HomeMy WebLinkAboutItem 8.3 Mid Year Financial Rpt
STAFF REPORT CITY CLERK
File #330-50
CITY COUNCIL
DATE:March 5, 2013
TO:
Honorable Mayor and City Councilmembers
FROM:
Joni Pattillo, City Manager
SUBJECT:
Mid-Year Financial Report as of December 31, 2012 for the Adopted Budget and
Financial Plan, 2012-13 and 2013-14
Prepared by Jim O'Leary, Interim Administrative Services Director
EXECUTIVE SUMMARY:
The financial review as of December 31, 2012 provides a mid-year budget update to the City
Council for the current fiscal year. Analysis of the revenues collected and all expenditures
through December 31, 2012 measures the budget’s adherence to the adopted resource
allocation plan. The primary focus of the report is on the General Fund, which accounts for a
majority of the City’s basic operations.
FINANCIAL IMPACT:
The Mid-Year Financial Report as of December 31, 2012 reporting on the Adopted Budget and
Financial Plan, 2012-13 and 2013-14 provides the City Council a periodic update on the 2012-
13 City budget. Detailed information can be found within the staff report and attachments.
RECOMMENDATION:
Staff recommends that the City Council receive the Mid-Year Financial Report as of December
31, 2012 for the Adopted Budget and Financial Plan, 2012-13 and 2013-14 in accordance with
California Government Code Section 41004.
Submitted By Reviewed By
Interim Administrative Assistant City Manager
Services Director
DESCRIPTION:
The City Council approved Adopted Budget and Financial Plan, 2012-13 and 2013-14 is the
biennial plan and resource allocation that guides and ensures implementation of the City
Council’s policies and priorities. The budget implements the vision and direction for the broad
range of services that meet the needs of the community in accordance with City Council policy.
ITEM NO. 8.3
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The General Fund finances the operations of the City that have no special or dedicated revenue
source and pays for the basic operations. The City Council approved the Adopted Budget and
Financial Plan for 2012-13 projecting operating revenues totaling at $59,490,500 and operating
expenditures totaling $53,036,100. An additional expenditure appropriation was approved on
November 6, 2012 to prefund the ACFD retiree benefit liability.
The following discussion focuses on significant variances from revenue and expenditure plans
and allocations in the General Fund, two Special Revenue Funds, and two Impact Fee Funds.
General Fund Revenue
Property Taxes
The FY 2012/13 budget for property
(49% of budget compared to 49% in 2011-12).
tax revenue is $1,008,000 higher than the budget in 2011-12, reflecting a 6% increase in secured
assessed values. Actual property tax revenues for the first six months of 2012-13 increased by
$610,300 from the prior fiscal year.
Sales Taxes
. The FY 2012/13 budget for Sales Tax
(46% of budget compared to 48% in 2011-12)
revenue is $1,305,000 higher than the budget of $13,245,000 in 2011-12. Actual revenue, as of
December 31, 2012, is at 50% of last year’s budget amount. Mid-year analysis by HdL
Companies, the City’s independent sales tax consultant, of current State Board of Equalization
sales tax receipts shows year-end sales tax revenue will exceed the current budget total.
).
Transient Occupancy Tax
The FY 2012/13 budget
(49% of budget compared to 65% in 2011-12
for the Transient Occupancy Tax revenue is 30% higher than the budget in 2011-12, with actual
revenue nearly equal for the two yearly periods. Each year’s reported revenues are for the first
five months of the fiscal year as payments are received one month after they are earned.
Franchise Taxes
A total of $734,100 in franchise
(25% of budget compared to 25% in 2011-12).
taxes was received at mid-year, which is 25% of the estimated annual total. Historically, 75% of
the projected revenue is received in the last six months of the fiscal year. The City receives the
PG&E franchise payments on gas and electric services in April of each year (about $650,000 of
the total for 2012-13). Most garbage collection franchise fees are received following payments
received by the County from the residential property tax role in February and May.
Interest & Rentals
. The FY 2012/13 budget for
(56% of budget compared to 30% in 2011-12)
Interest revenue is 35% lower higher than the budget in 2011-12. Historically low interest rates
have significantly reduced the City’s General Fund investment portfolio earnings. The budget for
Interest revenue is $553,000 in 2012-13. By comparison, the FY 2007-08 budget was
$2,100,000, and actual Interest revenue for the year amounted to over $2,600,000.
