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First Quarter Financial Update

First Quarter Financial Update. December 2, 2008. General Fund - Overview Revenue & Appropriations. Revenue is tracking at 13.1% of the original estimates (vs. 16.9% @ 9/30/07) Expenditures are tracking at 23.9% of the original estimates (vs. 26.4% @ 9/30/07).

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First Quarter Financial Update

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  1. First Quarter Financial Update December 2, 2008 City of Glendale - Finance Department

  2. General Fund - OverviewRevenue & Appropriations • Revenue is tracking at 13.1% of the original estimates (vs. 16.9% @ 9/30/07) • Expenditures are tracking at 23.9% of the original estimates (vs. 26.4% @ 9/30/07) City of Glendale - Finance Department

  3. General Fund - Overview2008-09 Budget Balancing Recap Surplus/ RevenuesExpenditures (Shortfall) Submitted Budget $164,569,000 $174,537,206 ($9,968,206) Revised Revenues 2,073,372 2,073,372 Department Reductions (5,905,327) 5,905,327 Other Vacancy Reductions (754,041) 754,041 Changes in Transfers 1,517,000 (650,000) 2,167,000 Citywide Reductions (432,000) 432,000 Unavoidable Expenses 1,316,041(1,316,041) Adopted Budget $168,159,372 $168,111,879 $ 47,493 City of Glendale - Finance Department

  4. General Fund - OverviewRevenue & Appropriations • Revised Revenue Projections: • Sales Tax $(3,032,000) • Occupancy Tax (100,000) • Other Taxes (300,000) • Licenses & Permits (1,620,000) • Motor Vehicle in Lieu (600,000) • Charges for Services (1,249,755) • Intergovernmental Revenues (25,000) • Fines & Forfeitures (340,000) • Use of Money & Property (868,444) $(8,135,199) City of Glendale - Finance Department

  5. General Fund - OverviewRevenue & Appropriations • For some major revenue sources, additional time and data are needed in order to draw conclusions • First property tax payment due late December • Holiday sales tax revenue results will be known in April 2009 • For the last two fiscal years, holiday sales in the 4th quarter represent 32% of annual retail sales City of Glendale - Finance Department

  6. General Fund - OverviewRevenue & Appropriations • General Fund departmentalexpenditures are 23.9% for the first 3 months • Fire Department expenditures are at 26.8% due to costs incurred for brush fire strike teams; costs to be reimbursed • Appropriation request of $20,000 to purchase office trailer, that will be reimbursed by GUSD. This will result in net savings due to termination of rental payments City of Glendale - Finance Department

  7. General Fund BudgetFY 2008-09 Adopted General Fund Revenues $168,159,372 LESS: Sum of Revised Revenue Projections (8,135,199) Revised General Fund Revenues $160,024,173 ADD: Proposed 1st Quarter Adjustment 20,000 Adjusted General Fund Revenues $160,044,173 Study Session in early January to discuss budget balancing strategies. City of Glendale - Finance Department

  8. Highlights ofAdjustments to other funds • Special Revenue Funds • $322,100 for Police Redflex contract for red light traffic enforcement; revenue offset • Various Police and Fire grant clean-up; revenue increase of $957,401, and decrease in appropriations of $1,306,139 • Capital Improvement Fund • $20,673 for Police vehicle mounted video system • Transfer of $98,000 to reimburse software replacement fund for CSI Fire project City of Glendale - Finance Department

  9. Highlights ofAdjustments to other funds • Enterprise Funds • Appropriation of $690,000 in the Sewer Fund for the contract increase with the Hyperion Amalgamated Sewer System • Internal Service Funds • $87,759 reduction in appropriation for fire equipment lease. • Transfer in of $98,000 software fund for CSI Fire Project City of Glendale - Finance Department

  10. PERS Rates • PERS rates slightly decreased for next year • The 15 year rate stabilization plan has effectively limited uncertainty • PERS investment losses in the stock market could translate (worst case scenario) to a 2-4% increase in rates beyond FY 2009-10 Actual FY Actual FY 2008-092009-10 Safety 3% @ 50 24.252% 24.000% Misc. 2.5% @ 55 11.681% 11.519% City of Glendale - Finance Department

  11. EconomicOutlook • State of California Budget Crisis • Sub-prime Mortgage Collapse • Credit/Banking Crunch • Stock Market Slide • Low consumer confidence • Unemployment Increasing • From 5.4% in October2007 to 8.0% October 2008 City of Glendale - Finance Department

  12. Economic Outlook California budget crisis continues…. Governor called for special session $11.2 billion budget deficit caused by revenue drop $16+ billion budget gap projected for 2009/10 Additional Impact to Glendale unknown 12 City of Glendale - Finance Department

  13. Glendale's Fiscal Position Glendale’s Fiscal Condition relative to Others 2nd Qtr Sales Tax down 0.1% vs. County Avg. (2.6%) Stable property tax base 4% increase in Assessed Valuation Less than 1% in foreclosure Broad retail base; addition of Americana, but loss of Mervyns and others Reduction in construction related revenues 13 City of Glendale - Finance Department

  14. Next Steps….. Continue efforts in the following areas: Closely follow the economy and impacts to Glendale Control spending; evaluate and implement cost reduction strategies Continue to develop and propose new revenue sources Monitor State proposals that have impacts on Glendale; be prepared to address through various means 14 City of Glendale - Finance Department

  15. Recommendations Present alternative budget balancing strategies to Council in a study session in early January 2009 Report to the City Council on Mid-Year Budget Conditions in February Council accept the 1st Qtr financial report and approve the adjustments as proposed 15 City of Glendale - Finance Department

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