General Fund 10-Year Financial Forecast FY through FY

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1 General Fund 10-Year Financial Forecast FY through FY INTRODUCTION The City of Concord has been using a 10-year general fund financial forecast since FY The use of the Forecast has been instrumental in helping the Council, staff, and community understand the future impacts of current decisions and spot fiscal trends. The 10-year financial forecast for Concord s General Fund provides a long-term view of revenues and expenditures to assist in evaluating the impact of policy choices on the City s long-term fiscal health. The General Fund accounts for the majority of City services that residents and businesses rely on each day. These include everything from police services to recreation programs as well as internal services, such as financial management and information technology that keep the City and its programs running. The restrictions imposed by the State that limit local governments ability to raise revenues adds to the importance of understanding the long-term fiscal impact of current policy decisions. A 10-year financial forecast projects the future impact from continuing the City s current service levels and policies, and helps to illustrate what the City s financial future will look like as a result of the historic trends and decisions made in the recent past. A 10-year financial forecast is also useful in identifying potential issues that may arise in the future, which require financial modeling and fiscal planning. The projected revenues and expenditures in future years of the 10-year forecast should be viewed differently from the projected revenues and expenditures included in the proposed biennial budget due to the increasing uncertainty attached to projections beyond the immediate budget cycle. The financial forecast is a valuable planning and decision-making tool; however, it is not a financial plan. It sets the stage for the budgeting process and provides context to aid the City Council in establishing priorities and allocating City resources. MAJOR ASSUMPTIONS Below is a list of the major general fund revenue and expenditure assumptions in the 10-year financial forecast. Many of these assumptions are explained in greater detail in the City Manager s Budget Message (dated June 27, 2017). Other general fund expenditure and revenue categories not listed below are projected to increase by 2.7% annually to reflect the 20-year average annual change in the Consumer Price Index for the West Urban Area, as defined by the U.S. Bureau of Labor Statistics. Debt payments, rental income, and other contractual commitments are projected as per the agreements. The following table provides an index for the abbreviation of each of the ten fiscal years included in the 10-year financial forecast. 29

2 Fiscal Year Abbreviation Y1 Y2 Y3 Y4 Y5 Y5 Y7 Y8 Y9 Y10 Major General Fund Revenue Assumptions Property Tax: Average annual increase of 3.3% (Y1: 5.7%, Y2: 3.6%, Y3-Y10: 3%) Sales Tax: Average annual increase of 2.6% (Y1: (2.2%, Y2: 4.1%, Y3-Y5: Avg. 2.0%, Y6- Y10: 2.7%) Measure Q: Average annual increase of 2.6% (Y1: 3.2%, Y2: 3.8%, Y3-Y5: Avg. 2.0%, Y6- Y10: 2.7%) Development Review and Inspection Fees: Annual increases of 2-2.5% depending on fee type from Y1 to Y10 Transient Occupancy Tax: Increase of 2% in Y1-Y10 based on current trends. Business License Tax: Increase of 2% in Y1-Y10 based on current trends. General Fund Expenditure Assumptions Salaries: Annual increase of 3% in Y1 and Y2, followed by 1.5% from Y3 to Y10 Healthcare Premiums i : Average annual increase of 3.6%. Annual increase of 1.0% in Y1, 4.7% in Y@, 4.3% in Y1, 3.9% in Y 4 and 3.7% from Y5-10 Pension Costs: Average annual increase of 5.4% from Y1 to Y10 based on projected CalPERS rates (Y1-Y5: Average 9.7%, Y6-Y10: Average 1.8%) Operating Expenses: Most operating expenditures are adjusted annually by 2.7% to reflect the 20-year average in the Consumer Price Index. i Under current employee MOU s the City and employees split all health insurance premium increases 75/25; therefore this number represents 75% of the expected increase. 30

3 General Fund reducing reliance on Measure Q 10-Year Forecast Millions $130 Budget Stabilization above Operating Revenues $122.6 $123.9 $126.4 $119.7 $120 $115.3 $117.8 $13.4 M Use of One-Time Resources $112.3 Budget Stabilization $110 $108.3 $110.2 $113.0 $102.5 $104.8 $107.5 $100 $97.4 Measure Q $99.7 $102.3 $7.5 M $90 $89.9 $92.8 $95.1 $97.3 Regular Revenues excluding Measure Q Measure Q ends March 2025 $ Date: 05/09/

