Finance and Management Committee
May 28, 2024
AGENDA REPORT
TO: Jestin D. Johnson FROM: Erin Roseman
City Administrator Director of Finance
SUBJECT: General Purpose Fund Major
Revenue Sources Overview
Report
DATE: May 16, 2024
City Administrator Approval Date:
RECOMMENDATION
Staff Recommends That The City Council Receive An Informational Report and Recommendation Providing an Overview on General Purpose Fund Major Revenue Sources
EXECUTIVE SUMMARY
This informational report is in response to the April 30, 2024 City Council request to provide additional information on the revenue collected by the City of Oakland.
BACKGROUND / LEGISLATIVE HISTORY
On February 6, 2024, the Oakland City Council received and file d the Fiscal Year (FY) 2022-23 Fourth Quarter (Q4) and Fiscal Year 2023-2 4 (Q1) Revenue and Expenditures (R&E) Informational Report from the Finance Department (File ID 23-0919 ).
On May 7, 2024, the Oakland City Council received and filed the FY 2024-2025 Midcycle Budget General Purpose Fund Deficit Informational Report (File ID 24-0220).
On March 19, 2024, the Oakland City Council received and filed the Annual Comprehensive Financial Report (ACFR) Informational Report from the Finance Department (File ID 24-0071 ).
On March 2 8, 2024, the Oakland City Council received and filed the FY 2023- 2024 Second Quarter (Q2) Revenue and Expenditures (R&E) Informational Report from the Finance Department (File ID 24-0156
).
ANALYSIS AND POLICY ALTERNATIVES
The City of Oakland General Purpose Fund (GPF), the largest operating fund in the city, has five major revenue sources that comprise approximately 80% of all revenue. Those sources are Property Tax, Business Tax, Real Estate Transfer Tax, Sales Tax, and Service Charges. This report will provide a dee per analysis and historical information on each of the five revenue Jestin Johnson (May 17, 2024 10:17 PDT)
May 17, 2024
Jestin D, Johnson, City Administrator
Subject: General Purpose Fund Major Revenue Sources Overview Report Date: May 16, 2024 Page 2
Finance and Management Committee
May 28, 2024
sources. The report also provides comprehensive detail on the top five major G PF revenue sources and collection history.
General Purpose Fund
Tables 1 and 2 below are an overview of the historical revenue amounts collected in GPF, year over year, for broad context.
Table 1- General Purpose Fund Historical Collection
Table 2- General Purpose Fund Historical Collection - Year Over Year Percentage Change
GPF Revenue Sources
FY16-17
Unaudited
Actuals
FY17-18
Unaudited
Actuals
FY18-19
Unaudited
Actuals
FY19-20
Unaudited
Actuals
FY20-21
Unaudited
Actuals
FY21-22
Unaudited
Actuals
FY22-23
Unaudited
Actuals
FY23-24
Q3 Yr-end
Projections
Property Tax 171.48 187.17 199.96 218. 66 238.93 256.97 281.28 294.36 Business Tax 75.84 86.11 99.73 98.04 104.11 101.15 115.38 120.98 Real Estate Transfer Tax 79.07 77.66 104.9 91.53 113.36 138.40 78.05 53.22 Sales Tax 53.7 57.47 62.05 55.52 57.63 63.78 66.83 62.72 Service Charges 54.61 60.57 64.57 58.17 52.58 52.49 54.18 45.7 Sub-Total 434.70 468.98 531.21 521.92 566.61 612.79 595.72 576.98 Total GPF Revenue 555.53 590.68 649.94 631.76 687.27 726.02 728.43 715.7 % of All GPF Revenues 78% 79% 82% 83% 82% 84% 82% 81%
GPF Revenue Sources
FY17-18
Revenue
Percentage
Change
Yr-over- Yr
FY18-19
Revenue
Percentage
Change
Yr-over- Yr
FY19-20
Revenue
Percentage
Change
Yr-over- Yr
FY20-21
Revenue
