19C - FY 18-19 BUDGET UPDATE - Laserfiche WebLink

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Fiscal Year 2018-19 First Quarter Budget Update December 4, 2018 Page 2 majority of Property Tax collected occurs in the months of December (Second Quarter) and April (Fourth Quarter) and will be reflected in future budget updates. Similarly, fifty percent (50%) of the Property Tax in Lieu of VLF is received in January (Third Quarter) and May (Fourth Quarter). Business License continues to remain steady and is slightly above first quarter projections. The majority of Business License collected occurs in the month of March (Second Quarter) and April (Third Quarter). Hotel Visitors Tax (HVT) is near first quarter projections and with the recent opening of a new hotel in August and construction of a new hotel during the fiscal year, HVT should continue to meet projections. The City's Utility User Tax continues to decline by nearly four percent (4%) since fiscal year 2015-16 primarily due to a reduction in the telecommunication sector. Other General Fund Revenues: Jail Revenue is projected to meet estimated revenue as a result of continued housing of inmates from the US Marshals and Federal Bureau of Prisons. The first quarter amount of $2.2 million reflects only two months of billing for jail housing but is significantly higher than last year by $1 million largely as a result of the ramp -up in operations at the facility. As reflected in the first quarter revenue, Commercial Cannabis revenue has not been received. This is due in part, that the commercial cannabis industry is in its infancy stages and businesses have commenced the registration and permit process only. Additionally, the Adult Use — Retail cannabis operations continues to evolve and it is anticipated that more businesses will be entering the industry by the end of the current fiscal year. The current amounts received reflects approximately two months of revenue; however, revenues will continue to be monitored throughout the fiscal year. The Business Tax component on medical cannabis is projected to plateau this fiscal year in comparison to last fiscal year at $2.3 million. The introduction of the Adult Use — Retail has affected the medical cannabis as consumers' activities have shifted away from medical cannabis. Key permit and plan check revenue remain steady. These revenues remain largely cyclical with most revenues collected during the third quarter (January — March). Upcoming development projects such as Heritage Village, Magnolia at the Park, Raising Cane's Restaurant and Tapestry by Hilton will continue to improve permit and plan check revenues. Overall, general fund revenues have increased in comparison to last fiscal year. In addition, the one-time revenue from the sale of land of $2.075 million occurred in November and will be reflected in the Mid -Year (Second Quarter) Review along with previously mentioned Sales Tax payment and Property Tax revenue that will be received in December 2018. General Fund Expenditures Overall first quarter expenditures of $63 million exceeded last year's expenditures of $56 million by $7 million or thirteen percent (13%). This is largely attributable to an increase in overall labor costs such as salaries ($1.3 million increase) and retirement costs ($2.5 million increase). Most departments are trending at or below expenditure trends of twenty-four percent (24%) for the first 19C-2