65A - RECIEVE AND FILE FY 2019-20 GENERAL FUND MIDYEAR

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Receive and file Fiscal Year 2019-20 General Fund Mid -Year Update February 18, 2020 Page 4 Hotel Visitors' Tax: Hotel Visitors' Tax collected through the second quarter is over $4.1 million, similar to the previous fiscal year. New hotel developments are expected in the future (Hampton Inn, Tapestry Hotel), but is unlikely to impact the current fiscal year. As such, there is no adjustment to staffs original revenue estimate. Business License: Business license is trending similar to last year and is projected to meet anticipated revenue of $13 million. The current amount collected, $2.6 million represents about 20% of total revenue. Peak business license periods occur in the third (53%) and fourth quarters (27%) of total business license revenue collected. Jail Revenue: Jail revenue to date represents only three months' receipts totaling $3.8 million. Payments of $2.4 million for the months of October and November were received in January. The Police Department is projecting to meet the budgeted revenue estimate of $15.1 million due to an increase in average daily projection (ADP). An additional module will be available and is anticipated to open in April 2020 which will likely lead to a revenue estimate increase for fiscal year 2020-2021. Cannabis Revenues: Adult -Use Retail Cannabis revenues are projected to exceed budget by $1.8 million. The year-to-date revenue for Adult -Use Retail is $3.8 million which represents five months of receipts. The growth of the retail sector continues to erode revenue related to Medical Cannabis and therefore, staff anticipates a related $1 million decrease in revenue. Commercial Cannabis tax revenue related to distribution is projected to exceed budget by $139,000, however the other commercial sectors are expected to underperform the original revenue estimate by nearly $1.1 million. When considering Cannabis tax revenue in total, there is no change to the original revenue estimate at this time. Permits and Plan Check: Year-to-date permit and plan check revenues total over $4 million, and are primarily driven by spikes in building plan check revenue for the months of October and December. Staff will continue to monitor the development activity and related revenue, and provide updates during the third quarter report. At this time, there is no change to the original overall revenue estimate. Paramedic Service Charge: In Fiscal Year 2018-19, the City experienced an increase in this revenue due to the state's Ground Emergency Medical Transport (GEMT) Quality Assurance Fee that was retroactive to July 1, 2018 and continues to June 30,2021. Combined with this fee, there has been increase in advanced life support services provided which results in higher than anticipated revenue. Therefore, revenue estimates will increase by $1.6 million to nearly $6.8 million for FY 2019-20. Proposed Workforce Changes Parks, Recreation and Community Services Agency: The proposed workforce change is to add a position of Executive Secretary for administrative support to the Executive Director and the Agency. The anticipated start date will be in May 2019 and the Agency will absorb the costs within the existing General Fund budget. Going forward, the annual cost of the position is expected to be $79,600 in FY 2020-21. 65A-4