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. � <br /> , <br /> MEMORANDUM <br /> To: Mayor and Council <br /> From: Ron Olson, Finance Director <br /> Subject: Budget Update <br /> Date: October 13, 2009 <br /> The adjusted 3rd quarter financial reports for the General Fund are included with this memo. <br /> They are as of the end of September which represents 75% of the year. The good news is that <br /> expenditures continue to run below budget for the year. Unfortunately, revenues are very likely <br /> to end the year under the budgeted level. <br /> While the overall expenditure budget is at 67.71%, three departments are currently over budget <br /> for the year. Human Services is over budget, but will have no other charges for the year. This <br /> overage is due to a change in the coding for the Sojourner Project. Engineering is currently at <br /> 109% of budget and is estimated to finish the year at 140% of budget. Engineering expenditures <br /> are consistent with the two previous years; however the 2009 budget had been decreased <br /> significantly. The 2010 budget restores the budget to previous levels. Parks is the final budget <br /> that is over for the year. Big Island expenditures and are the major reason for this overage. <br /> Revenues through the 3`d quarter are currently at 69.75% of budget. The continuing slowdown <br /> in building activities make it unlikely that building permit revenue will reach its budgeted levels. <br /> Variances and plan reviews are also closely related to building activities. At 37% of their <br /> budgeted amount, they are also unlikely to reach their budgeted level. The most important <br /> revenue source, representing 62.6% of the General Fund budget, is property taxes. First half <br /> property tax collections were at 49.2% which is consistent with prior years. The collection of <br /> delinquent taxes, penalties, and interest will result in tax collections that are close to 100% of <br /> budget. <br /> Through the third quarter, the year-to-date comparisons to budget indicate that both expenditures <br /> and revenues will be below budgeted levels. At this time, it appears that the shortfall in revenue <br /> will be offset by decreased expenditures. The Finance Department will continue to monitor both <br /> revenues and expenditures in the upcoming months. <br /> I <br /> � <br /> � <br />