TRANSMITTAL LETTER FOR BOARD MEETING OF MAY 15, 2008
COMMITTEE ON BUDGET AND EMPLOYMENT
Mr. Richard Lanyon, General Superintendent
Title
Report on Budgetary Revenues and Expenditures Through First Quarter, March 31, 2008
Body
Dear Sir:
Attached is a report of revenues and expenditures as of the first quarter ending March 31, 2008 and a projection for year end. This report is prepared on an unaudited budgetary basis of accounting.
The first quarter of 2008 includes revenues from the first real estate tax installment. Expenditures through the first quarter are slightly below normal and expected levels, but are expected to accelerate in the second quarter.
The two primary economic factors driving the District’s revenues are the Consumer Price Index (CPI) and real estate. The CPI has increased 1.7 percent through the first quarter; this is 4.0 percent higher than a year ago. Due to the weakened economy, the CPI is expected to be approximately 3.0 percent for the year.
Commercial real estate development is down from 2007 and the trend is expected to continue through this year. Residential real estate construction began declining in 2007 and the trend is expected to continue through 2008. Overall, the real estate market slump is expected to continue through 2008. Despite the housing slump and slowing economy, levy reductions to meet tax caps under the Property Tax Extension Limitation Law are not expected.
Respectfully Submitted, Eileen McElligott, Administrative Services Manager
EMc:BKS
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