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HomeMy WebLinkAbout8.2 Mid Year Financial Report A /1`4 CITY OF DUBLIN AGENDA STATEMENT (� CITY COUNCIL MEETING DATE: March 9, 1987 SUBJECT Fiscal Year 1986-87 Mid Year Financial Review EXHIBITS ATTACHED Memorandum from City Manager dated March 6 , 1987 ; Budget Change Forms ; RECOMMENDATION' 1 ) Receive Staff Presentation 2) Approve Budget Change Forms FINANCIAL STATEMENT: See attached . DESCRIPTION Staff has prepared a mid-year financial review for Fiscal Year 1986-87 . A copy of the report is attached . ---------------------------------------------------------------------------- COPIES TO: ITEM NO. a �, • M E M O R A N D U M TO: City Council FROM // ; ' City Manager SUBJECT: Fiscal Year 1986-87 Mid-Year Financial Review DATE: March 6, 1987 The purpose of this report is to present an overview of the City's financial condition for Fiscal Year 1986-87. Original projections for expenditures and revenues which were included in the 1986-87 Budget adopted by the City Council have been revised to reflect modifications and actual experience for the first half of 1986-87. Revenue and expenditure projections (Exhibits A & B) have been combined for all funds in order to prepare a comprehensive picture of the City' s income and demands on that income during 1986-87. Please note that these figures may differ somewhat from the monthly financial reports, which present revenue and expense for each fund. 1986-87 REVENUES Staff has prepared Revised Revenue Projections for Fiscal Year 1986-87 which are shown in Exhibit A (see attached) . In Exhibit A, the first column identifies actual revenues received by the City during Fiscal Year 1985-86. The second column identifies the revenue estimates included in the 1986-87 Adopted Budget as well as any modifications which were made since adoption. The third column identifies those revenues which the City actually received as of December 31, 1986. The fourth column identifies revised revenue projections for Fiscal Year 1986-87. The revised revenue estimates are based upon actual receipts; new information regarding County, State and Federal revenues ; the status of private development within the City; and other events which impact the City's finances which could not be anticipated at the time the 1986-87 Budget was prepared. The revised revenue projection for Fiscal Year 1986-87 is $11, 510, 060. This estimate is $393, 688 or 3% less than estimated in the 1986-87 Adopted Budget. This decrease is attributable to the following major factors : 1. Federal Aid Urban Funds ( $241, 000 less) - The San Ramon Road Phase II Project was anticipated to. be completed by June 30, 1987. This project will not be complete by that date. As a result, Federal Aid Urban Funds which are paid to the City on a reimbursement basis will be lower than anticipated in 1986-87 . 2 . Interest Revenues ($109, 450 less ) - The substantial drop in interest rates was not anticipated. Staff estimated an average interest rate of 8% in May 1986 when the budget was prepared. Page 1 3. Reimbursements/Non-Governmental Contributions ($79, 850 less) - The Adopted 1986-87 Budget anticipated that DSRSD would contribute its Park Dedication fees to the City for the renovation of Shannon Park. It is likely that this project will be undertaken this year. 4 . Transient Occupancy Tax ($58, 000 less) - Much lower occupancy rate as a result of the opening of additional hotels in adjacent communities. Estimated decreases in these revenues are partially offset by estimated increased revenues from the following sources : 1. Revenue Sharing ( $48, 340 greater) - Staff did not include Revenue Sharing in the 1986-87 Budget due to Congressional discussions regarding the elimination of the last entitlement under Revenue Sharing at the time the budget was prepared. Although Congress did eliminate the Revenue Sharing Program, the last entitlement was not eliminated. 