Finance Highlights 2010 0518 - Laserfiche WebLink

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Finance Committee General Fund Update May 18, 2010 • Real Property Transfer Tax This revenue source has the capacity to improve in a short period of time. For reference, March collections a year ago totaled $207,000, this year March collections are $211,000. Certainly, this revenue is headed in the right direction, however, staff does not believe that the December target of $2.544 million will be met. Consequently, this revenue forecast is reduced to $2.300 million, a reduction of $244,000. • 911 Fee Again, some good news. Based on the collection pattern through March, this revenue should reach $2.6 million for the year. This level of income will exceed the December forecast by $100,000. • Other Taxes At December, staff was targeting this revenue category to reach $4.3 million. Since that time the annual franchise payments from PG&E for Gas and Electricity have been received and are less than budgeted. In particular the Gas franchise payment is down significantly. Based on this information, staff is reducing the December estimate for Other Taxes from $4.312 million to $4.124 million a reduction of $187,000. • Licenses and Permits This category was targeted to reach $1.961 million in the December Update. It now appears that permits (building, mechanical, electrical and plumbing) are slowing down and will not meet expectations. Accordingly, staff is reducing this revenue category from $1.961 million to $1.5 million, a reduction of $461,000. • Fines/Forfeitures and Penalties This category is being reduced from a December estimate of $1.222 million to $1022 million, a reduction of $200,000. A major contributor to this decline is a slow down of revenue from the Red Light Program. • Intergovernmental This revenue category is being reduced from $1.246 million to $1.146 million, a reduction of $100,000. The key contributor to this reduction is the continued erosion of the Motor Vehicle In-Lieu tax (the portion that comes directly to cities) by the State. In particular, the State is aggressively allocating "operating expenses" to this revenue, thereby reducing further the payments made to cities. • Charges for Current Services This revenue category continues to perform well across a broad range of fees and charges. For example, engineering services, alarm response charges and a range of recreation charges have either exceeded or are close to exceeding the annual target. Based on the collection pattern to date, staff is increasing the target for this revenue category from $2,272 million to $2472 million, an increase of $200,000. Together the reductions noted above indicate an additional revenue shortfall for the General Fund of approximately $1.0 million.