5A Consent - Laserfiche WebLink

Home

City of San Leandro Civic Center, 835 E. 14th Street San Leandro, California 94577 www.sanleandro.org The City saw strong growth in sales tax revenue in recent years and during the pandemic. While fiscal year 2022-23 declined by $3.1 million, fiscal year 2023-24 taxes increased by $1.29 million. In all, revenues came in higher than budget, mostly due to an unexpected $10.7 million increase in Intergovernmental Revenue. Sales tax is the City’s top revenue source and is susceptible to economic cycles. Staff continues to monitor revenues closely to evaluate the impact of slower job growth, decreasing personal savings rates, lagging consumer confidence, and other key market conditions. Together with Avenu Insights, the City’s sales tax consultant, City staff also analyze business sectors currently growing in other parts of the Bay Area to assist in targeting economic development efforts. The City’s General Fund supports basic municipal services, such as public safety, human services, library, recreation, and facilities maintenance. Revenue to this critical fund, generated largely from sales and property taxes, has grown to higher levels due to strong business and construction growth. 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 the City’s sewer service, that protects public health and preserves water quality through collection, treatment, and disposal of the community’s wastewater. Program revenues to this fund in 2023-24 totaled $18.7 million, a slight decrease from the prior fiscal year, however the overall fund balance increased due to interest earnings. The Shoreline Enterprise Fund was established by combining the Marina and the Golf Course Funds. Program revenues to this fund in 2023 -24 totaled $5.5 million, a decrease of $1 million from the prior fiscal year. While revenue growth is expected to be steady, 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 postemployment benefits (OPEB) liabilities. Authorized by the City Council, the City continues to set aside funds in the Prioritizat ion Unfunded Liability Liquidation (PULL) Plan to reduce its unfunded liabilities. Long-term Perspective The City adopts a biennial budget employing long -term planning as the framework for fiscal decisions. While San Leandro’s underlying economy is viewed as positive in the long -term, today’s economic challenges, notably in the General Fund and with aging infrastructure, must be dealt with now to ensure long-term fiscal sustainability. Passage of ballot Measure Z in November 2010, Measure HH in 2014, Measures OO, PP, NN in 2016, and Measure VV in 2020 have improved revenues enough to restore and maintain services. The City has also implemented strategies to control costs. City Council unrestricted reserves total $70.3 million in the General Fund on June 30, 2024. The restricted reserves total $29 million. vii