CITY COUNCIL MEETING AGENDA PACKET

Page 6 of 17 Compared to FY 2023/24, the $6.7 million collected in FY 2024/25 represents a 15.6 percent increase. The actual Transient Occupancy Tax (TOT) collected was approximately $30,000 lower than the budgeted estimate of $5.4 million in the amended budget, mainly due to the closure of a hotel in FY 2024/25. While the $5.3 million collected in FY 2024/25 is an increase from the COVID-19 low of $2.0 million in FY 2020/21, TOT revenue is still significantly lower than the high of $6.5 million achieved in FY 2018/19. Development Services Fee revenues were approximately $3.4 million higher than the estimated $4.7 million in the amended budget, primarily due to actual building permit and plan check fees collected, which came in about $1.6 million and $1.4 million higher than budget, respectively. There were several large development projects and increased activities in FY2024/25, including the Avalon Bay multifamily residential project, the Workday expansion project, and Accessory Dwelling Units (ADUs), resulting in one-time revenue. Compared to FY 2023/24, the $8.1 million collected in FY 2024/25 represents a 61.4 percent increase due to increased development activities. Actual Recreation Fee revenues were approximately $73,000 lower than the estimated $5.0 million in the amended budget. Compared to FY 2023/24, the $5.0 million collected in FY 2024/25 represents a 6.2 percent increase, as demand for recreation programs continues to rise every year following the COVID-19 pandemic. It should be noted that Other Revenues excludes an unrealized investment gain of $3.6 million (not available budgetary resource). Excluding approximately $1.7 million in GASB adjustments related to the City’s leases and subscription-based information technology arrangements (SBITAs) and the aforementioned $12.8 million Costco project capital contribution, actual is higher than budget by about $1.9 million, mainly due to higher reimbursements associated with development projects, interest earnings, interfund revenue for services provided to other funds, and various fees collected related to fire, technology, and encroachment. Excluding the revenue associated with the Costco project, year-over-year revenue increased by $1.1 million, representing a 9.1% increase. General Fund Expenditures. Actual General Fund expenditures incurred were more than the amended budget by $12.0 million or 7.7 percent, primarily due to the $12.8 million capital contribution associated with the Costco project. Table 4 below shows the major expenditure categories, comparing the amended budget against actual expenditures. Table 4. General Fund Expenditures – Amended Budget vs. Actual Page 352 of 399