The City of Sonora's
Newsletter
Sonora, California
January, 2012 Vol. 58, Issue 1
Clendenin Bird & Company, LLP (CBC) of Modesto performed the annual audit of the City’s accounting records and recently issued the City of Sonora Annual Financial Report (report) for the year ended June 30, 2011. The report includes the Independent Auditor’s Report and Report on Compliance and on Internal Control over Financial Reporting. These two documents state that in CBC’s opinion, the City’s financial statements present fairly, in all material respects, its financial position and that there are no material weaknesses involving internal control over financial reporting.
The City’s General Fund ended the year with a fund balance of $1,887,905, a decrease of $255,094 from the previous year. Revenues were $2,803 less than budgeted. Expenditures were $12,318 less than budgeted.
Community Development Block Grant revenue in the amount of $264,294 was received to fund loans for low and moderately low income home buyers through the City’s Homebuyer Assistance Loan Program. Four new loans were funded during fiscal year 2011.
The adopted fiscal year 2011 State of California budget required a shift of property tax revenue from all redevelopment agencies in the state to the Supplemental Educational Revenue Augmentation Fund. The Sonora Redevelopment Agency’s share of the total $350 million shift amount was $78,955.
The formation of a Special Sales and Use Tax District (Measure I) increased the sales tax rate within the City limits by ½% effective January 1, 2005. The sales tax increase provided $1,446,812 of revenue in fiscal year 2011. This revenue was used for personnel, wage and benefit costs and equipment purchases in the police, fire and public works departments.
City sales tax revenue for fiscal year 2012 through December is approximately 9% more than the same period for fiscal year 2011. This increase in income is consistent with California’s slow recovery from the nation-wide economic recession and also reflects revenue from the new Lowe’s Home Improvement Store. Sales tax revenue from retail activity generated by the opening of PetSmart, Big Lots and JoAnn will be received in the latter half of the fiscal year. Consumers remain cautious in spending as high unemployment, uncertainty in global financial markets, and a weak housing market continue.
The State of California’s adopted fiscal year 2012 budget includes a plan for dissolving redevelopment agencies and distributing their funds to other local agencies. The California Redevelopment Association challenged the constitutionality of the legislation. The California Supreme Court recently issued its ruling upholding the legislation that dissolves all redevelopment agencies. As a result, all redevelopment agencies, including the Sonora Redevelopment Agency, are required to dissolve as of February 1, 2012 and transfer their assets and liabilities to successor agencies that will wind down the redevelopment agencies’ affairs. Details regarding the dissolution process and the specific financial impacts to the City regarding the distribution of the Sonora Redevelopment Agency’s assets and liabilities to a successor agency have yet to be determined.
December 31, 2011 marks the end of the first half of fiscal year 2012 for the City. A presentation on the status of the City budget at mid-year is planned for the February 6, 2012 City Council Meeting. General Fund revenues will be reviewed and adjusted from the adopted budget if necessary to more closely reflect actual results. Measures to reduce spending, including a hiring freeze on certain currently open positions, the concession of previously negotiated employee cost of living increases, permanent salary reductions, employee contributions to pension costs and employee furloughs have already been implemented. Adjustments to the budget will be made as necessary to insure that actual revenues and expenditures are in line and that existing cash reserves do not fall below acceptable levels.
BUSINESS LICENSE RENEWALS
City of Sonora Business Licenses issued in 2011 expired on December 31, 2011. All 2012 Business License renewals were mailed out during the third week of November. To help City staff process your renewal, please keep in mind the following as you complete the Business License renewal paperwork:
· Completed renewal forms and related fees are due to the City on or before January 1, 2012. If not received (postmarks are not accepted) by February 1, 2012, the renewal becomes delinquent and starts accruing penalties and interest.
· Be sure to sign the application form and return it with your payment. Checks should be made payable to the City of Sonora.
· If you will not be conducting business in 2012, please return your renewal form with “NOT RENEWING” written on it. The form can also be faxed to (209) 532-2738.
If you have questions on the renewal process or forms please contact Tracy or Toni at City Hall, (209) 532-4541.
Karen Stark
Finance Director