4 General Fund Ten Year Forecast reducing reliance on Measure Q For the Year Ending June 30, 2018 (000's) Basic General Fund Activity Beginning Fund Balance 7/01 $ 39,248 $ 38,168 $ 38,168 $ 39,499 $ 40,740 $ 41,719 $ 42,515 $ 43,129 $ 43,942 $ 44,428 General Fund Revenues $ 89,851 $ 92,801 $ 95,122 $ 97,282 $ 99,738 $ 102,255 $ 104,838 $ 107,489 $ 110,201 $ 112,994 Use of Fund Balance $ 1,090 Repayment of General Fund Loan to Parkland Fund $ 1,132 Measure Q Revenues Used for Operations 7,500 7,500 7,000 6,500 6,000 5,500 5,000 4, TOTAL Resources $ 97,351 $ 102,523 $ 102,122 $ 103,782 $ 105,738 $ 107,755 $ 109,838 $ 111,989 $ 110,201 $ 112,994 Operating Expenditures $ 97,341 $ 102,523 $ 106,950 $ 111,096 $ 114,370 $ 117,038 $ 119,095 $ 121,818 $ 123,452 $ 125,669 Revenue Over(Under) Appropriations $ 10 $ - $ (4,828) $ (7,314) $ (8,632) $ (9,283) $ (9,257) $ (9,829) $ (13,251) $ (12,675) Ongoing Stabilization $ - $ 6,159 $ 8,555 $ 9,611 $ 10,079 $ 9,871 $ 10,642 $ 13,737 New Stabilization $ 6,159 $ 2,396 $ 1,056 $ 468 $ (208) $ 771 $ 3,095 $ (345) Total Stabilization $ - $ 6,159 $ 8,555 $ 9,611 $ 10,079 $ 9,871 $ 10,642 $ 13,737 $ 13,392 Ending Fund Balance before LRA loan $ 39,258 $ 38,168 $ 39,499 $ 40,740 $ 41,719 $ 42,515 $ 43,129 $ 43,942 $ 44,428 $ 45,145 General Fund Activity w/ Loan to Local Reuse Authority Loan Balance 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 Ending Fund Balance after LRA loan $ 31,758 $ 30,668 $ 31,999 $ 33,240 $ 34,219 $ 35,015 $ 35,629 $ 36,442 $ 36,928 $ 37,645 General Fund Reserves w/ LRA Loan as a % of Operating Expenditures 33% 30% 30% 30% 30% 30% 30% 30% 30% 30% 32

5 Measure Q Fund Ten Year Forecast For the Year Ending June 30, 2018 (000's) Measure Q Fund Activity Beginning Fund Balance 7/01 $ 79 $ 79 $ 79 $ 79 $ 79 $ 79 $ 79 $ 79 Measure Q Revenues $ 12,987 $ 13,460 $ 13,668 $ 13,941 $ 14,220 $ 14,604 $ 14,998 $ 11,552 TOTAL Resources $ 12,987 $ 13,460 $ 13,668 $ 13,941 $ 14,220 $ 14,604 $ 14,998 $ 11,552 Appropriations Support for General Fund Operations $ 7,500 $ 7,500 $ 7,000 $ 6,500 $ 6,000 $ 5,500 $ 5,000 $ 4,500 Econ. Dev. Marketing Surge $ 150 $ 150 $ 150 $ - $ - $ - $ - $ - Econ. Dev. Real Estate / Site Selection Consultant $ 100 $ 100 $ 100 $ - $ - $ - $ - $ - Supplemental Building Maintenance Funding $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $ 228 $22M Roadway Maintenance Debt Service $ 2,497 $ 2,500 $ 2,498 $ 2,499 $ 2,499 $ 2,499 $ 2,498 $ 2,496 Supplemental Funding for Capital Projects, Infrastructure and Park Maintenance $ 2,512 $ 2,982 $ 3,692 $ 4,714 $ 5,493 $ 6,377 $ 7,272 $ 4,328 Total Appropriations $ 12,987 $ 13,460 $ 13,668 $ 13,941 $ 14,220 $ 14,604 $ 14,998 $ 11,552 Measure Q Ends March Revenue Over(Under) Appropriations $ - $ - $ - $ - $ - $ - $ - $ - Ending Fund Balance 6/30 $ 79 $ 79 $ 79 $ 79 $ 79 $ 79 $ 79 $ 79 Reserves as a % of Operating Expenditures 1% 1% 1% 1% 1% 1% 1% 1% 33

