Laserfiche WebLink
File Number: 17-095 <br />due to the timing of payment processing. Renewals are sent in December and processing can <br />be delayed or accelerated depending on staffing levels and the holiday closure. The third <br />quarter will reflect a more comparable analysis. Nevertheless, year-end totals are expected to <br />meet or exceed budgetary estimates and be greater than 2015-16. <br />(5) Franchise Fees (25% of adopted budget compared to 26% in 2015-16) - Franchise <br />Fees are the City’s fifth largest revenue source and are 4% of total general fund revenue <br />estimates. The current year's estimate for Franchise Fees revenue is $44,000 greater than <br />budgeted in 2015-16. Year over year growth of $1,000 or approximately 0% growth means <br />that this is a relatively flat category despite inflationary factors normally affecting Franchise <br />Fees. Franchise Fees are expected to meet estimates and be slightly greater than 2015-16, <br />but will be closely watched. <br />The following details General Fund year over year revenue variances that are equal to or <br />greater than + or - 10% and are presented in the order they are shown on the mid-year <br />financial report: <br />Property Transfer Tax (66% of adopted budget compared to 59% in 2015-16) - Property <br />Transfer tax increased in the first half of the fiscal year by $187,000 or 13% due to an <br />ever-improving housing market in 2016-17, the sales of Trailer Haven, and the former Kraft <br />and Georgia Pacific sites. However, because Property Transfer tax is tied directly to the sale <br />of real property, it is difficult to predict and can vary from year to year. As such, it should not <br />be relied on as a stable source of revenue for ongoing operations. <br />Interest & Property Income (60% of adopted budget compared to 37% in 2015-16) - <br />Interest and Property Income reflects an increase of $281,000 or 64%. This is primarily due to <br />more detailed cash flow analysis prepared by City staff, which allowed for liquid assets that <br />weren’t needed for immediate operations to be placed into accounts that bear greater return <br />than the City’s general checking account. Nevertheless, while bearing higher returns, the <br />investment vehicles used still conform to the City’s investment policy of safety, liquidity, and <br />return. Therefore, the City still has sufficient liquid assets to meet its ongoing operational <br />needs. Interest and Property Income also increased due to an improved Fixed Income <br />investment market the past 6 months as well as higher returns generated by the Local Agency <br />Investment Fund (LAIF). <br />Intergovernmental (25% of adopted budget compared to 84% in 2015-16) - <br />Intergovernmental Revenues decreased in the first half of the fiscal year by $594,000 or 70%. <br />Nevertheless, the timing of these funds is highly unpredictable and is often dependent on <br />when the City’s submits reimbursement requests to granting agencies. As such, City staff still <br />expects budget estimates to be met by year-end and will work to ensure the timely submittal <br />of grant reimbursement requests. <br />Licenses & Permits (46% of adopted budget compared to 54% in 2015-16) - Licenses & <br />Permits decreased in the first half of the fiscal year by $166,000 or 15%. This could be <br />indicative of a softening construction sector, but it must also be weighed in light of tremendous <br />growth in FY 2015-16. City staff still expects budget estimates to be met by year-end and will <br />watch this area closely. <br />Page 3 City of San Leandro Printed on 2/28/2017 <br />178