Loading...
HomeMy WebLinkAbout021122-02.1 MID-YEAR 2021/22 OPERATING BUDGET UPDATE BACKGROUND The Annual Planning and Goal Setting Workshop provides an opportunity for the Town Council to review the status of the Town’s finances at the December 31, 2021 mid-point of the 2021/22 fiscal year, including revenues, expenditures, and potential changes that could affect the operating budget or the ten-year forecasts. The onset of the global Coronavirus pandemic in March 2020 created significant economic uncertainty for local governments. Over the subsequent two years, the Town took decisive action aimed at ensuring that the fiscal condition of our local government would remain strong. This included taking deliberate steps to reduce operating and capital spending by $7.5 million over two years, in anticipation of the fiscal impacts that would result from the pandemic. The Town’s actions to reduce spending and staffing were made in lieu of utilizing Town reserves or anticipating any form of federal assistance. As part of this process, revised revenue forecasts anticipated that economic recovery would occur in two to four years. From a service delivery standpoint, the Town has prioritized ongoing support of local businesses, uninterrupted service delivery and public safety. Danville is among those cities and towns in the Bay Area whose hours of operation and service delivery have been least affected by the pandemic. The prompt and decisive course correcting steps that were taken by the Town have proven critical to navigating the economic impacts of the pandemic upon Town operations. Several additional factors have contributed to facilitating the Town’s economic recovery. Most significantly: • Continued appreciation in property values which have yielded increased property tax revenue. • Significant growth in online commerce, generating new sales tax that has partially offset sales tax losses from local brick and mortar businesses. • Robust building permit activity as owners continued to reinvest in their homes and properties. • Federal assistance received by the Town in the form of the 2020 Cares Act and the American Rescue Plan Act of 2021 (ARPA). 2 Initial expenditure reductions enacted by the Town combined with these additional factors have resulted in the restoration of 2021/22 operating expenditures to pre- pandemic 2019/20 levels, suggesting a two year recovery period. With economic recovery well underway, the ten-year forecast covering 2021/22 through 2030/31 sees the Town continuing to chart a fiscally sustainable course, albeit at minimally reduced service levels in some areas. REVENUE AND EXPENDITURE OVERVIEW All things considered, as the pandemic continues into 2022, the Town remains in a fiscally strong position. Overall revenues have outperformed conservative forecasts; the 2020/21 fiscal year ended with an unreserved, undesignated fund balance of $8.1 million; and the Town received the first tranche of $5.3 million in Coronavirus Local Fiscal Recovery Funds in 2021/22 through the American Rescue Plan Act of 2021, with a second tranche of $5.3 million to be received in 2022/23. Revenues Total revenues of $35.8 million were forecast for 2021/22, an 11.5% increase from $32.1 million for 2020/21. General Fund Property tax continues to be the Town’s largest revenue source, accounting for 58.0% of the General Fund. Although the Town receives only 7.5% of total property taxes paid, Danville property values have continued to increase at levels that are outpacing inflation and the overall cost of living for the San Francisco Bay Area. Sales tax accounts for 20.0% of the General Fund. Current year forecasts anticipated sales tax growth of 21.0%, recovering from a 22.2% decline that was forecast in 2020/21 due to the pandemic. Sales tax recovery is being driven by growth in online transactions which now represent over 20% of the Town’s total sales tax revenue. Recreation fees and charges continue to be most significantly impacted by the pandemic. While 2021/22 revenues were forecast to increase by 11.0% from the prior year, the forecast represents less than 60% of pre-pandemic revenue levels. This is attributable to ongoing limitations in the type and extent of activities, classes and programs that may be offered under current health orders. Special Purpose Special Purpose revenues were projected to account for 26.7% of total 2021/22 revenues. The largest Special