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HomeMy WebLinkAboutItem 4.2 - 1660 Fiscal Year 2017-18 1st Quarter Financial R Page 1 of 3 STAFF REPORT CITY COUNCIL DATE: November 7, 2017 TO: Honorable Mayor and City Councilmembers FROM: Christopher L. Foss, City Manager SUBJECT: Fiscal Year 2017-18 1st Quarter Financial Review Prepared by: Colleen Tribby, Director of Administrative Services EXECUTIVE SUMMARY: The City Council will receive a financial report through the first quarter for Fiscal Year 2017-18 and consider amendments to the Fiscal Year 2017-18 Budget via a budget change. The City Council will also receive an update to the City's 10-Year Forecast. STAFF RECOMMENDATION: Receive the report, including the update to the 10-Year Forecast, and approve the budget change. FINANCIAL IMPACT: Approval of the budget change will result in the addition of $1,930,000 to the General Fund revenue budget, and will increase General Fund expenditures $5,500. Total General Fund reserves are projected at $125,324,931 by June 30, 2018 , representing 5.8 months of the projected Fiscal Year 2018-19 budget. This report also contains a brief update of the 10-Year Forecast. DESCRIPTION: The focus of this report is the Fiscal Year 2017-18 General Fund Amended Budget, including updated revenue and expenditure estimates, as well as a n update to the 10- Year Forecast. 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 Fiscal Year 2016-17. The Budget Change Form (Attachment 1) lists all new amendments needing City Council approval. FY 2017-18: Projected Results (Attachment 2) General Fund revenues are projected to come in $1,930,000 higher than the Amended Budget due to the following: Page 2 of 3 1. Property tax revenue increased $1,230,000 over the budget, based on the most recent information provided by Alameda County and the City’s property tax consultant. This change reflects growth in overall assessed valuation (AV) by 7.702% ($1,058,471,523) over last year. This was the second -highest AV growth of cities in Alameda County, following Newark’s 14.945% growth. 2. Other Taxes (Property Transfer Tax) is anticipated to increase $250,000 over the budget, which trends closer to last year’s number and ties to the increase in property tax revenue. 3. Interest income is also expected to come in close to last year’s num ber, adding $450,000 in revenue over budget. On the expenditure side, the City’s contract for actuarial services for the retiree health provision to the Dougherty Regional Fire Authority is increasing $5,500 over the original estimate. After incorporating those changes, total reserves are projected to increase $2,902,840 from the prior year, as illustrated in the table below. Reserve details are shown in the General Fund Reserves Summary (Attachment 3). Total Reserves, Compared to FY 2016-17 and FY 2017-18 Amended Budget Actual 2016-17 Amended 2017-18 Q1 Change New Amended 2017-18 Revenue 83,950,420 83,355,652 1,930,000 85,285,652 Expenditures (66,244,975) (76,329,909) (5,500) (76,335,409) Transfers Out (5,542,414) (6,047,403) (6,047,403) One Time Accrual Adjustment 1,069,534 - Year End Reserves $122,416,591 $123,394,931 $41,793,973 $125,319,431 Change to Reserves from Prior Year $978,340 $2,902,840 10-Year Forecast The City maintains an ongoing 10-Year Forecast of revenues and expenditures and provides detailed assumptions in the annual budget document. However, throughout the year, Staff monitors these factors and updates th e forecast to reflect major changes that will have long term effects. Based on the information provided in this report, the City’s long-term forecast is being adjusted. The General Fund has its last breakeven year in Fiscal Year 2021-22 (one year later than the last Forecast), with a $1.5 million deficit projected in Fiscal Year 2022-23. This information will be presented to the City Council’s appointed Fiscal Sustainability Task Force at its next meeting on November 15. Page 3 of 3 NOTICING REQUIREMENTS/PUBLIC OUTREACH: None. ATTACHMENTS: 1. Budget Change Form 2. General Fund Summary 3. General Fund Reserves Budget Change Reference #: From Un-Appropriated Reserves X Budget Transfer Between Funds From Designated Reserves Other 1001.2405.64061 $5,500.00 1001.0000.411xx $1,230,000.00 1001.0000.42201 $250,000.00 1001.0000.46101 $450,000.00 Posted By:Date: General Fund - Other Taxes - Property Transfer Tax Linked to property sales. General Fund - Interest Income Higher interest income in FY 2016-17 carried into the current