SR 05:300 - Laserfiche WebLink

Property tax revenues are expected to grow in the next few years, reflective of new construction and housing resales, much of which have already taken place but will take up to two years to be reassessed by the County. As the City gets closer to buildout of its General Plan, the growth in property taxes will come primarily from resales and the Proposition 13 annual inflation factor (capped at 2% per year). Changes in property tax revenue should trend towards a growth rate that is at least comparable to inflation (up to 4% or 5%) in a normal year, based on staffs estimates and historical trends. For the year ending June 2005, sales tax revenues exceeded projections by almost $1.2 million, a 6.3% variance to projections. Staff will need to spend some time analyzing the details, but we do know that a portion of the overage is due to one-time adjustments, and a portion due to auto sales that may not be as strong this year (FY06). Therefore, current projections for FY06 may change little when the midyear review is done, despite the strong performance in FY05. ---- -~---- -..---- SALES TAX mSTORY FY96 TO FY05 $25.0 $20.0 A .~ f-- ~~ ~ . $15.0 7 $10.0 1-----. --- $5.0 -- $0.0 '<0 " 00 '" 0 N M ... '" ";' '" '" '" 0 0 9 0 0 0 '" ~ "- 00 0.. <:\ N ,;., .;. '" '" '" '" '" 0 0 0 0 0 '" '" '" '" '" 0 0 0 0 0 - - - - - N N N N N Sales Tax History 1996 to 2005 Fiscal Year $ in Millions % Increase 1995-96 $12.0 4.3% 1996-97 $15.8 31.7% 1997-98 $18.3 15.8% 1998-99 $19.9 8.7% 1999-00 $17.5 -12.1% 2000-01 $21.3 21.7% 2001-02 $17.3 -18.8% 2002-03 $18,4 6,4% 2003-04 $18.6 1.1% 2004-05 $19.9 7.0% SR 05:300 9