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File Number: 16-680 <br />The General Fund finances the operations of the City that have no special or dedicated <br />revenue sources and pays for basic municipal services. Projected 2016-17 General Fund <br />expenditures, which are shown as the Adjusted Budget after Council approved amendments, <br />total $100.3 million. Expected revenues of $100.5 million finance the anticipated expenditures. <br /> <br />Total First Quarter revenue in 2016-17 amounts to $8.2 million or 9% of the total Adopted <br />Budget (compared to 10% in 2015-16). Expenditures at end of the First Quarter amount to <br />$18.2 million or 19% of the budget (compared to 22% in 2015-16). Thus, the City’s overall <br />General Fund expenditure burn rate is in line with the prior fiscal year and expenditures are <br />expected to stay within budgetary appropriations come year-end. Nevertheless, expenditures <br />will continue to be closely monitored and subsequent financial reports will allow for more <br />accurate year-end projections given increased data. <br />Highlights from First Quarter activity in the General Fund and other funds are set forth below <br />and in the attachment to this report. The City’s top five General Fund revenue sources will be <br />detailed below. <br /> <br />General Fund Revenue <br />The following details the City’s top five General Fund revenue sources: <br /> <br />(1) Sales Tax (8% of budget compared to 9% in 2015-16) - Sales Tax is the City’s largest <br />revenue source and is 41% of total general fund revenue estimates. The current year's <br />budget for Sales Tax revenue is $288,000 lower than budgeted in 2015-16 due to unwinding <br />of the “Triple Flip” and a large one-time cleanup payment of $3.8 million made in FY 2015-16 <br />that will not continue in FY 2016-17. Overall, Sales Tax decreased by 9% from the same <br />period last year, but this is due to timing of when receipts are recorded and Sales Tax is <br />expected to meet or exceed estimates. <br />(2) Property Tax (3% of budget compared to 2% in 2015-16) - Property Tax is the City’s <br />second largest revenue source and is 21% of total general fund revenue estimates. The <br />current year's budget for Property Tax revenue is $2.3 million greater than budgeted in <br />2015-16. The first secured roll Property Tax payment made by Alameda County will be <br />received in December 2016 and thus, current data is not yet sufficient to project year-end <br />results. Nevertheless, Property Taxes will be monitored closely and are expected to meet <br />estimates and be greater than 2015-16. <br />(3) Utility Users Tax (14% of budget compared to 15% in 2015-16) - Utility Users Tax is <br />the City’s third largest revenue source and is 12% of total general fund revenue estimates. <br />The current year's budget for utility user tax revenue is $1.5 million greater than budgeted in <br />2015-16 due to new UUT revenues now being received from mobile phone providers. Utility <br />User Taxes are 6% less than prior year at same time, but are expected to meet estimates and <br />be greater than 2015-16. <br />(4) Business License Tax (1% of budget compared to 3% in 2015-16) - Business License <br />Tax is the City’s fourth largest revenue source and is 5% of total general fund revenue <br />estimates. The current year's budget for Business License Tax revenue is $511,000 greater <br />than budgeted in 2015-16 due to an improving economy and compliance efforts of City staff. <br />The First Quarter reflects a decrease of $107,000 or 65% due to the timing of payment <br />Page 2 City of San Leandro Printed on 12/13/2016