Purpose revenues are the Town-wide Lighting and Landscape Assessment District (LLAD), Building and Planning fees, and gas tax. 3 LLAD revenues remain flat year over year due to minimal growth and fixed assessment rates. Considerable Building and Planning activity continues to occur as evidenced by actual 2020/21 revenues that outperformed budget estimates by a considerable margin. On this basis, 2021/22 revenues were forecast to increase by 20.5% over the 2020/21 budget forecast. Though reflective of economic recovery, forecasts for transportation-related revenues continue to fall well short of pre-pandemic levels. Gas tax revenues were forecast to increase by 71.5% over 2020/21. Despite this increase, the forecast remains 12% below 2019/20 pre-pandemic levels. Similarly, Measure J Return to Source revenues were forecast to increase by 23.2%, a level that remains 23% below 2019/20 pre-pandemic levels. Solid Waste Vehicle Impact Fees were forecast to increase by 44.8%, reflecting economic recovery, coupled with the final step of a fee increase that was phased in over three years to more fully offset the impacts of refuse and recycling vehicles upon Town streets. Gas Tax, Measure J Return to Source and Solid Waste VIF funds are the major sources of funding for the Town’s Pavement Management and Street Maintenance programs. Expenditures The 2021/22 operating budget includes total operating expenditures of $33.25 million, representing a 7.3% increase from the 2020/21 budget of $31.0 million. Total 2021/22 expenditures are slightly more than the $33.23 million in expenditures adopted for 2019/20. Department-wise, expenditures were increased by 4.3% in General Government, 6.6% in Police Services, 4.1% in Administrative Services, 30.2% in Development Services and 8.7% in Maintenance Services. Expenditures were decreased by -10.7% in Recreation, Arts and Community Services. MID-YEAR 2021/22 OPERATING BUDGET STATUS The mid-year update identifies potentially significant deviations to the approved budget and identifies any formal mid-year revenue or expenditure adjustments that may be required. A formal mid-year financial report will be presented to the Town Council for consideration at the March 1, 2022, Town Council meeting. As of December 31, 2021, overall revenues are tracking ahead of the approved budget, while expenditures are on track to finish the fiscal year within budget. Overall fiscal condition remains strong, and the Town expects to finish the year on a positive note. 4 Revenues The Town receives revenues incrementally anywhere from monthly to annually during the fiscal year. The Town will not have complete revenue information until the after the fiscal year ends and the ACFR is completed the following November. Sufficient information is available to assess the status of most of the major revenue sources as of the December 31 mid-point in the fiscal year. Table 1 presents revenues received to date at the mid-point of the 2021/22 fiscal year and indicates the percentage of the total revenue forecast for the year. Exhibit A to this memorandum expands upon this information to include a comparison for each of the prior three fiscal years. Table 1 Mid-Year Revenue Summary Budget Mid-Year % of General Fund Forecast Actual Total Property Tax $15,200,000 $ 6,798,599 44.7% Sales Tax $ 5,250,000 $ 2,630,587 50.1% Property Transfer Tax $ 650,000 $ 451,321 69.4% Transient Occupancy $ 125,000 $ 33,716 27.0% Business License $ 325,150 $ 304,771 93.7% Franchise Cable $ 800,000 $ 206,042 25.8% Franchise Solid Waste $ 846,851 $ 352,855 41.7% Franchise Gas & Electric $ 575,403 $ - 0.0% Fines & Forfeitures $ 150,000 $ 30,803 20.5% Interest Income $ 328,750 $ 88,330 26.9% Rental Income $ 170,035 $ 72,080 42.4% Recreation Fees and Charges $ 1,500,001 $ 682,566 45.5% Budget Mid-Year % of Special Revenue Forecast Actual Total Building and Planning $ 2,153,200 $ 1,308,799 60.8% Engineering $ 260,535 $ 152,825 58.7% Gas Tax $ 1,664,828 $ 1,006,705 60.5% Measure J - RTS $ 710,139 $ 228,826 32.2% Clean Water $ 572,700 $ 22,187 8.1% LLAD - A $ 583,858 $ 336,915 57.7% LLAD - B $ 746,968 $ 411,144 55.0% LLAD - C $ 664,183 $ 366,405 55.2% LLAD - D $ 1,134,741 $ 603,759 53.2% Solid Waste VIF $ 846,851 $ 352,855 41.7% 5 General Fund General Fund revenues are tracking positively compared to budget. Property Tax – Revenues are received in December, April and June. For the 2020/21 