Significant Declines Continue in General Fund Revenue

In order to prepare an annual budget, all departments in the City of Antioch are required to submit requests for appropriations to the City Manager by April 1st. In turn, the City Manager must present a proposed budget to City Council for review prior to June 30th, the close of the city’s fiscal year.

At mid-period of the budget cycle, the City Council reviews the budget and makes adjustments as needed, which is why at the January 24th council meeting, members are being presented with the following financial information for the fiscal year ending June 30, 2011.

The report noted the following:

  • The City has experienced significant declines in the General Fund revenue.
  • Property tax revenues decreased 27.5% over two years.
  • Sales tax decreased 6% over 2 years and development fees decreased 8% from prior period.
  • On the positive side, “business type” activities increased the City’s net assets by $7,049,234, mainly attributable to approved water and sewer rates increases that took effect July 1, 2010, as well as savings in personnel costs and contractual services.
  • Therefore, total expenses declined from $90,498,792 in 2010 to $87,506,225 in 2011.
  • Additionally, total long term outstanding debt obligations for governmental activities decreased by $247,980, and total long-term obligations for business type activities decreased by $814,293 during the current fiscal year.
  • The total net increase in the City’s investment in capital assets for the current fiscal year was $3,476,339. Among the significant construction commitments were $2.9 million towards the Marina Launch Ramp and Markley Creek Culvert projects.
  • Overall, the City’s total long term outstanding debt at the end of the fiscal year was $48,992,561. $30,710,000 representing bonds secured solely by specified revenue sources (i.e. revenue bonds), $10,980,498 representing tax allocation bonds and $3,435,545 representing loans payable and $3,866,518 representing leases payable.
  • At the end of fiscal year ending June 30, 2011, the fund balance of Antioch’s General Fund increased by $1,038,047, primarily attributable to higher than projected revenues (primarily motor vehicle in lieu and sales tax) and lower than anticipated expenditures (primarily contractual services).
  • The City appropriated $92,420 of Genal Fund assigned fund balance for spending in the 2011-2012 fiscal year budget.

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