Laserfiche WebLink
City of Redwood City 6.1.E. - Page 46 <br /> Management's Discussion and Analysis <br /> For the year ended June 30, 2015 <br /> Agency was transferred to a private purpose trust fund for the Successor Agency. At June 30, 2015, the <br /> Successor Agency had tax allocation bonds outstanding in the amount of $41,294,371 including <br /> unamortized premium and accreted interest payable. <br /> ECONOMIC OUTLOOK AND NEXT YEAR'S BUDGET <br /> Redwood City, like many cities, relies heavily upon property taxes and sales taxes to finance general <br /> governmental activities with these two revenues accounting for approximately 40% and 20% of general <br /> fund revenues respectively. In FY 2014-15 the City experienced significant gains in these revenues with <br /> property taxes increasing 6.8% and sales taxes increasing 7.7%. We see the increases in each of these <br /> revenues, both of which are sensitive to consumer confidence, reflecting the strength of the local job <br /> market. Given the continued increase in the number of local residents employed and the low <br /> unemployment rate, we are hopeful that these revenues, along with other revenues that reflect strong <br /> consumer demand, will continue to grow. <br /> The adopted FY 2015-16 general fund budget projects a surplus of $2.5 million, or about 2.3% of <br /> anticipated revenues. A surplus of approximately 1% of revenues is projected in FY 2016-17, due to the <br /> anticipated reduction in Educational Revenue Augmentation Fund refund, a source of property tax <br /> revenue tied to K-14 education funding. This revenue may be further reduced or eliminated in future <br /> years due to the changes in the school funding formulas. In FY 2017-18, contributions to retirement <br /> system are estimated to increase by $.9 million due to changes in the actuarial assumptions and <br /> methodologies used by the California Public Employees Retirement System. City staff is monitoring each <br /> of these factors very closely and is keeping the City Council apprised of significant developments. <br /> CONTACTING THE CITY'S FINANCIAL MANAGEMENT <br /> This Comprehensive Annual Financial Report is intended to provide citizens,taxpayers, investors, and <br /> creditors with a general overview of the City's finances. Questions about this report should be directed <br /> to the Finance Department, at 1017 Middlefield Road, Redwood City, CA 94063. <br /> 17 <br />