6 General Fund Operating Expenditures For the Years Ending June 30, 2018 and 2019 Salaries & Benefits Operating Expenses Internal Service Charges Other Financing Uses Total Expenditures Department and Program FY FY FY FY FY FY FY FY FY FY City Attorney 1,137,897 1,208, , , , ,376 1,597,739 1,674,890 Community & Economic Development Administration 279, ,226 94,200 94,200 1,000,990 1,037,089 1,374,981 1,424,514 Building 1,778,248 1,892, , , , ,200 2,586,805 2,710,624 Community Services and Housing 294, , , ,200 13,466 13, , ,970 Economic Development 381, , , ,930 22,609 23, , ,979 Engineering Services 1,451,457 1,559, , , , ,039 1,969,500 2,082,303 Multi-Family Housing Inspection Program 443, ,704 22,042 22,042 11,749 11, , ,599 Planning 1,778,294 1,918, , ,600 87,274 90,174 2,213,168 2,356,227 Transportation 518, ,382 12,574 12,574 35,122 35, , ,866 Community & Economic Development Total 6,925,541 7,404,326 2,000,326 2,007,326 1,429,030 1,477,430 10,354,897 10,889,082 Finance Administration 278, ,962 42,820 42, , , , ,472 Budget & Financial Planning 413, ,645 21,250 21,250 4,654 4, , ,603 City Treasury 129, ,537 62,500 62,500 2,597 2, , ,663 Financial Analysis & Reporting 1,346,556 1,425, , ,260 17,793 17,998 1,502,504 1,586,480 Purchasing and Materials Management 319, ,529 8,300 8,300 3,941 3, , ,816 Revenue Generation 474, ,063 60,500 60,500 6,637 6, , ,276 Finance Total 2,962,681 3,140, , , , ,720 3,744,611 3,943,309 Finance - Non-Departmental 2,451,936 2,451,936 1,323,500 1,373, , ,389 1,000, ,344 5,136,292 5,180,968 Human Resources Benefits Administration 329, ,364 42,284 42,284 4,097 4, , ,793 Classification & Compensation 231, ,092 11,037 11,037 2,801 2, , ,963 Human Resources Administration 306, , , , , , , ,517 Labor Relations 122, ,145 80, ,000 1,747 1, , ,911 Organizational Training and Development 89,788 97,363 69,600 71,908 1,544 1, , ,833 Recruitment and Selection 187, , , ,240 3,122 3, , ,731 Workers' Compensation 124, ,985 1,945 1,945 1,415 1, , ,361 Human Resources Total 1,392,160 1,493, , , , ,987 2,069,745 2,231,109 34

7 General Fund Operating Expenditures For the Years Ending June 30, 2018 and 2019 Salaries & Benefits Operating Expenses Internal Service Charges Other Financing Uses Total Expenditures Department and Program FY FY FY FY FY FY FY FY FY FY Office of the City Manager Administrative Services 965,071 1,028, , , , ,453 1,385,649 1,457,278 City Council 281, , , , , , , ,711 City Management 847, , , , , ,260 1,591,416 1,650,043 Community Relations 239, ,555 59, ,300 2,842 2, , ,730 Office of the City Manager Total 2,333,347 2,458, , , , ,511 3,866,554 4,175,761 Parks and Recreation Administration 235, , , , , , ,539 1,020,018 Camp Concord 279, , , ,800 17,132 17, , ,574 Facility Operations and Programs 1,578,569 1,669, , , , ,961 2,698,726 2,838,700 Senior & Special Recreation Services 536, , , , , , ,453 1,018,156 Sports and Events 186, , , ,635 11,636 11, , ,677 Parks and Recreation Total 2,817,521 2,993,923 1,404,933 1,439,439 1,306,567 1,346,761 5,529,021 5,780,123 Police Field Operations 34,216,560 36,687, , ,788 2,838,860 2,914,204 37,954,947 40,535,149 Investigations and Administrative Services 11,251,733 11,885,574 2,341,019 2,324,538 5,348,775 5,485,698 18,941,527 19,695,810 Police Total 45,468,293 48,572,730 3,240,546 3,258,326 8,187,635 8,399,903 56,896,475 60,230,958 Public Works Administration 375, ,142 92,681 92, , ,493 1,206,008 1,249,316 City Maintained Medians,Trees,Open Space 273, , , , , , , ,298 Graffiti Removal 290, ,609 70,000 72,100 70,462 72, , ,773 Parks Maintenance 2,324,737 2,457,303 1,924,102 1,924, , ,254 4,793,210 4,936,659 Streets 312, ,268 9,100 9,100 56,308 57, , ,752 Transportation 268, , , ,126 48,111 49, , ,611 Public Works Total 3,845,228 4,070,412 2,655,538 2,660,638 1,644,671 1,685,360 8,145,437 8,416,409 Grand Total 69,334,603 73,794,814 12,398,293 12,730,018 14,607,325 15,013,435 1,000, ,344 97,340, ,522,610 35

