FY 2021 2122 ADOPTED OPERATING AND FY 2021 2526 CIP BUDGETS

Major Revenue Assumptions (continued)

20-21, is the second largest revenue source for the City’s general fund. This revenue source is anticipated to increase by $1 million to $9 million in FY 21-22. Subsequent forecast years assume a return back to pre COVID-19 pandemic sales tax projections in FY 22-23 and steady annual growth thereafter of 2 percent. This projected sales tax revenue does not include the recent Governor's Executive Order that 1) will allow businesses generating less than $1,000,000 in annual sales to delay filing for 90 days (until July 31, 2020) and 2) allow businesses with up to $50,000 in total sales and use tax liability to defer payment up to 12 months (until July 31, 2021).

hotels and motels. However, with the Shelter In Place Order and the continued recommendations for Social Distancing, current occupancy estimates remain at 20 percent or below for months to come. The current TOT projections include the Granada hotel, which is slated to open in FY 21-22

The five-year forecast period assumes steady growth of 2 percent in future years.

Transient OccupancyTax

$10 $12 $14 $16 $18 Millions

$- $2 $4 $6 $8

SalesTax

Street Fund (202) The Street Fund is a special revenue fund used to account for the receipt and disbursement of State and Federal gas tax and grant monies, and other monies that are to be used for the maintenance, repair, and design of streets. State gas tax funds are distributed to cities based on population from gas taxes collected at the point of sale. The use of gas tax funds is restricted to street expenditures by State and Federal laws. Revenues for street maintenance are realized in this fund and are then transferred to the General Fund. In FY 20-21 and 21-22, gas tax revenues are expected to stay fairly flat at approximately $0.7 million. The five-year forecast assumes no growth in the out-years. Development Services Fund (206) The Development Services Fund is a special revenue fund used to account for the collection

$10 $12 $14 $16 $18 Millions

$- $2 $4 $6 $8

Transient Occupancy Tax The transient occupancy tax (TOT) is imposed on persons staying 30 days or less in a hotel, inn, motel, tourist home or other lodging facility. The City’s current rate is 11 percent. TOT revenue is projected at $1.8 million and $3.2 million for FY 20-21 and FY 21-22, respectively. In the past, the City has greatly benefitted from the activities at the Outdoor Sports Center and the Aquatics Center which hosted regional events with participants utilizing the City’s

BUDGET SUMMARY 81

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