HomeMy WebLinkAboutItem 4.5 - 1841 Fiscal Year 2017-18 2nd Quarter Financial R
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STAFF REPORT
CITY COUNCIL
DATE: February 20, 2018
TO: Honorable Mayor and City Councilmembers
FROM:
Christopher L. Foss, City Manager
SUBJECT:
Fiscal Year 2017-18 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 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 and approve the budget change.
FINANCIAL IMPACT:
Approval of the budget change will result in the addition of $227,861 to the General
Fund revenue budget and $80,000 to the General Fund expenditure budget, as well as
a reduction of $303,786 to transfers out of the General Fund . Total General Fund
reserves are projected at $122.4 million by June 30, 2018. This report also contains
various budget changes in other funds requiring City Council approval.
DESCRIPTION:
The purpose of this report is to update the City Council on the status of the Fiscal Year
2017-18 General Fund Amended Budget and projected reserves and provide an
overview of the most recent 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 the prior year. The Budget Change Form (Attachment 4)
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 $72,000 higher than the Amended
Budget, accounting for higher fire permit revenues. On the expenditure side, Staff is
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planning for an increase of $80,000 to the Dougherty Regional Fire Authority retiree
health liability (a closed plan), resulting from a past increase to the benefit provision.
In addition, $303,786 in budgeted General Fund transfers will be replaced by Western
Dublin Traffic Impact Fees for the Amador Plaza Road Bicycle and Pedestrian
Improvements Project (ST0815). This work initially used a General Fund contribution as
impact fee funds were not available. The budget change will also allow for a transfer of
$155,861 back to the General Fund for work already completed.
After incorporating those changes, total reserves are projected to decrease $3,121 from
the prior year, as illustrated in the table below. Changes to specific reserves are shown
in the General Fund Reserves Summary (Attachment 3).
General Fund Reserve Changes
Actual
2016-17
Amended
2017-18
Q2
Change
New
Amended
2017-18
Revenue 83,950,420 86,008,047 227,861 86,235,908
Expenditures (66,244,975) (76,844,072) (80,000) (76,924,072)
Transfers Out (5,542,414) (9,618,743) 303,786 (9,314,957)
One Time Accrual Adjustment 1,069,534 -
Year End Reserves $122,416,591 $121,961,823 $40,321,120 $122,413,470
Change to Reserves from Prior Year ($454,768)($3,121)
10-Year Forecast
At the City Council Strategic Planning Meeting of February 3, 2018, Staff presented an
update to the 10-Year General Fund Forecast, which included some significant changes
to the projections. Most significantly, the preliminary FY 2018 -19 budget numbers
include a $4.4 million increase in development revenues, as development continues to
occur earlier than forecasted. In addition, the City’s projected savings from the capping
of retiree health benefits for new hires will be realized much earlier than anticipated due
to employee turnover over the last two years. Savings originally projected at $4.0 million
over 15 years is now projected at $6.9 million over the same period, beginning in FY
2018-19.
The following is a summary of major assumptions used in the most recent 10 -Year
Forecast:
Revenue
Property Tax:
Two-year assessed valuation gains: $465 million ($1.1 million rev); $889 million
($2.1 million rev)
Average 4.9% growth through FY 2021-22; 2% thereafter
Sales Tax:
Recessionary blip in FY 2019-20 (down $395k, or 1.9%)
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Average 2.0% growth thereafter
No new large sales tax generators
Development Revenue:
Two-year estimates from building division
Declining 20% per year thereafter
Expenditures
Personnel Costs:
Average 3.7% growth
Contracted Services (Average Annual Change):
Police Services – 5.1% increase
Fire Services – 4.6% increase
Maintenance Services (MCE) – 4.1% increase
Development – 8.6% decrease
Other Contracted Services – 4.0% increase
All other:
Minimal (1%) annual increases
The assumptions above result in a shifting of the General Fund deficit from FY 2021-22
to FY 2023-24, when expenditures just begin to outpace revenues. In preparation, Staff
continues to work on initiatives that support long-term fiscal sustainability, which
remains the focal point of the next two-year budget cycle.
