04 - Laserfiche WebLink

The adjustment to sales tax is entirely for the "triple flip" clean-up payment. No upfront estimate is given to cities by the State Department of Finance for the amount that can be expected for this clean-up payment in any given year. The formula used by the state to determine the actual amount of "triple flip" loss to be made up in the following year uses statewide growth in sales tax and change in county population, doesn't take into account local sales tax growth, can be either positive or negative, and can lag up to 18 months past actual collections. All of these factors make it difficult to estimate the amount received in any given year. The components of the sales tax under the current "triple flip" conditions are shown below along with the recommended amendments. -.. ..• •. Sales Tax (local 75% portion) 16,183,377 - 16,183,377 In-Lieu Sales Tax 25% tri le fli ortion 5,088,657 863,103 5,951,760 Total 21,272,034 863,103 22,135,137 Planning and Zoning fees are being increased $312,920 due to EIR fees related to a number of developments processed during the current year. Interest income is being increased $164,125 for FY 2007 due to two factors: (1) additional cash balances to invest related to increases in General Fund revenues; and (2) the average interest rate on the City's investment portfolio has risen every month from July 1, 2006 through May 31, 2007. The average interest rate earned on the portfolio during FY 2006 was 3.46%. The average interest earned year to date for FY 2007 is 4.62%. The original budget projection did not account for this sustained rise in interest rates. Miscellaneous reimbursements is being increased $144,561 due to the State reimbursement for jail booking fees ($118,000) above the budget estimate and additional revenue in Traffic Engineering related to developer (Alameda County Surplus Property Authority) reimbursement of Staples Ranch traffic studies. Page 4 of 9