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File Number: 23-204
<br />$223,799,000, with the General Fund contributing 66% of the total. The proposed budget
<br />authorizes a total of 472 full-time-equivalent positions. The biennial budget continues the
<br />long-term fiscal 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 resource totals for all funds in the biennial budget is
<br />$219,951,000 in 2023-2024. Total proposed expenditures amount to $221,091,000.
<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 2023-2024 and 2024-2025 General
<br />Fund expenditures are $143,337,000 and $146,822,000, respectively. Estimated revenues in
<br />the amount of $137,993,000 and $140,940,000 finance the anticipated expenditures.
<br />·Property Tax - Total property-related tax revenues increase by $1,082,600 in the proposed
<br />budget compared to the 2022-2023 amended budget. Secured Tax and Redevelopment
<br />Residual Property Tax revenues make up 66% of the City’s annual Property Tax revenue.
<br />Secured Tax revenue is $15,287,000 in 2023-2024, while Redevelopment Residual Tax
<br />revenue is $2,972,000. Property Tax is the City’s second largest revenue source and
<br />represents 21% of total General Fund revenue.
<br />·Sales/Transaction Taxes - Sales/Transaction Tax revenues decrease by $147,200
<br />compared to the 2022-2023 amended budget. The original budget of $51,326,000 was later
<br />increased to $55,995,000 following the mid-budget cycle and mid-year budget reviews.
<br />Avenu Insights, the City’s sales tax advisor, projects the City will receive $55,847,600, the
<br />projected budget in 2023-2024. This amount includes Measure HH revenue of $14,770,000.
<br />The favorable report on taxable transactions is critical as Sales and Transaction Taxes are the
<br />City’s largest revenue sources and makes up 40% of the General Fund revenue.
<br />·Utility Users Tax (UUT) - Total UUT revenues decreased by $212,858 in the proposed budget
<br />compared to the 2022-2023 amended budget. The 2023-2024 budget is estimated at
<br />$11,280,700. Natural gas and electric UUT revenues represent 80% of the total UUT
<br />revenues. UUT is not expected to increase significantly in future years due to the use of
<br />renewal energy and increased competition in the telecommunication market (e.g., cable TV
<br />and wired and wireless telecommunications).
<br />·Real Property Transfer Tax (RPTT) - Property Transfer Tax revenues increase by $1,730,000
<br />compared to the 2022-2023 amended budget. Ballot Measure VV, increasing the Property
<br />Transfer tax rate from $6 per $1,000 in valuation to $11, accounts for $4,900,000 of the
<br />projected budget. Total projected RPTT revenues are estimated at $11,000,000. This tax is
<br />highly volatile, relying on the timing of changes in property ownership.
<br />General Fund Expenditures
<br />Page 2 City of San Leandro Printed on 5/10/2023
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