1. Page 1 CITY OF SACRAMENTO, CALIFORNIA PUBLIC POLICY ADMINISTRATION 230 Betty Masuoka Assistant City Manager City of Sacramento March 2002

2. Page 2 CITY OF SACRAMENTO, CALIFORNIA TOTAL CITY BUDGET TOTAL CITY BUDGET: $833,648,000 Operating Budget $409,663,000 General Fund $264,022,000 All Other funds $145,641,000 Capital Budget $ 296,983,000 All Other $260,717,000 General Fund $36,266,000 All Other $39,854,000 General Fund $12,539,000 Debt Budget $52,393,000 All Other $74,270,000 General Fund $339,000 Reserves $74,609,000

3. Page 3 CITY OF SACRAMENTO, CALIFORNIA TOTAL CITY BUDGET TOTAL CITY BUDGET: $833,648,000 Enterprise: Solid Waste Water Sewer Drainage Community Center Parking Marina Golf General Fund Enterprise Other Gov’t Other Gov’t: Gas Tax Measure A (sales Tax) Quimby Major St. Construction Lighting & Landscaping

4. Page 4 CITY OF SACRAMENTO, CALIFORNIA TOTAL CITY BUDGET TOTAL CITY BUDGET: $833,648,000 Emp Serv. Expenditures Resources Sup & Serv Reserves CIP Debt Srv. Equip Fees Beg. Bal Taxes Debt Proceeds Inter-Gov Licenses Other

5. Page 5 CITY OF SACRAMENTO, CALIFORNIA Operating Budget: $410 Million (all funds) Operating Budget includes Employee and Supply/Service Costs for each Department (does not include CIP) Public Works Utilities Fire Police Parks & Rec

6. Page 6 CITY OF SACRAMENTO, CALIFORNIA TOTAL GENERAL FUND BUDGET GENERAL FUND BUDGET: $313 million Emp Serv. ExpendituresResources Sup & Serv Reserves CIP Debt Srv. Fees Other Taxes Inter-Gov Licenses Beg Bal.

7. Page 7 CITY OF SACRAMENTO, CALIFORNIA General Fund Revenues: $274.8 m

8. Page 8 CITY OF SACRAMENTO, CALIFORNIA General Fund Tax Revenues: $198 m

9. Page 9 CITY OF SACRAMENTO, CALIFORNIA Sales Tax  1% Sales Tax is almost 1/3 of the General Fund Tax Base. Revenue is allocated on a situs basis.  What are the BIG Sales Tax generators?  Auto Malls  Regional Malls  Big Box Development  Threats to the tax base:  The Economy  Internet Sales  The City or County next door  Will a Regional Approach Work? Is it Really Fiscalization of Land Use or a Matter of Survival?

10. Page 10 CITY OF SACRAMENTO, CALIFORNIA

11. Page 11 CITY OF SACRAMENTO, CALIFORNIA Property Tax  Property Tax is about 27% of General Fund Tax Base  If ERAF went away, Property Tax would be about 34% (or another $15 million)  Redevelopment: Is Tax Increment a true economic development tool or a local government loophole?  Disparity of tax burden  Residential v. Commercial  New v. Old Whose Tax Revenue is it?

12. Page 12 CITY OF SACRAMENTO, CALIFORNIA Property Tax Impact of ERAF Shift on Taxing Entities in Sacramento

13. Page 13 CITY OF SACRAMENTO, CALIFORNIA Utility Users Tax  Utility Users Tax is about 27% of General Fund Tax Base.  7.5% tax on Natural Gas, Electricity, Telephone, Cable  Impact of Broadband/Internet/Wireless  Impact of the Energy Crisis Is Local Government Benefiting from the Energy Crisis? Just what should be taxed?

14. Page 14 CITY OF SACRAMENTO, CALIFORNIA

15. Page 15 CITY OF SACRAMENTO, CALIFORNIA FY 2002-2003 Budget Strategy  Major Unknowns for the Coming Year:  When will the Economy Rebound?  What will the State do to local government?  What will the voters do in November?  How the City will Deal with the Unknowns  Economy: “Sustainable Budget” pays off. (Use of Reserves)  State: Reduction Alternatives (Use of Reserves, budget reductions)  Voter Initiative: Major budget alterations. How to Best Plan for the Unknown and Beyond …..

16. Page 16 CITY OF SACRAMENTO, CALIFORNIA FY 2002-2003 Budget Strategy  Public Safety v. Quality of Life  One time revenue/expenditures v. On-going revenue/expenditures  New Capital v. on-going maintenance  Service to New Areas v. Citywide service  Economic Development v. Safety Nets Budget Policy Dilemmas: Issues to consider whether you’re increasing or reducing your budget ….