|
City of Pleasanton Operating Budget • FY 2023/24 - FY 2024/2531
<br />Tax revenues represent 82.0 percent of the General Fund revenues. Property tax (58.9 percent)
<br />and sales tax (16.9 percent) revenues represent a majority (75.8 percent) of tax revenues. A large
<br />decrease in the Other Revenues category is mostly due to one-time American Rescue Plan Act
<br />(ARPA) stimulus funds budgeted in FY 2021/22 and FY 2022/23 ($8.6 million over two fiscal years)
<br />that will no longer be available starting in FY 2023/24.
<br />Property Tax
<br />Property tax revenues, which include secured, unsecured, supplemental, delinquent property taxes,
<br />homeowners tax exempt, and the amount reimbursed by the State in exchange for the reduction
<br />in vehicle license fees, are the City’s largest revenue source and are projected to increase by 5.5
<br />percent in FY 2023/24 and by 3.5 percent in FY 2024/25.
<br />Sales Tax
<br />Sales tax is expected to increase by 1.3 percent in FY 2023/24 and increase by 9.2 percent in
<br />FY 2024/25. The increase in the second year is largely due to sales tax revenues from the new
<br />Costco store, which is expected to open sometime during the second half of FY 2023/24. With
<br />this anticipated revenue, the annual average increase is projected to be about 5.0 percent over
<br />the next two years. However, based on the sharing agreement with Costco, 40.0 percent of the
<br />revenue will be paid back to Costco for costs associated with traffic and street improvements in the
<br />Johnson Drive Economic Development Zone until the City’s share of the cost is paid off.
<br />Partial sales tax revenues are reflected in the FY 2023/24 budget, and the full year of revenue is
<br />reflected in the FY 2024/25 budget. FY 2023/24 and FY 2024/25 sales tax revenues are projected
<br />at $25.4 million and $27.8 million, increasing from $25.1 million in FY 2023/24. Sales tax is the City’s
<br />second largest revenue source.
<br />Table 3: Property Tax by Category
<br />Property Tax Category Actual
<br />FY 21/22
<br />Modified
<br />FY 22/23
<br />Projected
<br />FY 23/24 % Change
<br />Projected
<br />FY 24/25 % Change
<br />Secured Property Tax $65,889,234 $69,389,000 $73,696,000 6.2%$76,333,000 3.6%
<br />Unsecured Property Tax 3,606,666 3,721,000 3,675,000 -1.2% 3,807,000 3.6%
<br />Supplemental Assessment 2,340,605 1,600,000 1,600,000 0.0% 1,600,000 0.0%
<br />Homeowners Tax Exempt 242,739 370,000 370,000 0.0% 370,000 0.0%
<br />Delinquent Taxes 262,731 634,000 400,000 -36.9% 400,000 0.0%
<br />VLF (In-Lieu) 7,843,697 8,040,000 8,655,000 7.6% 8,965,000 3.6%
<br />Total Property Taxes $80,185,671 $83,754,000 $88,396,000 5.5%$91,475,000 3.5%
<br />Table 4: Sales Tax Revenue
<br />Actual
<br />FY 21/22
<br />Modified
<br />FY 22/23
<br />Projected
<br />FY 23/24 % Change
<br />Projected
<br />FY 24/25 % Change
<br />Total Sales Tax $24,554,367 $25,100,000 $25,424,400 1.3%$27,768,400 9.2%
|