CITY COUNCIL REGULAR MEETING AGENDA PACKET

Page 5 of 15 Property Tax revenue is the largest revenue source for the General Fund, accounting for 59.5 percent of total revenues. In FY 2023/24 actual property tax collections, including all categories of property related taxes, were approximately $90.2 million compared to an estimate of $90.1 million in the amended budget, which was $0.1 million or 0.1 percent higher than the amended budget. Secured property tax, which is the largest component of the overall Property Tax revenue, and delinquent tax were lower than budget by about $1.3 million and $0.1 million, respectively. In comparison, unsecured property tax and supplemental assessment tax were higher than budget by $0.7 million and $0.8 million, respectively. Compared to FY 2022/23, $90.2 million collected in FY 2023/24 represents an increase of 4.8 percent. Sales Tax revenue is the second largest revenue source for the General Fund, accounting for 15.8 percent of the total revenues. FY 2023/24 actual sales tax collections were approximately $24.0 million compared to an estimate of $24.5 million in the amended budget. This $0.5 million or 2.3 percent decrease reflects that several sales tax categories, including autos and transportation and general consumer goods, did not perform as expected. Compared to FY 2022/23, $24.0 million collected in FY 2023/24 represents a decrease of 8.5 percent. Business License Tax revenue was budgeted at $5.3 million, and actual collections were $5.8 million or $0.5 million higher than the amended budget as a result of new licenses and greater gross receipts than expected. Some Business License Taxes collected in FY 2023/24 were related to various one-time construction contracts and other professional services. As such, a more modest level of growth is expected in future years. Compared to FY 2022/23, $5.8 million collected in FY 2023/24 represents a decrease of 0.9 percent. Actual Transient Occupancy Tax (TOT) collected was approximately $0.7 million higher compared to a budgeted estimate of $4.5 million in the amended budget as a result of increased business travel activities in the Tri-Valley region. While TOT revenues continue to increase from the COVID-19 low of $2.0 million in FY 2020/21, $5.3 million collected in FY 2023/24 is still significantly lower than the high of $6.5 million achieved in FY 2018/19. Development Services Fee revenues were approximately $0.5 million higher compared to an estimate of $4.5 million in the amended budget mainly due to actual plan check fees collected coming in about $0.4 million higher than budget. Compared to FY 2022/23, $5.0 million collected in FY 2023/24 represents a sizable decrease of 21.5 percent. Actual Recreation Fee revenues were approximately $0.1 million higher than the estimated $4.6 million in the amended budget, as the demand for recreation programs continues to Page 234 of 658