RES 90240 - Laserfiche WebLink

capital, special revenue, enterprise and expendable trust funds. Therefore, staff recommends that Council fully appropriate all such balances to contingency reserves. LOWER-INCOHE HOUSING FUND Last spring staff established an "Affordable Housing Fund" to account for certain development exactions which were imposed by Council. This fund was created separate from the existing Low Income Housing Fund. When the new Lower-income Housing Fee was adopted in November 1990, Council agreed that the fee would be for very low, low, and moderate income housing. Therefore, staff has combined the existing Low Income Housing Trust Fund and the Affordable Housing Trust Fund into a single Lower-income Housing Trust Fund, as reflected in all the financial reports attached. FINANCIAL TRENDS Appendix E contains several charts tracking the history of major general fund revenues, including property taxes, sales taxes, hotel/motel taxes, and Motor Vehicle In-lieu fees. Although our revenues from the hotel/motel tax have shown little growth in the last three years, property taxes, sales taxes and motor vehicle fees have shown strong growth. Our diverse sales tax base has helped us weather downturns in selected areas. For example, sales tax revenues were down in the Second quarter 1990 compared to 1989 for new auto sales, service stations, and manufacturing/wholesale electric. Grocery stores and restaurants were at the same level as a year ago. However, other manufacturing and equipment, light industrial, and lumber and construction materials showed gains. Significant gains in department stores and other retail resulted from the opening of a new Nordstroms and other retail outlets. Pleasanton's rate of growth in sales tax over the last seven years has far exceeded the Consumer Price Index, and sales taxes County- wide and State-wide. A graph in Appendix E displays this growth. Overall, the City is in a good financial position with a diverse revenue base which helps us fare better than most other government agencies through economic hardtimes. Over the last few years, we have been able to use General Fund surpluses to provide many capital facilities and projects to the community. However, we are still not totally immune from what is going on in the economy, and are impacted by the financial problems of the County, schools and State. Beginning in 1990-91, we will feel the impact of the State's budget decision to allow the County to charge cities for property tax collections and jail booking fees. During the State budget process, redirecting motor vehicle fees from the cities to the counties was suggested. Although later thrown out, this idea SR 90:487 7