Attachment 6 - General Fund Revenue and Expenditure Assumptions
CATEGORY ASSUMPTIONS
REVENUES
PROPERTY TAXES Assessed Value (AV) Growth stems from a combination of factors such as 2 percent Consumer Price Index (CPI) growth for most properties and new valuation for properties that were sold during 2023.
SALES & USE TAX A 5.1 percent growth is included per Avenu Insights and Analytics; Vehicle Licenses Fee is tied to AV growth as well as Secured Property Taxes.
UTILITY USERS TAX (UUT)
The analysis was in part provided by Avenu Insights and Analytics. Historically, growth rates applied to individual revenue streams with in the UUT category, such as Cable, and Telecom, continue to decrease due to industry changes. In addition, the Settlement Amount is due to expire in FY 2024-25, the cap amount paid by chevron is based on Energy Services CPI for the Bay Area.
OTHER TAXES
Each revenue stream within Other Taxes changes year-to-year based on independent influences.
Garbage fees are up by 4 percent based on historical changes, and Hotel Taxes are up 3 percent based on rebounding sector. Gas and electricity franchise changes stem from a combination of recently updated franchise fee agreements with PG&E coupled with the growth factor used for UUT.
LICENSES, PERMITS & FEES The primary revenue stream is Business Tax and a growth factor of 2 percent is used as a CPI going forward
FINES & FORFEITURES Parking citations and Muni Court Fines are flat. Proposed amounts are lower than currently budgeted and tie to current year actuals and trends.
USE OF MONEY & PROPERTY Flat - zero growth
CHARGES FOR SERVICES Most items entered by corresponding departments based on their estimated level of service.
Proposed amounts are lower than currently budgeted and tie to current year actuals and trends.
OTHER REVENUE Very unpredictable. Usually very little budgeted here and items are added as received.
RENTAL INCOME Proposed amounts are lower than currently budgeted and tie to current year actuals and leases.
GRANTS Only known grants are budgeted
PROCEED FROM SALE OF PROPERTY Based on historic trend
OPERATING TRANSFERS IN Based on Analysis of the Pension Tax Override (PTORS) fund, estimated AV growth, minus scheduled uses. Left over funds are transferred to the General Fund.
EXPENDITURES
SALARIES AND WAGES
The proposed Budget includes approved salary increases per each bargaining units’ approved Memorandum of Understandings and annual step increases for staff where applicable. The proposed Budget includes a 6 percent position control vacancy rate City-wide, which is approximately $10.5 million. This assumption was also approved by the City Council in the adopted FY 2023-24 Budget to achieve a balanced budget, while City staff members continue to focus on retention, recruiting, and hiring.
PYROLL/FRINGE BENEFIT Retirement and Healthcare costs are based on the most recent CalPERS valuation reports and current Kaiser rates, respectively, and will adjust as new information becomes available.
PROF & ADMIN Baseline budget
OTHER OPERATING Baseline budget
UTILITIES Baseline budget
EQUIPMENT & CONTRACT SERVICES Baseline Budget
PROVISION FOR INSURANCE LOSS Insurance Premiums
Vehicles, per Equipment Services provided list.
General Liability, rates provided by Risk Mgmt. to achieve 80 percent confidence over 5 years.
Civic Center Allocation, amount driven from the debt service, cash balance, and square footage used by programs.
ASSET/CAPITAL OUTLAY Based on draft Capital Improvement Plan DEBT SERVICE EXPENDITURE Debt Service Schedule, maintained by Treasury A87 COST PLAN REIMBURSEMENTS Based on current Admin Cost Allocation Plan pending new plan GRANT EXPENDITURES Based on the awarded grants
OPERATING TRANSFERS OUT Recurring and onetime subsidies to Non-GF programs. Reimagining Public Safety allocations same as current year.
COST POOL