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File Number: 17-095 <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 $101.9 million. Expected revenues of $100.7 million, including $1.2 million contributed <br />from fund balance, finance the anticipated expenditures. <br /> <br />Total mid-year revenue in 2016-17 amounts to $37.3 million or 39% of the total Adopted <br />Budget (compared to 37% in 2015-16). Expenditures at mid-year amount to $42.2 million or <br />44% of the budget (compared to 44% in 2015-16). 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 five General Fund revenue sources will be detailed as will year over year revenue <br />variances that are equal to or greater than + or - 10%. <br /> <br />General Fund Revenue <br />The following details the City’s top five General Fund revenue sources: <br /> <br />(1) Sales Tax (35% of adopted budget compared to 30% in 2015-16) - Sales Tax is the <br />City’s largest revenue source and it comprises 41% of total general fund revenue estimates. <br />The current year's estimate for Sales Tax revenue is $865,000 greater than budgeted in <br />2015-16. Overall, Sales Tax increased by $2.1 million or 18% from the same period last year <br />and this is a clear sign of an improved economy in San Leandro. The City’s commercial, <br />retail, and industrial sectors have rebounded quite nicely since the Great Recession. <br />(2) Property Tax (50% of adopted budget compared to 49% in 2015-16) - Property Tax is <br />the City’s second largest revenue source and is 21% of total general fund revenue estimates. <br />The current year's estimate 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 was <br />received in December 2016 and resulted in the City receiving $5.5 million compared to $5.2 <br />million in December 2015. Overall, Property Tax increased by $539,000 or 6% from the <br />same period last year. Property Taxes are expected to meet estimates and be greater than <br />2015-16. <br />(3) Utility Users Tax (39% of adopted budget compared to 41% in 2015-16) - Utility Users <br />Tax (UUT) is the City’s third largest revenue source and is 12% of total general fund revenue <br />estimates. The current year's estimate for utility users tax revenue is $1.5 million greater than <br />budgeted in 2015-16 due mainly to UUT being charged for the first time to pre-paid cellular <br />phone plans. Nevertheless, year over year growth decreased by $72,000 or 2% and UUT will <br />be watched closely throughout the fiscal year. <br />(4) Business License Tax (11% of adopted budget compared to 10% in 2015-16) - <br />Business License Tax is the City’s fourth largest revenue source and is 5% of total general <br />fund revenue estimates. The current year's estimate for Business License Tax revenue is <br />$511,000 greater than budgeted in 2015-16. Mid-Year reflects an increase of $38,000 or 8% <br />Page 2 City of San Leandro Printed on 2/28/2017 <br />177