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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
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<br />Utility 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 />Annual Estimate Received as of Percent
<br />Up dated with 1st Qtr 12/31/2022 Received
<br />Property Tax + In-Lieu of VLF + Residual 94,235,000 30,207,055 32%
<br />Sales Tax Measure X 88,102,000 28,981,618 33%
<br />Sales Tax Bradley-Burns 64,550,000 21,163,355 33%
<br />Utility Users Tax 24,400,000 12,637,575 52%
<br />Cannabis Tax 22,200,000 7,400,096 33%
<br />Business License Tax 15,000,000 1,556,677 10%
<br />Other Taxes 12,491,100 5,497,980 44%
<br />Charges for Service, Licenses & Permits 21,319,580 14,580,951 68%
<br />Jail Fa cility Revenue 16,521,360 4,874,742 30%
<br />Franchise Fees 10,960,100 2,568,820 23%
<br />All Other 21,773,800 13,687,876 63%
<br />Totals 391,552,940 143,156,745 37%
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