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File Number: 21-115 <br />General Fund <br />The General Fund finances the operations of the City having no special or dedicated revenue <br />sources and pays for basic municipal services. The amended FY 2020-21 General Fund budget <br />projects revenues totaling $114,097,000 and expenditures totaling $122,858,000, which includes <br />purchase order encumbrances from FY 2019-20, approved carryovers, and City Council <br />approved budget amendments. <br />Mid-year revenue in FY 2020-2021 totals 36% of the adopted budget, compared to the same <br />36% in FY 2019-20. Expenditures of $45,999,000 at mid-year amount to 37% of the anticipated <br />total, compared to 40% in FY 2019-20. Revenues are generally in line with the prior year, while <br />expenditures are below budget expectations. Both revenues and expenditures will continue to be <br />closely monitored through the remainder of the year. <br />A detailed review of revenue and expenditure variances is presented below. <br />General Fund Revenue <br />·Property Tax - (received 47% of anticipated budget compared to 47% in 2019-20). The Property <br />Tax appropriation was increased by $857,400 in the final budget as approved on June 15, <br />2020. Property Tax is the City’s second largest revenue source and represents about <br />23% of total General Fund revenue. Secured Tax and Redevelopment Residual Property <br />Tax revenues make up 62% of the City’s annual Property Tax revenue. Actual Secured <br />Tax revenue amounts to $6,672,000 in FY 2020-21 to date, $240,000 above the same <br />period in FY 2019-20. Alameda County will distribute the first payment of the <br />Redevelopment Residual Tax in early w2021 ($1,207,000 was recorded in January 2021) <br />and the second payment of Secured Tax will be in April 2021. <br />·Sales/Transaction Taxes - (received 36% of anticipated budget compared to 32% in FY 2019- <br />20). The Sales/Transaction Tax appropriations were decreased by $5,570,000 in the <br />amended budget of June 15, 2020 to reflect the anticipated impacts of COVID -19. <br />Sales/Transaction Tax was budgeted at $6,075,000 below the FY 2019-2020 budget. <br />However, actual revenues are equal to last year at the same time. Avenue Insights, the <br />City’s sales tax advisor, projects the City will receive close to the originally budgeted <br />revenue by year end. This favorable report on the recovery in taxable transactions is <br />critical as Sales and Transaction Taxes are the City’s largest revenue sources and make <br />up 34% of the General Fund revenue. The proposed budget amendment increases <br />appropriations for Sale/Transaction revenues by $5,451,700. <br />·Real Property Transfer Tax - (received 46% of anticipated budget compared to 29% in 2019- <br />20). The Property Transfer Tax appropriation was decreased by $1,164,000 in the budget <br />approved on June 15, 2020 reflecting anticipated impacts related to COVID 19 sales <br />valuations. <br />Ballot measure VV was approved by city voters in November 2020. The measure <br />authorized increasing the real property transfer tax rate from $6 per $1,000 in valuation to <br />$11. This increase in the tax rate is anticipated to generate $4,000,000 in new annual <br />General Fund revenue, and approximately $2,000,000 is expected for the current fiscal <br />year. Actual revenues through December 31, 2020 are $300,000 above the same period <br />Page 2 City of San Leandro Printed on 3/10/2021 <br />88