2007-08 2nd Quarter Status Report - City Of Beverly Hills

City of Beverly HillsFY 2007/08 Second Quarter Budget Status ReportGeneral Fund DiscussionRevenuesThis analysis reflects our Second Quarter Budget Status Report for Fiscal Year 2007/08 orroughly 50% of the Fiscal Year. Overall, staff projects $164.9 million in revenues and$163.6 million of expenditures at fiscal year end. The City’s economy still shows growth,while expenditures are being kept within appropriation limits.Beverly Hills’ Property Taxes are typically received in December and April each year fromthe County of Los Angeles. However, to date the City has not received our Property Taxallocation from the County. We have also not received our Sales Tax as regularlyscheduled. Sales Tax revenues are generally received monthly from the State, with the firstpayment occurring in September and the first quarter total Sales Tax revenuereconciliation occurring in December. Staff is currently investigating the shortage of thesetwo tax revenues. This creates a problem with our historical trend analysis model, andstaff is relying on other models to project year end revenues.Beverly Hills’ Business Tax renewals are sent out every December, and we will realize itsrevenue potential starting in the January-February time frame. Transient OccupancyTaxes (TOT) and Licenses and Permits revenues provide the best data for fiscalprojections as these transactions are collected monthly by the City.Concentrating on the four major General Fund revenue sources (Property Tax, Sales Tax,Transient Occupancy Tax, and Business Tax), below is a historical look of second quarterand year-end actual revenues received. We also included the year-end revenueprojections for the current year, as staff recommends an average of 1.3% increase over FY2006/07 year-end actuals.Comparison of the Four Major General Fund RevenuesRevenue in FY 2003/04 FY 2004/05 FY 2005/06 FY 2006/07FY 2007/08Millions $ 2nd Qtr Year-End 2nd Qtr Year-End 2nd Qtr Year-End 2nd Qtr Year-End 2nd Qtr YE ProjProperty Taxes 10.9 23.7 11.3 25.9 12.6 28.7 14.9 32.4 2.4 33.1Sales Tax 7.9 19.9 7.5 23.3 6.4 24.1 6.2 25.9 3.4 26.1TOT 6.1 16.7 7.4 19.3 8.7 22.8 9.4 25.9 13.6 26.1Business Tax 2.5 27.3 2.3 28.2 2.9 31.6 0.7 33.6 0.9 34.0Total $ 27.4 $ 87.6 $ 28.5 $ 96.6 $ 30.6 $ 107.3 $ 31.2 $ 117.8 $ 20.3 $ 119.3Along with the general increase of property values, to pre 2001 levels, the sale of theRobinson/May property at 9400 Wilshire Blvd should lead to an increase in property taxrevenues for the City. Staff is projecting a 2.0% increase in property tax over FY 2006/07actuals. Recent information prepared by MuniServices, the City’s sales tax consultants,IV - 1FY 2007/08 2nd Quarter