8 General Fund Expenditures by Program For the Fiscal Years Ending June 30, 2018 and 2019 Estimated Adopted Adopted Projected Projected Projected Projected Projected Projected Projected Projected Actual Actual Actual Actual Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget FY FY FY FY FY FY FY FY FY FY FY FY FY FY City Attorney 1,106,281 1,045,855 1,327,314 1,528,319 1,597,739 1,674,890 1,744,685 1,800,928 1,851,612 1,875,358 1,915,813 1,955,475 1,981,051 2,017,703 Community & Economic Development Administration 566, ,693 1,315,679 1,346,088 1,374,981 1,424,514 1,479,642 1,525,574 1,571,212 1,602,408 1,642,336 1,682,226 1,715,674 1,743,994 Building 1,582,566 1,765,071 1,938,870 2,330,538 2,586,805 2,710,624 2,833,981 2,930,625 3,013,731 3,056,694 3,124,961 3,192,283 3,238,731 3,304,981 Community Services and Housing 20,292 4,599 13, , , , , , , , , , , ,930 Economic Development 265, , , , , , , , , , , , , ,259 Engineering Services 895, ,844 1,057,417 1,342,079 1,969,500 2,082,303 2,201,600 2,291,814 2,365,317 2,395,508 2,446,515 2,496,286 2,526,149 2,573,536 Multi-Family Housing Inspection Program 200, , , , , , , , , , , , , ,737 Planning 1,247,574 1,336,330 2,024,999 2,121,988 2,213,168 2,356,227 2,498,950 2,611,555 2,704,749 2,744,309 2,803,802 2,860,043 2,893,313 2,947,474 Transportation 526, , , , , , , , , , , , , ,880 Community & Economic Development Total 5,305,136 5,597,281 7,751,147 9,194,827 10,354,897 10,889,082 11,399,637 11,579,824 11,942,317 12,112,854 12,380,951 12,642,388 12,814,138 13,056,792 Finance Administration 944, , , , , , , , , , , , , ,421 Budget & Financial Planning 249, , , , , , , , , , , , , ,741 City Treasury 255, , , , , , , , , , , , , ,796 Financial Analysis & Reporting 779,817 1,275,007 1,348,278 1,524,340 1,502,504 1,586,480 1,656,834 1,726,973 1,782,112 1,804,448 1,844,154 1,947,640 1,906,186 1,943,661 Purchasing and Materials Management 183, , , , , , , , , , , , , ,822 Revenue Generation 280, , , , , , , , , , , , , ,253 Finance Total 2,692,782 2,803,865 3,298,179 3,673,036 3,744,611 3,943,309 4,113,795 4,274,814 4,414,836 4,481,656 4,587,504 4,748,502 4,743,577 4,829,695 Finance - Non-Departmental 12,174,264 12,810,740 11,277,614 6,840,352 5,136,292 5,180,968 5,279,345 5,378,335 5,479,132 5,569,540 5,669,922 5,771,938 5,873,438 5,781,379 Human Resources Benefits Administration 129, , , , , , , , , , , , , ,983 Classification & Compensation 146, , , , , , , , , , , , , ,312 Human Resources Administration 547, , , , , , , , , , , , , ,326 Labor Relations 29, , , , , , , , , , , , , ,950 Organizational Training and Development 58,930 47,112 60, , , , , , , , , , , ,479 Recruitment and Selection 289, , , , , , , , , , , , , ,297 Workers' Compensation 49,578 54,752 55,263 18, , , , , , , , , , ,702 Human Resources Total 1,251,204 1,326,867 1,699,644 1,843,010 2,069,745 2,231,109 2,292,851 2,430,444 2,449,202 2,532,553 2,532,708 2,637,748 2,617,075 2,718,048 36

