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6.C. - Page 23 of 196
<br />declined slightly in FY 2019-20, from $67.6 million to $66.8 million, secured property tax, the largest component
<br />of property tax revenue, increased by $2.5 million, or 6.9 percent, over the previous fiscal year. Development
<br />activity and associated City revenues have also remained stable during the first part of the COVID-19 pandemic,
<br />and interest in commercial and multi -family development in the downtown area remains strong. Budget
<br />projections for secured property taxes in Redwood City in FY 2020-21 call for this revenue source to remain
<br />virtually unchanged from the FY 2019-20 actual amount. Staff is currently working with the City's property tax
<br />consultant to calculate the potential revenue changes associated with Proposition 19. Staff will analyze the
<br />property tax revenue in the Spring of FY 2020-21 to determine if a year-end budget amendment is needed.
<br />$80,000,000
<br />$70,000,000
<br />$60,000,000
<br />$50,000,000
<br />$40,000,000
<br />$30,000,000
<br />$20,000,000
<br />$10,000,000
<br />Property Tax Revenue
<br />(all types)
<br />FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20
<br />Utility Users' Tax
<br />This City collects a voter -approved Utilities User Tax (UUT) on gas, electricity, cable, and telecommunications
<br />services. UUT revenue decreased $100,000, or 1.0 percent, in FY 2019-20 compared to FY 2018-19 ($9.4 million
<br />to $9.3 million), driven by a decrease in demand for wireless and cable services. As more consumers move away
<br />from cable services and toward video streaming services, UUT revenue is expected to continue to decline.
<br />Following the passage of Assembly Bill 1717 in 2014, the City entered into an agreement with the State Board of
<br />Equalization for the collection of our UUT on prepaid wireless services. The City began collecting revenue on
<br />prepaid wireless in January 2016 and will continue until SB 1441 sunsets in 2026. This revenue source amounted
<br />to $56,341 FY 2019-20, which is $31,000, or 35.4 percent less than FY 2018-19. While UUT revenue has
<br />traditionally been dedicated on an annual basis to support the City's capital improvement program, the City has
<br />committed this particular new source of UUT revenue to affordable housing.
<br />$11,000,000
<br />$10,000,000
<br />$9,000,000
<br />$8,000,000
<br />$7,000,000
<br />$6,000,000
<br />$5,000,000
<br />UUT Revenue
<br />FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20
<br />
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