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File Number: 18-225 <br />The General Fund finances the operations of the City that have no special or dedicated revenue <br />sources and pays for basic municipal services. Projected 2017-18 General Fund expenditures, <br />which are shown as the Adjusted Budget after Council approved amendments, total $117.6 <br />million. Expected revenues of $109 million, along with $8.6 million contributed from fund balance, <br />finance the anticipated expenditures. <br /> <br />Total third quarter revenue in 2017-18 amounts to $69.8 million or 64% of the total Adopted <br />Budget (compared to 64% in 2016-17). Expenditures at the end of the third quarter amount to <br />$72.1 million or 63% of the budget (compared to 72% in 2016-17). The City’s overall General <br />Fund expenditure burn rate is slower than the prior fiscal year and expenditures are expected to <br />stay within budgetary appropriations come year-end. Furthermore, expenditures will continue to <br />be closely monitored throughout the fiscal year. <br /> <br />Highlights from third quarter activity in the General Fund and other funds are set forth below. <br /> <br />General Fund Revenue <br />The City’s top five General Fund revenue sources are detailed below, as will year over year <br />revenue variances that are greater than 15% and $500,000. <br /> <br />(1) Sales Tax (57% of adopted budget compared to 59% in 2016-17) - Sales Tax is the <br />City’s largest revenue source and is 40% of total general fund revenue estimates. The current <br />year's estimate for Sales Tax revenue is $2.5 million greater than budgeted in 2016-17. Overall, <br />Sales Tax increased by $744,000 or 3% from the same period last year. This is due to strong <br />performance within the Construction and Heavy Industry sectors. Sales tax in the current fiscal <br />year is expected to be greater than 2016-17. <br />(2) Property Tax (66% of adopted budget compared to 58% in 2016-17) - Property Tax is <br />the City’s second largest revenue source and is 20% of total general fund revenue estimates. <br />The current year's estimate for Property Tax revenue is $426,000 greater than budgeted in <br />2016-17. Overall, Property Tax increased by $1.9 million or 15% from the same period last year. <br />The large increase is partially due to the Tax Cuts and Jobs Act that limits the deduction of <br />income, sales, and property taxes to $10,000 effective the 2018 tax year. With its passing, many <br />homeowners elected to pay the 2nd installment of their property tax in the 2017 tax year, which <br />was included within the March property tax remittance from the County. <br />(3) Utility Users Tax (59% of adopted budget compared to 60% in 2016-17) - Utility Users <br />Tax is the City’s third largest revenue source and is 11% of total general fund revenue estimates. <br />The current year's estimate for utility users tax revenue is $107,000 greater than budgeted in <br />2016-17. Year over year, utility users tax revenue decreased by $68,000 but is expected to meet <br />or exceed budgetary estimates. <br />(4) Business License Tax (88% of adopted budget compared to 85% in 2016-17) - <br />Business License Tax is the City’s fourth largest revenue source and is 6% of total general fund <br />revenue estimates. The current year's estimate for Business License Tax revenue is $817,000 <br />greater than budgeted in 2016-17. The end of the third quarter reflects an increase of $913,000 <br />Page 2 City of San Leandro Printed on 5/15/2018 <br />37