Housing Rebound Drives Higher Property Tax Revenues for City of Alameda

The rebound in the housing market is driving city property tax revenue higher.

On Tuesday, Alameda City Council will receive a financial report for the first quarter of fiscal year 2015 to 2016, which began on July 1st and ended on September 30th.

Budgeted general fund revenue for the fiscal year is $81.9 million. As of September 30th, $10.1 million, or 12 percent, of that, had come in.

City officials are projecting an overall year-over-year increase in property tax revenue, compared to fiscal year 2014 to 2015, due to increases in assessed values of property.

As of September 30th the city received roughly $1.3 million in property tax revenue, a 7 percent increase over the same time period for the prior fiscal year.

Sales tax revenue as of September 30th was $378,700, or 4 percent of budgeted revenue for the current fiscal year.

A large number of property sales transactions, including the sale of a couple of large properties, have driven an increase in transfer taxes revenue, which is up 92 percent over the prior year period to $1.9 million, or 28 percent of budgeted revenue.

Business license revenue is down 4 percent, however, to $1.8 million. This may be an indicator of a decline of business activity within the city, as license renewals are due in the first quarter of the fiscal year, the reported quarter; most business license tax revenue is received in the first quarter.

Consideration of the financial report, which includes details on year-to-date expenses and a capital expense and maintenance report, is a routine consent item on city council’s agenda for 7 p.m. on Tuesday, December 15th, at City Hall.