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File Number: 16-287 <br />revenue sources and pays for basic municipal services. Currently projected 2015-16 General <br />Fund expenditures total $94.9 million. Expected revenues of $98.9 million, finance the <br />anticipated expenditures; leaving a projected operating surplus of $4.0 million in 2015-16. <br /> <br />Total third quarter year-to-date revenue in 2015-16 amounts to $59.3 million or 62% of the <br />total Adopted Budget (compared to $55.4 million and 66% in 2014-15). Expenditures at the <br />end of the third quarter in 2015-16 amount to $62.9 million or 67% of the budget (compared to <br />$60.7 million 70% in 2014-15). Thus, the City’s overall General Fund expenditure burn rate is <br />in line with the prior fiscal year and expenditures are expected to be under revenues come <br />year-end. Nevertheless, expenditures will continue to be closely monitored throughout the end <br />of the fiscal year. <br />Highlights from third quarter year-to-date activity in the General Fund and other funds are set <br />forth below. The City’s top 5 General Fund revenue sources will be detailed as will significant <br />variances. <br />General Fund Revenue <br />The following details the City’s top 5 General Fund revenue sources: <br />(1) Sales Tax (53% of budget compared to 62% 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 increased by 15% from the same period last <br />year, again largely due to the passage of Measure HH, and staff expects revenues to meet <br />projections by year-end. Year-to-date revenues compared to year-end revenue estimates are <br />low, but that is entirely due to a Sales In-Lieu (“The Triple Flip”) clean up payment of $3.8 <br />million, which is not expected to be received by the City until later in the fiscal year. <br />(2) Property Tax (63% of budget compared to 62% 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 />Based on year-to-date annual growth of 5%, Property Taxes are expected to meet estimates <br />and be greater than 2014-15. <br />(3) Utility Users Tax (67% of budget compared to 67% 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 1% 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 slightly greater than 2014-15. Consumer <br />and business conservation efforts though keep growth minimal. <br />(4) Business License Tax (92% of budget compared to 91% 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. The end of the Third Quarter reflects a year-over-year <br />increase of $120,000 or 3%. Tear-end totals are expected to meet or exceed budgetary <br />Page 2 City of San Leandro Printed on 6/1/2016