Laserfiche WebLink
sales tax allocations. In addition, much of the City's sales tax comes from sources other than <br />retail establishments, such as business to business sales. These types of sales are very volatile, and <br />much harder to project than sales at the mall and other store-front retailers. Appendix F (page <br />55) contains a sales tax update for the first quarter of the fiscal year (Third Quarter 1996). Staff <br />will analyze the sales tax data in more depth with the next quarterly financial report, and <br />recommend further changes, if necessary. <br /> <br />Hotel/Motel Tax <br /> <br />The City assesses a transient occupancy tax of 8% on all dwellings occupied less than 30 days. <br />There are 1,300 hotel/motel rooms in the City. Kevenue for the first two quarters is $1.26 million <br />compared to $1.01 million in the same time period of the preceding year (or about a 25% <br />increase). Staffs Midterm projection for 1996-97 was $2.1 million. Therefore, staff is <br />recommending that the revenue projections be increased by $452,000 to $2.55 million. <br />However, this revenue should be reviewed again in the third quarter, at~er the January-March <br />receipts are known. <br /> <br />Business License Tax <br /> <br />Staff has just completed the renewal processing for business licenses this year, and is now <br />increasing the projection by $100,000 to $1.5 million. This revenue also will be reviewed in the <br />third quarter at~er the delinquency processing has occurred. <br /> <br />Interest Income <br /> <br />Interest income is money derived from investing the General Fund's idle cash. Staff is projecting <br />an additional $250,000 in interest income this year, bringing the total projection to $950,000. The <br />increase is due primarily to more cash being available to invest because the fund balance from last <br />year was larger than previously projected. <br /> <br />As the City uses its reserves for capital projects, less money will be invested, and therefore <br />interest earnings are expected to decline in the coming budget years. <br /> <br />State Auto In-Lieu <br /> <br />Auto in-lieu fees are a subvention received from the State in lieu of property taxes on motor <br />vehicles. The subvention amount is determined by population. Based on the first six months <br />actual receipts, staff is recommending that the revenue projection be increased by $100,000 to <br />$2.14 million. <br /> <br />SR97:110 3 <br /> <br /> <br />