HomeMy WebLinkAbout8.4 First Qtr Financial Review OF
0� ,- &2 STAFF REPORT CITY CLERK
CITY COUNCIL File #330-50
DATE: November 18, 2014
TO: Honorable Mayor and City Councilmembers
FROM: Christopher L. Foss, City Manager J
SUBJECT: Fiscal Year 2014-15 First Quarter Financial Review
Prepared by Prepared by Colleen Tribby, Administrative Services Director
EXECUTIVE SUMMARY:
The City Council will receive a financial report on the first quarter for Fiscal Year 2014-15 and
consider amendments to the Fiscal Year 2014-15 Budget.
FINANCIAL IMPACT:
Approval of the Fiscal Year 2014-15 budget change will result in a net increase of$3,992,749 to
the General Fund revenue budget projection, and an increase of $8,196,000 to the expenditure
budget (for Fire Services retiree health). Total General Fund reserves are projected at
$74,225,932 as of June 30, 2015.
While there are no significant changes expected in non-General Fund accounts this fiscal year,
there are two minor budget adjustments that require City Council approval.
RECOMMENDATION:
Staff recommends that the City Council adopt the Resolution Approving a First Quarter Budget
Amendment to the City of Dublin's Fiscal Year 2014-15 Budget.
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Submitted By Reviewed By
Administrative Services Director Assistant City Manager
DESCRIPTION:
This focus of this report is the projected FY 2014-15 fund balance in the General Fund, updated
with information collected through the first quarter. The numbers include budget amendments
already approved by the City Council since July 1 , carry-over budgets from FY 2013-14, new
amendments needing approval, and updated revenue and expenditure projections.
Page 1 of 4 ITEM NO. 8.4
FY 2014-15: Projected Results
General Fund revenues are projected to come in $3,992,749 higher than the amended budget,
due primarily to an increase in Property Tax revenue. Expenditures are on essentially on track
with the budget (with a minor adjustment), though one-time expenditures in this report include
the estimated $8,196,000 Fire Services retiree health payment that is expected to occur in the
fiscal year, for which funds have been set aside but not yet added to the current budget. Please
note that there are no recommended changes to building permit revenue projections at this time;
this will be included with the mid-year financial review, when Staff will have a better estimation
of the level of permit activity expected through the end of the year.
Attachment 2 to this report contains the budget changes discussed below.
REVENUES
Property Tax: $3,393,230 higher than budget
The City of Dublin experienced a net taxable value increase of 15.3%, or roughly $1.5 billion, for
the FY 2014-15 tax roll, which was the highest increase of all cities in the County, and was
significantly more than the increase experienced countywide at 5.9%. Table 1 below shows the
changes to assessed value (AV) by category, listed by largest to smallest dollar change over the
prior year.
As shown in Table 1 below, residential AV experienced the largest growth, with a net change of
nearly $1.3 billion, accounting for 87.1% of the total growth. Within this category, the annual
Proposition 13 inflation adjustment was 0.45% (compared to the maximum of 2.0%), accounting
for an AV increase of$21.7 million and a relatively small component of the City's overall growth.
The primary drivers of the increase include new residential inventory, increased median sales
price, and the restoration of AV for properties formerly reduced through the Proposition 8
reassessments.
