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HomeMy WebLinkAboutItem 8.6 Budget Review 2nd Qtr STAFF REPORT CITY CLERK File #330-20 CITY COUNCIL DATE:March 4, 2014 TO: Honorable Mayor and City Councilmembers FROM: Christopher L. Foss, Acting City Manager SUBJECT: FY 2013-14 2nd Quarter Budget Review Prepared by Colleen Tribby, Director of Administrative Services EXECUTIVE SUMMARY: The City Council will receive a budget update for the second quarter of the current fiscal year. This update will also include information on the City’s General Fund reserves. FINANCIAL IMPACT: Approval of the FY 2013-14 budget change will result in a net increase of $716,004 to the General Fund revenue budget. Total General Fund reserves are projected at $58.7 million as of June 30, 2014. While there are no significant changes expected in other funds this fiscal year, there are some minor budget adjustments and those appropriations require City Council approval. RECOMMENDATION: Staff recommends that the City Council receive the FY 2013-14 2nd Quarter Financial Review Resolution and adopt Adopting a Second Quarter Budget Amendment to the City of Dublin’s Fiscal Year 2013-14 Budget. Submitted By Reviewed By Administrative Services Director Acting Assistant City Manager DESCRIPTION: The focus of this report is the projected FY 2013-14 fund balance in the General Fund, updated with information collected through the second quarter. The numbers include budget amendments already approved by the City Council since July 1, new amendments needing approval, and updated revenue projections. ITEM NO. 8.6 Page 1 of 4 FY 2013-14: Projected Results General Fund revenues and expenditures are projected to remain within the amended budget at the end of the current fiscal year, with the exceptions of a $1.0 million increase in expected Property Tax revenue and a decrease of $300,000 in interest income revenue. Property Tax: The projection of $25.2 million in Property Tax revenue is due to overall growth in citywide property values, particularly in the residential market. The following are highlights of the latest information from the City’s property tax consultants:  Net taxable assessed values grew 9.7% over FY 2012-13, the second highest percentage increase of agencies in Alameda County; all cities in the county reported positive growth this year.  Residential values increased 12% ($757.1 million), accounting for 89% of all growth citywide.  Vacant properties posted increases of about 14% ($86.5 million), accounting for an additional 10% of the overall growth.  Single-family residences are selling for 29% higher than in the previous calendar year, with a median price of $560,000, slightly below 2004 and 2008 levels. Interest Income: Interest Income revenue is down by $300,000 to account for continued low interest rates. As Staff discussed in the most recent Quarterly Investment Report, several of the City’s large, long- term securities matured since July 1, and are being reinvested in lower-yielding instruments due to current market conditions. As the City’s investment managers continue to look for opportunities invest in new products, the City’s primary focus remains on the safety of the City’s funds. As the market improves, Staff will keep City Council apprised and will recommend any necessary changes. Items Needing City Council Approval (BUDGET CHANGE ATTACHED): 1. Budget adjustments, General Fund a. Increase Property Tax Revenue: $1,016,004 b. Decrease Interest Income Revenue: ($300,000) Budget adjustments, Non-General Fund: 2. a. Appropriate $44,574 in Measure B funds for staff costs, contracted services, and supplies costs related to the Bicycle and Pedestrian Master Plan Update, which is expected to be completed this fiscal year. b. Appropriate $80,000 in Vehicle Registration Fees to be added to the Citywide Signal Communications Upgrade (Project st0713). The City’s Master Programs Funding Agreement with the ACTC requires us to use VRF funds in a timely manner and any unobligated/undesignated funds have the risk of being taken away from the City. The City received additional VRF funds in FY 12-13 and has projected to receive more Page 2 of 4 than anticipated funds in FY 13-14. To address the concern of having a fund balance at the end of FY 13-14, Staff is recommending allocating additional funds to the above CIP. The additional funds will continue the work of upgrading traffic signals and communication infrastructure to enhance traffic circulation, reduce congestion and improve safety. c. Appropriate $48,591 from the Downtown Traffic Impact Fee (TIF) Fund to update the Downtown Traffic Fee. The current fee and related studies were completed prior to the adoption of the Complete Streets Policy in 2012, Downtown