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File Number: 21-350 <br />·Utility Users Tax (UUT) - Total UUT revenues increase by $330,000 in the proposed <br />budget compared to the 2020-2021 projected budget. The 2021-2022 budget is <br />estimated at $10,672,000. Natural gas and electric UUT revenues represent about 73% <br />of the total UUT revenues. UUT is not expected to increase significantly in future years due <br />to the use of renewal energy and increased competition in the telecommunication market <br />(e.g., cable TV and wired and wireless telecommunications). <br />·Real Property Transfer Tax (RPTT) - Property Transfer Tax revenues increase by <br />$2,000,000 compared to the 2020-2021 projected budget. Ballot Measure VV was <br />approved by City voters in November 2020. The measure authorizes increasing the <br />Transfer tax rate from $6 per $1,000 in valuation to $11. The projected 2020-2021 budget <br />was increased by $3,200,000 at mid-year and the proposed budget adds an additional <br />increase of $2,000,000 in the first full year of Measure VV funding. RPTT revenues are <br />estimated at $9,000,000. <br />·Business Licenses Tax - Business License Tax revenues decrease by $570,000 <br />compared to the projected 2020-2021 budget. The proposed budget of $5,830,000 <br />primarily arises from the closing of one parking operator business (primarily serving <br />long-term parking at the Oakland International Airport). The business was the significant <br />taxpayer in the parking lot classification arising from Measure OO. <br />General Fund Expenditures <br />Operating expenditures are projected to increase by 8% in 2021-2022 and 5% in 2022-2023. <br />Employee salaries and benefits are the largest line-item expenditures in the General Fund. The <br />Alameda County Fire Department contract services and equipment account for 20% of the <br />General Fund expenditures. <br />General Fund salaries and benefits are estimated at $63,020,600 for 2021-2022. Total <br />personnel costs are expected to be significantly higher than the 2020-2021 projected budget. <br />Impacts of COVID-19 pandemic led to both full-time and part-time positions remaining vacant in <br />the current fiscal year. This extraordinary level of savings is not projected in the proposed budget. <br />Personnel costs represent 48% of the General Fund budget. As a service organization, the City’s <br />core expenditures are personnel related. <br />In May 2021, the City received $9,300,000 in Fiscal Recovery Funds from the U.S. Treasury. This <br />amount represents the first half of the $18,600,000 Federal funding allocated to the City. Based <br />on the guidelines issued by the U.S. Treasury, the City calculated its lost revenues for the period <br />ended December 31, 2020. The amount is estimated at $6,735,000. <br />Consistent with the guidelines, the budget proposes to use the recovered revenues to support <br />government services in fiscal year 2021-2022 covering programs from infrastructure <br />maintenance, human services, library services, recycling program, to park and street <br />maintenance. Please note that funds cannot be used to restore reserves or fund pension <br />liabilities. As the City continues to review the guidelines and develop the expenditure plan, the <br />2021-2023 budget may be amended to incorporate the use of Fiscal Recovery Funds for other <br />important services and programs. <br />Page 3 City of San Leandro Printed on 6/23/2021 <br />13