fiscal year the Town received total revenues of $16,139,839. Total revenues of $15,200,000 were forecast for 2021/22. At mid-year, actual revenues are exceeding the forecast. Mid- year receipts of $6,798,599 are $715,266 more than 2020/21 mid-year receipts. Based upon mid-year information, revenues are expected to exceed the budget forecast by an estimated $1 - $1.5 million. Sales Tax – Total sales tax includes revenues received from local (brick-and-mortar) business and the countywide pool. The Town tracks sales tax revenues monthly, quarterly and annually. For 2021/22 total revenues of $5,250,000 were forecast. The mid-year review considers three factors: • How do actual year end revenues from the prior year compare to current year budget? Since the annual ACFR was completed in November following adoption of the 2021/22 budget in June, the final prior year information is not known at the time of budget adoption. For 2020/21, actual sales tax revenues totaled $6,565,847. This amount exceeds the amount in the forecast for 2021/22. • How do actual mid-year receipts compare against prior year mid-year receipts? Table 1 shows the first 5 months of sales tax receipts (July 1 through November 30, 2021) for 2021/22. The five-month total of $2,630,587 exceeds the total received for the first five months of 2020/21 by $235,882. • How do revenues compare year over year for the most recent quarter of the year? Historically, sales tax receipts vary by quarter, with Q4 typically generating the highest amount and Q1 the lowest. Most recent data currently available is for Q3 (July 1 – September 30). Table 3 compares Q3 for 2021 with Q3 for 2020. The table shows that total revenue received has increased by 16.4% in 2021 over 2020. Table 2 Quarterly Comparison - 2021 Q3 vs. 2020 Q3 Sector 2021 Q3 General Retail 13.2% Food Products 28.6% Transportation 70.6% Construction -9.8% Business to Business 80.8% Total Local Business 31.0% Countywide Pool -14.7% Total Receipts 16.4% 6 Based upon mid-year information, revenues are expected to exceed the budget forecast by an estimated $1 - $1.5 million by year end. Property Transfer Tax – High demand and prices in the real estate market are generating high numbers of property sale and transfer transactions. As a result, mid-year revenues are already 69.4% of the annual forecast. Year-end transfer tax revenues for 2020/21 totaled $1,070,766. Based upon mid-year information, revenues are expected to exceed the budget forecast by an estimated $200,000 by year end. Business License Tax – Business license payments were due by December 30 and mid- year receipts represent 93.7% of the forecast for the year. Based upon mid-year information, revenues are expected to meet the budget forecast. Franchise Fees – Franchise fees for Cable, Solid Waste and Gas and Electric are received at various times throughout the year (from monthly to annually). Current year revenues are tracking closely with prior years on a percentage basis. Based upon mid-year information, revenues are expected to meet the budget forecast. Recreation Fees and Charges - Recreation Fees and Charges continue to be significantly impacted by the pandemic. Changes in health orders and requirements will continue to impact the how classes, programs, activities and facility rentals can be offered, and staff will continue to adapt and adjust services and offerings as requirements change. The budget forecast of $1,500,000 represents approximately 60% of the revenue that would be received during a non-pandemic year. Summer and winter quarters typically generate appropriately 47 – 48% of the total revenue expected for the year. The mid-year total of 45.5% is close to the forecast. Based upon mid-year information, fees and charges are expected to meet the budget forecast for the year. Donations – No donation revenue was forecast for 2021/22. Subsequently the Town has received a $10,000 donation from a private party to allow the Police Department to purchase specialized technical investigative equipment. A mid-year adjustment of $10,000 is recommended to recognize the receipt of the $10,000 in donations. Special Revenue Building and Planning – The volume of permit activity and workload continue to be high. Revenues collected total 60.8% of the budget forecast. For 2020/21, the Town collected revenues of $2,739,645. Based upon mid-year information, revenues are expected to exceed the budget