HomeMy WebLinkAboutItem 4.9 - 1328 Fiscal Year 2016-17 2nd Quarter Financial R
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STAFF REPORT
CITY COUNCIL
DATE: February 21, 2017
TO: Honorable Mayor and City Councilmembers
FROM:
Christopher L. Foss, City Manager
SUBJECT:
Fiscal Year 2016-17 2nd Quarter Financial Review
Prepared by: Colleen Tribby, Director of Administrative Services
EXECUTIVE SUMMARY:
The City Council will receive a financial report through the second quarter of Fiscal Year
2016-17 and consider amendments to the budget.
STAFF RECOMMENDATION:
Receive the report and approve the budget change.
FINANCIAL IMPACT:
Approval of the budget change will result in the addition of $2,792,400 to the General
Fund revenue budget, accounting primarily for increased building permit revenue, and
will increase General Fund expenditures $305,000. Total General Fund reserves are
projected at $109,719,351 by June 30, 2017. This report also contains various budget
changes in other funds requiring City Council approval.
DESCRIPTION:
The focus of this report is to update the City Council on the status of the Fis cal Year
2016-17 General Fund Amended Budget, including an overview of all proposed
changes and their impacts on total reserves. As a reminder, the Amended Budget
includes budget amendments already approved by the City Council since July 1, as well
as carry-over budgets from the prior year. The Budget Change Form (Attachment 3)
lists all new amendments needing approval in the General Fund as well as in other
funds.
Projected General Fund Results (Attachment 1)
General Fund revenues are projected to come in $2,792,400 higher than the Amended
Budget due primarily to development activity ($1,500,000 more in building permit fees
and $67,400 more in service charges). Additionally, interest income is increasing by an
estimated $375,000 this year, reflecting an improving economy as well as the portfolio
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management services provided by Chandler Asset Management. Property Transfer
Taxes and Transient Occupancy Taxes are estimated to come in $100,000 and
$300,000 higher than budget, respectively. Finally, community benefit payment revenue
will come in roughly $450,000 higher than budget, reflecting the inclusion of developer
payments made for projects in the Downtown area.
On the expenditure side, the Building Division will spend $250,000 more on contract
services for inspection services and plan checking, and the budget for the City’s Animal
Control Services contract needs to be increased by $46,000 to keep in line with the prior
year’s actual expenditures. Operational expenditures will increase $9,000 for the
upgrade of existing phones and purchase of new cell phones for crime prevention staff
in Police Services.
After incorporating those changes, total reserves are projected to increase $554,325
over the prior year, as illustrated in the table below. Changes to sp ecific reserves are
shown in the General Fund Reserves Summary (Attachment 2).
Total Reserves, Compared to FY 2015-16 and FY 2016-17 Amended Budget
Actual
2015-16
Amended
2016-17
2nd Quarter
Projection
2016-17
Revenue 82,916,416$ 79,221,752$ 82,014,152$
Expenditures (69,048,878)$ (72,373,890)$ (72,678,890)$
Transfers Out (2,409,006)$ (8,780,937)$ (8,780,937)$
Year End Reserves 109,165,026$ 106,099,071$ 109,719,351$
Change to Reserves from Prior Year (3,065,955)$ 554,325$
Non-General Fund Items
In addition to the changes to the General Fund, there are various budget amendm ents
in other funds that require City Council approval:
1) Appropriate $25,757.68 in the Dougherty Road Improvements Project (ST0911)
by replacing congestion relief grant funding with Measure BB Funding mitigation
funds.
2) Replace $430,000 in Gas Tax Funds with Measure BB Funds for the Annual
Street Overlay Program (ST5016).
3) Close out the Shannon Park Water Play Area Project (PK0713) and release
$24,340.27 in Quimby Act Park In-Lieu Funds.
4) Appropriate $14,397 in the Local Recycling Fund to purchase supplies related to
waste collection and sorting for school EcoHeroes program.
5) Appropriate $5,000 in the Equipment Replacement Fund to account for the
higher than anticipated cost of network switches.
6) Appropriate $35,000 in the Vehicle Replacement Fund for replacement of the
City's pooled vehicle.