year. **********Finance Use Only********** As Presented at the City Council Meeting Updated number from Property Tax consultant. CITY OF DUBLIN FISCAL YEAR 2017-18 BUDGET CHANGE FORM City Council's Approval Required OPERATING EXPENDITURES Higher consulting services cost for DRFA OPEB update due to GASB 75 implementation, cost is shared between cities of Dublin and San Ramon General Fund - DRFA - DRFA Obligations General Fund - Property Tax REVENUES C:\Users\carolines\appdata\roaming\iqm2\minutetraq\dublinca@dublinca.iqm2.com\work\attachments\2623 2623 X 11/7/2017 Higher interest income in FY 2016-17 carried into the Updated number from Property Tax consultant. Higher consulting services cost for DRFA OPEB update due to GASB 75 implementation, cost is shared between cities C:\Users\carolines\appdata\roaming\iqm2\minutetraq\dublinca@dublinca.iqm2.com\work\attachments\2623 2623 GENERAL FUND SUMMARY ATTACHMENT 2 FY 2017‐18 1st QUARTER   Actual 2016‐17   Adopted 2017‐18   Amended 2017‐18   Q1 Change  New Amended 2017‐18  Revenues Property Taxes36,964,785          37,971,147        37,971,147          1,230,000         39,201,147          Sales Taxes 20,001,379          20,296,801        20,296,801          20,296,801          Development Revenue12,350,738          9,798,859          9,998,369            9,998,369            Other Taxes6,834,545            5,947,000          5,947,000            250,000            6,197,000            Licenses & Permits318,981               309,096             309,096               309,096               Fines & Penalties94,205                111,432             111,432               111,432               Interest Earnings1,286,942            876,000             876,000               450,000            1,326,000            Rentals and Leases1,117,593            1,081,672          1,081,672            1,081,672            Intergovernmental258,508               198,618             198,618               198,618               Charges for Services5,274,724            6,092,717          6,092,717            6,092,717            Community Benefit Payments699,000               200,000             200,000               200,000               Other Revenue910,561               259,235             272,800               272,800               Subtotal Revenues86,111,961          83,142,577        83,355,652          1,930,000         85,285,652          Unrealized Gains/Losses(2,161,541)           ‐                        Total Revenues83,950,420          83,142,577        83,355,652          1,930,000         85,285,652          Expenditures Salaries & Wages10,387,331          12,422,136        12,422,136          12,422,136          Benefits5,409,898            6,298,523          6,298,523            6,298,523            Services & Supplies2,077,805            3,252,530          3,226,975            3,226,975            Internal Service Fund Charges3,040,296            3,049,881          3,049,881            3,049,881            Utilities1,793,538            2,830,310          2,830,310            2,830,310            Total Contracted Services *42,600,147          46,004,428        46,318,255          5,500                46,323,755          Capital Outlay935,960               469,112             523,612               523,612               Contingency ‐                       460,000             420,000               420,000               Subtotal Expenditures66,244,975          74,786,920        75,089,692          5,500                75,095,192          Carryovers from Prior Year1,240,217            1,240,217            Total Expenditures66,244,975          74,786,920        76,329,909          5,500                76,335,409          Operating Impact17,705,444          8,355,657          7,025,743            1,924,500         8,950,243            One Time Adjustment for Accruals 1,069,534             Transfers Out (5,542,414)          (2,440,629)          (6,047,403)             (6,047,403)             Impact on Total Reserves13,232,565          5,915,028          978,340               2,902,840            TOTAL RESERVES122,416,591       125,319,431          * Contracted Services Detail (1)  Actual 2016‐17   Adopted 2017‐18   Amended 2017‐18   Q1 Change  New Amended 2017‐18  Police Services16,245,666          18,259,770          18,872,121            18,872,121            Fire Services11,788,015          12,402,322          12,402,322            12,402,322            Maintenance Services (MCE)4,484,851            4,829,511            4,829,511              