AgdaPkt 2016-01-11 Closed and Joint SA PFA

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ATTACHMENT 1 6.1.E. - Page 4 General Fund Revenue Comparison (FY 2013-14 to FY 2014-15) FY 2013-14 FY 2014-15 Actual Revenue Actual Revenue Change -$- Change -%- $105,082,019 $112,221,685 $7,139,666 6.8% The revenue increase this fiscal year is primarily due to an increase in property taxes, sales and other taxes, intergovernmental revenue, and charges for current services. Some of the general fund revenue highlights are: • Property taxes exceeded prior year by $2.8 million primarily due to growth in assessed value, and the receipt of a $5.1 million payment from the County of San Mateo due to the over-deduction of Education Revenue Augmentation Fund (ERAF) amounts from the City in prior years, which exceeded the prior year amount by $0.5 million. • Sales and other taxes exceeded prior year by $1.6 million due to a $1.3 million increase in locally generated sales tax, and $0.3 million additional receipts from the County Pool (use tax not assigned to specific locations). Transient occupancy taxes were $0.8 million more than the prior year due to increased occupancy. Property transfer taxes were $0.7 million more than the prior year due to the sale of properties at Pacific Shores. • Licenses and permits revenue decreased $1.1 million due to the reclassification of current fiscal year receipts to unearned revenue for amounts to be recognized in the future periods when the associated expenditures will be incurred for construction review. Year-to-year comparisons of revenue from licenses and permits will be more meaningful going forward as this adjustment in the timing for recognizing revenue continues. • Charges for services increased $1.2 million over the prior year primarily due to an increase in fees collected for fire services provided to the City of San Carlos and increased recreational program revenue. The City continues to rely very heavily upon property and sales taxes (exclusive of proposition 172 sales tax revenue) as over 59% of the general fund revenue is derived from these two sources. Sales taxes provided 19.9% of general fund revenue while property taxes accounted for 39.7% of general fund revenue. Utility Users' Tax/Communication Users' Tax Revenues Pursuant to section 32.621 of the City's municipal code, the following information must be conveyed to the City Council: Of the total $9.34 million utility users' tax revenue, $3.78 million was communication users' tax. By Council direction utility users' tax is used to pay debt service ($0.7 million) on a Public Financing Authority lease, with the remaining balance transferred to the capital outlay fund for the City's general capital improvement program. In FY 2014-15 there were no exemptions granted for the communication users' tax. Page 2 of 7