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1996-97 is the last year the State will be offering these adjustments. As part of the 1996-97 <br />midyear review in the spring of 1997, staff will review the need to utilize the final adjustment for <br />similar purposes, and will make an appropriate recommendation at that time. <br /> <br />Horse Racing Tax <br /> <br />State Assembly bill AB304 became effective 1/1/96. AB304 allows the County to assess a <br />possessory interest tax on the wagering facility located at the fairFounds, and deduct this tax <br />from the horse racing tax revenues that the City receives. The City has been informed <br />unofficially by the County that this will result in a reduction of $30,000 for the six-month period <br />January 1 to June 30, 1996. Therefore, staff is reducing the projected horse racing tax revenue <br />from $180,000 to $150,000. <br /> The only other revenue received by the City directly related to fairgrounds activities is <br /> approximately $10,000 to $20,000 per year in sales taxes and business license taxes generated by <br /> ongoing operators on the grounds. The City seldom receives much sales tax from weekend <br /> shows, since the State does not care if sales tax is attributed specifically to temporary sites, so <br /> long as it is reported. Staff and our sales tax consultant have spent countless hours in trying to <br /> gain sales tax credit for the temporary locations, to no avail. <br /> SUMMARY OF GENERAL FUND REVENUE PROJECTION ADJUSTMENTS <br /> In total, net recommended adjustments to General Fund revenue projections reflect a $1.8 million <br /> increase, from $37 million to $38.8 million, or about 4.8%. <br /> <br /> Major adjustments are summarized as follows: <br /> <br /> Property taxes $(200,000) <br /> Sales tax (200,000) <br /> Building & Public Works fees 800,000 <br /> Interest Income 200,000 <br /> PERS one-time adjustment 1,000,000 <br /> Hotel Taxes 10o,00o <br /> Auto In Lieu fees 200,000 <br /> Franchise fees ~100.000) <br /> <br /> Total Net Adjustment $1.8 million <br /> <br /> GENERAL FUND TRANSFERS <br /> As mentioned earlier, staff is recommending that $1,000,000 (approximately the mount of the <br /> one-time PERS adjustment) be transferred to the Workers' Comp Fund and Retirees' Medical <br /> Fund. Staff is also recommending that the balance in the Proposition 4 Fund (approximately <br /> $280) be transferred to the General Fund to finally close it out. Other recommended transfers-in <br /> <br /> SR 96:120 <br /> 5 <br /> <br /> <br />