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HomeMy WebLinkAboutItem 7.3 1984/84 Mid Year Financial Review M E M O R A N D U M TO: f ity Council FROM : City Manager SUBJECT: .1983/84 Mid-Year Financial Review DATE . February 6 , 1984 The Mid-Year Financial Report is a statement of the City ' s financial condition at the mid-point of Fiscal Year 1983-84 as it relates to the adopted 1983-84 annual budget . This report also revises budget projections based on what has occurred in the first six months and what is likely to occur in the last six months of the fiscal year . The report consists of a review of both revenues and expenditures, and their impact on the City ' s reserves . 1983-84 Revenues As shown in Exhibit A, the first column identifies actual revenues received by the City during Fiscal year 1982-83 . The second column identifies the revenues which the City has received or should receive for the six month period ending 12/31/83 . All figures with the exception of sales tax are based on actual revenue received to date. The figure identified for sales tax is actual revenue received through 11/4/83 plus an estimate for November and December 1983 utilizing trending techniques . The purpose of the second column is to give the Council a more accurate representation of actual receipts as of 12/31/83 than was provided in the December Financial Statement . The third column shown in Exhibit A identifies estimates which were part of _ the 1983-84 approved budget . The last column in Exhibit A represents projected revenues for 1983-84 based on receipts to date and conversations with State and County officials who are responsible for disbursing revenues to the City. It is important to note that these revenue estimates are based upon the best available information to date, and could be affected by any significant change in the economy between now and the end of 't.he fiscal year . The revised total revenue estimate for Fiscal year is $5 , 499 ,685 or approximately $500 ,000 more than anticipated in the approved 1983-84 Budget . Revenues related to operating expenditures are expected to be approximately $740 ,000 higher than estimated in the approved budget . While revenues restricted to capital expenditures are estimated at $240 , 000 lower than in the approved budget . Wich respect to operating revenues , the primary revenue sources which contribute to the an improved revenue picture are Sales Tax ( 18% higher ) Real Property Transfer Tax ( 52% higher ) , and Motor Vehicle In - Lieu Fees ( 3% higher ) . These sources have been favorably affected by the improved economy. t 0�0. 73 The City also will receive approximately $150 , 000 in additional Revenue Sharing funds during Fiscal Year 1983-84 as a result of Congressional reauthorization of the Revenue Sharing program for 3 years . Revenues related to capital expenditures will be less than anticipated because several capital projects which were to be funded by Federal Aid Urban funds and developer reimbusements will not be completed prior to the end of the fiscal year . 1983-84 Expenditures It is anticipated that City operating expenditures will be approximately $267 ,000 or 9 . 80 less than budgeted. This is primarily due to the following. 1 . Employee salary and fringe benefit savings as a result of the later than anticipated recruitments and the late development of fringe benefit programs . 2 . Lower level of building inspections services required than anticipated for new subdivision construction 3 . Less street maintenance activity provided by the County. 