FY 2014-15 Assessed Valuation Growth by Use Category
FY 2013/14 FY 2014/15
Category #Parcels Net Taxable Value #Parcels Net Taxable Value %Total $Change %Change %of Total
Residential 15,478 $ 7,063,596,250 16,268 $ 8,344,901,838 75.1% $1,281,305,588 18.1% 87.1%
Vacant 1,297 $ 703,259,687 965 $ 787,526,476 7.1% $ 84,266,789 110% 5.7%
Commercial 260 $ 1,336,270,310 261 $ 1,377,354,474 114% $ 41,084,164 11% 18%
Industrial 56 $ 239,643,545 60 $ 271,657,081 2.49/. $ 32,013,536 114% 12%
Dry Farm 12 $ 10,978,526 13 $ 31,851,740 03% $ 20,873,214 190.1% 1.4%
Unsecured (1,538) $ 213,130,165 (1,546) $ 229,047,093 2.1% $ 15,916,928 7.5% 1.1%
Govt.Owned 2 $ 33,051,075 2 $ 33,201,528 03% $ 150,453 0.5% 0.0%
Exempt 225 $ - 228 $ - 0.0% $ - 0.0% 0.0%
Recreational 13 $ 13,977,529 13 $ 13,782,460 0.1% $ (195,069) -1.4% 0.0%
SBE Nonunitary (3) $ 1,019,152 (1) $ 204,575 0.0% $ (814,577) -79.9% -0.1%
Institutional 20 $ 28,351,792 18 $ 24,468,361 0.2% $ (3,883,431) -117% -03%
TOTALS 15,822 $ 9,643,278,031 16,281 $ 11,113,995,626 100.00% $1,470,717,595 15.3% 100.0•/0
According to HdL Coren & Cone, the City's property tax consultants, the County Assessor has
recaptured $174.1 million of the $706.0 million outstanding in the City of Dublin last year, which
is a reinstatement of 25% of the total value previously reduced. All totaled, 2,153 of 4,557
properties have been fully reinstated to their trended Proposition 13 values. Furthermore, when
Page 2 of 4
properties that were provided Prop 8 relief over the past six years are selling, the sale price is
15% higher than the Assessor's enrolled value.
The net effect of the AV change on the City of Dublin's FY 2014-15 property tax revenue budget
is an increase of approximately $3.4 million. While this is a substantial bump to revenues in the
current year and creates a new baseline to use in the long-term outlook, Staff does not expect to
see this kind of increase going forward because much of the change is due to the Prop 8
reassessments. The General Fund five-year updated forecast will be brought for City Council
review during the mid-year financial report.
Sales Tax: $674,250 higher than budget
Staff has applied a conservative growth factor of 3.5% to last fiscal year's final receipts. When
the City receives estimates for December sales, Staff will likely recommend further budget
changes with the mid-year financial review.
Other Taxes: $150,000 higher than budget
The increase is due to a higher level of Property Transfer Tax than anticipated, due to both an
increase in AV of selling properties, and an increase to the number of sales expected to occur in
FY 2014-15.
Charges for Services: $225,000 lower than budget
This decrease is in Santa Rita Services revenue, due to a decreased number of non-emergency
situations at the County facility, as well as to the County's increasing reliance on private
services to respond to such situations.
CIP / ONE-TIME EXPENDITURES
Fire Other-Post Employment Benefits (OPEB): $8,196,000 higher than budget
This budget addition is to prepare for the payment (whether partially or in full) that the City
expects to make for the City's share of the Alameda County Fire Department's OPEB, or retiree
health, obligation. The City is currently working on a memorandum of understanding between
the City and County Fire Department, outlining the terms of the arrangement and describing the
mechanism by which the City will contribute to Fire OPEB trust fund. Appropriating the budget
for this does not change the City's financial outlook, as these funds have already been set aside
in a General Fund reserve for this purpose.
PROJECTED FISCAL IMPACT
The projected net impact of revenues, expenditures, and transfers out results in a draw on
reserves of $5,346,956 (see Table 2) in FY 14-15. The cash flow reserve is projected at
$14,381 ,839 representing 2.8 months of the FY 2015-16 operating budget.
Attachment 3 presents the details of all projected changes to reserves during FY 2014-15.