2. Property Tax ($20, 700 greater) - The property tax roll appears to be ahead of the County Assessor ' s estimates. In reviewing the projected 1986-87 revenues, it's important to recognize that Staff is not projecting any change in Sales Tax. It appears that the loss of Gemco and Handyman sales tax will be offset during 1986-87 by closeout sales at both stores, as well as high growth in other sectors of the retail market, especially auto sales . 1986-87 EXPENDITURES Operating Expenditures for Fiscal Year 1986-87 are estimated at $6, 336, 950 which is $324, 750 or 5% less than budgeted. The major reasons for lower Operating Expenditures are identified below: 1. Street Maintenance ( $60, 060) - Savings will be realized on the removal and replacement of asphalt associated with the Slurry Seal and Annual Overlay as a result of competitive bidding. 2. Planning ( $51, 530) - A lengthy recruitment process for a new Senior Planner position as well as lower professional services costs associated with the revision of the Zoning Ordinance are the primary reasons for lower expenditures in Planning. 3. Recreation ($51, 035) - Operation of the Senior Center was anticipated during Fiscal Year 1986-87 . As a result of delays in getting the State to approve the lease, it is not likely that the Fallon Multi-Use Room will be completely renovated by June 30, 1987. 4. Building & Safety ( $39, 700) - Delays in anticipated new construction will reduce the anticipated expenditures in Building & Safety. 5. Park Maintenance ( $26, 000) - Delays in acquisition and construction of Kolb, Dolan, and Stagecoach Parks will reduce the City' s maintenance costs during Fiscal Year 1986-87 . Page 2 6. Insurance ($20, 800) - The Insurance Budget included a reserve for claims against the City's deductible limit. These claims have not been as great as anticipated. Capital Expenditures are estimated at $6, 114, 700 which is $2, 466, 807 or 29% less than budgeted. Reduced expenditures are anticipated for the following projects : 1. Sewage Facility Expansion ($800, 000) - This capacity has not been purchased from the County as anticipated during 1986-87. 2. Kolb Park ($613, 300) - Delay in state approval of the acquisition of the park land from the School District has delayed construction. 3. Shannon Park Renovation ($456, 130) This project has not proceeded due to an inability to reach agreement with DSRSD regarding the assumption of District services . 4. San Ramon Road Phase II ($392,100) - It is anticipated that this project will be approximately 80% complete by the end of the fiscal year. 5. Dolan Park ($257, 020) - Construction on this project was delayed. 6. Senior Citizen Center ($92, 000) - It is anticipated that design services will be complete by June 30, but construction will not have commenced. 7. Dublin Boulevard Improvements at Clark Avenue ($48, 300) - This project is somewhat behind schedule. 8. Landscaping Village Parkway, Amador Valley Boulevard to Kimball Avenue ($30, 000) - This project proceeded faster than anticipated when the 1986-87 Budget was prepared and thus, more work was accomplished during Fiscal Year 1985-86. 