19E - RECEIVE AND FILE 1ST QRT UPDATE

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Receive and file Fiscal Year 2020-2021 General Fund First Quarter Update November 17, 2020 Page 2 installments in January and May. Residual Property Tax is allocated to the City from the Redevelopment Property Tax Trust Fund after all obligations of the former Redevelopment Agency are settled, and payments are typically received in December and May. Therefore, an update on the Property Tax revenue will be provided in the Mid -Year Report scheduled for February 2021. Hotel Visitors' Tax (HVT): Due to the pandemic, it is no surprise HVT collections have decreased significantly. Only $0.8 million or 13.5% of the annual estimate was collected for the first quarter. Once we have second quarter results, we may reduce our revenue estimate at mid -year. Future HVT revenue will increase after the pandemic, and after several hotels in development open for business. Business License Tax (BLT): The BLT revenue is on track to meet the $9.2 million annual estimate. An additional BLT Collector was added to staff, and our revenue division has been able to proactively improve collections, including making payment arrangements with small businesses suffering during the pandemic. Peak business license periods occur in the third and fourth quarters of the fiscal year, when approximate 80% of the annual BLT is collected. Utility Users Tax (UUT): The UUT is a 5.5% tax on the following utilities: electric, gas, water, and telecommunications. Currently, the electric, gas, and water utilities are trending slightly above or below last year's first quarter results. However, the telecommunications utility users' tax is nearly $0.1 million less than last year. This appears to be primarily due to service providers readjusting downwards their apportionment of taxable to nontaxable sales of the telecommunications services. The City has issued a Request for Proposal (RFP) for UUT revenue auditing. Initial UUT revenue for FY20-21 is tracking similar to FY19-20, yet we expected an increase due to residents spending more time at home. Staff will pursue the audits and continue to monitor activity, and we may decrease the revenue estimate at mid -year. Cannabis Tax Revenues: Adult -Use Retail Cannabis revenues are projected to meet budget and the current amount of $2.7 million represents two months of receipts of all cannabis revenues. There are 27 Adult -Use Retailers, 19 Medical Cannabis Dispensaries and 13 Cannabis Distributors licenses. The growth of the Adult -use retail sector continues to impact Medical Cannabis revenue which has been gradually declining and therefore projections for fiscal year 2020-2021 have been adjusted. Jail Revenue: Jail revenue represents only one month's receipts of $1.2 million. An additional $1.3 million for August and $1.2 million for September has been billed and is expected to be received during the second quarter. Additionally, this revenue is continually being monitored throughout the year due to flucturations in the average daily population (ADP) from month to month. Permits and Plan Check: Current permit and plan check revenues total $0.9 million. While plan check revenues are similar to last year, permit revenues are $0.2 million less than last year. Staff will continue to monitor the development activity and the related revenues and provide updates during the mid -year report. Paramedic Service Charges: The City charges for paramedic services such as basic/advanced life support and transport services provided to the public. The billing for these services is managed 19E-2