Page 17 - FY 2022-23 Revenue Outlook
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2022-23 Proposed General Fund Revenue
Total proposed General Fund revenue for 2022-23 is $7.46 billion, which
represents a decrease of -0.6 percent from the adopted 2021-22 revenue budget
and -2.2 percent decrease from the revised. Excluding $639.5 million in one-time
American Rescue Plan relief funds from the 2021-22 adopted and revised
estimates, total General Fund revenue for 2022-23 growth is 8.7 percent above
the 2021-22 adopted budget, and an increase of 6.8 percent above the revised.
This growth is above average long-term growth of 3.7 percent for all General Fund
receipts, representing another year of recovery for the City’s core revenue base.
Included in the proposed estimate are one-time receipts totaling $247.0 million:
$105.6 million transfer from the Reserve Fund; $104.9 million from new and
delayed FEMA COVID-19 reimbursements; $17.9 million in CRA/LA property sale
proceeds; $11.7 million from liability claims and other departmental receipts; and
$6.9 million in additional Special Parking Revenue Fund transfer money.
Fiscal Year 2022-23 Growth Summary for Economy Sensitive Taxes
Above Average Average Growth Below Average
Business-non Cannabis UUT-Gas Business-Cannabis activities
activities UUT-Communication Property tax
Sales Documentary Transfer
Transient Occupancy (TOT) UUT-Electric
Parking Occupancy (POT)
Estimated growth compared to 10-year averaged growth.
Growth in the City’s seven major taxes from the revised 2021-22 estimate is
5.3 percent, compared to an estimated increase of 10.8 percent for the previous
year. This growth includes the continuing recovery in sales, transient and parking
occupancy taxes that were previously curtailed by travel restrictions, business
closures and the pandemic-driven recession with estimates informed by local
economy and industry-specific forecasts. Despite the higher growth in TOT and
POT, total receipts are expected to remain below 2018-19 revenues. Business tax
estimates were developed by the Office of Finance and reflect higher-than-average
growth in tax renewal revenue from non-cannabis business activities and lower
growth for cannabis-related activities in line with the minimal growth seen in
monthly receipts during the current year.
Gas and communication users tax growth assumptions use average growth in
reflection of trends in current year receipts, natural gas futures and telecom
earnings forecasts. The documentary transfer tax estimate is based on real estate
industry predictions for increasing home prices and declining sales for California
and the local market. No assumptions are made with regards to the increased risk
of recession from new waves of COVID-19 infections, inflation, federal rate hikes,
or the impact of the Russia-Ukraine conflict on the global economy.
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