Municipal Analysis:City of Lemon Grove (updated July 2010)

Key Findings -Between fiscal year (FY) 1999 and FY 2010, the City of Lemon Grove experienced eight (8) budget shortfalls. -Sales and use taxes represent the City's largest revenue source as well as its most volatile. -To close the City's FY 2011 General Fund budget gap, the City used $489,000 in reserves, or roughly 28% of total reserves in FY 2010. The City continued to rely on reserves in FY 2010 and for other purposes in FY 2011. -The City recently eliminated employer-paid member contributions for nonsafety employees. Fire employees are not yet contributing to their pensions, but they are in negotiations. If all employees contributed their full share toward pensions in FY 2009, the City would have saved over $230,000 (or nearly 2% of its General Fund operating expenditures). -The City's pension costs have increased 173% between FY 1999 and FY 2009. -In October of 2009, the City consolidated fire management services with the cities of La Mesa and El Cajon. In FY 2010, this provided an estimated savings of $89,400.

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Rosey Williams