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<br />xvi <br />Property Tax <br />Property tax accounts for nearly 39.5 percent of total General Fund revenues and is a key indicator of the City’s <br />economic outlook. Overall property tax revenues in FY 2024-25 increased by $2.4 million, or 3.0 percent, over <br />the previous fiscal year (from $80.2 million to $82.7 million), due to continued strength in assessed property <br />valuations. <br /> <br /> <br /> <br />Included in the property tax revenue category is revenue from the Educational Revenue Augmentation Fund <br />(ERAF) and property tax in-lieu of vehicle license fees (VLF), including VLF backfill dollars. These two revenue <br />sources have been especially volatile in recent years as they are susceptible to changes in school funding data, <br />the availability of state funding to backfill any shortfalls, and increasing vulnerability to change in the State <br />methodology for allocating revenues to local governments. This volatility was apparent in FY 2024-25 when the <br />State decided to provide only two-thirds of the VLF backfill dollars that was owed to San Mateo County and its <br />cities. Instead of receiving $5.3 million in VLF backfill dollars, Redwood City only received $3.5 million. City staff <br />is working with the County of San Mateo to monitor both funding categories and meets regularly to review <br />projections. <br /> <br /> <br />7.C. - Page 28 of 269 <br />47