forecast by an estimated $200 - $300,000 by year end. Gas Tax - Revenues collected total 60.5% of the budget forecast at mid-year. In 2020/21 gas tax revenues totaled $1,781,892. The revenue forecast for 2021/22 was $1,664,828. Based upon mid-year information, revenues are expected to exceed the budget forecast by an estimated $100 - $150,000 by year end. 7 Measure J Return to Source (RTS) – RTS revenues come from the countywide half cent sales tax for transportation and are received as single year end payment. For the 2020/21 the Town received total Measure J revenues of $782,219. Based upon mid-year information, revenues are expected to exceed the budget forecast by an estimated $100,000 by year end. Solid Waste Diversion Incentive Fees – Solid Waste DIF is based upon a percentage of the compensation due to the Town’s solid waste and recycling haulers, which allows for accurate year over year estimates. Based upon mid-year information, revenues are expected to meet the budget forecast. Lighting and Landscape Assessment District – LLAD revenues are based upon set assessment rates. The percentage of revenues received through mid-year is comparable to that received in each of the three prior years. Based upon mid-year information, revenues are expected to meet the budget forecast. Successor Agency Real Property Tax Trust Fund (RPTTF) revenues are budgeted at $2,274,714, inclusive of Town re-payment under the Re-stated Cooperation Loan Agreement with the former CDA. RPTTF revenues fund debt service payments for the 2001 and 2005 Certificates of Participation, the 2001 Taxable Revenue Bonds, and reimbursement of allowed administrative costs. Based upon mid-year information, revenues are expected to meet the budget forecast. Revenue Summary Thus far in 2021/22, the Town Council has not approved any budget adjustments to increase or decrease revenues. As a result of this mid-year review, one mid-year adjustment is recommended to increase Special Revenue - Donations by $10,000 in order to allow the donation received for the Police Department to be expended. As described above, at mid-year there are significant positive variances to the 2021/22 budget forecast for property tax, sales tax, property transfer tax, Building and Planning fees, gas tax and Measure J return to source. Barring any significant unforeseen expenses, total revenues for 2021/22 are expected to comfortably exceed the budget forecast by year end. Given the anticipated positive variance, no further mid-year revenue adjustments are necessary at this time. Table 3 summarizes the adopted budget forecast, prior amendments and recommended mid-year adjustments. 8 Table 3 Mid-Year Revenue Summary Adopted Prior Mid-Year Budget Amendments Revised TOTAL $ 38,048,880 $ 38,048,880 $ 38,058,880 General Fund $ 26,210,144 $ 26,210,144 $ 26,210,144 Special Revenue $ 9,564,022 $ 9,564,022 $ 9,574,022 Successor Agency $ 2,274,714 $ 2,274,714 $ 2,274,714 Expenditures General Government – 2021/22 budget is $1,945,545. All direct and contract costs are tracking within budget and no mid-year adjustments are recommended. Police Services – 2021/22 budget is $10,806,192. All contract and direct costs are tracking within budget. A private party donation received will be used to purchase specialized technical investigative equipment. One mid-year adjustment is recommended to increase the Police Services Management Budget by $10,000. Administrative Services – 2021/22 budget is $3,954,123. Costs are tracking within budget and no mid-year adjustments are recommended. Development Services – 2021/22 budget is $4,954,302. The department is continuing to operate with reduced staffing in Building, Planning and Engineering in anticipation of refilling some additional positions in 2022/23. In addition, significant efforts such as the 2023-30 Housing Element and the Downtown Master Plan are underway and increased development-driven demand continues to occur in Building and Engineering. The following mid-year adjustments are recommended to address these areas: • Engineering - The Town continues to operate with a single Public Works Inspector, down 2.0 Inspector positions. A mid-year adjustment is recommended to appropriate $80,000 in Engineering Special Revenues to provide contract public works inspection services for the balance of the fiscal year. • Planning - A mid-year adjustment is recommended to appropriate $40,000 from