Non-General Fund Items
In addition to the above changes to the General Fund, there are various budget
amendments in other funds that require City Council approval:
1) Appropriate $400,000 in the Gas Tax Fund for the San Ramon Road Arterial
Management Project (CIP No. ST0217) to account for additional improvements,
including the replacement of aging traffic signal and communications
infrastructure.
2) Appropriate $50,000 in the Public Art Fund to complete the artwork installation as
part of the Public Arts CIP at the Emerald Glen Recreation and Aquatic Complex
(CIP No. PK0415).
3) Appropriate $104,800 in the Information Technology Fund for software fees and
new items, including additional internet access fees, upgrades to the Library
Community Room audio/visual equipment, and hosting and licensing fees for
various software. Also included is a request for $45,000 for a new timesheet
software that will provide automated time-calculations and an approval workflow
that integrates with the City’s financial software. This will significantly reduce the
amount of data entry and paper handling required by Staff and will streamline the
review and approval process for supervisors. If approved, Staff will bring the
contract award to the City Council in March for approval.
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4) Appropriate $13,723 in the Assessment District Funds to cover administrative
and consulting costs of the districts for the remainder of the fiscal year and
increase the revenue budget by $7,194 for a new tax levy of four parcels.
5) Appropriate $38,875 in the Federal Asset Seizure Fund to purchase police
vehicle equipment.
6) Appropriate $21,000 in the Traffic Safety Fund for the installation of radar speed
indicator signs.
7) Appropriate $6,812 in the Public, Educational, and Governmental (PEG) Fund for
capital purchases needed by TV30.
8) Increase Revenue in the Public Facilities and Impact Fee Funds by a total of
$3,095,000 to account for developers paying in-lieu fees and for higher-than-
anticipated development activity in the Public Facility Fees Fund ($1,980,000),
the Fire Impact Fee Fund ($160,000) and the Traffic Impact Fee Fund
($955,000).
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
None.
ATTACHMENTS:
1. General Fund Summary
2. General Fund Transfers Out
3. General Fund Reserves
4. Budget Change
GENERAL FUND SUMMARY
FY 2017-18 2nd QUARTER
Actual
2016-17
Adopted
2017-18
Amended
2017-18
Q2
Change
New
Amended
2017-18
Revenues
Property Taxes 36,964,785 37,971,147 39,201,147 39,201,147
Sales Taxes 20,001,379 20,296,801 20,296,801 20,296,801
Development Revenue 12,350,738 9,798,859 10,720,764 10,720,764
Other Taxes 6,834,545 5,947,000 6,197,000 6,197,000
Licenses & Permits 318,981 309,096 309,096 309,096
Fines & Penalties 94,205 111,432 111,432 111,432
Interest Earnings 1,286,942 876,000 1,326,000 1,326,000
Rentals and Leases 1,117,593 1,081,672 1,081,672 1,081,672
Intergovernmental 258,508 198,618 198,618 198,618
Charges for Services 5,274,724 6,092,717 6,092,717 72,000 6,164,717
Community Benefit Payments 699,000 200,000 200,000 200,000
Other Revenue 910,561 259,235 272,800 272,800
Subtotal Revenues 86,111,961$ 83,142,577$ 86,008,047$ 72,000$ 86,080,047$
