CITY REVENUE
Why Is This Important?
Local governments rely on local revenue generation to maintain service levels and respond to a changing environment. Many factors, including availability of financial resources, influence the ability of local government to govern effectively. Property tax represents the most stable source of city government revenue, fluctuating much less over the business cycle than other revenue sources. Since property tax revenue represents less than a quarter of all local revenue, other revenue streams are critical in containing volatility of local government funding.
How Are We Doing?
The aggregated revenue from the seven cities in Solano County dropped 12 percent in the most recent reported year. Over the long term, revenues increased 19 percent from 1995 to 2009. From fiscal year 2007-2008 to 2008-2009, property tax revenues declined by 5 percent, while all other revenue categories declined by a larger percentage.The largest percent decrease (-22 percent) was reported for Other Tax, which includes all tax revenues except property taxes. Other Revenue represents the largest portion (39 percent) of total revenues in the county, providing $208 million in revenues in fiscal year 2008-2009. Other Revenue sources include intergovernmental transfers, special benefit assessments, fines, as well as permits and investments. Long-term growth is positive for all revenue sources except Sales Tax, which declined 15 percent from 1995 to 2009. Revenue from Property Tax more than doubled during the same period; however, it is expected to decline significantly in 2010 due to falling property assessments.