Planning special revenues (Advance Planning Fee fund) for Professional Survey/Polling Services and GIS map layer, required to support the Housing Element Update • Building - Staffing has been impacted by position vacancies including the Chief Building Official and Permit Technician positions which have caused increased reliance upon consultants to help backfill. A mid-year adjustment is recommended to appropriate $100,000 from the Building and Planning fund to provide increased consultant support through the end of the fiscal year. 9 Maintenance Services – 2021/22 budget is $8,001,658. Mid-year adjustments totaling $65,000 are recommended to increase two Maintenance Services program budgets as follows: • Street Light Maintenance – Mid-year expenditures show that LLAD Zone C costs for electricity are expected to exceed budget by approximately $35,000 by year- end. A mid-year adjustment is recommended to increase LLAD Zone C expenditures by $35,000 to cover this cost. • Equipment Maintenance – Gasoline prices have increased considerably since the beginning of the fiscal year. Based upon current prices, the gasoline budget is expected to experience a shortfall of approximately $30,000 by year-end. A mid- year adjustment is recommended to increase the Equipment Maintenance budget by $30,000 to offset increased costs. Recreation, Arts and Community Services – The 2021/22 budget is $3,588,144, a 10.7% reduction from 2020/21. When the budget was adopted in June, it was understood that staff would re-evaluate conditions at mid-year to allow for consideration of restoring some of the cuts that were made. Department operations continue to be impacted and guided by changes in current health orders and requirements imposed by the CDC, California Department of Public Health and Contra Costa Health Services. In anticipation of spring and summer 2022 programming, mid-year adjustments totaling $170,000 are recommended to increase the RACS program budgets as follows: • RACS Management - $14,000 to fund temporary salaries and additional contracted services. • Adult Services - $18,000 to fund additional contract instructor fees. • Senior Services - $10,000 to fund additional temporary salaries. • Cultural Arts - $13,500 to fund additional instructor fees and contracted services. • Facilities - $8,500 to fund temporary salaries for facility attendants. • Sports and Fitness - $36,000 to fund temporary salaries for sports, fitness and aquatics, and instructor fees. • Teen Services - $18,000 to fund temporary salaries and instructor fees for classes and camps; and • Youth Services - $52,000 to fund temporary salaries, contracted services and instructor fees. 10 Personnel – 2021/22 budget for regular and part-time temporary employees is $13.3 million, a 9.8% increase from the prior year. At mid-year, 42.2% of the budget has been expended. No mid-year adjustments are recommended. Successor Agency For 2021/22, Successor Agency operating expenditures total $1,174,714 for debt service and administrative costs. Re-payment of the outstanding balance owed under the former CDA/Town loan funds capital transfers of $1,100,000. Successor Agency expenditures remain unchanged. No mid-year adjustments are recommended. Expenditure Summary Thus far in 2021/22 the Town Council has approved three budget adjustments totaling $163,421, including: • Resolution No. 53-2021, appropriating $38,421 from the Asset Replacement Fund to upgrade audio/video technology at the Town Meeting Hall. • Resolution No. 55-2021, appropriating $35,000 from the Asset Replacement Fund to purchase for the replacement of one police traffic motorcycle. • Resolution No. 56-2021, appropriating $90,000 from the General Fund to upgrade police radio system, including encryption for portable, vehicle, and desk radios. As discussed above, the following mid-year adjustments are recommended, totaling $465,000: Police Services • Increase Management budget by $10,000 (Special Revenue – Donations); Development Services • Increase Engineering budget by $80,000 (Special Revenue/Engineering) • Increase Planning budget by $40,000 (Special Revenue/Advance Planning Fee Fund) • Increase Building budget by $100,000 (Special Revenue/Building and Planning Fund) Maintenance Services • Increase Equipment Maintenance by $30,000 (General Fund) • Increase Street Light Maintenance by $35,000 (Special Revenue/LLAD Zone C) 11 Recreation, Arts and Community