Item 38 - Fiscal Year 2021-2022 General Fund - First Quarter Budget Update

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Receive and file the FY 2021-2022 General Fund - First Quarter Budget Update December 21, 2021 Page 5 2 3 6 1 FY21-22 Sales Tax (Bradley-Burns and Measure X): Moving forward, the sales tax consultant increased the FY21-22 revenue estimates as follows. FY21-22 Original FY21-22 Revised Increase Bradley-Burns $53,650,000 $57,600,000 $3,950,000 Measure X 65,000,000 77,250,000 12,250,000 Total $118,650,000 $134,850,000 $16,200,000 A quarterly report on Sales Tax and Business Activity is provided in Exhibit 3. $12.6 $29.5 $28.4 $29.6 $26.1 $25.5 $31.3 $32.1 $30.2 $34.1 $32.6 Bradley-Burns Measure X TrendlineQuarterly Sales Tax Revenue (in Millions) Property Tax, Property Tax in lieu of VLF & Santa Ana Residual Property Tax: Total Property Tax collected for the first quarter is $0.7 million. Approximately two-thirds of Property Tax is collected during the months of December and April. Furthermore, the first payment (50%) of Property Tax in lieu of VLF is received in January and the second payment in May. Based on assessed value information available from the county after adoption of the City’s budget, the City’s property tax consultant has provided an updated revenue estimate that is $380,000 more than the estimate included in the budget. Hotel Visitors’ Tax (HVT): HVT collected for the first quarter is approximately $1.5 million, which is nearly double the amount of the prior year’s first quarter results of $0.8 million, but still $0.6 million below pre-pandemic levels in the same quarter of FY 19-20. The global pandemic has continued to affect hotels’ ability to accommodate guest services such as banquets, conferences and other meeting events; however, there are signs for recovery. Staff expects HVT will increase after the pandemic; and after new