AgdaPkt 2013-01-28 - Laserfiche WebLink

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ATTACHMENT1 6.1.F. - Page 4 ANALYSIS General Fund Highlights Revenues Budgeted Revenue Actual Revenue Variance -$- Variance -%- $82,368,618 $88,322,799 $5,594,181 6.8% General Fund Revenue Comparison (FY 2010/11 to FY 2011/12) FY 2010/11 FY 2011/12 Actual Revenue Actual Revenue Change -$- Change -%- $84,916,920 $88,322,799 $3,405,879 4.0% The revenue increase this fiscal year is primarily due to an increase in property taxes, sales and other taxes, and fire services, offset by decreases in planning services and other revenues. Some of the general fund revenue highlights are: • Property taxes exceeded budget by $2.5 million primarily due to the receipt of a $3.5 million payment from the County of San Mateo due to the over-deduction of Education Revenue Augmentation Fund amounts from the City in prior years, which exceeded the estimated amount by $1 million and the receipt of the $1.9 million of former tax increment revenue from the dissolved Redevelopment Agency, offset by lower than estimated secured and unsecured property taxes. • Sales and other taxes exceeded budget by $2.6 million mostly due to an unanticipated increase in sales tax revenue ($1.3 million). The positive variance in sales taxes resulted primarily from a $.8 million increase in sales tax revenue from automobile sales and increased gasoline prices and a .2 million increase from restaurants. Transient occupancy taxes were $0.7 million more than budgeted ($3.9 million actual versus $3.2 million budgeted) due to increased occupancy and the voter approved increase in the transient occupancy tax rate from 10% to 12% that took effect on January 1, 2012. Additionally, transient occupancy tax also increased $.9 million over the prior year due to the same foregoing factors. • Fire services revenue increased $1.1 million over the prior year due to the new contract to provide fire management services to the City of San Carlos. • Charges for services exceeded budget by $1.3 million due to developer reimbursed legal fees for the Saltworks and Stanford development project and new unanticipated revenues received from contributions for downtown programs previously funded by the former Redevelopment Agency. However, charges for services revenue declined from the prior fiscal year as the Saltworks project was put on hold. The City continues to rely very heavily upon property and sales taxes (exclusive of proposition 172 sales tax revenue) as over 60% of the general fund revenue is derived from these two sources. Sales taxes provided 19% of general fund revenue while property taxes accounted for 41% of general fund revenue.