Percentage
Change
Yr-over- Yr
FY21-22
Revenue
Percentage
Change
Yr-over- Yr
FY22-23
Revenue
Percentage
Change
Yr-over- Yr
FY23-24
Q3 Yr-end
Projections
Revenue
Percentage
Change
Yr-over- Yr
Property Tax 8% 6% 9% 8% 7% 9% 4%
Business Tax 12% 14% -2% 6% -3% 12% 5%
Real Estate Transfer Tax -2% 26% -15% 19% 18% -77% -47% Sales Tax 7% 7% -12% 4% 10% 5% -7%
Service Charges 10% 6% -11% -11% 0% 3% -19%
Sub-Total 35% 60% -31% 27% 32% -49% -63%
Total GPF Revenue % Change 6% 9% -3% 8% 5% 0% -2%
Jestin D, Johnson, City Administrator
Subject: General Purpose Fund Major Revenue Sources Overview Report Date: May 16, 2024 Page 3
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May 28, 2024
Property Tax
Table 3- Property Tax Historical Collection
Overview
Property tax is the largest single source of revenue for the General Purpose Fund and represents approximately one -third (1/3 ) of all General Purpose Fund revenues. T he property tax is ad valorem, which means that the tax paid on a property is proportional to the property’s assessed value. Under the terms of Proposition 13 passed in 1978: 1) the annual tax owed is a maximum of 1% of a property’s assessed value, and 2) the assessed value can only increase a maximum of 2% each year unless ownership changes, in which case the prevaili ng market value assessment is used as the basis for taxation.
Over the last few years, property tax revenue has grown, year-over-year, at an average pace of
8.5%. The growth for that period was accelerated by a rapid run- up of housing demand and accompanying new construction. The rise in property tax revenues was also due to a Vehicle License Fee (VLF) “backfill” payment from the State (the difference between the old VLF of 2.0% and new fee of 0.65%) in the form of property tax revenue. The value of rising property tax, which increased more quickly than VLF revenues, brought Oakland additional revenues. However, with the current macroenvironment, the federal reserve’s efforts to fight inflation with raising interest is shifting the growth pattern to stable and is teetering into declining.
Figure 1- History of Property Tax Value Changes by Cause GPF Revenue Sources
FY16-17
Unaudited
Actuals
FY17-18
Unaudited
Actuals
FY18-19
Unaudited
Actuals
FY19-20
Unaudited
Actuals
FY20-21
Unaudited
Actuals
FY21-22
Unaudited
Actuals
FY22-23
Unaudited
Actuals
FY23-24
Q3 Yr-end
Projections
Property Tax 171.48 187.17 199.96 218.66 238.93 256.97 281.28 294.36 Total GPF Revenue 555.53 590.68 649.94 631.76 687.27 726.02 728.43 715.7 % of All GPF Revenues 31% 32% 31% 35% 35% 35% 39% 41%
Jestin D, Johnson, City Administrator
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Accounting Rubric in Annual Comprehensive Financial Report (ACFR) Governmental f und financial st atements ar e r eported using t he current f inancial r esources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collected w ithin the current period or soon enough thereafter to pay l iabilities of the current period.
The City considers property tax revenues to be available for the year levied and if they are collected within 60 days of the end of the fiscal period. Property taxes, state and local taxes, grants, licenses, charges for services, and interest and investment income associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Table 4 below details the revenue accounts associated with property tax revenue collection.
