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EXHIBIT 4
<br /> 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 $400,000 $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 $57,840 $115,680
<br /> Development Specialist I position to the
<br /> Community Development Agency
<br /> Funding for one full-time Records Manager $79,980 $159,960
<br /> position to the City Clerk's Office
<br /> Funding for one full-time Employment Staff $94,080 $188,160
<br /> Attorney position to the City Attorney's Office
<br /> Total Proposed Appropriations — Recurring $3,066,900 $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 FY20-21 Actual Positive Variance
<br /> Bradley-Burns $49,198,300 $54,999,505 $5,801 ,205
<br /> Measure X 61 ,432,700 75,094,336 13,661 ,636
<br /> Total $110,631,000 $130,093,841 $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 30 — 24 1/18/2022
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