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6.C. - Page 3 of 196 Revenues Total General Fund revenues for FY 2019-20 were $165 million. This was $5.4 million, or 3.4 percent more, than the revenue received in FY 2018-19, and $10.7 million, or 6.9 percent more, than the final adjusted budget. The revenue increase this fiscal year compared to last fiscal year is primarily due to an increase in sales tax, use of money and property (investment income), and other revenues (reimbursements and other miscellaneous revenues). Actual revenues were higher than budgeted primarily due to property taxes, sales tax, and use of money and property (investment income) exceeding expectations. Select General Fund revenue highlights include: • Property taxes were less than prior year by $800,000, primarily due to less Educational Revenue Augmentation Fund (ERAF) revenue received in FY 2019-20 ($6.8 million), when compared to FY 2018- 19 ($11 million). This is due to a one-time acceleration of payments in FY 2018-19. Secured property taxes, the largest component of property tax revenue, remained strong; they increased by $2.5 million, or 6.9 percent, over the previous fiscal year, due to growth in assessed property values. • Sales and other taxes increased by $4.4 million, primarily due to an increase of $6.7 million in sales tax revenue, which is primarily attributable to the passage of Measure RR, the half -cent sales tax increase passed by Redwood City voters in November 2018. This increase was partially offset by a decrease in transient occupancy tax (TOT) of $2.6 million, due to a large decrease in occupancy rates that began in April 2020 as a result of pandemic impacts on travel. • Licenses and permits decreased by $1.4 million, primarily due to a decrease in building permit revenue. • Use of money and property increased by $4.7 million, due to a large accounting entry related to the fair value adjustment of investments as of June 30, 2020. • Charges for current services decreased by $700,000, primarily due to a decrease of $1 million in recreation program revenues Other major revenue categories remained stable overall in FY 2019-20, with no material fluctuations. The City continues to rely primarily on property and sales taxes to fund general City operations, as approximately 60 percent of the General Fund revenue is derived from these two sources. Property taxes provided approximately 40 percent of General Fund revenue while sales taxes accounted for approximately 20 percent of General Fund revenue. Expenditures Total General Fund expenditures for FY 2019-20 were $142.4 million. This was $19.7 million, or 16.1 percent more, than the amount expended in FY 2018-19, and $11.2 million, or 17.3 percent less than the final adjusted budget. Expenditures were $11.2 million less than budgeted, primarily due to reductions in programs as a result of COVID-19 and position vacancies in a majority of departments. Unexpected shortfalls in subdivision engineering, redevelopment, COVID-19 emergency rental assistance, financial services, and other administrative support services, were all offset by budget savings in other programs. Expenditures in FY 2019-20 were $19.7 million greater than FY 2018-19, primarily due to the increase of $9.4 million in the City's contribution to the Section 115 pension trust investment account and $3.8 million Page 3 of 6 City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore .A