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14,00 0,000 12,000,000 10,000,000 8,000.000 6,000,000 4,000,000 2,000,000 Total City -Wide Charges for Services Actual and Projection Increases ii3i DT and 2003 due to Increases ..,, in Impact Fees and Utility Tap Fees Y Increases Projectedfor 2001 - 20166 due to Increases Buildintl- Beginnin0 0401 1 0, Golf Course User Fees No Longer Recorded due to New Mananemeft( Related Fees (Impact and Utility Tap) and Increases in Utility UserChar[Ies Agreement WGP. Reduction Offset by New Solid Waste User Fee in Mid -2009 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Sales Tax Revenue Sales tax is the second largest source of revenue for the City, accounting for 28% of total City- wide revenue (excluding interfund transfers). Sales tax is the largest General Fund revenue source, accounting for 44% of total General Fund revenue. Over the past few years, sales tax revenue declined due to increased retail competition in neighboring municipalities. The recent recession worsened this trend and sales tax revenue for 2009, excluding the new Historical Preservation Tax, declined by 7% compared with 2008. In 2010 sales tax revenue declined an additional 3% from 2009. Final projected sales tax from for 2011 is projected to increase by 1% from 2010. Total sales tax revenue for 2012 is budgeted at $8.9 million, which is approximately the same amount as projected for 2011 (and still about $1.0 million below the revenue received in 2000). Staff projects that sales tax revenue will stabilize in 2012 before gradually increasing in 2013 through 2016. The City has taken past declines in sales tax revenue seriously and initiated various programs to address this issue. In 2006 the City established an Urban Renewal District and adopted an Urban Renewal Plan. The City also developed a Business Assistance Program with the intent of stabilizing the current sales tax base and expanding that base for the future. The City's current sales tax rate is 3.5 %. The City currently allocates 1% to the Capital Projects Fund and 2% to the General Fund. This allocation meets the requirement set by the voters that a minimum of 33% of the 3% sales tax be allocated for capital projects. The Conservation Trust — Land Acquisition Fund receives 0.375% of the sales tax and is used for open space land purchases, open space management, and maintenance activities. The Historic Preservation Fund receives the remaining 0.125% sales tax and those revenues are dedicated to specified historic preservation purposes approved by the voters in November 2008. Those purposes include: • Providing incentives to preserve historic resources, 12