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- . E ,- the 1" and 2nd, and the 3"' and 4th quarters can be 300%." Everett said this category was extremely difficult to project, but was being monitored carefully. - In answer to Council questions, Finance Director Ponty said large fluctuations in sales can happen quickly, and businesses can move their sales offices easily. He added that businesses are guarded in providing specific sales projections. In response to Council questions, he advised that cities receive 1 % of sales taxes collected. Councilman Claire described the situation with Computer Attic where sales activity happens in Redwood City, but since the billing takes place in Menlo Park the 1% of sales tax is returned to Menlo Park. Councilman Claire asked that staff provide a list of the largest contributors of sales tax to Redwood City. MEMO 2/8/97 In response to Council questions, Finance Director Ponty said the City will receive the 4th quarter sales tax report the end of March or beginning of April. He added that the state legislature enacted a bill effective January 1, 1996 that now returns sales tax on leased cars to cities on a per quarter basis. City Manager Everett advised that the City has a consultant ITom one of the top companies in the country, that reviews and audits sales tax. Everett said the consultant has advised that "this is one of the most sophisticated models he has seen cities - using.... I want to give Brian (ponty) kudos for coming up with this." The second overhead showed Property Tax Estimation Methodology. Finance Director Ponty said property tax accounts for approximately 25% of General Fund revenue. He described how property is assessed by the County, and how those figures are used to estimate the property tax dollars included in the proposed budget. "For every dollar that a property owner in Redwood City pays in property tax, we receive 18 cents." The next overhead showed the Five Year Financial Projections General Assumptions which included: I) no recession through Fiscal Year 2000/01, and 2) there will be no adverse impacts ITom Proposition 218. Finance Director Ponty said although economic expansions don't go on forever and there will probably be a decline in the national economy in the next three to four years, it will be hard to gauge the impact on Redwood City. He said that Proposition 218 will probably eliminate the NPDES parcel tax that was progranuned into the FY 1997/98 budget but not adopted by Council. That item has been removed ITom the proposed FY 1997/98 budget. He said there may be other revenues at risk depending on how the courts interpret Proposition 218. - ADJOURNED REGULAR COUNCIL MEETING MINUTE BOOK NO. 55 FEBRUARY 8,1997 MINUTES PAGE 3 ,. Pagp No. 133