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recommending no changes to the original projection of $1.5 million <br />in revenue from this source. <br /> <br />Business License Tax <br /> <br />Business License Tax revenues are essentially on target with <br />projections. However, staff is recommending that the projection <br />for 1991-92 be decreased by $80,000 to reflect a proposed change to <br />calendar year licensing, because the City would not receive any <br />renewal revenue this June 1992. <br /> <br />Interest Income <br /> <br />Interest income is money derived'from investing the General Fund's <br />idle cash. Because the City has been reducing its reserves over <br />the years and using them for capital projects, the cash available <br />for investment is declining. Furthermore, short term interest <br />rates have fallen to under 4%. Therefore, in the first quarter of <br />this year, the original projection of $180,000 was reduced to <br />$150,000. Because the City has a mix of short and long term <br />investments, and because we have been able to utilize the State's <br />Local Agency Investment Fund to take advantage of its longer <br />average investment life, staff expects to be able to meet the <br />projected interest income of $150,000, although rates have declined <br />further since the first quarter. <br /> <br />Staff is, however, recommendingthat an adjustment be made to prior <br />year interest income, reducing it by $60,000. This is an <br />accounting adjustment only, and reflects the fact that in previous <br />years the General Fund was inadvertently receiving credit for <br />interest earnings that belonged to an old 1911 Act Assessment <br />District trust fund. <br /> <br />State Auto In-Lieu <br /> <br />Auto in-lieu fees are a subvention received from the State in lieu <br />of property taxes on motor vehicles. The subvention amount is <br />determined bypopulation. Statewide, auto in-lieu fees have fallen <br />behind projections. Revenues were originally estimated at $1.9 <br />million. Staff is now recommending that the projection be reduced <br />by $100,000. There is a possibility that this revenue source will <br />be kept by the State in future budget years, and no longer <br />forwarded to cities. <br /> <br />B~ldina and Public Works Fees <br /> <br />Although building permit activity showed some rebound in November <br />through January, February activity was again down. Staff is <br />recommending that building permit and plan check revenue <br /> <br />SR92:125 <br /> <br />4 <br /> <br /> <br />