Comprehensive Annual Financial Report - City of Santa Monica

CITY OF SANTA MONICA, CALIFORNIA
Management’s Discussion and Analysis, Continued
Year ended June 30, 2009
In preparing the budget for the next fiscal year, many factors were taken into consideration.
The impact on Santa Monica’s economy from the declining housing market and resultant
reduction in consumer confidence.
Revenues from sales tax derived from auto sales and leases have declined in recent quarters and
are expected to decline in the future.
In response to declining occupancy and increased competition in the local luxury room market,
hotels have cut room rates, reducing local transient occupancy tax revenue.
The temporary closure of Santa Monica Place for renovations during FY 2009-10 will also reduce
City tax revenues in the near term.
Anticipated reductions in state subsidies reducing revenue to the capital projects and Big Blue
Bus funds.
CONTACTING THE CITY'S FINANCE DEPARTMENT
This management’s discussion and analysis is designed to provide citizens, taxpayers, customers,
investors and creditors with a general overview of the City's finances and to demonstrate the City's
accountability for the money it receives. If you have questions or need additional financial information,
please contact the City of Santa Monica’s Finance Department at www.smgov.net/finance or at (310)
458-8281.
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