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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />NOVEMBER 17, 2020 <br />TITLE: <br />RECEIVE AND FILE FISCAL YEAR <br />2020-2021— <br />FIRST QUARTER UPDATE <br />/s/ Kristine <br />CITY MANAGER <br />CLERK OF COUNCIL USE ONLY: <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1sl Reading <br />❑ Ordinance on 2od Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />RECOMMENDED ACTION <br />Receive and file Fiscal Year 2020-2021 First Quarter Update (Exhibit 1). <br />DISCUSSION <br />The purpose of this report is to provide an early look at fiscal year activity. The fiscal year begins <br />in July and ends in June. Many revenues are received two months after the period of activity. <br />Therefore, when analyzing the books as of September 30,2020, it is normal to see low revenue <br />received to date. Expenditures to date will be closer to one -quarter of the annual budget, as 60% <br />of the budget is related to employee compensation paid twice monthly. <br />The update focuses on the General Fund, as it is the primary operating fund of the City. However, <br />this year's first quarter update includes restricted federal CARES (Coronavirus Aid, Relief, and <br />Economic Security) Act spending, due to its importance to current City operations and an update <br />on the Parking Enterprise, which has been impacted by the pandemic. <br />Finally, staff has included the full-time funded position vacancy report as of September 30, 2020. <br />General Fund Revenues for FY 2020-2021 <br />Sales Tax (Bradley Burns and Measure X): Sales tax allocations are received monthly. Within <br />each quarter, there are two advance payments based on the state's estimates and one true -up <br />payment based on actual sales tax performance. As of September 30, only one monthly advance <br />payment had been received for both Bradley Burns and Measure X. The latest "conservative" <br />estimate from the City's sales tax consultant indicates Bradley Burns revenue may exceed the <br />original estimate by $0.9 million, and Measure X revenue may exceed the original estimate by $1.3 <br />million. Staff will continue to monitor the revenue, including actual first quarter results to be received <br />in late November, and may propose an adjustment to Sales Tax estimates at mid -year. <br />Property Tax, Property Tax in lieu of VLF, and Residual Property Tax: Approximately two- <br />thirds of Property Tax (the City's 17% share of the base 1 % levy) is collected during the months of <br />December and April. The entire allocation of Property Tax in lieu of VLF is received in two equal <br />19E-1 <br />