TITLE
Recommendation to receive and file the Fiscal Year 2012 Third Quarter Budget Performance Report. (Citywide)
DISCUSSION
This report includes information on the City's Fiscal Year 2012 (FY 12) budget performance through June 30, 2012 for all funds, with particular emphasis on the General Fund.
Summary
The actions initiated by the City Manager at the end of the first quarter to close the projected $11 million General Fund budget gap are working and no further action is proposed at this time.
As of the end of the second quarter, expenditures in all City funds are expected to end the year under budget. General Fund revenue, however, is projected to end the year at about $397 million or 0.9 percent under budget. To close the mid-year shortfall as discussed in the first quarter report, the City Manager directed the implementation of a 1 percent savings target and recommended the use of one-time revenue of $5 million from FY 11, which was reserved at year-end to address potential revenue shortfalls in FY 12. As a result of these actions, it is anticipated that the General Fund will end the fiscal year within budget.
FY 12 - All Funds
There are no significant spending or revenue concerns to report at this time. Please see Attachment A for a complete summary of expenditures by fund. Staff will update the City Council in the year-end budget performance report if any new problems have arisen. All discussion of General Fund changes is included in separate sections below.
FY 12 General Fund Revenue
As reported in the first quarter performance report, the General Fund revenues have declined or grown slower than expected since the budget was adopted. That trend has not reversed itself in the third quarter, but has not worsened either.
In addition to the causes of the revenue shortfall summarized in the second quarter performance report, this report demonstrates additional decline in prior-year property tax revenues, which had been stable until FY 12. Although ...
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