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					Presentation on Budgets:

FY 2007 – Results of Operation       Fiscal Year 2007
FY 2008 – First Quarter Update
     FY 2009 - Preview
                                     Results of Operation




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   FY 07 Results of Operation                         Variance from Budget
• FY 07 was a mixed year with positive and   •   Real Estate Tax           + $0.6 million
  negative budget variances.                 •   Personal Property Tax     + $3.0 million
• The audit is almost complete and is        •   Sales Tax                 - $1.7 million
  scheduled for presentation on December     •   Other Revenues            - $3.9 million
  18th.                                      •   Total Revenues            - $2.0 million
• Based on unaudited results, Fund Balance
  is slightly above the 10% target.          • This represents less than 1% of the
                                               budgeted General Fund Revenues
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  FY 07 Results of Operations                         FY 07 Results of Operation
• Expenditures, encumbrances and                   • The FY 08 Budget anticipated $6.4 million
  reserves were $3.2 million under budget.           of surplus Fund Balance, leaving a net
• Netted against the revenue shortfall of $2         shortfall in FY08 of $5.2 million.
  million yields an increase in Fund Balance       • $5.2 million represents 2.4% of the FY 07
  of $1.2 million.                                   Budget.




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                                                   FY 08
                           • FY 08 began with $5.2 million deficit.
                           • Current projected revenue shortfall of $4.6
Fiscal Year 2008             million, largely due to lower than anticipated:
                              – Sales tax
                              – Recordation fees
First Quarter Update          – Development fees
                           • The revenue shortfall combined with $5.2 million
                             deficit leads to a projection that expenditures will
                             exceed revenues by $9.8 million.

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  How are we addressing this?                                      FY 08 Reductions (cont’d)
• Staff has identified $5.4 million in budget                    – Operating and Capital reductions include:
  reductions.                                                      • Delay of computer equipment and software
                                                                     purchases
  – Personnel
                                                                   • Delay of repair to parking lot, replacement of
     • Commitment to hold positions vacant for all or part           furniture and equipment
       of the year
                                                                   • Elimination or reduction of training and travel
     • Reduction in overtime spending
                                                                   • Reduction in consulting services
                                                                   • Decrease in outsourced plan reviews




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             What’s Next?
• Projections are based only on the first
  quarter of FY 08 and are preliminary.
• Staff will continue to monitor revenues           Fiscal Year 2009
  closely.
• Staff will provide detailed updates at the          The Year Ahead
  January mid-year review and during the
  FY 09 budget process.


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             FY 09 Budget                                               FY 09 Budget
         Preliminary Estimates                                      Preliminary Estimates
• Revenues                                                 • Expenditures
  – We will not be able to rely on prior year fund           – Increase in debt service due to Public Safety
    balance.                                                   Building and anticipated debt issuance ($5
  – Most revenue lines will be flat or show modest             million)
    increases.
                                                             – Full funding of 29 position partially funded for
    • Real estate growth projection – less than 1% - $1
      million                                                  FY 08 ($565,000)
    • Personal Property growth projection – 10% - $2         – Operating costs for Public Safety Building for
      million                                                  full year ($500,000)
    • Sales Tax - we project a 2 - 3% increase over FY
      08 actual but less than FY 08 budget                   – OPEB - County and Schools (up to $6 million)
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 2008 Reassessment              The Reassessment Process
where we stand today…
                             • In reviewing the 3rd quarter sales (July, Aug.
                               Sept.) there continues to be a downward trend in
                               the values of residential property.
                             • We are charged with valuing property at its fair
                               market value as of January 1, 2008.
                             • By law we have until the end of March 2008 to
                               complete the reassessment.
                               – This allows us to analyze sales through the month of
                                 December, ensuring the most accurate assessments.


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    The Assessment Process                                            Calendar of Events
• Trying to estimate the end results of a           November              December                   January (08)
                                                    Presentation to BOS   •Continue to study sales   •Values finalized Mid-
  reassessment is akin to calling a football                              •Make last minute          January
                                                                          adjustments                •Reassessment report for
  game in the third quarter.                                                                         BOS

• What we know:
  – Residential, on average, will be down           February              March                      April
  – Land sales are stable                           •Notices mailed       Hearings completed         •Tax rate set
                                                    •Hearings begin                                  •Treasurer prints bills
  – Commercial market appears strong


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