Page 3 of 4
Table 2: General Fund Reserves
12-13 13-14 14-15
Reserve Balances Actual Actual Projected
Non-Spendable 2,836,130 2,270,022 1,622,168
Restricted 500,000 500,000 500,000
Committed 36,020,171 34,124,272 30,725,303
Assigned 23,912,896 29,259,338 26,896,856
Unassigned /Unreal Gains (263,162) 99,765 99,765
Unassigned /Cash Flow 14,311,098 13,319,490 14,381,839
TOTAL RESERVES 77,317,133 79,572,887 74,225,932
(5,346,956)
Items Needing City Council Approval (BUDGET CHANGE FORM ATTACHED):
1. Budget adjustments, General Fund
a. Increase Property Tax Revenue: $3,393,230
b. Increase Sales Tax Revenue: $674,520
c. Increase Other Tax Revenue: $150,000
d. Decrease Santa Rita Services Revenue: ($225,000)
2. Budget adjustments, Non-General Fund:
a. Appropriate $50,000 in the Non-Safety Vehicles Fund (6103) for vehicle replacements
as they are identified throughout the year. Replaced vehicles are those which have
reached their useful lifespan, and for which funds have already been accumulated for
their replacement. This action will appropriate a budget so that the appropriate
purchases can be made.
b. Appropriate $50,000 for the Iron Horse Trail Bridge Feasibility Study (4401), using
developer funds received in FY 2013-14, to be passed to ACTC as the City of Dublin's
matching funding for the study.
3. Other Items (NO BUDGET CHANGE NEEDED):
a. Out-of-State Travel Authorizations:
• City Clerk - International Conference of City Clerks (Connecticut)
• Building Official - International Code Council Annual Business Meeting
(Florida)
• Heritage and Cultural Arts Manager / Parks and Facilities Development
Coordinator - three day-trips to monitor progress on art installations for the
Emerald Glen Recreation and Aquatic Complex (Portland)
• Heritage Center Coordinator - American Association for State and Local
History Conference (Minnesota).
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
None.
ATTACHMENTS: 1 . Resolution Approving a First Quarter Budget Amendment to the City
of Dublin's Fiscal Year 2014-15 Budget
2. General Fund Summary, FY 2014-15
3. General Fund Summary, Reserves
4. Budget Change Form
Page 4 of 4
RESOLUTION NO. xx - 14
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
ADOPTING A FIRSTQUARTER BUDGET AMENDMENT TO THE CITY OF DUBLIN'S
FISCAL YEAR 2014-15 BUDGET
WHEREAS, the City of Dublin adopts the budget with the intent of providing a planned policy
program for City services; and
WHEREAS, the City Council approved Resolution 53-14 adopting the Adopted Budget and
Financial Plan for Fiscal Year 2014-15 on May 20, 2014; and
WHEREAS, amendments for revenues and expenditures impacting the various funds should be
approved, consistent with the changes in estimated revenues, operating requirements, and
previous City Council actions, and consistent with the information provided with the First Quarter
Financial Review of Fiscal Year 2014-15 received by the City Council on November 18, 2014;
and
WHEREAS, the following 1St quarter budget items need City Council approval (as listed in
Budget Change Form):
General Fund:
1. Increase Property Tax Revenue: $3,393,230
2. Increase Sales Tax Revenue: $674,520
3. Increase Other Tax Revenue: $150,000
4. Decrease Santa Rita Services Revenue: ($225,000)
Non-General Fund:
1. Increase expenditures in the Non-Safety Vehicles Fund (6103): $507000
2. Increase expenditures for the Iron Horse Trail Bridge Feasibility Study (Fund 4401).
$50,000
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 2014-15 to account for the items
listed in this resolution.