Other Revenues
The FY 2012/13 budget includes
(117% of budget compared to 70% in 2011-12).
Reimbursement, General revenue from Alameda County Fire for Public Safety Facility
reimbursement ($3,700,000) and Community Benefit Payments ($3,168,800). The Alameda
County Fire payment was recorded on November 21, 2012. Community Benefit Payment
revenue from Schaefer Ranch exceeds the projected budget.
Departmental, Fire
Payment from the Alameda
(114% of budget compared to 22% in 2011-12).
County Sheriff’s Office for calls for service at the Santa Rita Jail received in October in FY 2012-
13 ($840,000) and after December 31, 2011 in 2011-12 ($634,100). Revenues in 2012-13
exceeding budgeted amount in part because of higher revenues resulting from sprinkler system
plan checks for the Avalon Dublin Station development.
Departmental, Parks and Community Services
(49% of budget compared to 43% in 2011-12).
Department revenues are budgeted 4% higher in 2012-13 compared to 2011-12. Actual revenue
totals as of December 13, 2012 increased 18% compared to the same 6-month period in 2011-
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12. Revenues in 2012-13 for Community Events & Festivals (the inaugural splatter event),
Preschool programs, and Sports programs total $160,200 higher than in 2011-12.
Departmental, Community Development
(101% of budget compared to 61% in 2011-12).
Revenues from Building Permits ($1,012,800) and Zoning for development project processing
($2,326,600) processed by December 31, 2012 equals the projected total budget for FY 2012-13.
General Fund Expenditures
Police
Budget for the department is $1,459,000 higher
(5% of budget compared to 5% in 2011-12).
in 2002-13 compared to 2011-12. Delays by the Alameda County Sheriff’s Office in billing for
contracted services resulted in no contract payments prior to December 31 in either year.
Expenditures at mid-year total only $727,200 ($717,300 in 2011-12) at only 5% of the total
budget. The budget for contract services from the Alameda County Sheriff’s Office amounts to
$13,348,000 in FY 2012-13.
Fire
The adopted Fire budget reflects a 3% increase
(26% of budget compared to 26% in 2011-12).
compared to the 2011-12 budget. On November 6, 2012, the City Council approved a budget
amendment increasing the Fire budget by $6,487,000. This appropriation increase to the line-item
Contributions to Other Agency prefunded the City’s share of the ACFD retiree benefit liability.
The 2012-13 operating budget amounts to $10,868,800. Expenditures at mid-year total only
$4,544,300 ($2,707,300 in 2011-12), or 26% of the total budget. Total contract payments through
December 31, 2012 amount to $2,527,500. An additional $1,793,400 reflects expense accruals
for estimated monthly billings.
General Government
.
(42% of budget compared to 40% in 2011-12)
Special Revenue Fund Revenues
Public Art Fund
. Developer Contribution revenues from Tralee Village and
(414% of budget)
Schaefer Ranch exceed the total 20012-13 budget.
Affordable Housing
. Developer Contribution revenues from Braddock &
Fund (99% of budget)
Logan at Positano and DR Horton at Positano equal 20012-13 budget.
Impact Fee Funds Revenues
Public Facility Impact
. The revenue budget is
(140% of budget compared to 99% in 2011-12)
$4,631,500 lower in 2012-13 compared to 2011-12. Developer Contribution revenue in 2012-13
for Community Park Land exceeds the budget by $1,400,000, which is a result of a payment by
Braddock and Logan at Positano. There are significantly higher Developer Contribution revenues
for Community Park Improvements Fund. Single family and multi-family residential unit
projections are 476 higher in 2012-13 compared to 2011-12.
Traffic Impact
. Developer Contribution revenues
(124% of budget compared to 118% in 2011-12)
exceed projected budget for EDTIF Category 1, EDTIF Category 2, and TVTD.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
None.
ATTACHMENTS:
1. Mid-Year Financial Report as of December 31, 2012
2. All Funds – Revenue, Expenditures and Fund Balances
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