9 General Fund Expenditures by Program For the Fiscal Years Ending June 30, 2018 and 2019 Estimated Adopted Adopted Projected Projected Projected Projected Projected Projected Projected Projected Actual Actual Actual Actual Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget FY FY FY FY FY FY FY FY FY FY FY FY FY FY Office of the City Manager Administrative Services 1,138,387 1,241,296 1,246,043 1,408,136 1,385,649 1,457,278 1,524,865 1,590,578 1,640,114 1,671,572 1,703,059 1,743,348 1,763,010 1,802,900 City Council 351, , , , , , , , , , , , , ,680 City Management 1,020,395 1,028,781 1,413,711 1,380,903 1,591,416 1,650,043 1,708,290 1,753,127 1,794,932 1,811,464 1,842,113 1,871,773 1,889,877 1,915,537 Community Relations 271, , , , , , , , , , , , , ,091 Office of the City Manager Total 2,781,182 3,050,876 3,458,242 3,812,072 3,866,554 4,175,761 4,184,660 4,480,596 4,442,064 4,669,740 4,590,862 4,852,607 4,737,125 4,995,208 Parks and Recreation Administration 499, , , , ,539 1,020,018 1,073,091 1,111,112 1,148,083 1,174,055 1,204,984 1,233,032 1,255,246 1,268,200 Camp Concord 498, , , , , , , , , , , , , ,682 Facility Operations and Programs 2,363,768 2,512,962 2,491,119 2,809,705 2,698,726 2,838,700 2,995,795 3,133,767 3,273,664 3,397,882 3,472,504 3,544,521 3,605,476 3,662,587 Senior & Special Recreation Services 666, , , , ,453 1,018,156 1,068,850 1,111,295 1,148,360 1,173,863 1,199,531 1,224,918 1,244,306 1,261,620 Sports and Events 294, , , , , , , , , , , , , ,808 Parks and Recreation Total 4,323,031 4,546,509 4,985,820 5,457,636 5,529,021 5,780,123 6,089,369 6,344,853 6,593,951 6,798,120 6,952,965 7,102,104 7,224,526 7,335,897 Police Field Operations 29,901,326 31,399,103 32,144,031 36,200,460 37,954,947 40,535,149 42,530,232 44,453,639 45,951,834 47,103,960 47,923,467 48,883,932 49,673,565 50,523,733 Investigations and Administrative Services 13,130,234 13,071,572 17,020,387 18,845,267 18,941,527 19,695,810 20,470,171 21,200,163 21,811,502 22,281,426 22,700,385 23,156,408 23,537,287 23,942,584 Office of the Chief of Police 626, , , , Police Total 43,657,971 45,175,588 49,914,819 55,430,139 56,896,475 60,230,958 63,000,403 65,653,802 67,763,335 69,385,387 70,623,852 72,040,340 73,210,852 74,466,317 Public Works Administration 569, ,537 1,237,199 1,082,042 1,206,008 1,249,316 1,299,301 1,342,909 1,383,992 1,406,198 1,438,301 1,469,866 1,493,960 1,514,069 City Maintained Medians,Trees,Open Space 1,236,532 1,214,318 1,163, , , , ,225 1,014,245 1,043,296 1,066,352 1,092,958 1,119,650 1,143,740 1,171,123 Graffiti Removal 360, , , , , , , , , , , , , ,307 Parks Maintenance 3,558,500 3,648,704 3,714,039 4,741,671 4,793,210 4,936,659 5,174,801 5,354,168 5,518,946 5,629,929 5,765,899 5,900,894 6,012,365 6,148,945 Streets 98, , , , , , , , , , , , , ,771 Transportation 302, , , , , , , , , , , , , ,284 Public Works Total 6,124,928 6,531,461 7,127,307 7,877,965 8,145,437 8,416,409 8,814,067 9,121,166 9,401,536 9,578,933 9,806,370 10,031,958 10,214,532 10,430,500 General Fund Total Expenditures 79,416,780 82,889,041 90,840,085 95,657,358 97,340, ,522, ,918, ,064, ,337, ,004, ,060, ,783, ,416, ,631,539 37

10 General Fund Comparison of Expenditures by Department For Year Ending June 30, 2018 POLICE 58% PUBLIC WORKS 8% NON- DEPARTMENTAL 5% CITY ATTORNEY 2% CITY ATTORNEY 1,597,739 COMMUNITY & ECONOMIC DEVELOPMENT 10,354,897 PARKS & RECREATION 5,529,021 FINANCE 3,744,611 HUMAN RESOURCES 2,069,745 OFFICE OF THE CITY MANAGER 3,866,554 POLICE 56,896,474 PUBLIC WORKS 8,145,437 NON-DEPARTMENTAL 5,136,292 GENERAL FUND TOTALS $ 97,340,771 COMMUNITY & ECONOMIC DEVELOPMENT 11% OFFICE OF THE CITY MANAGER 4% HUMAN RESOURCES 2% FINANCE 4% PARKS & RECREATION 6% 38

11 General Fund Comparison of Expenditures by Department For Year Ending June 30, 2019 POLICE 59% PUBLIC WORKS 8% NON- DEPARTMENTAL 5% CITY ATTORNEY 1,674,890 COMMUNITY & ECONOMIC DEVELOPMENT 10,889,082 PARKS & RECREATION 5,780,123 FINANCE 3,943,309 HUMAN RESOURCES 2,231,109 OFFICE OF THE CITY MANAGER 4,175,761 POLICE 60,230,958 PUBLIC WORKS 8,416,409 NON-DEPARTMENTAL 5,180,968 CITY ATTORNEY 2% GENERAL FUND TOTALS $ 102,522,610 COMMUNITY & ECONOMIC DEVELOPMENT 10% OFFICE OF THE CITY MANAGER 4% HUMAN RESOURCES 2% FINANCE 4% PARKS & RECREATION 6% 39

