Page 59 - FY 2020-21 Revenue Outlook

REVENUE MONTHLY STATUS REPORT
Utility Users Tax - Communications Users Tax

(Thousand Dollars)
2016-17 2017-18 2018-19 2019-20 2020-21
MONTHLY ACTUAL ACTUAL ACTUAL BUDGET ACTUAL VARIANCE REVISED PROPOSED
JULY $ 17,563 14,852 13,951 12,130 10,922 (1,208) 10,922 10,000
AUGUST 16,851 14,590 13,606 11,910 11,097 (813) 11,097 9,900
SEPTEMBER 15,174 14,186 14,190 12,090 10,631 (1,459) 10,631 9,800
OCTOBER 16,016 14,899 12,165 12,000 12,807 807 12,807 9,700
NOVEMBER 15,112 13,777 14,306 11,890 9,507 (2,383) 9,507 9,600
DECEMBER 15,007 14,275 12,136 12,000 9,553 (2,447) 9,553 9,500
JANUARY 21,083 15,326 12,875 12,040 10,020 (2,020) 10,020 9,400
FEBRUARY 16,053 14,860 11,923 12,330 11,690 (640) 11,690 9,300
MARCH 15,612 13,972 11,055 11,370 9,797 (1,573) 9,797 9,200
APRIL 17,038 14,452 11,927 12,130 10,292 9,100
MAY 13,596 13,936 11,022 10,460 10,192 9,000
JUNE 15,378 12,175 10,473 11,050 10,092 8,900

TOTAL $ 194,481 $ 171,300 $ 149,628 $ 141,400 $ 126,600 $ 113,400
% Change 3.4% -11.9% -12.7% -5.5% -15.4% -10.4%

2016-17 2017-18 2018-19 2019-20 2020-21
CUMULATIVE ACTUAL ACTUAL ACTUAL BUDGET ACTUAL VARIANCE REVISED PROPOSED
JULY $ 17,563 14,852 13,951 12,130 10,922 (1,208) 10,922 10,000
AUGUST 34,414 29,442 27,557 24,040 22,019 (2,021) 22,019 19,900
SEPTEMBER 49,588 43,628 41,747 36,130 32,650 (3,480) 32,650 29,700
OCTOBER 65,604 58,527 53,912 48,130 45,457 (2,673) 45,457 39,400
NOVEMBER 80,716 72,304 68,218 60,020 54,964 (5,056) 54,964 49,000
DECEMBER 95,722 86,580 80,353 72,020 64,517 (7,503) 64,517 58,500
JANUARY 116,806 101,906 93,228 84,060 74,537 (9,523) 74,537 67,900
FEBRUARY 132,859 116,766 105,152 96,390 86,227 (10,163) 86,227 77,200
MARCH 148,470 130,738 116,207 107,760 96,024 (11,736) 96,024 86,400
APRIL 165,508 145,189 128,133 119,890 106,316 95,500
MAY 179,103 159,126 139,155 130,350 116,508 104,500
JUNE 194,481 171,300 149,628 141,400 126,600 113,400
Revenue from the Communications Users Tax (CUT) has been declining steadily since the beginning of 2009-10,
and may be attributed to the declining use of landline service and less expensive voice and text cellular service
options. The decline slowed in 2016-17 with the implementation of AB1717, which ensures the collection of CUT
from the prepaid wireless market. Despite AB1717, the decline resumed in 2017-18 due to "sales leakage"
(purchases outside the City) in the prepaid wireless market and aggressive plan pricing in the postpaid wireless
market.

Current year receipts are $11.7 million below plan, and 2019-20 and 2020-21 assume the decline continues.

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