Table 4 – Property Tax Revenue Accounts
Tax Type Account and Description
01 - Property Tax 41111 - Property Tax: Current Secured 01 - Property Tax 41112 - Property Tax: Current Unsecured 01 - Property Tax 41113 - Property Tax: Current Unitary 01 - Property Tax 41114 - Property Tax: Current Homeowner's Relief Subvention 01 - Property Tax 41115 - Property Tax: Prior Secured
01 - Property Tax 41116 - Property Tax: Prior Unsecured 01 - Property Tax 41118 - Property Tax: Secured Supplemental Assessment 01 - Property Tax 41120 - Property Tax: Aircraft In-Lieu 01 - Property Tax 41122 - Property Tax: County Interest Apportionment 01 - Property Tax 41124 - Property Tax: Miscellaneous
01 - Property Tax 41127 - Property Tax: Vehicle License Fee (VLF) – Property Tax Swap 01 - Property Tax 41128 - Property Tax: Redevelopment Trust Funds (RPTTF) 01 - Property Tax 41129 - Property Tax: AB 1290 Statutory Pass Through 01 - Property Tax 41130 - Property Tax: Former RDA Funds Distribution Jestin D, Johnson, City Administrator
Subject: General Purpose Fund Major Revenue Sources Overview Report Date: May 16, 2024 Page 5
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May 28, 2024
Figure 2- Historical Property Tax Levies and Collections A
s shown in Figure 2 above, property tax levy has a 98% collection rate across the last ten years.
P
roperty Tax Current Considerations
Collections of property tax for FY 2023-24 Q3 are $183.97 million or 62.5% of the adopted budget.
The revenue is projected to exceed the FY 2023- 24 adopted budget of $294.17 million by approximately $0.19 million or 0.1% and is now forecast to end the year at $294.36 million based on data from the most recent property tax rolls from the Alameda County. In comparison , FY 2022-23 ended the year at $281.28 million. The increase in property tax revenues reflects increases in residential home values over the prior year as well as increases due to real estate sales and adjustments to assessed values due to the Proposition 13 allowable inflation factor.
These increases are expected to more than offset declines in revenue due to assessme nt appeals, particularly in the office sector, where property values are down significantly from the pre-pandemic period.
Jestin D, Johnson, City Administrator
Subject: General Purpose Fund Major Revenue Sources Overview Report Date: May 16, 2024 Page 6
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May 28, 2024
Business Tax
Table 5- Business Tax Historical Collection
Overview
Business Tax (BT) is the second largest single source of revenue for the General Purpose Fund and represents appr oximately 14%-17% of al l General P urpose Fund r evenues. The B usiness Tax is charged annually to Oakland businesses based on either gross receipts or rental income.
The historical rate on gross receipts varies by type of business, ranging from a low of $0.60 per $1,000 of receipts for gr ocers to $5.50 per $1, 000 of r eceipts for the largest businesses i n the miscellaneous category. The rate on r ental income is $13.95 per $1 ,000. The BT rates were increased by vo ters a t the November 2022 election, appr oving M easure T, the Progressive Business Tax Ordinance . BT has been a relatively steady and reliabl e revenue source for the City. However, BT is i mpacted by t he health of the eco nomy and in particular the local environment. The COVID-19 pandemic resulted in increased commercial property vacancies and reduced rental r ates in both the co mmercial and multi-family sectors, which has put downward pressure on tax revenues from these sources. For many of these businesses, pandemic related economic ef fects l inger as t he work -from-home transition continues t o affect a ttendance at downtown offices. Tax revenues from general contractors is also likely to decli ne as new construction activity slows in response to heightened uncertainty about t he prospects for office space in the near term. These downward pressures are projected to sustain due to the ongoing public safety concerns as well as uncertainty with respect to higher interest rates.
Accounting Rubric in Annual Comprehensive Financial Report (ACFR) Governmental f und financial st atements ar e r eported using t he current f inancial r esources measurement focus and t he modified accrual ba sis of acco unting. Business Tax r evenues are recognized as soon as they are both measurable and available. Revenues are considered t o be available when they ar e co llected within t he current per iod or so on enough thereafter t o pay liabilities of the current period. Business tax revenues are co nsidered to be available if they ar e collected within 60 days of the end of the fiscal period.
Business Tax revenue is recognized in one revenue acco unt and is separated from any late penalty or associated fee . Table 6 below details the accounts associated with business tax collections.
