|
Page 4 of 23
<br />consultant. Sales Tax revenue estimates included in the adopted budget
<br />assumed a new Costco beginning operation in the fourth quarter of FY 2023/24
<br />(i.e., spring 2024); it is now estimated the store will open in the second quarter of
<br />FY 2024/25 (i.e., fall 2024). Sales Tax is the City’s second largest revenue
<br />source.
<br />x An increase of $0.65 million in Business License Tax due to projected increase in
<br />gross receipts, as the adopted budget estimate is conservative.
<br />x A decrease of $0.30 million in Documentary Transfer Tax due to the decline in
<br />home sales. With elevated mortgage rates combined with a very low inventory of
<br />properties for sale in the city, sales activities are expected to remain sluggish.
<br />x An increase of $0.16 million in Transient Occupancy Tax as the Tri-Valley area
<br />continues to recover from the pandemic.
<br />x An increase of $0.11 million in Recreation Fee revenues based on continued
<br />demand for various programs and classes offered to the community.
<br />x An increase of $0.32 million in Other Revenues, including interest income and
<br />reimbursements.
<br /> Table 2. General Fund Revenues
<br />
<br />
<br />General Fund Expenditures
<br />As presented in Table 3 below, General Fund expenditures are projected to increase by
<br />approximately $1.97 million. The most significant adjustments are increases to
<br />personnel costs, insurance claims and legal costs, and utility budget categories,
<br />including electricity, water, and recycled water based on increased usage, as well as
<br />rate increases.
<br />
<br />Table 3. General Fund Expenditures
<br />
<br />
<br />Personnel Expenses
<br />An increase of approximately $1.99 million is due to a number of factors, including
<br />higher than anticipated salary adjustments for negotiated employee contracts and rising
<br />pension obligations based on CalPERS not achieving its 6.8 percent investment return
<br />FY 2023 FY 2024 Adopted Recommended Mid-Term
<br />Revenues Actual Modified Budget Budget Adjustments Budget
<br />Property Taxes $86,075,776 $90,116,000 $91,475,000 $1,467,000 $92,942,000
<br />Sales & Use Taxes 26,183,661 24,532,400 27,768,400 (2,638,400) 25,130,000
<br />Other Taxes 15,498,864 14,222,000 14,750,000 532,000 15,282,000
<br />Development Services Fees 6,388,776 4,548,500 4,858,500 - 4,858,500
<br />Recreation Fees 4,197,090 4,607,457 4,914,484 113,450 5,027,934
<br />Other Revenues 12,805,237 8,415,270 7,675,641 322,700 7,998,341
<br />Total $151,149,404 $146,441,627 $151,442,025 ($203,250) $151,238,775
<br />FY 2025
<br />FY 2023 FY 2024 Adopted Recommended Mid-Term
<br />Expenditure Categories Actual Modified Budget Budget Adjustments Budget
<br />Personnel $94,110,681 $105,511,427 $108,471,827 $1,991,220 $110,463,047
<br />Transportation & Training 1,750,740 1,865,165 1,838,953 (87,800) 1,751,153
<br />Repairs & Maintenance 8,167,740 6,856,688 6,975,994 (884,010) 6,091,984
<br />Materials & Supplies 27,199,195 33,095,261 34,234,114 766,277 35,000,391
<br />Capital Outlay 1,829,159 746,000 437,550 180,380 617,930
<br />Debt Services 482,932 5,000 5,000 - 5,000
<br />Total Expenditures $133,540,446 $148,079,541 $151,963,438 $1,966,067 $153,929,505
<br />FY 2025
|