For City Council Meeting [November 9, 2021]
TO: Honorable City Council
APPROVED: Marcus Fuller, City Manager
FROM: Marcus Fuller, City Manager
Stephen Erlandson, Finance Director
Title
Request City Council to Receive a Presentation on General Fund Revenue and Expenditures for First Quarter of Fiscal Year 2021-22.
Body
BACKGROUND
On July 27, 2021, the City Council adopted the Fiscal Year 2021-22 (FY22) Annual Budget, which included reasonable estimates of revenues, expenses, transfers, and ending reserves. The FY22 Annual Budget for all Funds included $197.0 million in budgeted revenue with corresponding budgeted expenditures of $196.3 million.
The City's FY22 General Fund included budgeted revenues of $104.2 million as shown in the following Table 1 and as compared to the prior three Fiscal Year period.
Table 1
As shown, the current FY22 General Fund revenue budget was conservatively estimated prior to Staff's knowledge of the point-of-sale change for certain fulfillment centers located in Rialto that has generated more sales tax revenue for the City.
Staff notes the FY22 budget estimated $26.275 million in sales tax revenue, which is $13.153 million lower than the actual sales tax revenue of $39.428 million received in the prior Fiscal Year 2020-21. The change in operations of the fulfillment centers and increase in sales tax revenue directly to the City has now caused sales tax revenue to be the #1 revenue source for the City's General Fund in the prior Fiscal Year, surpassing property tax revenue.
The sources of FY22 General Fund revenue as a percentage of overall General Fund revenue is shown in the following graph in Figure 1. Staff notes that the budgeted revenue for sales tax in the adopted FY22 budget will be adjusted at the Mid-Year Budget Review to correlate to increased sales tax revenue related to the change in operation of the fulfillment centers.
Figure 1
The City's FY22 General Fund included budgeted expenditures of $104.2 mi...
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