7) Appropriate $8,800 in the Cable TV Facilities Fund to cover increased capital
contribution to Tri-Valley Community TV.
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8) Increase revenue in the Public Facilities Fund by $506,000 for developer’s
payment of in-lieu fees.
9) Decrease revenue in the Public Facilities Fund by $1,427,000 to account for
Dublin Crossing’s pre-payment of fees that occurred in the prior fiscal year.
10) Decrease revenue in the Fire Impact Fees Fund by $35,000 as developers
acquired and utilized fire impact fee credits instead of paying the fee.
11) Increase revenue in the Traffic Impact Fee Fund by $570,000 for the
reimbursement from Contra Costa County for the traffic impact of new
developments on Dougherty Road.
12)Appropriate $232,075 in the Dublin Sports Grounds Renovation Project (PK0416)
awarded through a Housing and Community Development grant.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
None.
ATTACHMENTS:
1. General Fund Summary
2. General Fund Reserves
3. Budget Change Form
GENERAL FUND SUMMARY ATTACHMENT 1
FY 2016-17 QUARTER 2
Actual
2015-16
Adopted
2016-17
Amended
2016-17
Quarter 2
Changes
Proposed
Amended
2016-17
Revenues
Property Taxes 33,598,601 35,182,061 36,087,937 36,087,937
Sales Taxes (1)20,938,826 20,666,260 20,666,260 20,666,260
Development Revenue 10,562,963 8,568,899 9,478,502 1,500,000 10,978,502
Other Taxes 6,606,016 5,465,000 5,465,000 400,000 5,865,000
Licenses & Permits 310,286 292,140 292,140 292,140
Fines & Penalties 116,016 109,932 109,932 109,932
Interest (2)2,937,978 465,880 465,880 375,000 840,880
Rentals and Leases 1,114,747 1,033,488 1,033,488 1,033,488
Intergovernmental 324,075 198,618 198,618 198,618
Charges for Services 5,396,964 4,838,466 4,838,466 67,400 4,905,866
Community Benefit Payments 424,000 100,000 100,000 450,000 550,000
Other Revenue 585,944 256,344 485,529 485,529
Total Revenues 82,916,416 77,177,088 79,221,752 2,792,400 82,014,152
Expenditures
Salaries & Wages 9,437,426 11,100,241 11,100,241 11,100,241
Benefits 4,172,485 5,707,982 5,957,982 5,957,982
Services & Supplies 1,875,458 2,946,394 2,922,392 9,000 2,931,392
Internal Service Fund Charges 2,637,354 3,065,342 3,040,284 3,040,284
Utilities 1,723,204 2,248,261 2,234,857 2,234,857
Contracted Services 39,869,473 43,297,583 45,039,822 296,000 45,335,822
Capital Outlay 133,477 719,801 1,120,835 1,120,835
Interest & Other - 989,112 957,477 957,477
Contribution to OPEB/PERS 9,200,000 - - -
Total Expenditures 69,048,878 70,074,716 72,373,890 305,000 72,678,890
Operating Impact 13,867,538 7,102,372 6,847,862 2,487,400 9,335,262
Transfers Out (2,409,006) (759,510) (8,780,937) (8,780,937)
Impact on Total Reserves 11,458,531 6,342,862 (1,933,075) 2,487,400 554,325
TOTAL RESERVES 109,165,026 109,719,351
1) FY 2015-16 Sales Tax included a final triple flip payment
2) FY 2015-16 Interest Revenue included $1.9 million in unrealized gains
GENERAL FUND RESERVES ATTACHMENT 2
FY 2016-17 QUARTER 2
Reserve Balances
Actual
2015-16
Increase
2016-17
Decrease
2016-17
NET
CHANGE
Actual
2016-17
Non-Spendable 717,698 - (469,937) (469,937) 247,761
Prepaid Expenses 27,080 - 27,080
Cemetery Endowment 60,000 - 60,000
Advance to Public Facility Fees - - -
Advance to Fire Impact Fee 80,672 (80,672) (80,672) 0
Advance to PERS Side Fund 549,946 (389,265) (389,265) 160,681