4 . No anticipated use of the litigation reserve for legal services . 5 . Reduction in charges for ambulance service dry runs . With regard to Capital Improvements, it is anticipated that the City will incur approximately 1 ,385 , 469 in expense, or approximately $994 , 172 less than anticipated. This is primarily due to the fact that several major projects will not be completed until the summer of 1984 and, thus a majority of the contract expense will be incurred in fiscal year 1984-85 . These projects include : - Rehabilitation of Dublin Boulevard, Village' Parkway and Amador Valley Boulevard. $305 ,000 - San Ramon Road/Amador Valley Boulevard Signal $75 ,000 - San Ramon Road Improvements $45 ,000 - Dublin/Dougherty Intersection Improvements $12 , 000 - - Amador Valley Boulevard Median Landscape $104 ,000 - - City Entrance Signs $13 , 000 - Stree.t Trees $35 , 000 In addition it is unlikely that the Dublin Boulevard/Donlon Way signal ( $100 , 000 ) will be built during 1983-84 because of its relationship to the progress of the 193 unit approved condominium project on San Ramon Road. It is also important to note that $300 , 000 had been budgeted for a phased City Office Facility project . It is unlikely that much of these funds will be spent between now and the end of the fiscal year . In conclusion the financial condition at this point in time is better than anticipated during the preparation of the 1983-84 Preliminary Budget. At the beginning of next year there should be additional funds available to improve the level of service to the community and continue to undertake those capital projects which are needed. EXHIBIT A 1983-84 REVENUE PROJECTION ESTIMATED ( 1 ) ADJUSTED ACTUAL REVENUES BUDGET ESTIMATED ALL FUNDS 1982 - 83 AS OF 12/31/83 1983 - 84 1983 - 84 PROPERTY TAX Current Year Secured 262 , 234 142 , 714 278 , 000 278 , 000 Current Year Unsecured 27 ,686 28 , 054 29 , 000 29 , 000 Total Property Tax 289 ,920 170 , 768 307 , 000 307 ,000 OTHER TAXES Sales and Use Tax 2 ,603 ,382 1 ,615, 000 2 ,500 , 000 2 , 960 , 000 Real Property Trans/Tax 20 ,507 20 , 489 22 , 000 33 ,500 Electric Franchise Tax 43 , 037 -- 80 , 000 80 , 000 Gas Fanchise Tax 29 ,329 -- 32 , 000 32 , 000 CA TV Franchise Tax 23 ,502 -- 26 , 400 26 , 047 Total Other Tax 2 , 719 , 757 1 ,635 , 489 2 ,660 , 400 3 , 131 , 547 LICENSES & PERMITS Building Permits -- 271390 180 , 000 180 , 000 Animal Licenses 2 ,829 3 ;444 5 , 000 5 ,000 Bus Bench Ad Permits 324 324 350 324 Encroachment Permits 1 , 048 864 1 ,500 1 ,500 Other Permits 60 -- -- -- Total Licenses & Permits Tax 4 , 261 32 ,022 186 ,850 186 ,824 FINES & FORETITURES Vehicle Code Fines 45 , 250 26 , 637 50 ,000 54 , 000 Other Court Fines 3 , 556 2 , 217 3 , 000 4 ,000 Total Fines & Foretitures 48 , 806 28 ,854 53 , 000 58 , 000 REVENUE FROM USE OF MONEY & PROPERTY Interest 132 ,588 159 , 829 250 , 000 368 , 000 Total Revenue from use of Money & Property 132 ,588 159 ,829 250 , 000 368 , 000 INTERGOVERNMENTAL REVENUE - STATE Motor Vehicle in Lieu Tax 365 , 154 190 ,619 370 , 000 380 , 000 Trailer Coach in Lieu Tax -- 989 -- 1 ,800 Cigarette Tax 86 ,653 44 ,965 77 ,500 85 ,000 Off Highway Motor Vehicle In - Lieu Fees 332 128 310 310 Homeowner ' s Property Tax Relief 15 ,323 2 ,570 16 , 200 16 , 200 Business Inventory Tax 24 , 108 9 ,946 25 , 000 25 ,000 State Gax Tax ( 2106 ) 85 , 360 44 ,916 90 , 000 90 , 000 State Gas Tax ( 2107 ) 131 , 041 85 ,563 170 ,000 170 , 000 State Gas Tax ( 2107 . 