12 Millions $45 $40 $35 $30 $25 $20 $15 $10 $5 $0 CITY OF CONCORD MAJOR GENERAL FUND TAX REVENUE BY TYPE ACTUAL AND PROJECTED Property Tax Sales Tax Measure Q Transient Occupancy Tax Franchise Tax Business License Tax Fiscal Property Sales Transient Franchise Business Measure Q Year Tax Tax Occupancy Tax Tax License Tax Tax Total ,988,065 28,638,602 2,262,589 5,962,700 3,324,299 11,432,073 71,608, ,461,098 30,325,753 2,619,411 6,188,929 3,423,861 11,554,083 76,573, ,858,533 34,411,797 2,713,073 6,610,398 3,521,308 12,134,557 83,249, ,781,309 33,584,912 2,731,000 6,958,672 3,345,000 12,633,000 84,033, ,269,000 34,231,000 3,125,000 7,359,365 3,743,900 12,987,000 87,715, ,200,900 35,628,030 3,187,000 7,471,591 3,817,818 13,460,000 90,765, ,395,477 36,226,876 3,251,000 7,588,363 3,892,879 13,668,000 93,022, ,355,641 36,954,072 3,317,000 7,707,471 3,978,959 13,941,000 95,254, ,347,820 37,695,875 3,383,000 7,828,961 4,057,059 14,220,000 97,532, ,216,345 38,713,664 3,450,000 7,952,881 4,137,179 14,604, ,074, ,110,926 39,758,933 3,520,000 8,079,279 4,218,318 14,998, ,685, ,032,344 40,832,424 3,590,000 8,208,206 4,301,479 11,552, ,516, ,981,404 41,934,900 3,662,000 8,339,711 4,386,660-92,304, ,958,936 43,067,142 3,735,000 8,473,845 4,472,863-94,707,786 Actual shown through Fiscal Year 2016 and Planned through Fiscal Year

13 General Fund and Measure Q Fund Revenue Comparison of Tax Revenue by Source For the Fiscal Year Ending June 30, 2018 MEASURE Q 15% SALES TAX 39% TRANSIENT OCCUPANCY (Hotel Tax) 4% FRANCHISE FEES 8% PROPERTY TAX 30% BUSINESS LICENSE FEES 4% PROPERTY TAX 26,269,000 SALES TAX 34,231,000 MEASURE Q 12,987,000 TRANSIENT OCCUPANCY 3,125,000 FRANCHISE FEES 7,359,365 BUSINESS LICENSE FEES 3,743,900 $ 87,715,265 41

14 General Fund and Measure Q Fund Revenue Comparison of Tax Revenue by Source For the Fiscal Year Ending June 30, 2019 MEASURE Q 15% SALES TAX 39% TRANSIENT OCCUPANCY 4% FRANCHISE FEES 8% PROPERTY TAX 30% BUSINESS LICENSE FEES 4% PROPERTY TAX 27,200,900 SALES TAX 35,628,030 MEASURE Q 13,460,000 TRANSIENT OCCUPANCY 3,187,000 FRANCHISE FEES 7,471,591 BUSINESS LICENSE FEES 3,817,818 $ 90,765,339 42