9. Annual Street Overlay ($30, 000) - The City received a favorable bid on this project, thus reducing estimated expenditures . There are certain Capital Projects which will exceed their Budget for Fiscal Year 1986-87. These projects include: a. Civic Center $ 210, 000 b. DSRSD Study 8, 800 C. Dublin Boulevard Underground Utilities 5, 231 d. Park Development/Community Center Renovation Plans 17, 000 e. San Ramon Road Phase IV (Design) 4, 000 f. Traffic Signals (Village Parkway/Lewis Avenue and Amador Valley Boulevard/Amador Plaza Road and Street Light Additions 9, 000 Budget change forms have been prepared for projects b. - f. above and are attached to this report for City Council consideration. A budget change Page 3 form has been prepared for the Civic Center under separate cover as a result of completing the acquisition of the Valley High School property during 1986-87 instead of 1987-88. Conclusion As indicated above, total revenue will be approximately $383, 000 less than anticipated; and total Operating Expenditures and total Capital Expenditures will be approximately $327, 000 and $2, 467, 000 less than anticipated, respectively. The Adopted 1986-87 Adopted Budget anticipated that $2, 319, 000 from Reserves would be required to finance 1986-87 expenditures. Based on the revenue and expenditure projections above, it is anticipated that only $1, 100, 380 will be drawn from reserves to finance 1986-87 expenditures. However, it is important to recognize that this does not represent additional available revenue, since these reserves will in all likelihood be needed for Fiscal Year 1987-88 to complete those projects which were incomplete at the end of Fiscal Year 1986-87. Based on the revised revenue estimates, the City will still be under its appropriations limit. Page 4 EXHIBIT A 1986-87 REVISED REVENUE PROJECTIONS ACTUAL REVENUES REVISED ACTUAL BUDGET REC'D AS ESTIMATE ALL FUNDS 1985-86 '1986-87 OF 12/31/86 1986-87 PROPERTY TAX Current Year Secured $ '395, 933 $ 444, 000 $ 154, 985 $ 464, 700 Current Year Unsecured 44, 076 51, 500 38, 457 51, 600 Prior Year Secured 17, 087 19, 400 6, 796 17, 900 Prior Year Unsecured 2, 575 2, 000 621 3, 400 Supplemental Property Tax 9, 842 8, 000 6, 272 8, 000 a TOTAL-PROPERTY TAX $ 469, 513 $ 524, 900 $ 207,131 $ 545, 600 TAXES 'OTHER THAN PROPERTY j. Sales & Use Tax 4,174, 107 4. 4, 500, 000 2, 109, 399 4, 500, 000 Real Property Transfer Tax 67, 326 58, 000 31, 055 58, 000 Transient Occupancy Tax 155, 574 160; 000 30, 556 102, 000 Electric . Franchise Tax 120, 475 121, 000 -0- 128, 900 Gas Franchise Tax 37, 633 38, 000 -0- 29, 700 Garbage Franchise Tax 11, 283 60, 000 26, 676 60, 000 Cable TV Franchise Tax 26,193 68, 000 -0- 68, 000 TOTAL-TAXES OTHER THAN PROPERTY $4, 592, 591 $5, 005, 000 $2,197, 686 $4, 946, 600 LICENSES & PERMITS Building Permits 400, 961 651, 000 353, 543 633, 500 Animal Licenses 6,,033 8, 000 2, 797 5, 500 Bus Bench Permits -0- 300 612 612 Encroachment Permits 3, 249 4, 000 1,177 4, 000 Other Permits -0- -0- 70 70 TOTAL-LICENSES & PERMITS $ 410, 243 $ 663, 300 $ 358,199 $ 643, 682 FINES & FORFEITURES Vehicle Code Fines 55, 470 64, 000 24,182 80, 000 Other Court Fines 13, 525 14, 500 4, 859 14, 500 TOTAL-FINES & FORFEITURES $ 68, 995 $ 78, 500 $ 29, 041 $ 94, 500 ACTUAL REVENUES REVISED ACTUAL BUDGET RECD AS ESTIMATE ALL FUNDS 1985-86 1986-87 OF 12/31/86 1986-87 REVENUE FROM USE OF MONEY Interest 1, 510, 083 1, 298, 850 475, 920 1, 189, 400 Rents & Concessions 51, 733 53, 790 16, 761 35, 000 TOTAL-REVENUE FROM USE OF MONEY $1, 561, 816 $1, 352, 640 $ 492, 681 $1, 224, 400 INTERGOVERNMENTAL REVENUE-STATE Motor Vehicle In-Lieu Tax 542, 080 570, 000 226,103 579, 000 Trailer Coach In-Lieu Tax 8, 820 5, 000 -0- 5, 000 Cigarette Tax 106, 537 97, 000 40, 602 100, 800 Off Highway Vehicle In-Lieu Tax 373 450 -0- 450 Homeowner's Property Tax Relief 15,178 18, 000 2, 826 21, 500 SB 300 Allocation 131, 472 46, 500 39,166 46, 500 State Gas Tax (2106) 87, 051 85, 900 37, 765 85, 900 State Gas Tax (2107) 169, 901 169, 200 74, 082 169, 200 State Gas Tax (2107. 