SR 06:127 - Laserfiche WebLink

part of any balanced budget plan. It provides the information necessary for the City to complete fee and rate studies which accurately spread costs to the appropriate users. It also segregates and identifies the City's revenue sources, providing information to help the City meet its goals of maintaining a diversified and stable revenue base. Lastly, the Fund structure facilitates the ongoing review of the City's financial condition. Historical and Projected General Fund Trends The City's General Fund experienced major revenue growth in the last two decades as shown in Figure 1 on page XI-19. Property and sales taxes have been the two largest sources of local revenue. Both are expected to continue to grow in the short term, but at a slower rate than in the two prior decades. Pleasanton, because of its diversified retail base, has largely been spared the major loss of sales tax dollars experienced by many other localities during recessionary times. In addition to many storefront retailers, the City receives significant sales tax dollars from construction related industries and business-to-business retail transactions, although this source has declined in recent years. The downside to the latter two types of transactions is their sensitivity to economic cycles. Sales tax revenue was once expected to outpace property tax revenue as the major source of General Fund revenue, but it did so only temporarily from 1996 to 1999, as shown in Figure 2 on page XI-20. Property taxes have once again become the larger source. Sales tax revenue growth has slowed for a variety of reasons. For example, the City has lost sales tax dollars to Intemet sales that often are exempt or can escape taxation. As mentioned above, business-to-business retail transactions have declined, which may also be due in part to Intemet sales. Another contributing factor is that the City has experienced increased retail competition by neighboring cities in the 1-580/1-680 freeway corridors. With the development of the remaining vacant commercial land in Pleasanton, the City will benefit from additional new sales tax generating businesses. However, retail development in the 1-580/1-680 corridors from Livermore to Dublin and from Dublin to San Ramon also continues to expand. Because of the increase in retail outlets in neighboring cities and the remote possibility that the State will XI-6