RES 92065 - Laserfiche WebLink

that was completed several years ago. Staff is recommending that the General Fund's portion of these revenues ($1,022,990) be added to the Reserve for Carryovers, to be used nex~ fiscal year (1992- 93). Their recommended use can then be determined as part of the formal budget process. DISCUBSION OF GENERAL FUND REVENUES Table i outlines all General Fund revenues, comparing original projections with the recommended new projections. A discussion of major revenues follows below. Property Taxes The most current estimate of property tax and documentary stamp tax revenues is now $240,000 less than the projections made in the first quarter of this fiscal year. With the recommended midyear decrease of another $57,000, this is $297,000 less than the original projections made when the budget was adopted. Total property tax revenues are now projected to be $13.1 million. Although the City has benefitted from the opening of many new retail businesses, we have also felt the effects of the recession, including slumping auto sales. However, these events are consistent with the assumptions made by staff when revenue projections were prepared last spring for 1991-92. Staff will not receive the data from the State regarding the Christmas sales tax quarter until late in March. Because that quarter contributes approximately 1/3 of the City's sales tax revenues, staff is not 'recommending any changes to the original projection of $9.16 million at this time. With the next quarterly financial report, staff will analyze the sales tax data in depth, and recommend changes, if necessary, at that time. The City has been notified by the State Board of Equalizationtha~ the Christmas quarter sales tax payment from Macy's will be tied up in bankruptcy court for 1-2 years. Staff will review, the impact of the delayed receipt of these funds at the time all sales tax data is analyzed. Hotel/Motel Tax The City assesses a transient occupancy tax of 8% on all dwellings occupied less than 30 days. There are 1,300 hotel/motel rooms in the City, as well as numerous apartments that are rented on a short term basis. Hotel/Motel tax revenues have been static for the last four .years. During that time period, no additional hotel rooms have been added in the City, but new hotels in surrounding communities have opened, heightening competition. Staff is SR92:125 3