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Department Approval ��. .�: �� Item Description: ��i � REQUEST FOR COUNCIL ACTION Date: 03/29/10 Item No.: Z4/ d City Manager Approval Discussion on Preliminary 2011 Revenue, Tax Levy, and Expenditure Forecast BACKGROUND In an effort to provide information for initial 2011 budget discussions, a preliminary forecast of non- property tax revenues is enclosed. It should be noted that these estimates are based on prior year trends and assumptions on future economic conditions. For purposes of this report, the forecast pertains only to the property tax-supported services in the General and Parks & Recreation Funds. Forecasts for fee-supported programs will be developed later in the budget process based on program participation levels, customer demand for services, and future economic conditions. 20ll Preliminary General Fund Revenue Forecast For budgeting purposes, revenues in the City's General Fund are categorized as follows: .;. .;. .;. .;. .;. .;. .;. Property taxes Licenses & Permits Court Fines Intergovernmental Revenues Charges for Services Interest Earnings Miscellaneous For 2011, it is projected that all non-tax General Fund revenues will total $2,438,000; a decrease of $287,170 from 2010. As a result of this decline, a property tax increase will be needed to maintain current service levels. General Fund programs include; police, fire, street maintenance, elections, legal, engineering, administration and finance, and others. Alternatively, the City could eliminate programs, reduce service levels, or consider alternative revenue sources such as street light utility fees or gas & electric franchise fees. For background purposes, a copy of the Staff inemo dated February 22, 2010 regarding this subject is attached. Additional detail for each revenue category is presented below. Page 1 of 4