Budget, Revenues, andCash Position Update

Mayor and Council Study SessionDecember 15, 2009

FY 2010 Potential Problem: Deficit SpendingReason: Global Economy/RecessionImmediate Goals:Solvency and Protection of Bond RatingsSolution: Structural Changes

Overview

•Brief Background of FY 2010 AdoptedGeneral Fund Budget Balancing•Projected FY 2010 Revenues Shortfall•Cash Position Update•Strategic Approach to Balancing FY 2010•FY 2011 Budget Deficit Preliminary Projection

FY 2010 Adopted General FundBudget Balancing

(millions)

One-TimeFixes$29.176%New Revenues$16.624%

$11.4 debt refinancing6.7 Rio Nuevo loan repayment5.7 personnel savings5.3 settlement proceeds$ 14.3 public utility tax1.8 transient rental surcharge0.5 health spa membership

FY 2010 General FundExpenditure Reductions vs. New Revenues

(millions)

Cuts$49.475%NewRevenues$16.625%Cuts$81.385%NewRevenues$13.915%

At Budget Adoption(reflects expenditure reductions fromadopted FY 2009 and “new revenues”)Current Situation(reflects additional cuts requiredand potential “new revenues’drop)

FY 2010 General FundCore and Support Services

SupportServices24%CoreServices76%

Public Safety, Streets,Parks and Recreation