15 General Fund Comparison of Revenues by Source For the Years Ending June 30, 2018 and 2019 Estimated Adopted Adopted Projected Projected Projected Projected Projected Projected Projected Projected Actual Actual Actual Actual Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget FY FY FY FY FY FY FY FY FY FY FY FY FY FY TAXES Business License 3,324,299 3,423,861 3,521,308 3,345,000 3,743,900 3,817,818 3,892,879 3,978,959 4,057,059 4,137,179 4,218,318 4,301,479 4,386,660 4,472,863 Franchise 5,962,700 6,188,929 6,610,398 6,958,672 7,359,365 7,471,591 7,588,363 7,707,471 7,828,961 7,952,881 8,079,279 8,208,206 8,339,711 8,473,845 Measure Q 11,432,073 11,554,083 7,800,000 7,750,000 7,750,000 7,750,000 7,250,000 6,500,002 6,000,002 5,500,002 5,000,002 4,500, Property 19,988,065 22,461,098 23,858,533 24,781,309 26,269,000 27,200,900 28,395,477 29,355,641 30,347,820 31,216,345 32,110,926 33,032,344 33,981,404 34,958,936 Sales 28,638,602 30,325,753 34,411,797 33,584,912 34,231,000 35,628,030 36,226,876 36,954,072 37,695,875 38,713,664 39,758,933 40,832,424 41,934,900 43,067,142 Transient Occupancy Tax 2,262,589 2,619,411 2,713,073 2,731,000 3,125,000 3,187,000 3,251,000 3,317,000 3,383,000 3,450,000 3,520,000 3,590,000 3,662,000 3,735,000 TAXES Total 71,608,329 76,573,136 78,915,109 79,150,893 82,478,265 85,055,339 86,604,595 87,813,146 89,312,718 90,970,071 92,687,458 94,464,454 92,304,677 94,707,789 LICENSES AND PERMITS Building Permits 1,349,764 1,331,478 1,426,869 1,999,000 1,914,750 2,028,678 2,079,395 2,131,379 2,184,664 2,239,281 2,295,263 2,352,644 2,411,460 2,471,747 Public Safety Services 32,687 29,423 25,089 40,000 33,500 33,500 34,338 35,196 36,076 36,978 37,902 38,850 39,821 40,816 Other Revenues 21,011 24,294 24,307 22,300 25,020 26,033 26,684 27,351 28,034 28,735 29,454 30,190 30,945 31,718 LICENSES AND PERMITS Total 1,403,461 1,385,195 1,476,265 2,061,300 1,973,270 2,088,210 2,140,416 2,193,926 2,248,774 2,304,993 2,362,618 2,421,684 2,482,226 2,544,281 FINES AND FORFEITURES Neighborhood Services 30,882 19,777 21,489 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 Vehicle Code & Parking 679, , , , , , , , , , , , , ,066 Other Revenues 51, , ,107 - FINES AND FORFEITURES Total 761, , , , , , , , , , , , , ,066 USE OF MONEY AND PROPERTY Investment Earnings (540,743) 138, ,782 80, , , , , , , , , , ,000 Property Rentals 457, , , , , , , , , , , , , ,729 USE OF MONEY AND PROPERTY Total (82,816) 601, , , , ,638 1,007,798 1,121,889 1,238,357 1,268,213 1,295,467 1,326,131 1,352,214 1,382,729 INTERGOVERNMENTAL Citizens Option for Public Safety (COPS) 411, , , , , , , , , , , , , ,000 Motor Vehicle In-Lieu 53,398 51,580 50,867 52,000 58,000 58,000 58,000 58,000 58,000 58,000 58,000 58,000 58,000 58,000 Police Officers Standards&Training (POST) 135,806 55,553 73,235 90,000 40,000 90,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 State Mandated Costs 66,643 1,036, ,139 - Other Grants 8,378 20,205 18,241 INTERGOVERNMENTAL Total 675,564 1,481, , , , , , , , , , , , ,000 43

16 General Fund Comparison of Revenues by Source For the Years Ending June 30, 2018 and 2019 Estimated Adopted Adopted Projected Projected Projected Projected Projected Projected Projected Projected Actual Actual Actual Actual Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget FY FY FY FY FY FY FY FY FY FY FY FY FY FY CURRENT SERVICES Building 1,049,278 1,091,781 1,289,793 1,312,238 1,595,625 1,690,565 1,724,376 1,758,864 1,794,041 1,829,922 1,866,520 1,903,850 1,941,927 1,980,766 Engineering Services 889, ,733 1,247,187 1,513,000 1,585,664 1,377,612 1,419,822 1,455,049 1,486,745 1,513,520 1,544,033 1,574,494 1,603,338 1,634,901 MFIP 292, , , , , , , , , , , , ,973 Housing-Rent Program 129, , , , , , , , , ,528 Parks and Recreation-Aquatics 334, , , , , , , , , , , , , ,716 Parks and Recreation-Classes 318, , , , , , , , , , , , , ,878 Parks and Recreation-Facility Rental 459, , , , , , , , , , , , , ,579 Parks and Recreation-League Fees 479, , , , , , , , , , , , , ,904 Parks and Recreation-Senior Services 267, , , , , , , , , , , , , ,465 Parks and Recreation-Summer Camp 257, , , , , , , , , , , , , ,531 Parks and Recreation-Youth & Family Services 603, , , , , , , , , , , , , ,236 PD-Special Event Revenue 83, ,009 98, , , , , , , , , , , ,166 Planning 479, , , ,500 1,106,166 1,121,257 1,060,914 1,097,498 1,134,554 1,162,539 1,187,509 1,210,423 1,231,385 1,255,054 Printing Services 140, , , , , , , , , , , , , ,607 Public Safety Services 618, , , ,574 1,107,424 1,171,695 1,203,102 1,235,536 1,269,038 1,303,649 1,339,414 1,376,378 1,414,591 1,454,103 PW-Special Event Revenue 15,128 27,777 20,317 Other Revenues 904,000 1,298, , , , , , , , , , , , ,266 CURRENT SERVICES Total 7,191,603 7,650,172 7,876,856 7,388,282 9,113,650 9,254,471 9,615,829 9,843,807 10,070,703 10,287,163 10,509,226 10,657,351 10,645,310 10,870,672 INTERFUND SERVICE CHARGES Maintenance Districts - 343, , , , , , , , , , ,670 Redevelopment Agency 22, Sewer Enterprise 2,087,579 2,006,516 1,250,000 1,250,000 1,307,084 1,344,917 1,381,230 1,418,523 1,456,823 1,496,157 1,536,554 1,578,040 1,620,648 1,664,405 Stormwater 448, , , , , , , , , , , , , ,725 INTERFUND SERVICE CHARGES Total 2,558,351 2,455,241 1,698,725 2,042,109 1,891, ,929,127 1,969,098 2,010,148 2,052,306 2,095,603 2,140,069 2,185,735 2,232,634 2,280,800 OTHER REVENUES 192, , ,430 12,500 55,000 55,000 56,125 57,275 58,451 59,652 60,881 62,137 63,421 64,734 OTHER FINANCING SOURCES 10,500 10,500 10,500 10,000 10,000 1,142, Total Revenues 84,319,011 91,057,057 92,468,457 92,266,259 97,350, ,433, ,349, ,014, ,973, ,997, ,087, ,168, ,152, ,944,071 44

