TITLE
Recommendation to receive and file the Fiscal Year 2010 First Quarter Budget Performance Report. (Citywide)
DISCUSSION
This report provides an update on the City's Fiscal Year 2010 (FY 10) budget and operational performance through December 31, 2009. The report covers a broad spectrum of financial information for all funds and departments with multi-year comparisons, charts and graphs to provide a clear picture of the City's financial situation. While the focus of the financial report is the General Fund, exceptional performance (both positive and negative) in other funds is highlighted where applicable.
Summary
The total Adjusted City Budget for all funds as of December 31, 2009 is $2.9 billion. With 25 percent of the year complete, expenditure performance in all funds is at approximately 16.8 percent year-to-date. The total adjusted General Fund expenditure budget is $384.6 million, with budgeted revenue of $385.3 million. After the first three months of the fiscal year, based on current estimates, overall expenditures are on target but revenues are expected to fall short of budgeted expectations. With 25 percent of the fiscal year complete, approximately 22.3 percent of anticipated General Fund revenue has been collected.
FY 10 General Fund Revenue
While it appears that the economy bottomed out in 2009, the economy still remains weak and the much-awaited financial recovery will be slow and arduous. General Fund revenues are heavily dependent upon those parts of the economy hardest hit by the recession - the real estate market and consumer spending. With respect to Property Tax revenue alone, a three to four percent reduction in receipts is anticipated from FY 09 levels. This is largely attributable to the most recent data issued by the Los Angeles County Assessor's Office indicating that the Assessed Valuations for the City of Long Beach have declined by 2.9 percent. In addition, $10.8 million of the City's property tax revenue is being "borrowed...
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