65C - MID YEAR BUDGET UPDATE - Laserfiche WebLink

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Fiscal Year 2018-19 Mid -Year Budget Update February 5, 2019 Page 4 consideration. Therefore, at this time, the revised General Fund revenue estimate does not yet include the $1.0 million discussed herein. Other General Fund Revenues: Jail Revenue(s) Jail Revenue is projected to meet the revenue estimate of $16.0 million due to continued housing of inmates from both the US Marshals (Los Angeles and San Diego) and Federal Bureau of Prisons. However due to the Federal Government shutdown (Shutdown), the City is not in receipt of $1.3 million in cash (approximate monthly revenue) since December. With the re- opening of government, staff fully expects the City to be made whole. Commercial Cannabis Tax (manufacturing, distribution, testing, etc.) - Revenue has not been received yet, due to the industry being in its infancy stages and businesses have just recently commenced the registration and permitting process. Thus, Staff does not expect to receive the $7.8 million revenue estimate for FY18-19, and is conservatively revising the estimate to $0.6 million. Medical Cannabis - The introduction of the Adult Use Cannabis has affected the Medical Cannabis tax revenue as consumers' activities have shifted away from medical cannabis. Based on receipts to date, staff estimates the revenue derived from Medical Cannabis tax will be $0.8 million less than the original budget amount. Adult Use Cannabis — 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 five months of revenue; however, revenues will continue to be monitored throughout the fiscal year. At this time, staff is not adjusting the revenue estimate of $5.5 million. Parking Fines Revenues received through December 2018 have not met budgeted projections, as maximum parking enforcement staffing levels have not been achieved. Both the Police Department and Human Resources Department(s) will continue to collaborate in recruiting qualified individuals to meet this operational need. Therefore, projected revenues are being reduced by $1.2 million with estimated revenues to be received of $4.1 million. Plan Check and Permit Revenue Plan Check revenue(s) received through December 31, 2018 have exceed the amount collected through December 31, 2017 by approximately $1.0 million. The increase is attributable to an increase in Building Plan Check. Furthermore, Permit Revenue has also exceeded actual revenues collected through December 31, 2018 in the amount of $1.1 million. Both plan check and permitting revenues remain largely cyclical with most revenues collected during the third quarter (January — March) and are also dependent on city-wide development activity. Development projects which commenced during the current fiscal year, such as AMG 65C-4