Table 6 – Business Tax Revenue Accounts
Tax Type Account and Description
05 - Business License Tax 41511 - Local Taxes: Business Tax 12 - Fines & Penalties 43212 - Penalties: Business Tax
14 - Service Charges 45422 - Other Fees: Business Tax Certificate GPF Revenue Sources
FY16-17
Unaudited
Actuals
FY17-18
Unaudited
Actuals
FY18-19
Unaudited
Actuals
FY19-20
Unaudited
Actuals
FY20-21
Unaudited
Actuals
FY21-22
Unaudited
Actuals
FY22-23
Unaudited
Actuals
FY23-24
Q3 Yr-end
Projections
Business Tax 75.84 86.11 99.73 98.04 104.11 101.15 115.38 120.98 Total GPF Revenue 555.53 590.68 649.94 631.76 687.27 726.02 728.43 715.7 % of All GPF Revenues 14% 15% 15% 16% 15% 14% 16% 17%
Jestin D, Johnson, City Administrator
Subject: General Purpose Fund Major Revenue Sources Overview Report Date: May 16, 2024 Page 7
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May 28, 2024
BT Co llectio n Activity
The regular collection process of business tax is on a continuous cycle that can culminate in payment, termination, lien, or judgement . The overall collection rate and collect ability of delinquent accounts is highly dependent on the business category and highly influenced by the overall economy. The complex process is presented in a detailed flowchart in the accompanying presentation.
BT Current Considerations
As of Q3 of FY 2023-24, the collection of BT is at $112.08 million which is 89.5% of the adopted budget. Overall, the year-end projection of BT is expected to end FY 2023-24 at $120.98 million, which is $4.27 million or 3.4% under when compared to the FY 2023 -24 adjusted budget of $125.25 million. However, this would represent an increase of $5.60 million compared to the FY 2022-23 year-end total of $115.38 million.
Projections for BT for purposes of preparing the FY 2023-24 budget were hampered by the ransomware attack which delayed BT collections as well as the fact that the tax year 2023 filings represented the first year of implementation of the Measure T new BT rates approved by the voters in November 2022. Most of the difference between the adopted budget and the estimated FY 2023-24 total comes from declines in collections from cannabis businesses. Both the number of filers and the number of gross receipts for these filers has declined from the prior year.
Revenues are also down in the contractors’ sector, reflecting the decline in building activity, as well as for retail establishments, reflecting a drop in taxable sales.
Thr
ough Q3, the total amount of gross receipts reported overall in FY 2023- 24 is approximately $29.56 billion. This represents approximately 86% of the $34.50 billion in gross receipt totals that were reported in FY 2022-23 by year end. Categories that have already exceeded their FY 2022- 23 gross receipt totals reported at year end include: Grocers at 106% reported year to date compared to the FY 2022-23 year-end total, Wholesale at 112% reported year to date compared to the FY 2022-23 year-end total, Hotel/Motel at 131% reported year to date compared to the FY 2022-23 year-end total, and Miscellaneous categories with 158% in gross receipts reported year to date compared to the FY 2022-23 year-end total. Over the past three years, on average, $7.85 million in BT revenues have been collected over the final three accounting periods of the year.
Real Estate Transfer Tax (RETT)
Table 7- Real Estate Transfer Tax Historical Collection GPF Revenue Sources
FY16-17
Unaudited
Actuals
FY17-18
Unaudited
Actuals
FY18-19
Unaudited
Actuals
FY19-20
Unaudited
Actuals
FY20-21
Unaudited
Actuals
FY21-22
Unaudited
Actuals
FY22-23
Unaudited
Actuals
FY23-24
Q3 Yr-end
Projections
Real Estate Transfer Tax 79.07 77.66 104.9 91.53 113.36 138.40 78.05 53.22 Total GPF Revenue 555.53 590.68 649.94 631.76 687.27 726.02 728.43 715.7 % of All GPF Revenues 14% 13% 16% 14% 16% 19% 11% 7%
Jestin D, Johnson, City Administrator
Subject: General Purpose Fund Major Revenue Sources Overview Report Date: May 16, 2024 Page 8
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Overview
Real Estate Transfer Tax ( RETT) is the third largest single source of reve nue for th e General Purpose Fund and represents approximately 7%-19% of all General Purpose Fund revenues. It is by far t he most volatile reve nue source and subject t o bi g swing s with changes i n the macroeconomy. Until D ecember 31, 2018, t he R eal E state Tr ansfer Tax ( R ETT) r ate on residential and commercial sales was 1.61% of t he val ue of each real estat e transaction.
