Res 2008-123 - Laserfiche WebLink

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IV. Budgetary Sales Tam Estimation A. The estimated percentage increase in sales tax revenue for the ensuing fiscal year budget will not exceed the actual percentage increase of the most recently completed fiscal year. B. The following example illustrates the limitation set by this policy. Fiscal Year 1 Fiscal Year 2 Percentage Actual Actual Increase $10,000,000 $10,500,000 5.0 Fiscal Year 3 Fiscal Year 4 Percentage Estimated Proposed Increase $11,550,000 $12,127,500 5.0 In the example above, the Fiscal Year 4 Proposed Budget is limited to a 5.0% increase, which is the actual percentage increase of the most recently completed fiscal year (Fiscal Year 2). C. This policy ensures that the ensuing fiscal year budget contains a sales tax revenue estimate based on actual completed fiscal years only. V. Budgetary Sales TaY Revenue Shortfall Contingency Plan A. The City will establish a plan to address economic situations that cause sales tax revenue to be significantly less than the adopted budget sales tax revenue. The plan is comprised of the following components: Indicators - Serve as warnings that potential budgetary sales tax revenue shortfalls are increasing in probability. Staff will monitor state and national economic indicators to identify recessionary or inflationary trends that could negatively impact consumer spending. Staff will develop a monthly report that compares the current month's sales tax revenue to the same month of the previous year. The report will show sales tax revenue by month for the last ten fiscal years. Phases - Serve to classify and communicate the severity of the estimated budgetary sales tax revenue shortfall. Identify the actions to be taken at the given phase. Actions - Preplanned steps to be taken in order to prudently address and counteract the estimated budgetary sales tax revenue shortfall. City of San Marcos Financial Policy -Proposed Sept 2008 Page 7