Transcript Mid-Year Financial Review 2008

CITY OF MENIFEE, CA
 FY 11-12 General Fund Mid-year Review
 Other Funds Mid-year Review
 National, State and Local economic conditions
 FY 12-13 Budget Planning
GENERAL
FUND
REVENUE TYPE
Property Tax Revenue (Prior Year Secured, Teeter)
AMOUNT
$350,000
Transient Occupancy Tax
35,000
VLF (Prior Year Collection)
53,000
Code Enforcement Fines
Traffic Citations
TOTAL REVENUE ADJUSTMENTS – GENERAL FUND
100,000
25,000
$563,000
$10,000,000
$9,000,000
$8,000,000
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0
Audited FY 08/09
Audited FY 09/10
Audited FY 10/11
Est FY 11/12
Sales Tax
Property Tax
VLF
 Expenditure Reductions:
 VLF Reductions approved by Council in October 2011 still in force.

TOTAL REVENUE REDUCTIONS: $3.9 million
 No additional changes to expenditures recommended
REVENUES:
 Revised estimates – increase of $21,000
 Mid-year Adjustments needed:
 Matching Funds for Safe Routes to School Grant-
$25,196
TRANSFER BALANCE OF TCRF TO GAS TAX FUND:
No new funds-merely an accounting adjustment.
 TCRF program complete-can use balance of
funds if transferred to Gas Tax Fund per State of
California.
 Transfer $377,455 from TCRF to Gas Tax,
 Alternative would be to return funding to State.
REVENUES:
 Revised estimates – increase of $76,000
Fund
Description
Amount
Gas Tax
Increase revenue
$21,000
Gas Tax
Appropriate matching funds for Safe Routes to
School grant
$25,196
Gas Tax
Increase Transfers In (Accounting Adj)
$377,455
Traffic Congestion
Relief Fund (TCRF)
Increase Transfers Out (Accounting Adj.)
Measure “A”
Increase revenue
$377,455
$76,000
 United States unemployment rate is
currently 8.3%, economists predict that the
rate will continue to decline.
 The number of unemployed persons in the
U.S. dropped to 12.8 million in January 2012.
 The Congressional Budget Office (CBO)
predicts a $1.1 trillion budget deficit for
fiscal year 2012. As a share of the nation’s
output (GDP), this shortfall of 7.0% is
nearly 2 percentage points below the 2011
deficit, but still higher than any deficit
between 1947 and 2008.
 Per the State’ Legislative Analyst’s office:
 2011-2012: $4.1 billion deficit
 2012-2013:
$5.1 billion deficit
 Total deficit to be addressed in FY 2012-13 budget
plan = $9.2 billion (per Governor’s office under
current tax scenario)
 Legislative Analyst’s office projects $12.8 billion
deficit.
 The Governor’s plan as analyzed by the State’s
Legislative Analyst’s office and as unveiled in
January, would leave the State with a $1.1 billion
reserve at the end of 2012-13. Consists of three
major components:
 Voters approving the Governor’s tax initiative
 Changes to the Proposition 98 (education funding)
formula
 Significant changes to CalWORKs and Child Care
funding.
 Per State Employment Development Department,
the unemployment rate at 10.9%.
 Economists predict the following:
 Unemployment rate will continue to drop slowly.
 Growth in information; professional, scientific and
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technical services and accommodation and food
services industries will continue to outpace growth in
the State overall.
California’s economy has recently started to outpace
that of the United States in terms of growth.
Home prices have stabilized but should remain flat
through 2012.
California has one of the lowest housing vacancy
rates in the nation, and residential construction
activity should begin to accelerate over the next few
years. Housing is at its most affordable in years.
CA population on the upswing; 1% population
growth in 2012; accelerating to 1.5% growth by 2016.
 Per the State of Caliofrnia Employment Development
Department, the City of Menifee’s unemployment rate
is currently 13.3% as compared to Riverside County’s
rate of 12.5%
 Sales Tax Receipts from 3rd Qtr 2011 are 11.3% higher
which compares with an overall County increase of
10.2% and a 9.1% increase statewide. Categories that
had major increases were: Consumer Goods-13.8% and
Fuel and Service Stations-26.6%. Preliminary
estimates for 12/13 project additional increases.
 These increases reflect the continued efforts of City
staff to focus on economic development in order to
generate revenue to sustain current and future City
services.
 Net taxable assessed values increased 2.569% from
2010/11 to 2011/12 as compared to County drop of 1.2%
in the same period.
 Median Home Sales Price through October 2011=
$175,0000, up from a low of $168,000 in 2009.
 The median home price of an existing single family
detached home in California in July 2011 was $252,000.
 Menifee’s housing prices make it one of the most
affordable in the region.
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Revenue budgets difficult to estimate due to fast
pace of development.
Fate of VLF revenue is unclear.
Need to balance needs of City with economic
realities.
City will need to continue to manage any further
actions by the State.
QUESTIONS?