Restricted 579,000 - - - 579,000
Heritage Park Maintenance 500,000 - 500,000
Developer Contr - Nature Pk 60,000 - 60,000
Developer Contr - Heritage Pk 19,000 - 19,000
Committed 38,928,756 80,672 (6,577,163) (6,496,491) 32,432,265
Economic Stability 8,000,000 - 8,000,000
Downtown Public Impr 1,000,000 - 1,000,000
Economic Development 1,000,000 - 1,000,000
Emergency Communications 741,000 - 741,000
Fire Svcs OPEB 3,004,000 80,672 80,672 3,084,672
Innovations & New Opport 2,122,785 - 2,122,785
One-Time Initiative 1,341,408 - 1,341,408
Specific Committed Reserves
Emerald Glen Aquatic Complex 3,000,000 (3,000,000) (3,000,000) -
Maintenance Facility 215,101 (215,101) (215,101) -
Cemetery Expansion 5,272,210 - 5,272,210
Fallon Sports Park 2,000,000 (1,800,000) (1,800,000) 200,000
Civic Ctr Expansion 27,773 (27,773) (27,773) -
Storm Drain Capture 546,878 (546,878) (546,878) -
Shannon Center Parking Lot 987,410 (987,410) (987,410) -
Utility Undergrounding 1,170,190 - 1,170,190
Advance to Public Facility Fee 6,000,000 - 6,000,000
Dublin Sports Ground 2,500,000 - 2,500,000
Assigned 39,053,695 - (2,840,487) (2,840,487) 36,213,208
Accrued Leave 988,708 - 988,708
Operating Carryovers 1,612,658 (1,612,658) (1,612,658) -
CIP Carryovers 1,227,829 (1,227,829) (1,227,829) -
Non-Streets CIP Commitments 3,879,516 - 3,879,516
Catastrophic Loss 11,368,531 - 11,368,531
Service Continuity 3,000,000 - 3,000,000
Pension & OPEB 10,614,353 - 10,614,353
Fiscally Responsible Adj 325,000 - 325,000
Municipal Regional Permit 2,225,000 - 2,225,000
HVAC Replacement 1,000,000 - 1,000,000
Relocate Parks Dept 250,000 - 250,000
Specific Assigned Reserves
Civic Ctr Renovation-Police 1,962,100 - 1,962,100
Contribution to ISF - - -
Fire Equipment Replacement 600,000 - 600,000
Unassigned 29,885,877 9,887,587 473,653 10,361,241 40,247,118
Unassigned-Unrealized Gains (2,197,354) - (2,197,354)
Unassigned (Available)32,083,231 42,444,471
TOTAL RESERVES 109,165,026 9,968,259 (9,413,934) 554,326 109,719,351
Budget Change Reference #:
From Un-Appropriated Reserves X Budget Transfer Between Funds
From Designated Reserves Other
ST0911.9400.9401 (Improve. - Not Bldg)$25,757.68
3600.9601.49999 - Transfers In $25,757.68
ST0911.4309 (4309.9601.89101) - Transfers Out -
Mitigation Contribution $20,270.68
ST0911.2208 (2208.9601.89101) - Transfers Out -
Congestion Management Agency Fund ($621,513.00)
ST0911.2217 (2217.9601.89101) - Transfers Out -
Measure BB Grant $627,000.00
ST5016.2201 (2201.9601.89101) Transfers Out - Gas
Tax ($165,000.00)
ST5016.2204 (2201.9601.89101) Transfers Out -
Measure B Local Streets ($265,000.00)
ST5016.2214 (2201.9601.89101) Transfers Out -
Measure BB Local Streets $230,000.00
ST5016.2215 (2215.9601.89101) Transfers Out -
Measure BB Bike & Ped $200,000.00
4201.0000.47261 $232,075.00
PK0416.2904 (2904.9501.89101) Transfers Out - HCD
Housing Related Park Grant $232,075.00
3500.9501.49999 - Transfers In $232,075.00
PK416.9400.9401 (Improve. - Not Bldg)$232,075.00
PK0713.2201 (4109.9501.89101) Transfers Out - Quimby
Act Park In-lieu Fund ($24,340.27)
3500.9501.49999 - Transfers In ($24,340.27)
PK0713.9200.9205 (Inspections)($401.11)
PK0713.9500.9503 (Printing)($907.58)
PK0713.9500.9504 (Legal Notices)($279.14)
PK0713.9500.9505 (Postage)($74.50)
PK0713.9400.9401 (Improve. - Not Bldg)($22,677.94)
2304.5201.64001 $14,397.00
CITY OF DUBLIN
