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Home My WebLink About4.9 - 1328 Fiscal Year 2016-17 2nd Quarter Financial R Page 1 of 3 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 Page 2 of 3 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. Page 3 of 3 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