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File #: 13-502    Version: 1 Name: FY 2012-13 Year End Budget Review
Type: Staff Report Status: Filed
In control: City Council
Meeting Date: 10/21/2013 Final action: 10/21/2013
Enactment date: Enactment #:
Title: Staff Report for the 2012-13 Year-End Preliminary Budget Review
Sponsors: David Baum Finance Director
Attachments: 1. Attachment 1 - Tables for Year End Review Staff Report
Title
Staff Report for the 2012-13 Year-End Preliminary Budget Review

Staffreport
SUMMARY AND RECOMMENDATION

This report provides an update on the 2012-13 budget performance for all City funds through June 30, 2013 and unaudited year-end results for the General Fund and the City's other operating funds. This report is for information only, and no action is required.

BACKGROUND

The City Council adopted the 2012-13 budget on June 4, 2012. As reported to the City Council in May 2013, revised revenue and expenditure projections at the third quarter showed a $1.8 million improvement to the original forecast. Unaudited results now indicate a $3.2 million increase to the General Fund undesignated fund balance as compared to the original estimate of a $1.0 million shortfall.

Economic conditions indicate recovery despite 8.9% statewide unemployment. The statewide median single family home price is $441,000, an increase of 28% over the prior year. San Leandro's fiscal conditions have improved over original projections, the City's unemployment rate is 7.4% and the median home price is $400,000, a 32% increase over the prior year according to Trulia.com. Lower mortgage rates have spurred investments in housing. The improving housing market, which represents 63% of the City's tax roll, resulted in a 4.9% increase in assessed value in Fiscal Year 12-13. Lower interest rates have also boosted purchases of large ticket items, such as automobiles and home improvements, which boosted sales tax revenue by 11% in the City.

DISCUSSION

The report provides the City Council with a summary of revenues and expenses through June 30, 2013, including modified year-end projections, with the books closed but prior to the completion of the audited financial statements.

Now that most of the major revenues for the fiscal year have been received and expenditures appropriately charged to last year have been posted, the Finance Department is better able to analy...

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