Oakland’s share was 1.5% with Alameda County receiving the remaining 0.11%. The tax is triggered by the transfer of property ownership, and both the buyer and seller are responsible for ensuring the tax is paid. On November 6, 2018, Oakland voters approved Measure X, establishing a progressive real estate transfer tax rate for the City. The new rates became effective on January 1, 2019 and are as follows:
Transfers up to $300,000 1.00%
$300,001 to $2,000,000 1.50%
$2,000,001 to $5,000,000 1.75%
$5,000,001 and above 2.50%
As shown in Table 7, RETT revenues can be volatile, subject to fluctuations based on a handful of high value transfers in a given year and changes in the transfer rate overall. For example, in FY 2019-20, there were six transfers of properties individually worth over $50 million, which in the aggregate generated $13.3 million of RETT revenue. Over FY 20-21 and FY 21-22, on average, the small number of sales above this threshold generated $18.2 million. Through the first half of FY 2022-23, however, such transactions were only on pace to provide $7.4 million by year -end.
The number and value of these very large transactions cannot be easily predicted year to year.
Real estate transfer activity continued throughout the pandemic but has dropped considerably in the current fiscal year as the number of transactions has slowed considerably. Fiscal Year 2021- 22 RETT revenue was the highest ever recorded, at $138.4 million. It dropped significantly in Fiscal Year 2022-23 to $78.05 million. Reductions in transfer activity are expected to additionally decrease revenue for the current year, with estimated revenue of just $53.22 million.
Accounting Rubric in Annual Comprehensive Financial Report (ACFR):
Governmental f und financial statements are r eported using t he current f inancial r esources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collected w ithin the current period or soon enough thereafter t o pay liabilities of t he current period.
RETT is a local tax and is considered to be susceptible to accrual and recognized as revenues of the current fiscal period. Real Estate Transfer Tax is recognized in one revenue account.
The categorization is listed in Table 8 below.
Table 8 – Real Estate Transfer Tax Revenue Accounts
Tax Type Account and Description
07 - Real Estate Transfer Tax 41514 - Local Taxes: Real Estate Transfer Tax Jestin D, Johnson, City Administrator
Subject: General Purpose Fund Major Revenue Sources Overview Report Date: May 16, 2024 Page 9
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RETT Collection Activity
As Real Estate Transfer Tax is a tax on t he transfer of real property, the collection rate m irrors the levels of property tax collections at 98%, and very few properties fall outside of the ordinary process. However, in instances where RETT is due and goes unpaid, the City can place liens on the property and are able to collect from the next assessment on the property tax roll.
RETT Current Considerations
Through March 2024, Real Estate Transfer Tax collections totaled $38.54 million or 34.9% of the adopted budget. This level of collections is significantly below the prior year level of $54.62 million at the same Q3 interval. Seve ral factors contributed to the significant decline in RETT. The Federal Open Market Committee (F OMC) increasing and then holding the federal funds rate to
5.25%-5.50% to combat the inflationary trends is the primary cause. Consequently, the 30-year fixed mortgage interest rates averaged 6.82% as of March 28, 2024, according to the Freddie Mac Mortgage Market Survey Archive. The higher interest rate reduces the number of buyers as it makes home sales more expensive. This is reflected in the number of transactions through Q3, especially the high- value property transfers. As a whole, the volume o f transactions has decreased from 2,715 through Q3 in FY 2022-23 to 2,412 through Q3 in FY 2023-24, representing a 11.2% decrease. The decrease in volume is augmented when considering that through Q3 only 16 properties valued over $5.00 million have been sold, compared to 32 that had been sold through the same period in FY 2022- 23. Furthermore, only 7 of the properties that have sold through the Q3 were valued over $10 million compared to 15 in the prior Fiscal Year. The third quarter RETT projection has been revised to end the year at $53.22 millio n, which is $57.19 million or 51.8% lower compared to the adopted budget of $110.41 million. This anticipated drop in the RETT accounts for 62.5% of the overall projected revenue shortfall in the GPF.
