Title
Presentation of the FY21 General Fund Revenue Forecast (City Council 4-14-20)
Body
Issue/Request:
Presentation of the FY21 General Fund Revenue Forecast (City Council 4-14-20)
Key Issues:
The forecast for the FY21 revenues was put together during unprecedented times with the COVID-19 pandemic impacting the health and economies of cities, states, and countries around the world. Because there is limited data on how the measures to combat the virus (i.e. social distancing, shelter-in-place, etc.) will impact the City's revenues, it will be important to regularly review the revenues throughout the fiscal year.
The total revenues for the General Fund in FY21 is forecasted at $70,322,934. In comparison to FY20, the forecast total is less than the FY20 General Fund revenue year-end projections by approximately $3.1 million. The following is information about the major revenue categories:
-Property Taxes: Beginning in FY21, the City will change how Property Tax-Payment in Lieu of Earnings (PILOT) revenue is reported. Prior to FY21, the City reported the total revenue, which included the portion that is passed through to other entities (which is approximately 85% of the PILOT revenue). Beginning in FY21, the City will only report the net revenue for Property Tax-PILOTs (or the portion that the City keeps).
Property Tax is the largest revenue source for the City's General Fund, accounting for approximately 30% of all General Fund revenues. As a category, property tax revenues are forecasted at approximately $21 million, which is an estimated increase of $383,000 (or 1.85%) over the FY20 revenue projections.
-Sales Tax: The second largest revenue source for the City's General Fund, accounting for approximately 22% of the revenues, is Sales Tax. There are three different accounts that make up the sales tax revenue category in the General Fund. Sales Tax is forecasted to total approximately $15.46 million, which is a decrease of approximately $1.97 mill...
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