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With the rollout of vaccines and the stimulus funds provided by the Federal government, we hope life will begin to return to normal. Fortunately, the economic outlook for San Leandro is expected to be positive in the upcoming biennial period. The budget for 2021-22 and 2022-23 envisions both the community and the City organization moving steadily out of the COVID-19 environment. The proposed budget projects a stable revenue platform and describes a work program and expenditure plan supporting continued delivery of all regular City programs, services, and planned projects for the community. The budget also proposes enhancing services in key program areas related to human services, police oversight, economic development, resiliency, and capital projects. The economic outlook for San Leandro is expected to be positive in the upcoming years. Due to low housing inventory, home prices have remained stable. The median home price is $867,000, unchanged from the prior year 3%. This unemployment rate is a significant improvement since the shutdown of economic activities during the pandemic. The City saw strong growth in sales tax revenue even during the pandemic, growth that continued into 2021-22. Sales tax revenue increased by 10% during 2021-22, with the increase significantly funding needed services and programs. Real property transfer tax revenue increased by $5.4 million in 2021- 22. A portion of the variance stems from the voter approved tax rate increase impacting a full year for the first time. susceptible to economic cycles. Staff continues monitoring revenues closely to evaluate the impact from higher inflation, supply chain shortages, lagging consumer confidence, and other key market conditions. nd supports basic municipal services, such as public safety, human services, library and parks and recreation. Revenue to this critical fund, generated largely from sales and property taxes, has grown to higher levels due to recent voter-approved tax measures. City operations are also supported by other funds, including major and non-major enterprise (proprietary) funds. Major enterprise funds include the Water Pollution Control Plant and Shoreline Enterprise Funds. The Water Pollution Control Plant Enterprise Fund was established to account for that protects public health and preserve water quality through collection, ater. Program revenues to this fund in 2021-22 totaled $16.0 million, little changes from the prior fiscal year. The Shoreline Enterprise Fund was established by combining the Marina and the Golf Course Funds. Program revenues to this fund in 2021-22 totaled $6.3 million, a small decrease from the prior fiscal. While revenue growth is expected to be steady in the short term, the City is mindful of obligations related to unfunded pension and retiree healthcare liabilities, deferred maintenance, and facility and equipment replacement costs. The City continues to implement strategies to control costs and identify viable revenue options. The City is also committed to funding its unfunded pension and other post- employment benefits (OPEB) liabilities. Authorized by the City Council, the City continues to set aside funds in the Prioritization Unfunded Liability Liquidation (PULL) Plan to reduce its unfunded liabilities. In June 2021, the City Council authorized the establishment of a Section 115 Pension Trust to buy down the Ci ility. A $6.5 million contribution was transferred to the vii