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BACKGROUND
<br /> Staff regularly monitors expenditures, cautiously forecasts revenues, and makes
<br /> recommendations to address changes in order to maintain a balanced Budget. The
<br /> Midyear Budget report helps staff address budget variances in a timely manner.
<br /> DISCUSSION
<br /> General Fund Revenues. General Fund revenues are estimated to be approximately
<br /> $118 million which is 2% greater than the actual revenues received in FY 2016/17.
<br /> Table 2 presents the major revenue categories with a comparison of the Original Budget
<br /> and actual revenues from the previous three fiscal years.
<br /> Table 2. General Fund FY 2017/18 Revenues
<br /> FY
<br /> , 2O a MJ tmer
<br /> 47-r
<br /> Aotuow 4)t 47— Pecmal;ite
<br /> Property Taxes $53,744,273 $57,276,491 $60,835,164 $62,515,000 $64,485,275 $1,970,275
<br /> Sales& Use Taxes 22,410,654 23,543,972 23,362,536 23,000,000 23,000,000 -
<br /> DevelopmentServicesFees 5,273,221 6,429,634 6,271,018 5,155,727 5,253,727 98,000
<br /> HoteVMotel Tax 5,057,080 6,037,902 6,263,021 6,300,000 6,300,000 -
<br /> Business License Tax 3,376,592 3,700,568 4,045,206 3,888,196 4,050,000 161,804
<br /> Recreation Fees 4,069,748 4,384,846 4,107,358 4,424,751 4,424,751 -
<br /> Other Revenues 10,188,983 10,367,295 10,849,779 9,872,219 10,449,747 577,528
<br /> Total $104,120,551 $111,740,708 $115,734,082 $115,155,893 $117,963,500 $2,807,607
<br /> Property Tax revenues are the largest revenue source for the General Fund, accounting
<br /> for approximately 55% of total revenues. It is also the revenue category that the City
<br /> has experienced the greatest growth. For example, while the City's overall revenues are
<br /> projected to increase by 13% since FY 2014/15, property taxes are expected to grow by
<br /> 20% over the same period of time.
<br /> Sales Tax revenue is the second largest revenue source for the General Fund,
<br /> accounting for approximately 19% of the total revenues. Sales Tax collections have
<br /> been slightly declining over the past few years as a result of increased internet sales
<br /> and increased regional retail competition such as the outlet stores in Livermore.
<br /> Hotel/Motel Tax and Business License Tax revenues as well as Recreation Fees have
<br /> been increasing over the past few years, though not at a significant rate. Development
<br /> Services Fees are expected to be significantly less than in the prior two years as the
<br /> larger development projects underway in the City like Workday have already received
<br /> building permits.
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