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Fiscal Year 2022-23 Mid -Year Budget Update, Revive Spending Plan Update,
<br />Appropriation Requests, and Workforce Changes
<br />March 21, 2023
<br />Page 3
<br />Annual Estimate
<br />Received as of
<br />Percent
<br />Updated with 1st Qtr
<br />12/31/2022
<br />Received
<br />Property Tax + In -Lieu of VLF + Residual
<br />94,235,000
<br />30,207,055
<br />32%
<br />Sales Tax Measure X
<br />88,102,000
<br />28,981,618
<br />33%
<br />Sales Tax Bradley -Burns
<br />64,550,000
<br />21,163,355
<br />33%
<br />Utility Users Tax
<br />24,400,000
<br />12,637,575
<br />52%
<br />Cannabis Tax
<br />22,200,000
<br />7,400,096
<br />33%
<br />Business License Tax
<br />15,000,000
<br />1,556,677
<br />10%
<br />Other Taxes
<br />12,491,100
<br />5,497,980
<br />44%
<br />Charges for Service, Licenses & Permits
<br />21,319,580
<br />14,580,951
<br />68%
<br />Jail Facility Revenue
<br />16,521,360
<br />4,874,742
<br />30%
<br />Franchise Fees
<br />10,960,100
<br />2,568,820
<br />23%
<br />All Other
<br />21,773,800
<br />13,687,876
<br />63%
<br />Totals
<br />391,552,940
<br />143,156,745
<br />37%
<br />Utilitv Users Tax (UUT
<br />The City's UUT is 5.5% of utility charges. The price of natural gas substantially
<br />increased in December and January, which affects the City's UUT revenue. For
<br />example, the SoCalGas website reports that the core -procurement gas price for
<br />January 2023 was 344.892 cents per therm, compared to the January 2022 price of
<br />83.569 cents per therm. We expect FY 2022-23 UUT revenue for natural gas to be
<br />approximately $1 million more than the budget amount of $3.2 million, and have
<br />adjusted our revenue estimate accordingly.
<br />Electricity for UUT has been steadily increasing over the last several years. Southern
<br />California Edison reports that the number of customer accounts has been increasing.
<br />After adopting the FY 2022-23 budget with a $13.1 million revenue estimate, we closed
<br />the FY 2021-22 books with a final revenue of $13.7 million. At this time, we expect
<br />Electricity UUT to exceed the budget estimate of $13.1 million by $2 million.
<br />Cannabis Tax
<br />The new tax rates became effective January 1, 2023. The earliest we see January
<br />receipts is the end of February. Therefore, we have no data to analyze the impact of
<br />rate changes. We expect to provide an update of Cannabis Tax with the Third Quarter
<br />budget report.
<br />Business License Tax
<br />The majority of annual business license tax is collected in the spring each year.
<br />Therefore, at December 31, the City has only collected a small portion of revenue, and
<br />we do not yet have data to analyze the impact of the voter -approved Measure W. We
<br />City Council 24 — 3 3/21/2023
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