Specific Plan in 2011, and the Bikeways Master Plan in 2007. This update will incorporate current policies and the updated Bicycle and Pedestrian Master Plan, planned for City Council consideration and adoption in the middle of 2014. Expenditures include the cost of using an on-call transportation engineering consultant to prepare necessary studies, project lists, cost estimates and guidelines. d. Appropriate $79,745 from the Traffic Impact Fee Category 1 Fund for the Tassajara Road Precise Alignment and Design. Funds will be used to revise the current precise plan alignment for Tassajara Road, from the Fallon Road intersection to the Camino Tassajara and Windemere Parkway intersection in Contra Costa County. The current precise plan alignment was adopted in 2004. The revised plan will incorporate recent polices, such as the 2012 Complete Streets Policy, the latest Dublin, Alameda County, and Contra Costa County traffic models and projections, and recently approved or anticipated adjacent private developments. Project costs for the revised alignment are planned to be shared between Dublin and Contra Costa County, based upon the percentage of roadway length within each jurisdiction. Tassajara Road is an Eastern Dublin Traffic Impact Fee project and Camino Tassajara is a project within the Southern Contra Costa Fee program. Project costs include a traffic study to serve as the basis for a revised roadway alignment and cross section. Other Items (NO BUDGET CHANGE NEEDED): 3. a. Surplus Fire Engine Unit 162: City Council approved the replacement of Unit 162 on December 20, 2011. The replacement unit has been in service since January 2013 and, during a recent inspection of Unit 162 conditions, ACFD recommends to salvage the unit as it is no longer in a condition to serve as a reserve. Fiscal Impact, Projected FY 2013-14 The projected net impact of revenues, expenditures, and transfers out results in a draw on reserves of $18.6 million (see Table 1), which is covered by the planned use of specific Committed and Assigned Reserves (Attachment 2). The largest changes are due to the projected completion of the Public Safety Complex, the Maintenance Facility, and the anticipated payment of the City’s share of the Alameda County Fire Department’s OPEB. As the fiscal year draws to a close, Staff will bring back to the City Council recommendations on specific additions to or uses of current year reserves, with an emphasis on setting aside sufficient capital reserves while maintaining adequate operating reserves over the long term. Page 3 of 4 Table 1: General Fund Reserves 11-12 12-13 13-14 Actual Actual Projected Reserve Category Non-Spendable 3,433,886 2,836,130 2,186,130 Restricted 468 500,000 500,000 Committed 24,176,650 36,020,171 20,378,125 Assigned 22,080,677 23,912,896 23,684,793 Unassigned-Unrealized Gains 1,013,252 (263,162) - Unassigned (Available) 14,058,816 14,311,098 11,923,371 TOTAL RESERVES 64,763,749 77,317,133 58,672,419 Change (18,644,714) NOTICING REQUIREMENTS/PUBLIC OUTREACH: None. ‐‐ ATTACHMENTS: 1.General Fund Summary FY 201314, MidYear Financial Review 2. General Fund Reserves 3. Budget Change 4. Resolution Adopting a Second Quarter Budget Amendment to the City of Dublin’s Fiscal Year 2013-14 Budget Page 4 of 4 GENERALFUNDSUMMARY ATTACHMENT1 FY201314MIDYEARFINANCIALREVIEW 1213131413141314Changefrom ActualAdoptedAmendedProjectedAmended Revenues PropertyTaxes23,590,10224,153,05024,153,05025,169,0541,016,004 SalesTax15,359,34016,271,40016,271,40016,271,400 OtherTaxes5,054,2574,333,0004,333,0004,333,000 BuildingPermits4,627,6312,255,0203,455,0203,455,020 OtherLicenses&Permits627,878535,750605,750605,750 Fines&Penalties132,616138,260138,260138,260 Interest(541,639)652,160652,160352,160(300,000) Rentals&Leases582,039581,270581,270581,270 Intergovernmental208,904183,620183,620183,620 ChargesforServices9,076,1477,093,6307,093,6307,093,630 OtherRevenue4,374,340327,510339,010339,010 CommunityBenefitPayment4,154,1601,461,2101,461,2101,461,210 SubtotalRevenues67,245,77557,985,88059,267,38059,983,384716,004 CarryoverPriorYearRevenues 12,445,28612,445,286 TotalRevenues67,245,77557,985,88071,712,66672,428,670716,004 Expenditures Salaries&Wages8,769,6279,279,3409,218,8529,218,852 Benefits4,127,8334,628,8304,607,6644,607,664 Services&Supplies1,992,1202,308,5202,349,0672,349,067 InternalServiceFundCharges1,459,3281,770,2801,770,2801,770,280 Utilities1,576,9851,944,3101,949,6751,949,675 ContractedServices33,987,43135,891,55037,398,22537,398,225 CapitalOutlay369,956236,420251,577251,577 Interest&Other119,8581,172,9308,438,6208,438,620 TotalExpenditures52,403,13857,232,18065,983,95965,983,959 OPERATINGBUDGETIMPAC14,842,636753,7005,728,7086,444,712716,004 T