5 ) 4 , 000 4 , 000 4 , 000 4 ,000 Transportation Development Act 11 ,397 ( 2 ) 4 , 146 8 ,293 8 , 293 Total Intergovernmental 723 , 368 387 ,842 761 ,303 780 ,603 INTERGOVERNMENTAL REVENUE - COUNTY County Gas Tax 42 ,167 -- 28 , 000 22 , 000 Total Intergovernmental Revenue County 42 ,167 -- 28 ,000 . 22,000 INTERGOVERMENTAL REVENUE FEDERAL General Revenue Sharing 151 ,324 127 ,513 75 ,664 231 , 211 Community Development Block Grant -- 13 ,300 ( 4 ) 81 , 700 ( 4 ) 81 , 700 ( 4 ) Federal Aid Urban Funds -- -- 290 ,000 -- Total Intergovernmental _ Revenue Federal 151 ,324 140 ,813 447 ,364 312 , 911 CHARGES FOR SERVICE Zoning 7 Subdivision Fees 3 , 400 21740 18 , 000 15 ,000 Plan Check Fees 20 ,395 304 20, 000 20 ,000 Engineering Inspection Fees 750 76 50 ,000 40 , 000 Sales of Maps & Documents 928 762 1 ,500 1-,500 Animal Shelter Fees 2 , 202 -- 3 , 000 -- Special Police Dept . Services 5 , 231 2 , 438 3 , 700 4 ,800 Other Charges for Service + -- -- 1 , 000 1 , 000 Total Charges for Service 32 ,906 6 , 320 97 , 200 82 ,300 OTHER REVENUES Contribution from Non-Gov ' t . Sources 13 -- 208 , 000 90 , 000 Miscellaneous 42 22 500 500 Park dedication Fees 5 , 000 _ -- 160 , 000 Total Other Revenues 5 , 055 22 208 ,500 250 ,500 TOTAL REVENUE - ALL FUNDS 4 , 150 ,152 2 ,561 ,959 4 ,999 , 617 5 , 499 ,685 ( 1 ) All figures in this column are close to actual as of 12/31/83 , except as noted. ( 2 ) This amount was not actually received but passed through to Contra Costa County and credited to Dublin. ( 3 ) ESTIMATE ( 4 ) The City' s Allocation of $26 , 600 in Community Development Block Grant funds for the Kaliedoscope Center will not actually be received by the City, but rather passed directly to the Center from the County. EXHIBIT B 1983-84 EXPENDITURE PROJECTION ACTUAL BUDGET ESTIMATED ALL FUNDS 1982-83' 1983-84 1983-84 OPERATING EXPENSES City Council 23 , 117 30 ,312 30 , 000 City Manager/Clerk 101,550 153 ,660 136 , 000 Legal Services 32 , 023 50 ,800 33 , 000 Finance 3 , 235 9 , 950 9 , 000 Building Management 60 , 111 102 ,500 86 ,000 Insurance 8 ,511 8 ,300 8 , 300 Elections 866 10 , 000 10 , 000 Non-Departmental 23 10 , 059 - Police Services 1, 080 ,341 1, 261,341 1,260 , 000 Ambulance Services 5 , 166 5 , 000 2 ,500 Crossing Guards 17 , 112 15 , OOQ 17 ,000 Animal Control 30 , 115 35 ,350 35 ,350 Traffic Signals & Safety Lighting 51, 022 57 ,500 57 ,500 Disaster Preparedness - 8 ,000 2 ,000 Street Maintenance 85 , 677 124 ,600 115 ,000 Street Sweeping & Litter Pickup 50 ,829 61 ,300 60 , 000 Street Reconstruction & Resurfacing 2 ,991 83 , 000 45 ,000 Street Tree Maintenance 8 , 311 15 ,000 23 , 000 Beautification 4 ,513 15 ,000 15 , 000 Paratransit Services 14 , 745 ( 1 ) 14 , 111( 1) 14 , 111 Social Services - 26 , 600 26 ,600 Library Service - 29 ,600 29 , 600 Recreation - 107 ,000 ( 2) 40, 000 Planning 100 , 228 166 ,820 154 , 000 Building & Safety 700 171, 350 102 , 000 _ Engineering 58 , 709 145 , 200 140 , 000 Total Operating Expenses 1, 739 ,895 2 , 717 ,353 2 ,450 , 961 CAPITAL IMPROVE[fENTS Community Improvement Projects 70 , 179 1, 129',_272 781, 272 Street Projects 21 , 678 1, 250 ,549 604 ,377 Total Capital Improvements 91, 857 2 ,379 , 821 1,385 ,649 TOTAL EXPENDITURES 1, 831 , 752 5 , 097 , 174 3 , 836 ,610 ( 1 ) These amounts include expenditure of 11,397 ( 1982-83 ) and 8 , 292 in TDA funds which were not received by the City directly. ( 2 ) This amount was full year cost recommended by the Park & Recreation Commission and approved by the City Council in concept .