FISCAL YEAR 2016-17
BUDGET CHANGE FORM
Street CIP - Dougherty Rd Improve - Sierra Ln
Local Recycling Fund - Environmental Services - Contract Services
City Council's Approval Required
Parks CIP - Shannon Park Water Play Area
Project Complete
CIP
Street CIP - Annual Street Overlay Program
Utilization of mitigation funds collected for specific CIP and
additional Measure BB grant funding for the project
Replace Gas Tax with Measure BB Bike & Ped fund for the
project
Award 2015 HCD Housing Related Park Grant
Parks CIP - Dublin Sports Grounds Renovation
Funding from 2015 HCD Housing Related Park Grant for
Dublin Sports Grounds Renovation
OPERATING EXPENDITURES
To purchase supplies related to waste collection and sorting
for school EcoHeroes program
G:\Budget Changes\9_2016-17\CC Approval\12_Q2 Budget Adj_022117 12_Q2 Budget Adj_022117
Budget Change Reference #:
FISCAL YEAR 2016-17
BUDGET CHANGE FORM
City Council's Approval Required
6305.1905.72102 $5,000.00
6105.1905.72108 $35,000.00
2811.7101.64001 $8,800.00
1001.8102.64001 $250,000.00
1001.2111.63102 $9,000.00
1001.2701.64014 $46,000.00
4101.0000.49161 (Community Parkland)$470,000.00
4102.0000.49161 (Neighborhood Parkland)$18,000.00
4102.0000.49161 (Civic Center)($1,427,000.00)
4110.0000.49161 (Community Nature Parkland)$18,000.00
4201.0000.49161 ($35,000.00)
4305.0000.49161 $570,000.00
1001.8102.44231 (Building Permits)$1,500,000.00
1001.2402.48301 (Fixed System)$32,000.00
1001.2402.48302 (Sprinkler / Underground)$24,500.00
1001.2402.48305 (Fire Plan Check)$10,900.00
1001.0000.46101 (Interest)$375,000.00
1005.0000.49151 $450,000.00
1001.0000.42201 $100,000.00 Property Transfer Tax
1001.0000.42301 $300,000.00
2/21/2017
Posted By:Date:
Transient Occupancy Tax
Higher than anticipated development activities
Reimbursement from Contra Costa County for the traffic
impact of new developments on Dougherty Road
General Fund Revenues
Higher investment earnings
Community benefit payments related to development.
ISF Vehicle Replacement Fund - Non-dept - Vehicle Replacement Replacement of the City's pooled vehicle
Dublin Crossing prepaid 1600 units in FY 15-16
Developers opted to pay in-lieu fee instead of acquiring
parkland credits
**********Finance Use Only**********
As Presented at the City Council Meeting
REVENUES
Public Facilities Fund - Developer Contributions
Developers opted to pay in-lieu fee instead of acquiring
parkland credits
Developers opted to pay in-lieu fee instead of acquiring
parkland credits
Fire Impact Fee Fund - Developer Contributions
Developers acquired and utilized fire impact fee credits
instead of paying the fee
Traffic Impact Fee Fund - Dougherty Valley TIF
General Fund - Animal Control True up of Animal Control budget to reflect prior year costs
General Fund - Building & Safety - Contract Services 1st increase in rates for consultants and plan check
workload is higher than anticipated
General Fund - Police Ops Support - Cell Phone Additional cell phones issued to crime prevention staff and
phone upgrade
ISF Equipment Replacement Fund - Non-dept - Equipment ISF Higher than anticipated network switches replacement cost
Cable TV Facilities - Community TV - Contract Services Higher than estimated capital contribution to Tri-Valley
Community TV
G:\Budget Changes\9_2016-17\CC Approval\12_Q2 Budget Adj_022117 12_Q2 Budget Adj_022117