Agenda No. 8 B CITY OF PACIFIC GROVE 300 Forest Avenue, Pacific Grove, California 93950 TO: Honorable Mayor and Members of the City Council FROM: Mary Lagasca, Deputy Director of Finance MEETING DATE: August 18, 2021 SUBJECT: Core Revenue Status Report for July 2021 CEQA: Does not constitute a “Project” per California Environmental Quality Act Guidelines Section 15378

RECOMMENDATION Receive the report. DISCUSSION The Pacific Grove’s (City) General Fund revenues are primarily derived from Property Tax, Transient Occupancy Tax, and Sales and Use Tax revenues. In the Fiscal Year (FY) 20/21 Adopted Budget, it was estimated the City would receive $14.8 million or 70% of the General Fund revenues from these three tax sources. The initial FY20/21 projections were based on significant revenue deductions (approximately $3.7 million when compared to FY19/20 adopted budget) due to COVID-19. At mid-year, the budget was amended to adjust these three revenue sources to $15.3 million based on projected growth in the property tax and sales tax categories, net of reductions in transient occupancy tax. While transient occupancy tax is still anticipated to be less than prior fiscal year, property tax revenues are projected to continue to increase above prior year amounts. Sales tax is expected to be at a similar level as compared to the prior fiscal year. Additional information on the budgeted amounts and revenues to date for the current fiscal year are included in Attachment 1. OPTIONS N/A – this is informational only. FINANCIAL IMPACT: There is no fiscal impact.

GOAL ALIGNMENT: Financial Stability: Develop a strategic plan to better address current and future City expenditure and revenue needs.

Attachments Core Revenue Report July 2021