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FY24-25 Mid-Year Budget Update, Appropriation Requests, and Workforce Changes
<br />March 4,2025
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<br />General Fund Revenues
<br />A summary of General Fund revenues follows.
<br />The City generated approximately $132 million or 32% in revenue as of December 31,
<br />2024. Since the City receives most of its revenue up to 60 days after the corresponding
<br />period, we can expect to have received approximately four (4) months (or 33%) of
<br />revenue by December 31. One notable exception is Business License Tax, where the
<br />City receives a majority of revenue in the spring of each year. The amount received in the
<br />current fiscal year is slightly lower than revenue collected in the prior year. This decrease
<br />is primarily attributed to lower sales tax receipts.
<br />The following section provides a discussion on revenue estimate adjustments based on
<br />the latest available information.
<br />Sales Tax (Bradley Burns)
<br />The original revenue estimate for Bradley Burns was $61.7 million. With two quarters now
<br />completed, staff has decreased the revenue estimate by $2.7 million, bringing the
<br />estimate to $59 million. Another quarter of data, along with updated estimates from the
<br />City’s sales tax consultant, support this revised estimate. Sales tax receipts are 2.3%
<br />below the same period in 2023 and down 3.9% compared to the second quarter of 2024.
<br />The City’s largest sectors, autos and transportation, business and industry, and
<br />fuel/service stations continue to struggle. Ongoing high prices and interest rates are
<br />slowing sales growth.
<br />Local Sales Tax (Measure X)
<br />The original budget estimate for the Local Sales Tax (also known as Measure X) was
<br />$85.6 million. The tax is down 2% compared to the second quarter of 2024. The overall
<br />decrease is in the same sectors as Bradley Burns. Based on further guidance from the
<br />Revenue Source
<br /> Annual Estimate
<br />Update d with 1st Qtr
<br /> Re ce iv e d As of
<br />12/31/2024 % Re ce iv e d
<br />Property Tax/ Property Tax In-Lieu of VLF 92,819,320 22,076,738 23.8%
<br />Sales Tax (Measure X)85,632,610 27,503,669 32.1%
<br />Sales Tax (Bradley Burns)61,682,950 19,227,461 31.2%
<br />Other General Fund Revenue 47,189,303 14,097,243 29.9%
<br />Charges for Servic e 30,590,300 14,671,814 48.0%
<br />Utility Users Tax 27,300,000 13,939,547 51.1%
<br />Business License 16,200,000 3,651,971 22.5%
<br />Cannabis Revenue 14,530,000 5,600,077 38.5%
<br />Jail Revenue 14,153,500 3,551,629 25.1%
<br />Franchise Fees 12,375,000 3,693,029 29.8%
<br />Hotel Visitor's Tax 9,500,000 4,042,679 42.6%
<br />T otal Ge neral Fund Rev e nue ³411,972,983 132,055,856 32.1%
<br />³Includes all Appropriation Adjustm ents through December 31, 2024, with the exception of Carry Forwards.
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