Item 19 - Fiscal Year 2020-21 Mid-Year Budget Update and Appropriation Adjustments

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Fiscal Year 2020-21 Mid-Year Budget Update and Appropriation Adjustments February 16, 2021 Page 4 4 3 9 Cannabis Tax Revenues: Adult-Use Retail Cannabis tax for FY19-20 was $10.9 million. Staff expected a modest decrease of the revenue related to the pandemic. The tax revenue is performing well and it is expected to reach $16.9 million for the current fiscal year. The resulting increase to the revenue estimate is $7,250,000. Similarly, the City has increased the Commercial Cannabis tax estimate by $700,000. Both of these revenue sources are subject to City Council Ordinance NS-2959 requiring a two-thirds set-aside. As a result, the net increase to the General Fund is only $2,650,000, as $5,300,000 will transfer to the Cannabis Public Benefit Fund. Medical Cannabis tax is not subject to the Ordinance, and staff has increased the revenue estimate by $625,000. Paramedic Services Charges: Actual FY19-20 revenue was $7.2 million, with an expected an increase of $1.1 million due to the pandemic. Once more, it has been found that the pandemic has had an opposite effect than expected. There are less 9-1- 1 calls for ambulance transport, as residents want to avoid COVID-19 at the hospitals. In addition, hospitals are overwhelmed, and first responders are not recommending ambulance transport in many cases. Finally, due to financial hardships, the rate of collecting payment has decreased. Therefore, staff has reduced the revenue estimate to $5.5 million, which is $2.8 million less than the original budget estimate. Parks, Recreation and Community Service Fees: Staff reduced the revenue estimates from $2.6 million in the prior year to $1.9 million for the current year. The pandemic has significantly delayed the operation of recreation programs and facility usage, and allowed for only intermittent zoo operations. As the pandemic has effected PRCSA operations for much longer than originally anticipated, staff has decreased the revenue estimated by another $1.5 million. This report also includes a corresponding reduction of expenditures of $1.35 million. Planning and Building Charges and Fees: The City received $11.2 million of Planning and Building revenue in FY19-20. The current budget includes a revenue estimate of $8.8 million. Permitting activity is a little better than expected, and staff has increased the revenue estimate by $0.4 million. Jail Revenue: Actual FY19-20 revenue was $15.3 million. The FY20-21 budget was prepared with an assumption that the third Jail module would be open and the revenue estimate was set at $16.4 million. The City has not been able to hire enough Correctional Officers to open the third module. Effective November 1, 2020, the rates paid by the U.S. Marshals increased, which has generated additional revenue. Therefore, the net decrease to our revenue estimate is only $342,404. At this time, it was expected that the third Jail module would open toward the end of the calendar year. Parking Fines: Actual FY19-20 Parking Fine revenue was $5.1 million, and staff reduced the FY20-21 estimate to $4 million due to enforcement reductions during the