TransfersOuttoCIP(2,289,252)(8,422,370)(12,729,139)(12,644,139) NETIMPACTONRESERVES12,553,385(7,668,670)(7,000,431)(6,199,427) ReserveBalances NonSpendable2,836,1302,186,130 Restricted500,000500,000 Committed36,020,17120,378,125 Assigned23,912,89623,684,793 Unassigned/UnrealGains(263,162) Unassigned/CashFlow14,311,09811,923,371 TOTALRESERVES77,317,13358,672,419 GENERALFUNDRESERVES: ATTACHMENT2 FY201314MIDYEARFINANCIALREVIEW 121313141314TOTAL1314 ActualINCREASEDECREASECHANGEProjected NETOPERATINGIMPACT 14,842,636(6,199,427) Lessrevenuecarryover(12,445,286) TOTALCHANGETORESERVES12,553,385(18,644,713) ReserveBalances NonSpendable2,836,130(650,000)(650,000)2,186,130 PrepaidExpenses34,75634,756 CemeteryEndowment60,00060,000 AdvancetoFireImpactFee1,098,606(250,000)848,606 AdvancetoPERSSideFund1,642,768(400,000)1,242,768 Restricted500,000500,000 HeritageParkMaintenance500,000500,000 Committed36,020,1713,037,568(18,679,614)(15,642,046)20,378,125 EconomicStability5,868,8475,868,847 DowntownPublicImpr1,000,0001,000,000 OpenSpaceFunding2,000,000(2,000,000) AffordableHousing1,000,0001,000,000 EmeraldGlenAquaticCtr1,500,0001,602,350(102,350)3,000,000 EmergencyCommunications741,000741,000 FireSvcsOPEB7,610,058400,000(6,487,000)1,523,058 Innovations&NewOpport1,372,7851,372,785 MaintenanceFacility6,027,950(6,027,950)0 HeritagePark,Maint750,000750,000 CivicCtrExpansion391,568(391,568)0 EmergencyGenerator PublicSafetyComplex3,070,746(3,070,746)(0) JtCity/SchoolProjects600,000(600,000) NonStreetsCIPCommitments2,745,8091,035,2183,781,027 OneTimeInitiative1,341,4081,341,408 Assigned23,912,8961,360,218(1,588,321)(228,103)23,684,793 AccruedLeave896,658896,658 OperatingCarryovers986,326(986,326)0 CIPCarryovers265,845(265,845)(0) CatastophicLoss10,537,27110,537,271 ServiceContinuity2,410,0002,410,000 Pension&OPEB8,480,6461,035,2189,515,864 FiscallyResponsibleAdj336,150325,000(336,150)325,000 Unassigned14,047,93520,917,935(23,042,499)(2,124,564)11,923,371 UnassignedUnrealizedGains(263,162)263,162263,162 Unassigned(Available)14,311,09811,923,371 TOTALRESERVES77,317,13325,315,721(43,960,434)(18,644,713)58,672,420 ATTACHMENT 3 CITY OF DUBLIN FISCAL YEAR 2013-14 BUDGET CHANGE FORM Budget Change Reference #: City Council's Approval Required From Un-Appropriated ReservesXTransfer btwn Funds From Designated ReservesOtherX Budget Change DescriptionAccountAmount General Fund Interest Income revenue1001.0000.46101 $ (300,000) General Fund Property Tax revenue1001.0000.411011,016,004$ Measure B Funds for Bicycle Master Plan: $44,574 total830103.1000.100122,359$ 830103.4000.400121,215$ 830103.2000.20011,000$ VRF Fees for Citywide Signal Communications Upgrade $80,000 totast0713.9400.940180,000$ Transfer out to Project2212.9601.8910180,000$ Transfer in from VRF3600.9601.4999980,000$ Downtown TIF Funds to update Downtown Traffic Impact Fee4304.8301.6400148,591$ TIF Category 1 Fund for Tassajara Rd Prescise Alignment and Desi4301.1901.6400179,745$ NOTE Budget changes needed for FY 2013-14 mid-year review. 3/4/2014 As Presented at the City Council Meeting **********Finance Use Only********** Posted By:Date: DtvÒ©·;©Œä w;¦š©·­  v .Ò7m;· /w“m;u “7 vw u .Ò7m;· RESOLUTION NO. xx - 14 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN * * * * * * * * * ADOPTING A SECOND QUARTER BUDGET AMENDMENT TO THE CITY OF DUBLIN FISCAL YEAR 2013-14 BUDGET WHEREAS, the City of Dublin adopts the budget with the intent of providi program for City services; and WHEREAS, the City Council approved Resolution 86-13 adopting the Adopte Financial Plan for Fiscal Year 2013-14 on June 4, 2013; and WHEREAS, amendments for revenues and expenditures impacting the various approved, consistent with the changes in estimated revenues, ope previous City Council actions, and consistent with the informati Financial Review of Fiscal Year 2013-14 received by the City Cou st WHEREAS, the following 1 quarter budget items need City Council approval: 1. Increase General Fund Property Tax revenue by $1,016,004; 2. Decrease General Fund Interest Income revenue by $300,000; 3. Appropriate $44,574 in Measure B funds for the Bicycle and Pe Update; 4. Appropriate $80,000 in Vehicle Registration Fees to be added Communications Upgrade (Project st0713); 5. Appropriate $48,591 from the Downtown Traffic Impact Fee (TIF Downtown Traffic Fee; and 6. Appropriate $79,745 from the Traffic Impact Fee Category 1 Fu Precise Alignment and Design; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby amend the Adopted Budget and Financial Plan for Fiscal Year 2013 listed in this resolution. th PASSED, APPROVED AND ADOPTED this 4 day of March, 2014, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ______________________________________ Mayor ATTEST: _______________________________________ City Clerk ATTACHMENT 4