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Page 2 of 8 Table 1. General Fund Overview General Fund Revenues As presented in Table 2 below, General Fund revenues are estimated to increase by $13,000 based on revised projections from evaluating more current revenue trends as well as year-to- date actual revenues. This marginal net increase is primarily due to increases in Property Tax, Business License Tax, and Recreation Fees offset by decreases in Development Service Fees, Sales Tax, and Documentary Transfer Tax. Major revenue adjustments are highlighted below: • An increase of $1.7 million in Property Tax due to projected increase in assessed value. Updated projections include an increase of approximately $1.2 million in Secured Property Tax, $440,000 in Unsecured Property Tax, and $80,000 in the Property Tax portion of the Vehicle License Fees. Property Tax is the City’s largest revenue source. • A decrease of $950,000 in Development Service Fee revenues due to delays to the Stoneridge mall residential project. Additionally, the commercial and residential development industry has experienced a slowdown in new construction in recent months, likely due to higher interest rates. Plan reviews have decreased from 280-300 monthly in FY 2022/23, to 200-220 monthly in the current fiscal year. • A decrease of $892,000 in Sales Tax largely due to a delay in opening of the new Costco. Sales Tax revenue estimates included in the adopted budget assumed a new Costco location beginning its operation in the fourth quarter of FY 2023/24. The latest projection from the City’s consultant estimates a decrease in sales tax revenues. Sales Tax is the City’s second largest revenue source. • A decrease of $450,000 in Documentary Transfer Tax due to the decline in home sales. With elevated mortgage rates combined with a very low inventory of properties for sale in the city, sales activities are expected to remain sluggish. • An increase of $300,000 in Business License Tax due to a projected increase in gross receipts as the original budget estimate is conservative. • An increase of $170,000 in Transient Occupancy Tax as the Tri-Valley area continues to recover from the COVID-19 pandemic. Page 193 of 228