Sales Tax
T
able 9- Sales Tax Historical Collection
Overview
Sales tax i s t he fourt h largest si ngle source of revenue for t he General P urpose Fund and represents approximately 10% of all GPF revenues. Sales and Use Tax applies to the retail sale or use of “tangible personal pr operty.” The total sales t ax percentage in the City o f Oakland is
10.25%, meaning that a $1 taxable purchase results in sales tax of 10.25 cents. The City receives 1% of the total sale as a distribution to its General Fund, meaning the City receives 1 cent on a $1 purchase. Oakland’s diverse sales tax base covers ten business types, including retail, motor vehicle parts and deal ers, home furnishings, auto and transportation, fuel and se rvice stations, business and industry, general consumer goods, building and construction, and food and drugs.
No single group dominates the City’s sales tax revenues.
GPF Revenue Sources
FY16-17
Unaudited
Actuals
FY17-18
Unaudited
Actuals
FY18-19
Unaudited
Actuals
FY19-20
Unaudited
Actuals
FY20-21
Unaudited
Actuals
FY21-22
Unaudited
Actuals
FY22-23
Unaudited
Actuals
FY23-24
Q3 Yr-end
Projections
Sales Tax 53.7 57.47 62.05 55.52 57.63 63.78 66.83 62.72 Total GPF Revenue 555.53 590.68 649.94 631.76 687.27 726.02 728.43 715.7 % of All GPF Revenues 10% 10% 10% 9% 8% 9% 9% 9%
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Subject: General Purpose Fund Major Revenue Sources Overview Report Date: May 16, 2024 Page 10
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May 28, 2024
Accounting Rubric in Annual Comprehensive Financial Report (ACFR) Governmental f und financial st atements ar e r eported using t he current f inancial r esources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collected w ithin the current period or soon enough thereafter to pay l iabilities of the current period.
Sales tax revenues are considered to be available if they are collected within 90 days of the end of the fiscal period. Sales Tax revenues are recognized in various revenue accounts to separate and appropriately categorize the specificity related to the tax collection. Table 10 details the sales tax categorization and is listed below.
Table 10 – Sales Tax Revenue Accounts
Tax Type Account and Description
02 - Sales Tax 41311 - Sales and Use Tax: Sales and Use Tax 02 - Sales Tax 41312 - Sales and Use Tax: Measure B & BB 02 - Sales Tax 41313 - Sales and Use Tax: Proposition 172 Fi
gure 3- Historical Taxable Sales by Category
Sales Tax Current Considerations
Collections of s ales t ax revenue t hrough FY 2023-24 Q3 are $36.79 m illion or 54.4 % of the adopted budget. Sales tax revenue collections lag behind other revenues by 2 -3 months. The current collections represent the second half of calendar year 2023. Oakland’s actual sales tax receipts from July through December were 6.4% below the same period in the prior year. Early reports of collection data from the State indicat e a reduction in sales tax as a result o f inflation moderating and certain business sectors contracting. The year-end projection of sales tax receipts is projected to be $62.72 million, short of the FY 2023- 24 adopted budget of $67.69 m illion, by approximately $4.97 million or 7.3%. Declines in sales tax revenues are a part of larger statewide and national trends i n favor o f more online purchases and a sh ift from goods to services
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purchases. In addition, lower sales tax revenues li kely reflect the impact of continued inflation as well as the ongoing weakness in the City’s central business district.
Service Charges
Table 11- Historical Service Charges Collection
Overview
Service charges and other similar revenues are projected to grow with inflation, changes in vehicle travel, staffing costs and other factors during the forecast period. Many of these revenues are considered cost r ecovery and thus a re tied t o staff co sts. H istorically, the City C ouncil has approved fee increases based upon gr owth in the Consumer P rice Index (CPI) or staff costs.
Each department p repares am endments t o the Master Fee S chedule and presents t hese proposed amendments to the City C ouncil i n the Spring; i f appr oved, t hese ch anges a re incorporated into the budget.
