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File Number: 16-151 <br />revenue sources and pays for basic municipal services. Projected 2015-16 General Fund <br />expenditures, which are shown as the Adjusted Budget after Council approved amendments, <br />total $96.7 million. Expected revenues of $95.2 million, including $1.5 million contributed from <br />fund balance, finance the anticipated expenditures. <br /> <br />Total mid-year revenue in 2015-16 amounts to $35.1 million or 37% of the total Adopted <br />Budget (compared to 41% in 2014-15). Expenditures at mid-year amount to $41.3 million or <br />44% of the budget (compared to 44% in 2014-15). Thus, the City’s overall General Fund <br />expenditure burn rate is in line with the prior fiscal year and expenditures are expected to stay <br />within budgetary appropriations come year-end. Nevertheless, expenditures will continue to <br />be closely monitored and the third quarter financial report will allow for more accurate <br />year-end projections given increased data. <br /> <br />Highlights from mid-year activity in the General Fund and other funds are set forth below. The <br />City’s top 5 General Fund revenue sources will be detailed as will significant variances in <br /> <br />General Fund Revenue <br />The following details the City’s top 5 General Fund revenue sources: <br /> <br />(1) Sales Tax (30% of budget compared to 41% in 2014-15) - Sales Tax is the City’s <br />largest revenue source and is 42% of total general fund revenue estimates. The current <br />year's budget for Sales Tax revenue is $10.3 million higher than budgeted in 2014-15 due to <br />passage of Measure HH. Overall, Sales Tax decreased by 3% from the same period last <br />year, but this is due to timing of when receipts are recorded and Sales Tax is expected to <br />meet estimates and be well above last year’s total due to Measure HH. <br />(2) Property Tax (49% of budget compared to 47% in 2014-15) - Property Tax is the City’s <br />second largest revenue source and is 20% of total general fund revenue estimates. The <br />current year's budget for Property Tax revenue is $554,000 greater than budgeted in 2014-15. <br />The first secured roll Property Tax payment made by Alameda County was received in <br />December 2015 and resulted in the City receiving $9.2 million compared to $8.7 million in <br />December 2014; a 6% increase. As such, Property Taxes are expected to meet estimates and <br />be greater than 2014-15. <br />(3) Utility Users Tax (41% of budget compared to 40% in 2014-15) - Utility Users Tax is <br />the City’s third largest revenue source and is 11% of total general fund revenue estimates. <br />The current year's budget for utility users tax revenue is $101,000 greater than budgeted in <br />2014-15. Year over year growth of 2% is consistent with a stable economy and utility rates <br />which rise annually in accordance with inflation and the consumer price index (CPI). Utility <br />user taxes are expected to meet estimates and be greater than 2014-15. <br />(4) Business License Tax (10% of budget compared to 10% in 2014-15) - Business <br />License Tax is the City’s fourth largest revenue source and is 5% of total general fund <br />revenue estimates. The current year's budget for Business License Tax revenue is $93,000 <br />greater than budgeted in 2014-15.Mid-Year reflects an increase of $22,000 or 5% due to the <br />timing of payment processing. Renewals are sent in December and processing can be <br />delayed or accelerated depending on staffing levels and the holiday closure. The third quarter <br />will reflect a more comparable analysis, but year-end totals are expected to meet or exceed <br />budgetary estimates and be greater than 2014-15. <br />(5) Franchise Fees (26% of budget compared to 25% in 2014-15) - Franchise Fees are <br />Page 2 City of San Leandro Printed on 3/29/2016