Services • Increase various program budgets by $170,000 (General Fund) Table 2 illustrates 2021/22 expenditures, including the adopted budget forecast, prior amendments and recommended mid-year adjustments. Table 4 Mid-Year Expenditure Summary Adopted Prior Mid-Year Budget Amendments Revised TOTAL $ 32,424,678 $ 34,588,099 $ 35,053,099 General Fund $ 23,300,924 $ 23,390,924 $ 23,590,924 Special Revenue $ 9,949,040 $ 10,022,461 $ 10,287,461 Successor Agency $ 1,174,714 $ 1,174,714 $ 1,174,714 Transfers and Designations The 2021/22 budget includes General Fund transfers of $4,306,773. This includes $1,100,000 for LLAD operations, $250,000 for CIP - Pavement Management Project, $2,206,773 for CIP - Park Facilities Project, and $750,000 for CIP – Project B-626. On November 16, 2021, the Town Council adopted Resolution No. 75-2021, approving the 2020/21 ACFR. As part of this action, a total of $8,086,215 was transferred from the General Fund for the following purposes: • CIP General Purpose Fund $6,100,000 • Operating Reserve Fund $1,500,000 • Contingency Fund $ 486,215 This increased the total transfers and designations in 2021/22 to $12,392,988. 2022/23 Operating Budget In February, work will begin on the draft 2022/23 Operating Budget. As the Town moves forward from the economic impacts of the pandemic, expenditure increases are anticipated in a number of areas. Some of these include: • fixed operating costs (e.g., utilities, fuel) • programmatic expenditures to address community needs in specific areas • increased contract services costs (e.g., animal control, law enforcement, maintenance) • Recreation, Arts and Community Services costs as service delivery costs ramp back toward pre-pandemic levels • restoring staffing positions that were eliminated or held open due to the economic impacts attributable to the pandemic. 12 Table 5 Town Staffing Employees F.Y. Regular Contract Temporary Total 2019/20 Budget 95.25 30.00 36.50 161.75 Actual 95.25 30.00 36.50 161.75 2020/21 Budget 95.25 30.00 36.00 161.25 Actual 83.25 28.00 24.00 135.25 2021/22 Budget 92.25 30.00 35.75 158.00 Actual 88.25 29.00 28.75 146.00 Positions planned to be re-filled include: 1 Planner, 1 Public Works Inspector, 1 Human Resources Analyst and 1 Recreation Coordinator. Additional staffing increases may be recommended to address the clerical/administrative workload in one or more areas. All factors considered; total operating expenditures are expected to fall within a range of $35.1 to $35.5 million for 2022/23. Revenue-wise, staff will be recommending increases in building permit fees which have not been increased since 2014/15. STATUS OF TEN-YEAR FORECAST Ten-year forecasts are key to planning for future years, ensuring long term fiscal stability and continuity of service for Town residents. The mid-year overview presents an opportunity to review and update information that has the potential to impact future year revenues or expenditures. Ten-year forecasts were adjusted to reflect the impact of the pandemic upon the current fiscal year as a part of the 2021/22 budget process. There are no further changes recommended to the ten-year forecast at mid-year. RECOMMENDATION Review and discuss the 2021/22 Mid-Year Financial Overview and provide direction and feedback to staff regarding any mid-year budget adjustments. Attachments Exhibit A – 2021/22 Mid-Year Update Year over Year Comparison Exhibit B – Q3 Sales Tax summary information MID-YEAR REVENUES 2018/19 2019/20 2020/21 2021/22 General Fund Budget Mid-Year %Budget Mid-Year %Budget Mid-Year %Budget Mid-Year % Property Tax 13,642,000 5,581,354 40.9%14,260,222 5,853,303 41.0%14,505,222 6,083,333 41.9%15,200,000 6,798,599 44.7% Sales Tax 5,522,000 2,248,234 40.7%5,577,220 2,158,204 38.7%4,339,328 2,394,705 55.2%5,250,000 2,630,587 50.1% Transfer Tax 590,270 288,284 48.8%648,643 239,868 37.0%494,838 457,186 92.4%650,000 451,321 69.4% Transient Occupancy 159,789 49,499 31.0%163,001 48,393 29.7%54,597 18,859 34.5%125,000 33,716 27.0% Business License 365,150 335,965 92.0%365,150 336,965 92.3%146,060 299,113 204.8%325,150 304,771 93.7% Franchise Cable 921,858 209,925 22.8%885,864 207,590 23.4%899,152 201,342 22.4%800,000 206,042 25.8% Franchise Solid Waste 794,669 344,761 43.4%811,664 401,818 49.5%752,413 341,125 45.3%846,851 352,855 41.7% Franchise Gas & Electric 583,203 0 0.0%629,404 0 0.0%629,404 0 0.0%575,403 0 0.0% Fines & Forfeitures 