Accounting Rubric in Annual Comprehensive Financial Report (ACFR) Governmental f und financial st atements ar e r eported using t he current f inancial r esources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collected w ithin the current period or soon enough thereafter t o pay liabilities of t he current period.
Service Charges are considered to be available if they are collected within 90 days of the end of the fiscal period. Charges for services are all considered to be susceptible to accrual and are recognized as revenues of the current fiscal period. Service Charges are recognized in various revenue accounts. The categorization is listed in Table 12 and illustrate s the sheer number of disparate fees.
Table 12 – Service Charge Tax Revenue Accounts
Tax Type Account and Description
14 - Service Charges 41611 - Franchise: Gas and Electric 14 - Service Charges 41613 - Franchise: Cable TV
14 - Service Charges 41615 - Franchise: Pipeline
14 - Service Charges 41617 - Franchise: Sewer
14 - Service Charges 44211 - Land Rental: Field
14 - Service Charges 44212 - Land Rental: Park
14 - Service Charges 44219 - Land Rental: Miscellaneous GPF Revenue Sources
FY16-17
Unaudited
Actuals
FY17-18
Unaudited
Actuals
FY18-19
Unaudited
Actuals
FY19-20
Unaudited
Actuals
FY20-21
Unaudited
Actuals
FY21-22
Unaudited
Actuals
FY22-23
Unaudited
Actuals
FY23-24
Q3 Yr-end
Projections
Service Charges 54.61 60.57 64.57 58.17 52.58 52.49 54.18 45.7 Total GPF Revenue 555.53 590.68 649.94 631.76 687.27 726.02 728.43 715.7 % of All GPF Revenues 10% 10% 10% 9% 8% 7% 7% 6%
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14 - Service Charges 44312 - Facility Rental: Lodge
14 - Service Charges 44313 - Facility Rental: Gym
14 - Service Charges 44314 - Facility Rental: Pool (Temescal Masters) 14 - Service Charges 44315 - Facility Rental: Tennis Court 14 - Service Charges 44316 - Facility Rental: Sailboat House (Club Class Committee Room) 14 - Service Charges 44329 - Facility Rentals: Miscellaneous 14 - Service Charges 44411 - Other Rental: Boat
14 - Service Charges 44413 - Other Rental: Equipment
14 - Service Charges 44418 - Other Rental: Billboards
14 - Service Charges 44419 - Other Rental: Miscellaneous 14 - Service Charges 44511 - Concession Income: Golf Course 14 - Service Charges 44519 - Concession Income: Miscellaneous 14 - Service Charges 45113 - Public Works Fee: Sewer Service Charge 14 - Service Charges 45114 - Public Works Fee: Inspection/Application Fees 14 - Service Charges 45115 - Public Works Fee: Plot Plan Review Fees 14 - Service Charges 45117 - Public Works Fee: Clean-up / Board-up 14 - Service Charges 45119 - Public Works Fee: Miscellaneous 14 - Service Charges 45211 - Parks & Rec Fee: Cultural Art Classes 14 - Service Charges 45212 - Parks & Rec Fee: Boating Instruction (Learn-to-Sail) 14 - Service Charges 45213 - Parks & Rec Fee: Swimming Instruction 14 - Service Charges 45215 - Parks & Rec Fee: Public Swimming (Excluding Lap Swimming) 14 - Service Charges 45216 - Parks & Rec Fee: Lap Swimming 14 - Service Charges 45217 - Parks & Rec Fee: Lodge Janitorial Service 14 - Service Charges 45233 - Parks & Rec Fee: Camp Kidd 14 - Service Charges 45239 - Parks & Rec Fee: Miscellaneous 14 - Service Charges 45311 - Parking Fee: On Street Parking Meters 14 - Service Charges 45312 - Parking Fee: Off Street Parking (Including OPR Parking) 14 - Service Charges 45414 - Other Fees: Fire Plan Checking Inspection and Testing 14 - Service Charges 45415 - Other Fees: Report of Residential Building Records 14 - Service Charges 45416 - Other Fees: Certificate of Occupancy 14 - Service Charges 45418 - Other Fees: Special Design Review Exemptions 14 - Service Charges 45419 - Other Fees: Miscellaneous