4,829,511              Development (Reimbursable)2,700,966            2,626,655            2,938,088              2,938,088              Development (Not Reimburseable)4,649,928            4,959,491            5,246,068              5,246,068              Development7,350,894            7,586,146            8,184,156              8,184,156              Other Contracted Services2,730,721            2,926,679            3,223,541              5,500                3,229,041              Total Contracted Services42,600,147          46,004,428        47,511,652          5,500                47,517,152          (1) Contracted Services Detail includes carryovers from FY 2016‐17 totaling $1,193,397. GENERAL FUND RESERVES SUMMARY ATTACHMENT 3 FY 2017‐18 DESIGNATIONS Reserve Balances  Actual 2016‐17  Increase 2017‐18 Decrease 2017‐18 NET  CHANGE Projected 2017‐18  Non‐Spendable198,875              ‐                (159,613)      (159,613)            39,262                    Prepaid Expenses 39,262                 39,262                    Advance to Public Facility Fees ‐                       ‐                           Advance to Fire Impact Fee ‐                       ‐                           Advance to PERS Side Fund 159,613              (159,613)      (159,613)            ‐                           Restricted1,762,000            ‐                ‐                ‐                      1,762,000              Heritage Park Maintenance 750,000              750,000                  Cemetery Endowment 60,000                 60,000                    Developer Contr ‐ Downtown 873,000              873,000                  Developer Contr ‐ Nature Pk 60,000                 60,000                    Developer Contr ‐ Heritage Pk 19,000                 19,000                    Committed36,213,716          ‐                ‐                ‐                      36,213,716            Economic Stability 8,000,000            8,000,000              Public Safety Reserve 1,600,000            1,600,000              Downtown Public Impr 452,170              452,170                  Economic Development 2,000,000            2,000,000              Emergency Communications 741,000              741,000                  Fire Svcs OPEB 3,334,672            3,334,672              Innovations & New Opport 1,813,408            1,813,408              One‐Time Initiative 1,341,408            1,341,408              Specific Committed Reserves Maintenance Facility 76,033                 76,033                    Cemetery Expansion 5,272,210            5,272,210              Fallon Sports Park 200,000              200,000                  Civic Ctr Expansion 22,746                 22,746                    Storm Drain Trash Capture 722,198              722,198                  Shannon Center Parking Lot 967,680              967,680                  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              Assigned50,126,808          ‐                ‐                ‐                      50,126,808            Accrued Leave 998,235              998,235                  Operating Carryovers 1,240,217            1,240,217              CIP Carryovers 1,739,331            1,739,331              Non‐Streets CIP Commitments 3,879,516            3,879,516              Catastrophic Loss 13,918,531          13,918,531            Service Continuity 3,150,000            3,150,000              Pension Rate Stabilization Plan 2,000,000            2,000,000              Chevron Debt Payoff 5,238,622            5,238,622              Pension & OPEB 10,614,353          10,614,353            Fiscally Responsible Adj 325,000              325,000                  Municipal Regional Permit 1,870,030            1,870,030              HVAC Replacement 2,000,000            2,000,000              Relocate Parks Dept 250,000              250,000                  Specific Assigned Reserves Civic Ctr Renovation‐Police 1,962,100            1,962,100              Façade Improvement Grants 250,000              250,000                  Contribution to ISF 500,000              500,000                  Fire Equipment Replacement 190,873              190,873                  Unassigned34,115,192          159,613        2,902,840    3,062,453          37,177,646            Unassigned‐Unrealized Gains (3,860,531)           (3,860,531)             Unassigned (Available)37,975,723          37,975,723            TOTAL RESERVES122,416,591       159,613        2,743,228    2,902,840          125,319,431