Item 25 - Fiscal Year 2021-2022 Mid-Year Budget Update

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Receive and file the FY 2021-2022 Mid-Year Budget Update March 1, 2022 Page 3 Sales Tax (Bradley-Burns & Measure X): Total Sales Tax collected for the second quarter is approximately $19.6 million for Bradley-Burns and $27.3 million for Measure X, for a combined total of $46.8 million. The First Quarter Budget Report approved on January 18, 2022 included adjustments for Sales Tax estimates. The City’s Sales Tax consultant has noted strong performance from General Retail (i.e., Department Stores/Online Retailers) and Transportation (i.e., New Auto Sales) sectors, which warrants a further increase of the Measure X estimate by $1.75 million. Property Tax, Property Tax in lieu of VLF (VLF), & Santa Ana Residual Property Tax: The City received updated information for current fiscal year property assessments and included an adjustment in the First Quarter Budget Report. However, an adjustment for Property Tax in lieu of Vehicle License Fees (VLF) can be made with this report. The City receives its first 50-percent allocation from the State in January and can forecast the total revenue for the fiscal year. The City has received the January payment and can increase the revenue estimate by $517,300. Half-Cent Sales Tax for Public Safety: Half-Cent Sales Tax (Safety) collected for the second quarter is nearly one million. The latest projections from the City’s Sales Tax consultant for annual revenue is $2.6 million, which represents a 6.4 percent increase from FY 2020-21 actual revenue, in line with other sales tax revenues. Staff has increased the budget estimate by $140,700 accordingly. Hotel Visitors’ Tax (HVT): HVT collected for the second quarter is $3.3 million, which is nearly double the amount of the prior year’s second quarter results of $1.7 million. During the first six months of the year, HVT revenue has continued to improve, showing some semblance of recovery from the pandemic. The top 15 hotels in Santa Ana generated the majority of HVT revenues, including the hotels along Hotel Terrace Drive near John