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Fiscal Year 2023-24 First Quarter Budget Report and Proposed Appropriation
<br />Adjustments
<br />November 7, 2023
<br />Page 2
<br />3
<br />8
<br />5
<br />5
<br />estimates. In addition, we are proposing expenditure reduction totaling $408,196. The
<br />net fiscal impact of all proposed adjustments is an overall reduction of $121,804.
<br />FY23-24 General Fund Summary with Proposed Adjustments
<br /> FY23-24 Original
<br />Budget
<br />Proposed 1st
<br />Quarter
<br />Adjustments
<br />Updated Estimate
<br />Beginning Balance at
<br />July 1, 2023 109,372,864 -109,372,864
<br />Revenue Estimate 400,938,670 (530,000)400,408,670
<br />Appropriated Spending (414,022,680)408,196 (413,614,484)
<br />Pension Trust Set Aside (24,034,731)-(24,034,731)
<br />Estimated Ending
<br />Balance at June 30,
<br />2024
<br />72,254,123 (121,804)72,132,319
<br />Less: 18% Reserve 72,168,961 (95,400)72,073,561
<br />Estimated Spendable
<br />Balance 85,162 (26,404)58,758
<br />The First Quarter budget and actual revenues and expenditures are included in Exhibits
<br />1 & 2. The First Quarter vacancy report is included in Exhibit 3.
<br />DISCUSSION
<br />FY2023-24 Revenue
<br />•The current budget for the Bradley Burns sales tax allocation is $64,715,000.
<br />Actual revenue received in FY22-23 was only $61,068,452. Therefore, staff has
<br />adjusted the FY23-24 revenue estimate to $62,515,000 (a budget reduction of
<br />$2,200,000, but a 2.4% increase from FY22-23).
<br />•The budget for Measure X sales tax is $88,616,000. Actual revenue received in
<br />FY22-23 was only $86,849,806. The City’s sales tax consultant has noted we
<br />are experiencing a decrease in new vehicle sales and taxable construction
<br />materials, which are having a greater impact on Measure X revenue. Therefore,
<br />staff has adjusted the FY23-24 revenue estimate to $85,916,000 (a reduction of
<br />$2,700,000 and a 1% further decrease from FY22-23).
<br />•Increase Hotel Visitor’s Tax by $1 million, from $8.5 million to $9.5 million, based
<br />on normal collections received in FY22-23.
<br />•Increase Electric Utility Users Tax by $1.7 million, from $15.1 million to $16.8
<br />million, based on normal collections received in FY22-23.
<br />•Increase Business License Tax by $1 million, from $15 million to $16 million, to
<br />align current year estimates with prior year actuals.
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