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35 Sales Tax Collection Procedures. Collection of the sales and use tax is administered by the California Department of Tax and Fee Administration. According to the California Department of Tax and Fee Administration, it distributes quarterly tax revenues to cities, counties and special districts using the following method: Using the prior year’s like quarterly tax allocation as a starting point, the California Department of Tax and Fee Administration first eliminates nonrecurring transactions such as fund transfers, audit payments and refunds, and then adjusts for growth, in order to establish the estimated base amount. The California Department of Tax and Fee Administration disburses 90% to each local jurisdiction in three monthly installments (advances) prior to the final computation of the quarter’s actual receipts. Ten percent is withheld as a reserve against unexpected occurrences that can affect tax collections (such as earthquakes, fire or other natural disaster) or distributions of revenue such as unusually large refunds or negative fund transfers. The first and second advances each represent 30% of the 90% distribution, while the third advance represents 40%. One advance payment is made each month, and the quarterly reconciliation payment (clean–up) is distributed in conjunction with the first advance for the subsequent quarter. Statements showing total collections, administrative costs, prior advances and the current advance are provided with each quarterly clean–up payment. Under the Sales and Use Tax Law, all sales and use taxes collected by the California Department of Tax and Fee Administration under a contract with any city, city and county, or county are required to be transmitted by the California Department of Tax and Fee Administration to such city, city and county, redevelopment agency, or county periodically as promptly as feasible. These transmittals are required to be made at least twice in each calendar quarter. Under its procedures, the California Department of Tax and Fee Administration projects receipts of the sales and use tax on a quarterly basis and remits an advance of the receipts of the sales and use tax to the City on a monthly basis. The amount of each monthly advance is based upon the California Department of Tax and Fee Administration’s quarterly projection. During the last month of each quarter, the California Department of Tax and Fee Administration adjusts the amount remitted to reflect the actual receipts of the sales and use tax for the previous quarter. The California Department of Tax and Fee Administration receives an administrative fee based on the cost of services provided by the California Department of Tax and Fee Administration to the City in administering the City’s sales tax, which is deducted from revenue generated by the sales and use tax before it is distributed to the City. See “– City Economic and Demographic Information, Taxable Sales” herein for further detail regarding the City’s sales tax receipts. Property Taxes Property taxes represent the second largest source of tax revenue to the City (approximately 24% of general governmental tax revenues in fiscal year 2016-17 and approximately 25% of general governmental tax revenues in fiscal year 2017-18 (based on unaudited figures). The City expects to receive approximately $24 million in property tax revenues in fiscal year 2018-19. Prior to the dissolution of the Former Agency, the City’s property tax revenues included tax increment revenues. Commencing in fiscal year 2012-13, the City’s property tax revenues exclude tax increment revenues.