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File Number: 21-005 <br />Summary of (Current) Fiscal Year 2020-21 First Quarter Financial Results <br />The amended FY 2020-21 General Fund revenues are projected at $114.1 million and <br />expenditures are projected at $122.2 million, which includes purchase order carryover balances <br />from 2019-20 and City Council approved budget amendments. <br />First quarter revenue of $9.7 million in 2020-21 totals 8% of the amended budget, compared to <br />7% in 2019-20. Expenditures of $14.8 million at the end of first quarter amount to 12% of the <br />anticipated total, compared to 16% in 2019-20. Revenues are in line with the prior year and <br />expenditures are expected to stay within budget appropriations. Due to the COVID-19 <br />pandemic, certain recreation and library programs have not reopened resulting in lower than <br />expected expenditures in the first quarter. Nevertheless, expenditures will continue to be closely <br />monitored throughout the year. <br />A detailed review of revenue and expenditure variances is presented below. <br />General Fund Revenue <br />·Property Tax - (3% of anticipated revenue in the amended budget has been collected, <br />compared to 3% in 2019-20). Property Tax is the City’s second largest revenue source <br />and represents about 23% of the total General Fund revenue. Secured Tax and <br />Redevelopment Residual Property Tax revenues make up 62% of the City’s annual <br />Property Tax revenue. Please note that Property Tax payments from the county are not <br />distributed evenly throughout the year. The significant payments are usually received in the <br />second and fourth quarters. <br />·Sales/Transaction and Use Tax - (10% of anticipated revenue in the amended budget <br />has been collected, compared to 5% in 2019-20). Sales and Transaction and Use Taxes <br />are the City’s largest revenue source and represent about 34% of the total General Fund <br />revenue. Current year budget is $6.1 million lower than prior year budget. As discussed <br />earlier, the impact of the COVID-19 pandemic on sales tax revenues will be re-evaluated <br />as part of the mid-year budget review. Sales tax receipts are $1.5 million higher than prior <br />year’s receipts due to the timing of recording payments; prior year’s July Transaction and <br />Use Tax payment was recorded in the second quarter. Please note that Sales Tax <br />remittances from the State have an approximate two month time lag. <br />·Utility Users Tax - (14% of anticipated revenue in the amended budget has been <br />collected, compared to 12% in 2019-20). Current year budget is $504,000 lower than the <br />prior year budget, but year-to-date revenues are $89,000 higher than the same period last <br />year partly due to the timing of receipts. <br />·Property Transfer Tax - (22% of anticipated revenue in the amended budget has been <br />collected, compared to 5% in 2019-20). First quarter revenue is $589,000 higher than the <br />same period last year due to the increase in revenue and timing of recording the August <br />remittance. The August payment was recorded in the second quarter in the prior year. <br />Property Transfer Tax is volatile depending on transaction volumes and property values. <br />Fluctuations are expected from time to time. <br />·Emergency Communications Access Fee (911) - (0% of anticipated revenue in the <br />amended budget has been collected, compared to 10% in 2019-20). Fees collected for <br />Page 5 City of San Leandro Printed on 1/14/2021 <br />52