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File Number: 21-350
<br />community and the City organization moving steadily out of the COVID-19 environment. The
<br />proposed budget projects a stable revenue platform and describes a work program and
<br />expenditure plan supporting continued delivery of all regular City programs, services, and planned
<br />projects for the community. The budget also proposes enhancing services in key program areas
<br />related to human services, police oversight, economic development, resiliency, and capital
<br />projects.
<br />Total proposed expenditure budgets for 2021-2022 and 2022-2023 are $199,900,700 and
<br />$208,923,800, with the General Fund contributing over 60% of the total. The proposed budgets
<br />fund a total of 363 full-time positions. The biennial budget continues the long-term fiscal
<br />philosophy of the City Council.
<br />DISCUSSION
<br />The City Manager’s Proposed Budget incorporates the estimated revenues and planned
<br />expenditures for all General Fund, Special Revenue Funds, Enterprise Funds including Internal
<br />Service Funds, and other agency funds. The resources total for all funds in the biennial budget is
<br />$198,941,400 in 2021-2022. Total proposed expenditures amount to $199,900,700.
<br />General Fund
<br />The General Fund finances the operations of the City that have no special or dedicated revenue
<br />sources. The fund pays for the basic operations of the City. Over one-half of the General Fund
<br />revenue is allocated to support public safety activities. Total 2021-2022 and 2022-2023 General
<br />Fund expenditures total $129,956,400 and $135,817,600, respectively. Estimated revenues in
<br />the amount of $123,102,300 and $127,338,400 finance the anticipated expenditures.
<br />General Fund Revenue
<br />In 2021-2022, revenues from taxes, franchises, licenses and permits, fines, fees & forfeitures,
<br />interest & property income, and charges for services are estimated to increase by 6% over
<br />2020-2021. Of the estimated General Fund revenue of $123,102,300 in 2021-2022, 70% is
<br />generated from only three sources: sales tax, property tax, and utility users tax.
<br />·Property Tax - Total property-related tax revenues increase by $793,000 in the proposed
<br />budget compared to the 2020-2021 projected budget. Secured Tax and Redevelopment
<br />Residual Property Tax revenues make up 62% of the City’s annual Property Tax revenue.
<br />Secured Tax revenue amounts to $14,093,000 in 2021-2022, while Redevelopment
<br />Residual Tax amounts to $2,584,000. Property Tax is the City’s second largest revenue
<br />source and represents 22% of total General Fund revenue.
<br />·Sales/Transaction Taxes - Sales/Transaction Tax revenues increase by $4,203,000
<br />compared to the 2020-2021 projected budget. The budget for 2020-2021 reflected
<br />adverse impacts from COVID-19 affecting taxable transactions. The original budget of
<br />$38,986,000 was later increased to $44,438,000 following the mid-year budget review.
<br />Avenue Insights, the City’s sales tax advisor, projects the City will receive $48,641,000 in
<br />2021-2022. This amount includes Measure HH amounts of $13,000,000. The favorable
<br />report on the recovery in taxable transactions is critical as Sales and Transaction Taxes
<br />are the City’s largest revenue sources and makes up 40% of the General Fund revenue.
<br />Page 2 City of San Leandro Printed on 6/23/2021
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