CONTACT: Mike Sedell 
                City Manager 
                (805) 583-6701

The City of Simi Valley has released the latest data on sales tax revenues received from local sales made during the months of April through June 2009. The data, presented by the City’s property and sales tax consultant, The HdL Companies, indicates that sales in Simi Valley were 15.6% lower than the same period a year ago. Countywide and Statewide sales tax losses were 17.9% and 21.2%, respectively.

In preparing the annual budget, City staff works with economic analysts to project anticipated sales tax and other revenues. According to information available at the time of budget preparation, it was estimated that sales tax revenues would be 9% lower in Fiscal Year 2009-10 than in the previous year. Should the trend reflected by the latest data continue, the City could face an unanticipated revenue loss of $2.3 million in its projected $13.7 million sales tax revenue budget. The City’s adopted General Fund expenditure budget is $57.6 million.

City Manager Mike Sedell noted that it is early in the City’s fiscal year to offer firm predictions about the sales tax revenues for the remainder of the year. “Nevertheless,” he stated, “during economic downturns such as the one we are now experiencing, local governments are lagging indicators. Thus, while we are hopeful that the recession has ended and some sectors may begin to experience recovery, we can reasonably predict that City government will continue to face fiscal challenges for the foreseeable future.”

City fiscal staff is carefully monitoring all revenue receipts and expenditure activity within the City. Additionally, Sedell expects to present to the City Council a set of recommended actions in order to maintain a balanced budget.

HdL's quarterly report for Simi Valley is attached for further information.  Please click here for attachment.