FY 2018-19 and 2019-20 Adopted Operating and CIP Budget

Budget Overview

The total Recommended Budget is $157.0 million in FY 18-19 and $135.1 million in FY 19-20, as shown below.

FY 2018-19

FY 2019-20

$157.0 million

$135.1 million

CAPITAL IMPROVEMENT PROGRAM $50.0 million

CAPITAL IMPROVEMENT PROGRAM $30.5 million

OPERATIONS $107.0 million

OPERATIONS $104.6 million

General Fund The General Fund (GF) is the City's most visible fund because it accounts for many City services that residents relate to including police, fire, recreation, street maintenance, municipal governance, and administrative services. In the Recommended FY 18-20 Biennial Budget, approximately 79% of General Fund revenue will be derived from four main sources: 1) Property Tax; 2) Sales Tax; 3) Recreation Revenue; and 4) Transient Occupancy Tax (TOT). The remaining revenue is generated by other charges for services, grants, and transfers from other funds.

General Fund Revenue Property Tax

Property tax revenue for FY 18-19 and FY 19-20 is $11.9 million and $12.0 million, respectively. Based on the most recent information provided by the County of Santa Clara, Property Tax is projected to increase by 4.1% in FY 18-19 and 5.2% in FY 19-20, when compared to the FY 17-18 mid-cycle revised estimate. Subsequent years are estimated to increase by 4%. The City’s property tax revenue will increase as newly built housing units are added to the Assessor’s roll, Proposition 8 temporary reductions granted by the County Assessor’s Office during the Great Recession are gradually restored, and property values increase.

16 RECOMMENDED BUDGET MESSAGE