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<br />redistribute some of the City's sales tax dollars in the future, it is unlikely that Pleasanton will soon, if <br /> <br /> <br />ever, see the growth in sales tax revenues that it did in the past. <br /> <br />PropeIty assessed values continue to rise, although not at the levels of the prior two decades. PropeIty <br /> <br /> <br />tax revenues are projected to increase 5% to 6% over the next few years but could trend in the range of <br /> <br /> <br />4% to 5% as the City gets closer to General Plan build out. Reassessments based on both residential <br /> <br /> <br />and commercial propeIty resales will be an important factor affecting the future growth rates in <br /> <br /> <br />propeIty tax revenue. In addition, the remaining few new housing units allowed in the General Plan <br /> <br /> <br />will contribute to increased propeIty tax revenue, but new and remodeled commercial properties will <br /> <br /> <br />likely comprise a bigger share of the increase in the long term. <br /> <br />Figure 3 on page XI-21 reflects the historical percentage of General Fund revenue derived from <br /> <br /> <br />propeIty and sales taxes combined. In 1986-87, the two sources comprised 55% of total General Fund <br /> <br /> <br />revenue. For 2005-06, they are projected to comprise over 70% of the total General Fund revenue. <br /> <br />Figure 4 on page XI-22 reflects the historical percentage derived from each of the two revenue sources. <br /> <br /> <br />Note that during the period 1996-97 through 1998-99, sales taxes surpassed property taxes as the <br /> <br /> <br />primary source of revenue. This was a trend that previously was expected to prevail as the City <br /> <br /> <br />approached build out. <br /> <br />However, this trend was quickly reversed starting in 1999-2000, when for the reasons previously <br /> <br /> <br />described, propeIty tax dollars once again outpaced sales tax as the major revenue source. While <br /> <br /> <br />propeIty taxes are a far less volatile revenue source than sales tax, the resulting trend is toward a <br /> <br /> <br />concentration in fewer revenue sources. However, to remain fiscally sustainable, it is important for the <br /> <br /> <br />City to have as much local control over revenue sources as possible, and to have as much diversity as <br /> <br /> <br />possible. Several goals and policies in the Element address this issue. <br /> <br />On the expenditure side, with the annexation of the Bernal propeIty and recent growth in the southern <br /> <br /> <br />areas of the City, police and parks/community services staffing (or contract services) are expected to <br /> <br /> <br />grow to meet increasing demands. In addition, recent cost trends for utilities, gasoline, and labor have <br /> <br />XI-7 <br />