17 General Fund Revenue Comparison of Revenue by Source For the Year Ending June 30, 2018 MEASURE Q 8.0% INTER- GOVERNMENTAL 0.2% TAXES 76.8% CURRENT SERVICES 9.3% OTHER REVENUES 0.8% INTERFUND CHARGES 1.9% REVENUES FROM USE OF MONEY 0.9% LICENSES AND PERMITS 2.1% TAXES $ 74,728,265 MEASURE Q 7,750,000 INTERGOVERNMENTAL 198,000 INTERFUND CHARGES 1,891,294 REVENUES FROM USE OF MONEY 891,280 LICENSES AND PERMITS 2,015,756 CURRENT SERVICES $9,071,164 OTHER REVENUES $ 805,000 97,350,759 45

18 General Fund Revenue Comparison of Revenue by Source For the Year Ending June 30, 2019 MEASURE Q 7.8% INTER- GOVERNMENTAL 0.2% INTERFUND CHARGES 1.9% TAXES 76.1% REVENUES FROM USE OF MONEY 0.9% CURRENT SERVICES 9.1% OTHER REVENUES 1.9% LICENSES AND PERMITS 2.1% TAXES $ 77,305,339 MEASURE Q 7,750,000 INTERGOVERNMENTAL 248,000 INTERFUND CHARGES 1,929,127 REVENUES FROM USE OF MONEY 920,638 LICENSES AND PERMITS $2,135,006 CURRENT SERVICES $9,207,674 OTHER REVENUES $ 1,937, ,433,257 46

19 Summary of General Fund Adopted Budgets Population and Assessed Valuations For the Fiscal Years through Net Operating Assessed Population Budget Year Population Budget* Values Increase Increase ,776 $ 78,328,992 $ 13,394, % 8.3% ,599 80,676,425 13,388, % 3.0% ,864 76,304,929 12,254, % -5.4% ,676 70,992,070 12,020, % -7.0% ,206 71,336,000 11,710, % 0.5% ,812 71,053,093 11,167, % -0.4% ,656 75,454,351 11,748, % 6.2% ,069 82,876,554 12,917, % 9.8% ,280 89,111,556 13,886, % 7.5% ,370 96,973,104 14,679, % 8.8% ** 128,370 97,006,517 14,639, % ASSESSED VALUATIONS (in $1,000) *** Land $ 5,616,628 $ 6,090,308 $ 6,583,461 $ 6,566,153 Improvements 7,781,964 8,274,270 8,617,522 8,594,867 Personal Property 323, , , ,200 $ 13,721,684 $ 14,702,052 $ 15,539,072 $ 15,498,220 Exemptions: Homeowners $ 139,328 $ 136,326 $ 134,107 $ 134,107 Other 664, , , ,111 Net Total $ 12,917,847 $ 13,886,354 $ 14,679,854 $ 14,639,002 * Adopted Budget less Projects and Debt Service ** Estimated Population *** Preliminary Estimates. Information not available until October, 47

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