On March 4, 2010, I presented the City’s First Quarter Budget & Finance Report, also known as the Three Plus Nine Budget & Finance Report. The report provides a summary of the First Quarter financials and a preliminary outlook for the General Fund in Fiscal Year 2011. The Fiscal Year 2010 Budget is balanced.
General Fund
General Fund revenues are mostly flat for the First Quarter, but slightly favorable due to higher than expected CPS revenues. Sales tax revenues are down by $900,000, while Property tax revenues are on budget. The City saw favorable CPS revenues due to the cold weather in San Antonio during the winter months and higher than anticipated Natural Gas Prices. Overall expenditures are within projected amounts through the First Quarter.
The Three Plus Nine Report also provides a preliminary outlook for the General Fund in FY 2011. This outlook identifies budget challenges we will need to work through during the FY 2011 budget development process. City staff has been evaluating FY 2011 revenue projections since the beginning of FY 2010. Projections are showing a negative outlook with potential declines in Property Tax and Sales Tax revenues ranging from $12.5 Million to $22.3 Million. Looking ahead to FY 2011, uncertainty in the economy in FY 2010 remains a concern for future revenue projections. Budget and Finance staff will continue to monitor and refine projections for the Five Year Financial Forecast to be presented to City Council in late April.
Enterprise & Restricted Funds
The Three Plus Nine Report also provides an overview of the financial condition of the City’s other funds. These funds are not supported by Property Tax revenues. The financial condition of these funds is favorable with a few exceptions. The Planning & Development Services fund and Hotel Occupancy Tax Fund have experienced declining revenues in the First Quarter and are predicted to continue to decline. The Planning & Development Services fund has been impacted by the slowing of residential and commercial permitting activity. Revenues from residential and commercial permitting activity are projected to be $2.1 Million below the FY 2010 planned amount. Cost containment measures have already been enacted including freezing certain vacant positions. The Planning & Development Services Department is meeting or exceeding its performance goals and the cost containment measures are not projected to impact these service levels. Hotel Occupancy Tax collections are projected to be 12% below the FY 2010 Adopted Budget. A deficit reduction strategy has been developed to cope with this decline. Revenues in the Solid Waste Services, Storm Water Operations, and Airport Operating Funds are favorable.
Budget and Finance staff will continue to monitor revenues and expenditures in preparation for the 2nd Quarter Financial Update scheduled for April.
You can visit the City of San Antonio Office of Management and Budget website at http://www.sanantonio.gov/budget/financialreports.asp to view the complete FY 2010 Three Plus Nine Budget and Finance Report.
