Balanced Budget Update

General Fund Revenues are currently slightly above (at 66%) the overall estimate at this point of the year, but is due to the timing of Property Tax disbursements - the City receives all of theses funds during the first half of the year. Several revenues to watch since they are significantly below budget as of July 31st, which are indicative of the economy, are: Building Permits (41%); Net Profit Income Taxes (48%); and Interest Earnings (37%).

Overall General Fund Expenditures are still slightly below budget (54%), and are lower than actual expenditures at this point in time in 2007, which means the City is continuing to keep its expenditures in check.

However, the City's greatest challenge currently is its revenues. Attached is an analysis of revenues as of July 31, 2009.

Combined known and projected decreases in Income Taxes, Property Taxes, Local Government Funds, and Interest Earnings has caused the City to project its 2010 General Fund Revenues at slightly above $34.0 million, or the City's 2005 revenue level.

Therefore, the City faces the challenge of expenditure levels for 2010 with revenue levels of five years ago.

For more information regarding the City of Lakewood's Finances, go to: http://www.onelakewood.com/Finance/Default.aspx, or email Jennifer.Pae [AT] lakewoodoh.net for a copy of the actual expenditure report.