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File Number: 15-608 <br />General Fund Revenue <br />In total, year-end actuals for General Fund revenues indicate a positive variance of $7.2 <br />million over revised revenue projections for FY 2014-15. This is primarily due to the receipt of <br />an additional $3.0 million in sales tax (helped by passage of the Measure HH sales tax <br />add-on), $1.4 million in property transfer tax, and $540,000 in business license taxes. All other <br />revenues show a positive variance of $2.3 million over revised revenue projections for FY <br />2014-15. Please refer to Table 1 in the attachment. <br />Sales Tax (+$2,969,000) Sales tax represents San Leandro’s largest General Fund revenue <br />source. This increase has been led by across the board increases in all sales tax categories <br />with the business to business sector, auto parts / repair, and electronic equipment sales <br />showing the largest increases. Per the last quarterly report (Q1 2015) from the City’s sales <br />tax consultants, San Leandro’s business to business sector increased by 46.9% when <br />compared to the Quarter 1 (Q1) of 2014. Electronic equipment and auto parts / repair rose <br />780.1% and 25.6%, respectively, over the same time period. Measure Z and the newly <br />adopted Measure HH represent $5.7 million of the total sales tax revenue received and will <br />continue for 30 years; ending March 31, 2045. <br />Property Transfer Tax (+$1,401,000) Property Transfer Tax revenue is tied directly to all real <br />property sales. It is a volatile revenue source and difficult to predict more than one year at a <br />time. Factors that affect the revenue generated by Transfer Taxes are the sale price of <br />property and the volume of property sold. Property Transfer Tax showed of positive variance <br />of $1.4 million (56%) over the adjusted budget and increased by $638,000 (20%) over the <br />prior year actuals of $3.3 million. <br />Business License Tax (+$540,000) Business License Tax is heavily influenced by not only <br />the state of the economy, but also the continued diligence of City staff to ensure that all <br />businesses within San Leandro comply with the City’s business license regulations and pay <br />their appropriate share of business license taxes in a timely manner. Total business license <br />taxes collected for FY 2014-15 equal $5.2 million; an increase of $400,000 over FY 2013-14 <br />year-end actuals of $4.8 million. <br /> <br />General Fund Expenditures <br />The 2014-15 Adjusted Expenditure Budget totals $90.4 million and represents a $7.6 million <br />increase over the Adopted Expenditure Budget due to encumbrance carryovers from the prior <br />fiscal year (funded by dedicated fund balance), and one time Council approved items from <br />unanticipated savings at the end of 2013-14. Year-End activity by department is summarized <br />on Table 2 of the attached document. Overall year-end actual expenditures were 5.0% less <br />than the Adjusted Expenditure Budget for FY 2014-15. <br />Summary Expenditures <br />The Non-Departmental budget overage of $1.1 million is due primarily to a $507,000 <br />reclassification of termination payoffs and $800,000 in unrealized Interdepartmental Service <br />Charges and Vacancy Savings in Employees Services. Rising need for services necessitated <br />the quicker filling of vacant positions than originally anticipated when the budget was first <br />Page 2 City of San Leandro Printed on 12/15/2015