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Receive and file the FY 2021-2022 General Fund - First Quarter Budget Update
<br />December 21, 2021
<br />Page 4
<br />Partially restore funding for frozen employee
<br />$400,000
<br />$800,000
<br />positions. The estimated value of the FY21-22
<br />hiring freeze is $2,911,300.
<br />Funding for one full-time Economic
<br />$57,840
<br />$115,680
<br />Development Specialist I position to the
<br />Community Development Agency
<br />Funding for one full-time Records Manager
<br />$79,980
<br />$159,960
<br />position to the City Clerk's Office
<br />Funding for one full-time Employment Staff
<br />$94,080
<br />$188,160
<br />Attorney position to the City Attorne 's Office
<br />Total Proposed Appropriations — Recurring
<br />$3,066,900
<br />$6,083,800
<br />DISCUSSION
<br />The First Quarter Update covers activity posted to the general ledger during July 2021
<br />through September 2021 and the vacancy report for funded staff positions. First quarter
<br />revenue represents less than three months of receipts in many cases due to the lag time
<br />for remittance. Examples include Sales Tax, Hotel Visitors' Tax, and Cannabis Tax.
<br />Therefore, when analyzing the revenue as of September 30, 2021, it is normal to see
<br />10%-15% revenue received to date. Whereas expenditures have much higher activity in
<br />the first quarter due to annual payments for insurance, the one -month advance for fire
<br />services, and the fact that 59% of the budget is for employee compensation paid twice
<br />per month.
<br />This update focuses on the General Fund, as it is the primary operating fund of the City.
<br />Only notable items for other funds are included in this report.
<br />General Fund Revenue
<br />During the first quarter FY21-22, the City received approximately $36.8 million in General
<br />Fund revenues, which is 10.8% of the annual estimate.
<br />Lookback to FY20-21 Sales Tax (Bradley -Burns and Measure X): Actual FY20-21
<br />sales tax exceeded the estimates reported in February 2021 by a total of $19.5 million.
<br />FY20-21 Estimate
<br />FY20-21 Actual
<br />Positive Variance
<br />Bradley -Burns
<br />$49,198,300
<br />$54,999,505
<br />$5,801,205
<br />Measure X
<br />61,432,700
<br />75,094,336
<br />13,661,636
<br />Total
<br />$110,631,000
<br />$130,093,841
<br />$19,462,841
<br />The City's sales tax consultant receives detailed data from the state, analyzes it, and
<br />provides estimates of future revenue. The pandemic and the Wayfair decision for out-of-
<br />state online vendors to collect California sales tax created an unprecedented
<br />environment, and the consultant understandably provided conservative estimates. Santa
<br />Ana is not alone, as many California cities experienced favorable sales tax results,
<br />including the state of California.
<br />City Council 38 — 4 12/21/2021
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