PASSED, APPROVED AND ADOPTED this 18th day of November, 2014, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
ATTEST:
ATTACHMENT 1
City Clerk
ATTACHMENT 1
GENERAL FUND SUMMARY ATTACHMENT 2
FY 2014-15 1st QUARTER FINANCIAL REVIEW
13-14 14-15 14-15 14-15 Change from
Actual Adopted Amended Projected Amended Budget
Revenues
Property Taxes 25,286,308 25,898,281 25,898,281 29,291,511 3,393,230
Sales Tax 17,833,314 17,686,696 17,686,696 18,361,216 674,520
Other Taxes 5,427,627 4,813,800 41813,800 4,963,800 150,000
Building Permits 5,046,928 3,171,473 31171,473 3,171,473 -
Other Licenses&Permits 927,056 717,559 717,559 717,559
Fines&Penalties 111,714 138,260 138,260 138,260
Interest 787,515 368,581 368,581 368,581
Rentals&Leases 708,090 1,016,037 11016,037 1,016,037
Intergovernmental 191,574 193,620 193,620 193,620
Charges for Services 9,197,812 7,115,752 7,115,752 6,890,752 (225,000)
Other Revenue 286,683 388,654 388,654 388,654
Community Benefit Payment 2,108,858 2,426,174 2,426,174 2,426,174 -
Subtotal Revenues 67,913,478 63,934,887 63,934,887 67,927,636 3,992,749
Carryover Prior Year Operating Revenues 1,493,299 1,493,299 -
Total Revenues 67,913,478 63,934,887 65,428,186 69,420,935 3,992,749
Expenditures
Salaries&Wages 9,443,209 9,708,952 91708,952 9,708,952 -
Benefits 4,530,270 4,892,712 4,892,712 4,892,712
Services&Supplies 2,133,125 2,558,371 2,558,371 2,558,371
Internal Service Fund Charges 1,721,525 1,673,436 11673,436 1,673,436
Utilities 1,784,982 2,035,482 21035,482 2,035,482
Contracted Services 35,099,787 36,897,837 37,372,035 37,372,035
Capital Outlay 212,240 511,710 511,710 511,710
Contigency&Contributions - 919,282 919,282 919,282
Subtotal Expenditures 59,671,980 59,671,980
Carryover Prior Year Operating Expenditures 1,493,299 1,493,299
Total Expenditures 54,925,137 59,197,782 61,165,279 61,165,279
OPERATING BUDGET IMPACT
SURPLUS/(DEFICIT) 12,988,341 4,737,105 4,262,907 8,255,656 3,992,749
CIP/One-Time Expenditures
Maintenance Yard* (4,894,349) (1,133,601) (1,133,601) -
Public Safety Complex* (3,186,592) (97,312) (97,312)
Parkland Acquisition* (1,954,025)
Emerald Glen Aquatics Complex* (102,350) (102,350)
Civic Center Modifications* (132,498) (143,081) (143,081)
Joint City/School Projects* (364,127)
Cemetary Expansion* (816,960) (816,960) (816,960)
Fire Services OPEB* (8,196,000) (8,196,000)
San Ramon Rd Landscape (239,065) (239,065) (239,065)
Tree Planting (777)
Sidewa I k Safety (21,574) (86,972) (147,524) (147,524)
Electronic Agenda (64,945) (244,005) (244,005)
Energy Upgrade (102) (5,593) (5,593)
Network Syst Upgrade (12,539) (313,793) (313,793)
Tennis Court Resurfacing (10,000) (153,350) (153,350)
GIS (19,000) (87,656) (87,656)
ADA Transition (21,177) (43,577) (43,577)
Storm Drain Condition (100,476) (160,042) (207,010) (207,010)
Storm Drain Trash Capture (583) (178,436) (178,436)
TOTAL CIP EXPENDITURES (10,732,587) (1,353,216) (3,913,313) (12,109,313) (8,196,000)
USE OF COMMITTED RESERVES
(for projects noted by*) 10,415,745 816,960 2,293,304 10,489,304 8,196,000
AMOUNT AVAILABLE TO SHIFT
AMONG RESERVES 12,671,500 1 4,200,849 2,642,898 6,635,648
NET IMPACT ON RESERVES 2,255,754 1 3,383,889 349,594 (5,346,956)
GENERAL FUND RESERVES: ATTACHMENT 3
FY 2014-15 1st QUARTER FINANCIAL REVIEW