14 - Service Charges 45421 - Other Fees: Annual High-Rise Inspection 14 - Service Charges 45422 - Other Fees: Business Tax Certificate 14 - Service Charges 45423 - Other Fees: General Plan Surcharge 14 - Service Charges 45424 - Other Fees: Field Check Inspection 14 - Service Charges 45425 - Other Fees: Process Coordination 14 - Service Charges 45426 - Other Fees: Notification
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nance and Management Committee
May 28, 2024
14 - Service Charges 45430 - Other Fees: Public Nuisance 14 - Service Charges 45433 - Other Fees: Litter Fee
14 - Service Charges 45436 - Other Fees: Notary
14 - Service Charges 45519 - Sales: Miscellaneous
14 - Service Charges 45612 - Port Revenue: Special Revenue 14 - Service Charges 45712 - Other Svc Charges: Subpoena Jury and Witness 14 - Service Charges 45715 - Other Svc Charges: Legal
14 - Service Charges 45717 - Other Svc Charges: MGS Administrative 14 - Service Charges 45718 - Other Svc Charges: Personnel Services 14 - Service Charges 45719 - Other Svc Charges: Sewer Repair Reimbursement 14 - Service Charges 45721 - Other Svc Charges: Damages to City Property - Labor 14 - Service Charges 45722 - Other Svc Charges: Damages to City Property - Materials 14 - Service Charges 45723 - Other Svc Charges: Damages to City Property - Overhead 14 - Service Charges 45729 - Other Svc Charges: Miscellaneous Service Charges 14 - Service Charges 45732 - Other Svc Charges: Recordation of Public Documents 14 - Service Charges 45742 - Other Svc Charges: MGS Demand Letter Fee 14 - Service Charges 45745 - Other Svc Charges: Police False Alarm Charges 14 - Service Charges 45746 - Other Svc Charges: State Mutual Aid Reimbursement S
ervice Charge Collection Activity
Collection of service charges is based on the demand of the service provided and varies widely based on the program in which it supports or cost-recovers.
Service Charge Tax Current Considerations
Collections of service charges for FY 2023-24 Q3 are $19.37 million or 37.0% of the adopted budget. Service Charges are projected to end the year at $45.70 million which is a decrease of approximately $6.58 million or 12.6% from the FY 2023-24 adopted budget of $52.28 million. The new projection represents a decrease in service charges across multiple areas including parking meter fees and the inability to collect franchise sewer fees.
FISCAL IMPACT
Thi
s report is for informational purposes and has no fiscal impact on the current or future year budgets.
PUBLIC OUTREACH / INTEREST
Thi
s item did not require additional public outreach other than posting on the City’s website.
COORDINATION
Thi
s report was prepared by the Finance Department and incorporates financial data from our Revenue Bureau Consultants.
Jestin D, Johnson, City Administrator
Subject: General Purpose Fund Major Revenue Sources Overview Report Date: May 16, 2024 Page 14
Fi
nance and Management Committee
May 28, 2024
SUSTAINABLE OPPORTUNITIES
Economic: There are no direct economic opportunities associated with this informational report.
Environmental: There are no direct environmental opportunities associated with this informational report.
Race & Equity: There are no direct race or equity opportunities associated with this informational report.
ACTION REQUESTED OF THE CITY COUNCIL
Staff Recommends That The City Council Receive An Informational Report and Recommendation Providing an Overview on General Purpose Fund Major Revenue Sources
For questions regarding this report, please contact Erin Roseman, Director of Finance, at 510- 238-2220.
R
espectfully submitted,
ER
IN ROSEMAN
Director of Finance, Finance
R
eviewed by:
Sarah Herbelin, Assistant to the Director
Finance Administration
P
repared by:
Brittany Hines, Assistant to the Director
Finance Administration
Erin Roseman (May 17, 2024 07:53 PDT)