|
File Number: 25-105
<br />Redevelopment Residual Property Tax revenues make up 96% of the City’s annual Property Tax
<br />revenue. Based on current trends and a revenue update from the County, property tax is projected
<br />to increase by $660,000 over what was estimated at the time of adoption. This is primarily due to
<br />VLF Swap revenue, which is estimated to be $550,000 greater than currently budgeted. The
<br />second tranche of property tax revenue will be received in April.
<br />Sales Tax - (2024-2025 Amended Budget of $58,045,125, reduced by $4,769,125 or 8% to
<br />$53,276,000) Recent sales tax projections provided by the City’s sales tax consultant forecast a
<br />significant decrease in this key revenue stream. Updated revenue projections will result in a
<br />decrease of $4.8 million over what was projected at the time of adoption. There are several
<br />factors contributing to the significant change in the City’s sales tax revenue projection. At the end
<br />of FY 2023-2024, because of an audit, an adjustment was made to the City’s sales tax that
<br />negatively impacted the total sales tax collected. This adjustment also impacted future revenue
<br />projections. Additionally, personal consumption on taxable goods has continued to decline, while
<br />services have continued to grow. This trend continues to have an impact on sales tax revenue.
<br />
<br />Utility User Tax (UUT) - (2024-2025 Amended Budget of $12,811,300, adjusted by $1,135,267
<br />or 9% to $13,946,567) Based on current trending, UUT is projected to increase by $1.1 million
<br />over what was projected at the time of adoption. This is primarily attributed to UUT related to
<br />electricity consumption.
<br />Franchise Fees - (2024-2025 Amended Budget of $6,492,000, adjusted by $715,000 or 11% to
<br />$7,207,000) Based on current trending, Franchise Fees are projected to increase by $0.7 million
<br />over what was projected at the time of adoption. This is primarily attributed to franchise fees
<br />related to refuse. This estimate also includes a one-time payment of $0.5 million related to the
<br />recent franchise change.
<br />Interest and Property Income - (2024-2025 Amended Budget of $2,969,000, adjusted by
<br />$721,800 or 24% to $3,690,800) The proposed increase is mainly related to interest income as
<br />the City holds more of its assets in higher yielding investments in an elevated interest rate
<br />environment.
<br />Fines, Fees and Forfeitures - (2024-2025 Amended Budget of $539,000, adjusted by
<br />$119,500 or 22% to $658,500). The proposed increase is mostly related to aligning fines already
<br />levied though there is some risk related to if or when fines are actually paid. Also to note, the
<br />revenue budget related to City parking citations has been removed as this revenue is now
<br />recorded in the Parking Fund , which is where the activity occurs.
<br />General Fund Expenditures
<br />Mid-year expenditures were $63,964,000, 39% of the budget of $162,753,845; 50% of the year
<br />has passed. Expenditures by all departments remain less than one-half of their budget
<br />appropriation. Over the past five years, an average of 40% of the annual budget appropriation
<br />has been expended by December 31. Given this, no expenditure adjustments are proposed at
<br />this time.
<br />Enterprise, Internal Service Funds, and Parking Fund
<br />Page 3 City of San Leandro Printed on 9/4/2025
|