Projected total change Projected
2013-14 INCREASE DECREASE during year 2014-15
Reserve Balances
Non-Spendable $2,270,022 $0 ($647,854) ($647,854) $1,622,168
Prepaid Expenses 27,080 - 27,080
Cemetery Endowment 60,000 - 60,000
Advance to Public Facility Fees - - -
Advance to Fire Impact Fee 901,907 (250,000) (250,000) 651,907
Advance to PERS Side Fund 1,281,035 (397,854) (397,854) 883,181
Restricted $500,000 $0 $0 $0 $500,000
Heritage Park Maintenance 500,000 - 500,000
Committed $34,124,272 $7,090,336 ($10,489,304) ($3,398,969) $30,725,303
Economic Stability 6,000,000 6,000,000
Downtown Public Impr 1,000,000 1,000,000
Open Space Funding 45,975 - 45,975
Affordable Housing 1,000,000 - 1,000,000
Emerald Glen Aquatic Complex 3,000,000 (102,350) (102,350) 2,897,650
Emergency Communications 741,000 - 741,000
Fire Svcs OPEB 8,196,000 397,854 (8,196,000) (7,798,146) 397,854
Innovations& New Opport 1,372,785 - 1,372,785
Maintenance Facility 1,133,601 (1,133,601) (1,133,601) -
Cemetery Expansion 2,391,538 2,137,600 (816,960) 1,320,640 3,712,178
Fallon Sports Park - 2,000,000 2,000,000 2,000,000
Civic Ctr Expansion 259,076 (143,081) (143,081) 115,995
Public Safety Complex - 97,312 (97,312) - -
Jt City/School Projects 235,873 - 235,873
Non-Streets CIP Commitments 3,132,016 207,570 207,570 3,339,586
Shannon Center Parking Lot 775,000 - 775,000
Advance to Public Facility Fee 3,500,000 2,250,000 2,250,000 5,750,000
One-Time Initiative 1,341,408 - 1,341,408
Assigned $29,259,338 $214,570 ($2,577,051) ($2,362,482) $26,896,856
Accrued Leave 979,248 979,248
Operating Carryovers 1,486,299 7,000 (1,493,299) (1,486,299) -
CIP Carryovers 1,083,752 (1,083,752) (1,083,752) -
Civic Ctr Renovation-Police 2,000,000 - 2,000,000
Contribution to ISF 500,000 - 500,000
Catastophic Loss 10,608,186 - 10,608,186
Service Continuity 2,410,000 - 2,410,000
Pension &OPEB 9,866,853 207,570 207,570 10,074,423
Fiscally Responsible Adj 325,000 - 325,000
Unassigned $13,419,255 $13,714,209 ($12,651,861) $1,062,349 $14,481,604
Unassigned-Unrealized Gains 99,765 99,765
Unassigned (Available) 13,319,490 2.8 months 14,381,839
TOTAL RESERVES 79,572,887 ($5,346,956) 74,225,932
1of1
ATTACHMENT 4
CITY OF DUBLIN BUDGET CHANGE FORM
FY 2014-15
Budget Change Reference#:
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From Un-Appropriated Reserves X Transfer btwn Funds X
From Designated Reserves Other
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Revenue Changes:
General Fund-Property Tax 1001.0000.41101 $3,392,230
General Fund-Sales Tax 1001.0000.42101 $674,520
General Fund-Other Taxes-Property Transfer Tax 1001.0000.42201 $150,000
General Fund-Building Div-Building Permits 1001.8102.44231 $1,767,358
General Fund-Planning-Zoning 1001.8101.48911 $567,257
General Fund-Santa Rita Fire Services 1001.0000.48399 ($225,000)
Expenditure Changes:
Non-Public Safety Vehicle Fund 6103.1901.72102 $50,000
Dublin Crossings Fund 4401.1901.64001 $150,000
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111
II 1 1111,1111111
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See Staff Report for descriptions of adjustments.
As Presented at the City Council Meeting 11/18/2014
Posted By: Date:
G:\Quarterly Reports\FY 14-15\Q1 14-15\Budget Change_Q1 fy 14-15 Budget Change_Q1 fy 14-15