175,000 49,837 28.5%175,000 57,100 32.6%141,400 32,542 23.0%150,000 30,803 20.5% Interest Income 263,000 192,942 73.4%328,750 206,576 62.8%197,250 107,766 54.6%328,750 88,330 26.9% Rental Income 164,343 170,647 103.8%163,343 181,262 111.0%124,490 170,455 136.9%170,035 72,080 42.4% Recreation Fees and Charges 2,675,110 1,219,338 45.6%2,576,145 1,269,668 49.3%1,351,262 286,465 21.2%1,500,001 682,566 45.5% 2018/19 2019/20 2020/21 2021/22 Special Revenue Budget Mid-Year %Budget Mid-Year %Budget Mid-Year %Budget Mid-Year % Building and Planning 2,529,200 1,108,215 43.8%2,212,200 1,282,981 58.0%1,787,458 1,357,186 75.9%2,153,200 1,308,799 60.8% Engineering 137,850 145,600 105.6%137,850 206,886 150.1%260,535 134,581 51.7%260,535 152,825 58.7% Gas Tax 1,840,430 740,220 40.2%1,919,117 994,517 51.8%969,080 935,848 96.6%1,664,828 1,006,705 60.5% Measure J - RTS 742,857 47,921 6.5%815,217 161,891 19.9%576,288 5,254 0.9%710,139 228,826 32.2% Clean Water 570,793 12,330 2.2%572,200 14,793 2.6%572,710 28,657 5.0%272,700 22,187 8.1% LLAD - A 582,115 327,191 56.2%582,115 332,294 57.1%583,858 328,047 56.2%583,858 336,915 57.7% LLAD - B 744,744 412,869 55.4%744,744 412,600 55.4%746,968 410,577 55.0%746,968 411,144 55.0% LLAD - C 662,204 365,728 55.2%662,204 369,641 55.8%664,183 367,566 55.3%664,183 366,405 55.2% LLAD - D 1,131,619 601,552 53.2%1,131,619 603,992 53.4%1,134,741 601,336 53.0%1,134,741 603,759 53.2% Solid Waste VIF 238,401 98,187 41.2%482,182 241,098 50.0%585,000 272,900 46.6%846,851 352,855 41.7% E X H I B I T A Top 25 Sales Tax Remitters California sales tax cash receipts increased by 17.6% from the same quarter last year. In this jurisdiction sales tax cash AQUEOUS VETS receipts increased by 9.8% from the same quarter last year ARCO AM/PM MINI MARTS due to a increase of $16,038,000 in Taxable Sales. ASCENT BEVERAGES & MORE Cash Receipts Quarter Annual BRIDGES RESTAURANT AND BAR Danville 9.8%16.4% CHEVRON SERVICE STATIONS Contra Costa Countywide Pool -13.1%9.1% CJC LANDHOLDINGS LLC DBA DIABLO CHEVRON Contra Costa Countywide 11.9%16.8% CORPORATE COUTURE S.F. Bay Area Region 13.6%11.5% COSTCO WHOLESALE Statewide 17.6%17.6% CVS/PHARMACY HOME CONSIGNMENT CENTER Annualized Percent Change in Sales Tax Cash Receipts KRISTE MICHELINI INTERIORS LUNARDI'S MARKET MARSHALL'S STORES MC-CAULOU'S MCDONALD'S RESTAURANTS PET FOOD EXPRESS PIATTI RESTAURANT COMPANY REVEL KITCHEN & BAR SAFEWAY STORES SHELL SERVICE STATIONS SLOAT DIABLO NURSERY/TOPSOIL TEXACO SERVICE STATIONS TRADER JOE'S UNION 76 SERVICE STATIONS Business Activity Quarter Annual Quarter Annual Quarter Annual General Retail 13.2%12.7%8.1%7.0%20.5%12.7% Food Products 28.6%12.1%21.8%-5.5%24.2%-0.3% Transportation 70.6%17.7%6.6%8.4%14.8%8.7% Construction -9.8%11.9%-2.7%4.0%1.5%3.5% Business To Business 80.8%51.7%1.1%3.7%5.1%-1.2% TOTAL LOCAL BUSINESS ACTIVITY 31.0%17.7%7.1%3.6%14.6%5.4% COUNTYWIDE POOL ACTIVITY -14.7%8.6%-2.5%7.7%0.5%14.7% Town of Danville Danville S.F. Bay Area California Quarterly Report on Sales Tax and Business Activity 3rd Quarter 2021 in Review -12.0% -6.0% 0.0% 6.0% 12.0% 18.0% 24.0% Danville Contra Costa Countywide Statewide EXHIBIT B Danville Annual Per Capita Sales Tax Adjusted for Inflation (Constant 2017 $) Town of Danville News •Economic Activity:Real Gross Domestic Product (GDP) grew at a seasonally adjusted annualized rate of 2.0% in the third quarter of 2021. Real GDP in Q3 2021 surpassed its Q4 2019 pre-pandemic peak by 1.4%. (BEA) •Employment:The U.S. unemployment rate fell by 0.6% to 4.6% in October of 2021 compared to August of 2021. Total U.S. nonfarm payroll employment increased by 531,000 (0.2%) in October of 2021. California's unemployment rate decreased to 7.3% in October, a slight .3% improvement from June of 2021. California's civilian employment increased by 201,500 (1.2%) in October of 2021 compared to June of 2021. (BLS, EDD) •Personal Income:U.S. personal income increased by 4.3% for the third quarter of 2021, compared to same quarter previous year. U.S. personal income for the year of 2021Q3 has increased by 6.4% compared to the 2020Q3 yearly personal income amount. (BEA) 2017Q3 $131 2018Q3 $130 2019Q3 $127 2020Q3 $123 2021Q3 $137 $20 $19 $22 $29 $30 $1 $1 $1 $1 $1 $5 $6 $8 $10 $15 $3 $3 $2 $2 $2 $14 $16 $15 $11 $13 $33 $33 $32 $27 $29 $55 $52 $47 $43 $47 General Retail Food Products Transportation Construction Business To Business Miscellaneous County Pool (Cash Basis)