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 4 Wayne Airport, driving the revenue recovery from the pandemic. Given this recent performance, the revenue estimate is increased by $2.0 million, for a total budget estimate of $7.0 million. Utility Users’ Tax (UUT): UUT collected for the second quarter is $10.8 million, which exceeded last year’s second quarter revenues of $10.2 million by $0.6 million. Currently, the electric, gas and water utilities are trending above last year’s second quarter results due to rate increases. However, the telecommunications utility users’ tax is nearly $0.7 million less than the prior year. Original UUT estimates anticipated positive results of revenue audits. However, the audits are ongoing, with completion likely occurring during FY 2022-23. At this time, we do not recommend any adjustments to revenue estimates, as we expect UUT revenue in aggregate to approximate the budget. Business License Tax (BLT): The BLT revenue of $3.4 million collected in the second quarter exceeded last year’s revenues of $2.9 million by $0.5 million. The current trend and annual rate increase based on the Consumer Price Index (CPI) have resulted in the revenue estimate increasing by $1.8 million for a total adjusted budget of $14 million in business tax revenue, which is in line with revenue received in FY 2020-21 of $13.7 million. Peak business license tax activity occurs during the second half of the fiscal year, when approximately 70 percent of annual BLT is collected. Cannabis Tax Revenues: The Cannabis Tax includes revenues received from medical, adult-use retail, cultivation, distribution, manufacturing and testing. With the availability of retail cannabis, we continue to see tax revenue decrease from the medical sector, and are reducing the estimate by $350,000. Cannabis tax from the medical sector is not part of the two-thirds set-aside. Therefore, this adjustment will not impact the Cannabis Public Benefit Fund. Overall, tax revenue from the retail and commercial sectors are on track to meet the original budget estimate and staff does not propose any adjustments at this time. Parks, Recreation and Community Service Fees: Staff reduced the revenue estimates from nearly $2.0 million to $0.7 million the prior year as the pandemic continued to significantly delay the operation of recreation programs and facility usage. The City received $1.3 million in FY 2020-21, which is better than expected. Though the pandemic has continued to impact PRCSA operations for much longer than originally anticipated, current year revenue estimates were slightly decreased by $29,191, from $1.94 million to $1.91 million. Zoo admission revenues are anticipating some uptick in activity, meanwhile Zoo Education and Leisure Classes revenues continues to be negatively impacted by delays in resuming recreation programs and facility operations. Planning and Building Charges and Fees: The City received $11.1 million of Planning and Building revenue in FY 2020-21. The current budget includes a revenue estimate of $10.4 million. Plan Check activity is performing a little better than expected as a result of