AgdaPkt 2005-01-24 - Laserfiche WebLink

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5 16- 2 General Fund Hiahlights Revenues Total general fund revenues were $65 million, or 0.7%, over FY 2002/03 actual revenues and $2.3 million, or 3.6%, above the amount budgeted for FY 2003/04. The increase over the prior year is primarily attributable to higher property taxes of $1.5 million and increased sales taxes of $0.6 million. The revenue highlights for FY 2003/04 are: . Property taxes (excluding supplemental taxes and prior years taxes) increased 7.6%, or $1.3 million from $17.2 million to $18.5 million primarily due to a one-time refund from the County of San Mateo for over-collected ERAF deductions; . Transient occupancy revenues increased 18.3%, or by $0.3 million from $1.5 million to $1.8 million. This is primarily due to the voter-approved increase in the transient occupancy tax rate from 8% to 10% in December 2003; . Building permt revenues increased 13%, or by $100,000 from $725,000 to $825,000; . 7% increase in utility users' taxes from $7 million to $7.5 million; . Sales taxes increased 4.3%, or $0.6 million from $15.1 million to $15.7 million. The City continues to rely very heavily upon property and sales taxes (exclusive of proposition 172 sales tax revenue) as almost 56% of the general fund revenue is derived from these two sources. Sales taxes provided 24% of general fund revenue while property taxes accounted for 31 % of general fund revenue. Expenditures Total general fund expenditures for FY 2003/04 were $60 million. This was $541,211 (+0.9%) over the amount expended in FY 2002/03. Employee costs continue to represent the highest single source of expenditures accounting for 68.7% of all general fund expenditures. Transfers Each year funds are transferred out of the general fund to support the traffic safety fund. .. For FY 2003/04, $1,010,130 was transferred to the traffic safety fund. Also, an amount equal to the utility users' tax revenue less the Public Finance Authority bond payment is transferred to the capital outlay fund. This transfer amounted to $5.1 million in FY 2003/04. Fund Balance Expenditures and other uses exceeded revenues and other sources by $506,844. In FY 1999/00, the Council adopted a Finance Committee recommendation to maintain this amount between 15% and 20% of estimated revenues. Applying this formula (using FY 2004/05 estimated revenues) leaves approximately $6.2 million in excess fund balance. With the slow recovery from the downturn in the local economy staff recommends that these funds be retained in the general fund to be used to cover the revenue/expenditure gap until our revenues fully recover. 2