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Economic factors and next year's budget

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Economic Factors and next year's budget:
The agency board (city council) considers many factors when setting redevelopment project priorities and the budget for the ensuing year. Below are significant factors in considering the agency's budget for the fiscal year 2006-2007.
• 7% or $11 million increase in tax increment for San Jose redevelopment areas, per country assessor's published Annual Tax roll in July 2006.
• New debt of approximately totaled to $75 million is planned to be issued by the agency in fiscal year 2006-2007.
• Vacancy rate for commercial property in Silicon Valley according to Collier International, a commercial/industrial real estate management firm, was approximately 12% as of the quarter ending June 30, 2006. In addition R&D space vacancy rate for the same period was approximately 15%.
• Unemployment rate of 5.0% at July 2006 in San Jose, as reported by California employment development department, a decrease from the 5.8% rate at July 2005. This is slight higher than the state's unemployment rate 4.8% and national average rate of 4.8% for the same period.

The CAFR Budget System (CBS) is a method of combining certain data from the Comprehensive Annual Financial Report (CAFR) with the budget process.
The fund data in the CAFR is first analyzed and arranged in a certain manner so that fund balances for each fund are used in the subsequent year's budget process. ...

Solution Summary

Economic factors and next year's budget are assessed.