FUND OBJECT CODE BUSINESS UNIT DIVISION ... - Moreno Valley

City’s tax base in many ways: through added property tax, sales tax, business tax,
electricity usage and utility tax.
FY 2011/12 - 2012/13 OPERATING BUDGET EXPENDITURE SUMMARY
Following is a summary of the expenditures included in the FY 2011/12 – 2012/13
Proposed Operating Budget by major fund and component unit:
ECONOMIC OUTLOOK
Fund/Component Unit FY2011/12 FY2012/13
General Fund $76,280,518 $75,791,132
Community Services District (CSD): 17,578,916 17,590,806
Redevelopment Agency 11,815,244 11,834,554
Special Revenue Funds 21,589,865 21,789,658
Capital Projects Funds 245,800 245,800
Enterprise Funds 16,943,624 16,951,973
Internal Service Funds 13,006,976 12,794,907
Debt Service Funds 6,028,540 6,028,540
Transfers Out 23,577,671 10,179,788
Total City Operating Budget $187,067,154 $173,207,158
The Preliminary Base Operating Budget for FY 2011/12 reflects the stability of the early
beginnings of a recovery from the Great Recession, which began in late 2007. Most
major revenue sources have declined since that time, prompting significant staffing
reductions and other expenditure reductions to offset the City’s declining revenues.
Reserves have also been utilized in the past two fiscal years in order to adopt balanced
budgets. However, General Fund revenues have stabilized during FY 2010/11, which
has allowed the City to plan a realistic recovery from the recessionary impacts.
The challenges in the housing sector, the cooling of the manufacturing sector, and the
cutback in consumer spending combined to significantly impact the local economy and
the City’s revenues. The reduction in both residential and commercial property
assessed valuation has had a particularly significant impact on the City’s property tax
revenues. The impacts of the recent recession continue to challenge the City’s
budgeting efforts; however, stability is being seen in most major revenue sources, with
particular improvement in consumer spending and retail sales tax. Concern remains
regarding instability in the real estate markets, median housing prices and the future
impact and direction of assessed property values.
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