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8 City of Pleasanton Operating Budget • FY 2023/24 - FY 2024/25 <br />Major Revenues <br />The City’s major revenue sources include Property Tax, Sales Tax, Business License Tax, and Transient <br />Occupancy Tax (TOT) which collectively account for more than 80.0 percent of the General Fund’s <br />overall revenues. <br />Property Tax <br />The City’s property tax base has been steadily increasing since the low of $47.9 million in FY 2011/12 to <br />$80.2 million in FY 2021/22, a $32.3 million or a 67.4 percent increase. This has been due to increasing <br />property values and additional residential and commercial development over the past ten years. <br />Property taxes are estimated to increase by $4.6 million from $83.8 million in FY 2022/23 to $88.4 million <br />in FY 2023/24. <br />Sales Tax <br />Sales Tax revenues have also increased from a low of $15.2 million in FY 2009/10 during the Great <br />Recession to $24.6 million in FY 2021/22, a $9.4 million or a 61.8 percent increase. Sales tax had been <br />slowing down prior to FY 2021/22 due to increased regional shopping competition. Furthermore, during <br />the pandemic sales tax revenue initially decreased; however, with the economy recovering quickly, <br />consumer spending also increased. Projected sales tax for FY 2023/24 is only 1.3 percent higher at $25.1 <br />million compared to FY 2022/23, but with new Costco store expected to open during FY 2023/24, $27.8 <br />million is projected for FY 2024/25. <br />Transient Occupancy Tax (TOT) <br />TOT revenues had also increased from a low of $2.7 million in FY 2009/10 to $6.5 million in FY 2018/19 <br />or a 140.7 percent increase. TOT revenues experienced the sharpest decline during the pandemic and <br />have yet to recover, with the FY 2021/22 actual revenues coming in at $3.7 million. The City’s TOT taxes <br />are primarily derived from business travelers to the Tri-Valley region, but with many business meetings <br />still occurring virtually TOT is expected to slowly recover. As such, staff conservatively assumed TOT <br />revenues at $4.4 million in FY 2023/24 compared to $4.1 million in FY 2022/23. TOT revenues are expected <br />to increase with the addition of two new hotels in the JDEDZ expected to open during FY 2023/24.