5A Public Hearings 2021 0628 - Laserfiche WebLink

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BUDGET MESSAGE SECTION 2 • Property Tax - Total property-related tax revenues increase by $793,000 in the proposed budget compared to the 2020-21 projected budget. Secured Tax and Redevelopment Residual Property Tax revenues make up 62% of the City’s annual Property Tax revenue. Secured Tax revenue amounts to $14,093,000 in 2021-22, while Redevelopment Residual Tax amounts to $2,584,000. Property Tax is the City’s second largest revenue source and represents 22% of total General Fund revenue. • Sales/Transaction Taxes - Sales/Transaction Tax revenues increase by $4,203,000 compared to the 2020-21 projected budget. The budget for 2020-21 reflected adverse impacts from COVID-19 affecting taxable transactions. The original budget of $38,986,000 was later increased to $44,438,000 following the mid-year budget review. Avenue Insights, the City’s sales tax advisor, projects the City will receive $48,641,000 in 2021-22. This amount includes Measure HH amounts of $13,000,000. The favorable report on the recovery in taxable transactions is critical as Sales and Transaction Taxes are the City’s largest revenue sources and makes up 40% of the General Fund revenue. • Utility Users Tax (UUT) - Total UUT revenues increase by $330,000 in the proposed budget compared to the 2020-21 projected budget. The 2021-22 budget is estimated at $10,672,000. Natural gas and electric UUT revenues represent about 73% of the total UUT revenues. UUT is not expected to increase significantly in future years due to the use of renewal energy and increased competition in the telecommunication market (e.g., cable TV and wired and wireless telecommunications). Property Tax 26,893,500 22% Sales Tax 48,641,000 39% Utility Users Tax 10,672,000 9% Real Property Transfer Tax 9,000,000 7% All Other Revenue 27,895,800 23% General Fund Revenues FY 2021-22 10 43