balance of
approximately $973,700 over that of June 30, 2012. The expected increase results from a
combination of higher than budgeted revenues and expenditure savings, primarily in personnel
compensation.
Revenues
The General Fund's primary sources of revenue are sales and property taxes. The table below
compares revenues from July 1 through December 31 of the current fiscal year to those of the
same period of the prior fiscal year.
Mid -Year Revenue Comparison
Revenue Source
As of 12/31/11
As of 12/31/12
Difference
Sales Tax
$ 3,237,677
$ 3,808,463
$ 570,786
Prop D Tax
3,232,681
3,053,857
(178,824)
Property Tax
700,854
723,853
22,999
Property Tax in Lieu of VLF'
-
-
-
Property Tax in Lieu of Sales Tax'
-
-
-
Other Revenue
3,469,243
2,958,440
(510,803)
Total
$ 10,640,455
$ 10,544,613
$ (95,842)
Revenues are received twice per fiscal year, in January and May.
During the first six months of the current fiscal year, General Fund revenues totalled $10.5
million, only slightly below the same period last year. Sales tax receipts outpaced those for the
same period of the prior fiscal year by $570,786 due to stronger than expected retail sales.