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 6 2 3 6 1 hotels continue through the development process and open for business, such as the Tapestry by Hilton. Staff will continue to monitor activity over the first six months and may adjust to increase revenue estimates with the Mid-Year Budget Report as needed. Business License Tax (BLT): The BLT revenue of $1.4 million collected in the first quarter exceeded last year’s revenues of $1.0 million. The revenue is on track to meet the $12.2 million annual estimate. With the hiring of additional staff, our revenue division has been able to proactively improve collections, including making payment arrangements with small businesses suffering during the pandemic. Peak business license periods occur during the third and fourth quarters of the fiscal year, when approximately 80% of annual BLT is collected. Utility Users Tax (UUT): The UUT is a 5.5% tax on the following utilities: electric, gas, water, and telecommunications. UUT collected for the first quarter is nearly $4.4 million, which exceeded last year’s revenues of $4.0 million. Currently, the electric, gas and water utilities are trending above last year’s first quarter results. However, the telecommunications utility users’ tax has been showing a continual downward trend for the past few years and is nearly $0.1 million less than the prior year. This appears to be primarily due to service providers readjusting their apportionment of sales from taxable to nontaxable services. Permits and Plan Check: Current permit and plan check revenues collected total $3.8 million. Plan check revenues in the first quarter surpassed annual estimates by nearly $0.1 million or 3.4%, while permit revenues of $1.1 million are nearly doubled the amount of last year’s first quarter results of $0.6 million. The uptick in planning and building activity is due to a one-time spike in plan check activity. Staff will continue to monitor development activity and related revenues and may revise revenue estimates with the Mid-Year Budget Report. General Fund Expenditures for FY 2021-2022 Overall, General Fund expenditures are at 22.6% of budget. Each department is within the expected range of spending for the first quarter. It should be noted the first quarter activity includes four monthly payments for fire services, as the City pays one month in advance. OTHER CITY FUNDS Cannabis Public Benefit Fund The Cannabis Public Benefit Fund provides dedicated funding for youth programs implemented through the Parks, Recreation and Community Service Agency and the Library. Examples of programs implemented during the first quarter include: The Book/Tech Mobile program engages the community where they are by placing an emphasis on technology, robotics and STEM learning.