2009-10 Adopted Budget - City of Hoquiam

General Fund Revenues:The adjacent chart provides a summary forecast of 2009-2010 General Fund revenuesand transfers in.Overall, General Fund revenues and transfers in are forecasted to increase 2.5% overthe 2007-2008 biennium.Beginning cash balance is forecasted at $2,279,456. The beginning cash balance forthis fund increased dramatically in 2005 with the sale of sanitation. However, none ofthese reserves have been used to balance the biennium.Taxes are projected to increase over the biennium, primarily driven by a growth inproperty taxes and utility taxes from the new biodiesel plant. Also, an increase in salestax revenue and business and occupation (B&O) tax revenue contributed to thisincrease.Fines and forfeitures show modest percentage growth, however due to the limited sizeof their revenue streams, nominal revenue growth is not significant.Miscellaneous revenue shows decrease of 0.4% over the previous biennium. Thedecline in interest rates even with the amount of cash on hand is the primary tocontributor to this decrease.Transfers in decline over the biennium due to a large transfer in budgeted for 2008 forsome upgrading of City Hall.Analysis: Overall revenue growth is small but steady and may strengthen over thecoming biennium. This budget continues to maintain a high ongoing cash balance.Additionally, Initiative 747 requires the city to limit property tax levy increases to onepercent per year, unless the voters of the City approve, by a simple majority vote, agreater increase.78