5) 4, 000 4, 000 4, 000 4, 000 Transportation Development Act (Article 4. 5) 11, 440 12, 345 6,172 12, 345 Office of Traffic Safety 22, 544 -0- -0- -0- Roberti-Z' Berg Park Grant -0- 15, 300 -0- 15, 300 Senior Citizen Bond Act -0- 73, 650 -0- 73, 650 Disaster Assistance 10,113 -0- -0- -0- TOTAL-INTERGOVERNMENTAL REVENUE-STATE $1, 109, 509 $1, 097, 345 $ 430, 716 $1, 113, 645 'INTERGOVERNMENTAL REVENUE- FEDERAL Revenue Sharing 252, 786 -0- 44, 047 48, 340 Community Development Block Grant -0- 68, 000 -0- 68, 700 Federal Aid Urban Funds 84,195 1, 541, 000 1, 000 .1, 300, 000 TOTAL-INTERGOVERNMENTAL REVENUE-FEDERAL $ 336, 981 $1, 609, 000 $ 45, 047 $1, 417, 040 ACTUAL REVENUES REVISED ACTUAL BUDGET RECD AS ESTIMATE ALL FUNDS 1985-86 1986-87 OF 12/31/86 1986-87 CHARGES FOR SERVICE Zoning & Subdivision Fees 79, 879 115, 000 12, 488 115, 000 Plan Checks & Inspection Fees 513, 986 371, 000 150, 462 371, 000 Sales of 'Maps & Documents 5, 891 5, 500 2, 908 5, 500 Special Police- Dept Services 6, 967 6, 400 3, 610 7, 400 Park & Recreation Fees 50, 493 78, 650 24, 620 63, 000 Other Charges for Services 18, 642 7, 500 -0- 7, 500 Building Use Insurance 5, 539 6, 200 2, 800 6, 000 Zone 7 Drainage Fees 927 2, 900 419 2, 900 TOTAL-CHARGES FOR SERVICE $ 682, 324 $ 593,150 $ 197, 307 $ 578, 300 OTHER REVENUES Reimbursements/Non-Govern- mental Contributions 173, 316 494, 850 146, 648 415, 000 Miscellaneous 3, 963 1, 000 22, 224 25, 000 Park Dedication Fees 175, 672 191, 400 209, 878 209, 900 Shannon Lease Subsidy 11, 999 -0- -0- -0- Reimbursement for Public Damage 5, 564 4, 000 566 4, 000 Trash Bag Program 1,155 1, 000 2, 565 5, 000 TOTAL-OTHER REVENUES $ 371, 669 $ 692, 250 $ 381, 881 $ 658, 900 ASSESSMENT DISTRICT REVENUES Street Lighting $ 124, 650 $ 139, 000 $ 45, 204 $ 1390, 000 Landscape 30, 810 24,100 1, 428 24, 100 San Ramon Road 280, 538 124, 293 1, 608 124, 293 TOTAL-ASSESSMENT DISTRICT REVENUES $ 435, 998 $ 287, 393 $ 48, 240 $ 287, 393 TOTAL REVENUE-ALL FUNDS $10, 039, 639 $11, 903, 478 $4, 387, 929 $11, 510, 060 EXHIBIT B 1986-87 REVISED EXPENDITURE PROJECTIONS DISBURSED ESTIMATED ACTUAL BUDGET YTD AS OF EXPENDITURES ALL FUNDS * 1985-86 1986-87 12/31/86 1986-87 OPERATING EXPENSES City Council $ 39, 434 $ 71, 690 $ 28, 318 $ 71, 400 City Manager 182, 442 243, 000 102, 716 235, 500 Legal Services 76, 049 86, 510 37,139 86, 500 Finance 50, 906 117, 855 40, 374 107, 800 Building Management 98,149 1, 550, 313 756, 256 1, 550, 300 Insurance 98, 929 143, 200 53, 841 122, 400 Elections -0- 4, 300 1, 412 2, 600 Non-Departmental -0- 42, 869 -0- -0- Police 1, 424, 973 1, 584, 915 464, 095 1, 582, 000 Crossing Guards 12, 384 21, 800 -0- 21, 800 Animal Control 35, 438 50, 700 9, 580 47, 000 Trafic Signal & Lighting 201, 428 238, 700 58, 580 238, 700 Disaster Preparedness 10, 529 23, 600 9, 470 23, 600 Public Works Administration 73, 700 108, 850 38,108 108, 800 Street Maintenance 363,102 468, 560 65, 039 408, 500 Street Sweeping 51, 899 57, 600 19, 951 57, 600 Street Tree Maintenance 52, 910 74, 400 7, 