City revenues lag behind projections
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Even though revenue expectations for the city’s 2009-10 operating budget were lowered from last year’s budget due to the struggling economy, income is “as much as $450,000” behind projections, according to a mid-year report by Finance Director David Christian.
Sales tax revenue and interest income are below the reduced estimates in the current fiscal year budget, which runs from July 1, 2009, through June 30, 2010, but proceeds from building permits, plan checks and other service charges are higher than expected.
Property tax receipts, the city’s largest revenue source, are expected to exceed 50 per cent of budgeted totals at the mid-year point, once a scheduled repayment of taxes “borrowed” by the state is received, Christian reported.
Property and sales taxes, interest income and building, planning, engineering and recreation fees make up 80 percent of about $27 million in anticipated revenue. The city had $35 million in reserves on July 1, 2009, and plans to have $29.4 million this June 30.
The reserve figure includes loans of $6,015,560 to the city-run Redevelopment Agency, $793,148 to the Black Gold Golf Course and $439,254 for an Esperanza Road berm and wall project, leaving $22,120,175 “available for use” on June 30.
Sales tax revenue was estimated at almost 20 percent lower than last year’s budget and 7 per cent lower than actual receipts. But income for the first half of 2009-10 is “trending at 12 per cent below actual receipts” for 2008-9, Christian reported, adding that the total could run about $550,000 less than budgeted income.
Another revenue drop is on interest earned on about $100 million in the city’s investment portfolio. The city anticipated 13 percent less, but income “is trending at about 25 percent of budget” and “may come in as low as $400,000 below budget,” Christian noted.
And the city planned for 40 percent less revenue from building permits and plan checks, but receipts are exceeding budget by 10 percent and could bring in an extra $500,000, if activity continues at the same pace for six more months. Engineering and recreation fees “will meet or slightly exceed budget,” according to Christian.
Keeping a close eye on expenditures is the City Council’s Finance Committee, which meets twice monthly and includes Mayor John Anderson, Councilman Mark Schwing, City Manager Dave Adams and Christian.
The group was scheduled to look at a lower-cost plan for turf replacement at the city-owned Black Gold Golf Course this week—about $1 million for kikuyugrass instead of $4.8 million and up to $2.7 million in course closing losses using Hybrid Bermuda.
Costs associated with the city’s contract with Best, Best and Krieger for legal services, which totaled $225, 410 for July through November 2009, including a nearly $10,000-per-month retainer, and Brea police overtime bills also are being scrutinized.
Even though revenue expectations for the city’s 2009-10 operating budget were lowered from last year’s budget due to the struggling economy, income is “as much as $450,000” behind projections, according to a mid-year report by Finance Director David Christian.
Sales tax revenue and interest income are below the reduced estimates in the current fiscal year budget, which runs from July 1, 2009, through June 30, 2010, but proceeds from building permits, plan checks and other service charges are higher than expected.
Property tax receipts, the city’s largest revenue source, are expected to exceed 50 per cent of budgeted totals at the mid-year point, once a scheduled repayment of taxes “borrowed” by the state is received, Christian reported.
Property and sales taxes, interest income and building, planning, engineering and recreation fees make up 80 percent of about $27 million in anticipated revenue. The city had $35 million in reserves on July 1, 2009, and plans to have $29.4 million this June 30.
The reserve figure includes loans of $6,015,560 to the city-run Redevelopment Agency, $793,148 to the Black Gold Golf Course and $439,254 for an Esperanza Road berm and wall project, leaving $22,120,175 “available for use” on June 30.
Sales tax revenue was estimated at almost 20 percent lower than last year’s budget and 7 per cent lower than actual receipts. But income for the first half of 2009-10 is “trending at 12 per cent below actual receipts” for 2008-9, Christian reported, adding that the total could run about $550,000 less than budgeted income.
Another revenue drop is on interest earned on about $100 million in the city’s investment portfolio. The city anticipated 13 percent less, but income “is trending at about 25 percent of budget” and “may come in as low as $400,000 below budget,” Christian noted.
And the city planned for 40 percent less revenue from building permits and plan checks, but receipts are exceeding budget by 10 percent and could bring in an extra $500,000, if activity continues at the same pace for six more months. Engineering and recreation fees “will meet or slightly exceed budget,” according to Christian.
Keeping a close eye on expenditures is the City Council’s Finance Committee, which meets twice monthly and includes Mayor John Anderson, Councilman Mark Schwing, City Manager Dave Adams and Christian.
The group was scheduled to look at a lower-cost plan for turf replacement at the city-owned Black Gold Golf Course this week—about $1 million for kikuyugrass instead of $4.8 million and up to $2.7 million in course closing losses using Hybrid Bermuda.
Costs associated with the city’s contract with Best, Best and Krieger for legal services, which totaled $225, 410 for July through November 2009, including a nearly $10,000-per-month retainer, and Brea police overtime bills also are being scrutinized.
posted by Jim Drummond at 12:00 PM
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