519 74, 400 Beautification-Landscaping 137, 467 149, 050 64, 427 149, 050 Paratransit Service 20, 580 28, 039 13, 566 28, 000 Vector Control 2, 461 6, 000 490 6, 000 Library Services 63, 239 91, 984 17, 921 85, 500 Recreation 238, 693 369, 035 .118, 491 318, 000 Park Maintenance -0- 31, 800 -0- 5, 800 Planning 261, 562 391, 530 118,175 340, 000 Building & Safety 189,143 287, 700 92, 712 248, 000 Engineering 529, 213 417, 700 257,184 417, 700 Internal Service Fund -0- -0- 4, 495 -0- TOTAL OPERATING EXPENSES 4, 214, 630 $6, 661, 700 2, 379, 859 $6, 336, 950 CAPITAL IMPROVEMENTS General $6, 636,156 $1, 333, 000 $ 219, 086 $1, 551, 800 Community Development 557, 960 937, 650 42, 779 142, 900 Parks 491, 846 1, 886, 950 34, 785 485, 500 Streets 1, 750, 436 4, 423, 907 1, 594, 619 3, 934, 500 San Ramon Rd Assessment 484, 543 -0- -0- -0- TOTAL CAPITAL IMPROVEMENTS 9, 920, 941 $8, 581, 507 $1, 891, 269 6,114, 700 DEBT SERVICE 28, 075 158, 790 124, 756 158, 790 TOTAL EXPENDITURES $14,163, 646 $15, 401, 997 $4, 395, 884 $12, 610, 440 * This report illustrates total demands on available revenues and is not intended to reflect total expenditures in all funds. CI .iY OF DUB �, IN BUDGET CHANGE FORM FROM TO IDAPPROPRIATION ACCOUNT A��IOUNT ACCOUNT AMOUNT 13 TRANSFER 3-0044 8,800.00 3-49 8,800.00 AM);NDMENT Street Improvements Village Parkway Landscape JUSTIFICATION IN PREPARATION OF THE 1986-87 BUDGET, STAFF EXPECTED THIS PROJECT TO BE COMPLETED BY JUNE 30, 1986. CONSEQUENTLY, NOTHING WAS BUDGETTED FOR THIS FISCAL YEAR FOR THIS PROJECT. ITEMITiZED COST DSRSD STUDY 8,800.00 0 T O T A L 8,800.00 CITY DATE MANAGER APPROVAL CITY DATE COUNCIL APPROVAL CI , Y OF DUB * N BUDGET CHANGE FORM FROM TO ©DAPPROPRIATION rAnnu�al ACCOUNT AMOUNT ACCOUNT AMOUNT TRANSFER 029 5,.231.00 3-33 5,231.00 AMENDMENT Improvements Street Over lay JUSTIFICATION IN PREPARATION OF THE 1986-87 BUDGET, STAFF EXPECTED THIS PROJECT TO BE COIPLETED BY JUNE 30, 1986. CONSEQUENTLY, NOTHING WAS BUDGETTED FOR THIS FISCAL YEAR FOR THIS PROJECT. ITEMITIZED COST DUBLIN BLVD UNDERGROUNDI G 5,231.00 TOTAL 5,231.00 CITY DATE MANAGER APPROV DITY DATE 'JOUNCIL APPROVAL CITY OF DUB �. IN BUDGET CHANGE FORM FROM TO DAPPROPRIATION ACCOUNT AMOUNT ACCOUNT AMOUNT TRANSFER e1aMENDMENT 3-0044 17,000.00 3-60 17,000.00 Street Improvements Landscape Villa Parkway JUSTIFICATION IN PREPARATION OF THE 1986-87 BUDGET, STAFF EXPECTED THIS PROJECT TO BE COLLETED BY JUNE 30, 1986. CONSEQUENTLY, NOTHING WAS BUDGETTED FOR THIS FISCAL YEAR FOR THIS PROJECT. ITEMITIZED COST PARK DEVELOPMENT PLAN 17,000.00 T O T A L 17,000.00 CITY / ' DATE MANAGER APPROV 3ITY DATE 30UNCIL APPROVAL r F CITY OF DUBLIN BUDGET CHANGE FORM FROM TO 13 APPROPRIATION ACCOUNT MIOuiT ACCOUNT AMOUNT TRANSFER 3-0029 $4;000 D AMENDMENT 3-0059 4, 000 Street Improvements San Ramon Road Annual Street Overlay Phase IV IUSTIFICATION To adjust the budget for costs associated with the State Environmental Report TEMITIZED COST Report preparation and submittal $4, 000 a TOTAL $4, 000 ITY ' ANAGER APPROVAL DATE I T Y DATE OUNCIL APPROVAL CITY OF DUBLIN BUDGET CHANGE FORM FROM TO DAPPROPRIATION ACCOUNT AMOUNT ACCOUNT AMOUNT M TRANSFER AMENDMENT 3-0029 $9,000 3-0072 $9,000 D Street Improvements Annual Street Overlay IUSTIFICATION To adjust the budget to the amount actually paid. The design for this project is complete. TEMITIZED COST Traffic Signals & Street Lights $9,000,. Village Parkway/Lewis Amador Valley Boulevard/Amador Plaza Road Street Light Additions TOTAL I T Y ' ANAGER APPROVAL DATE I T Y DATE OUNCIL APPROVAL