Unrealized Gains/Losses (2,161,541) -
Transfers In 155,861 155,861
Total Revenues 83,950,420$ 83,142,577$ 86,008,047$ 227,861$ 86,235,908$
Expenditures
Salaries & Wages 10,387,331 12,422,136 12,422,136 12,422,136
Benefits 5,409,898 6,298,523 6,298,523 80,000 6,378,523
Services & Supplies 2,077,805 3,252,530 3,176,975 3,176,975
Internal Service Fund Charges 3,040,296 3,049,881 3,049,881 3,049,881
Utilities 1,793,538 2,830,310 2,830,310 2,830,310
Total Contracted Services *42,600,146 46,004,428 46,933,918 46,933,918
Capital Outlay 935,960 469,112 533,112 533,112
Contingency - 460,000 359,000 359,000
Subtotal Expenditures 66,244,975$ 74,786,920$ 75,603,855$ 80,000$ 75,683,855$
Carryovers from Prior Year 1,240,217 1,240,217
Contribution to OPEB/PERS
Total Expenditures 66,244,975$ 74,786,920$ 76,844,072$ 80,000$ 76,924,072$
Operating Impact 17,705,445$ 8,355,657$ 9,163,975$ 147,861$ 9,311,836$
One Time Adjustment for Accruals 1,069,534
Transfers Out (5,542,414) (2,440,629) (9,618,743) 303,786 (9,314,957)
Impact on Total Reserves 13,232,565$ 5,915,028$ (454,768)$ 451,647$ (3,121)$
TOTAL RESERVES 122,416,591$ 122,413,470$
* Contracted Services Detail (1)
Actual
2016-17
Adopted
2017-18
Amended
2017-18
Q2
Change
New
Amended
2017-18
Police Services 16,356,051 18,259,770 18,259,770 18,259,770
Fire Services 11,788,015 12,402,322 12,407,822 12,407,822
Maintenance Services (MCE)4,484,851 4,829,511 4,833,011 4,833,011
Development (Reimbursable)2,723,838 2,626,655 3,266,866 3,266,866
Development (Not Reimburseable)2,839,835 3,151,657 4,695,004 4,695,004
Development 5,563,674 5,778,312 7,961,870 7,961,870
Other Contracted Services 4,407,556 4,734,513 3,471,445 3,471,445
Total Contracted Services 42,600,146$ 46,004,428$ 46,933,918$ -$ 46,933,918$
(1) Contracted Services Detail includes carryovers from FY 2016-17 totaling $1,193,397.
ATTACHMENT 1
GENERAL FUND TRANSFERS OUT
FY 2017‐18 2nd QUARTER
CIP Projects Funded by Reserves
Carryover from
16‐17
Adopted
17‐18
Amended
17‐18 Q2 Change
New Amended
17‐18
Maintenance Yard 76,033 76,033 76,033
Civic Center Modifications 22,746 22,746 22,746
Shannon Center Parking Lot Impr 967,680 1,042,680 1,042,680
Dublin Heritage Cemetery Phase II 1,475,072 1,475,072 1,475,072
Amador Plaza Rd Bicycle & Pad Impr 303,786 303,786.0 (303,786) ‐
Fallon Sports Park ‐ Phase II 99,495 99,495 99,495
Storm Drain Trash Capture 722,198 722,198 722,198
Total CIPs Funded by Reserves2,191,938$ 1,475,072$ 3,742,010$ (303,786)$ 3,438,224$
CIP Projects Not Funded By Reserves
Carryover from
16‐17
Adopted
17‐18
Amended
17‐18 Q2 Change Total
Citywide Bicycle and Pedestrian Impr 108,000 108,000 216,000 216,000
San Ramon Rd Trail Improvements 101,603 101,603 101,603
San Ramon Rd Landscape 238,660 ‐ ‐
Police Services Building ‐ 3,500,000 3,500,000
Sidewalk Safety 100,363 100,363 100,363
ADA Transition 23,833 23,833 23,833
Storm Drain Condition 500,892 500,892 500,892
Dublin Sports Ground Renovation 50,000 60,000 60,000
Dublin Sports Ground Rehabilitation ‐ 300,000 300,000
Dublin Blvd Extension 123,000 123,000 123,000
Dougherty Rd to Sierra 93,485 93,485 93,485
Total CIP's Not Funded by Reserves1,339,836$ 108,000$ 5,019,176$ ‐$ 5,019,176$
TOTAL CIP TRANSFERS3,531,774$ 1,583,072$ 8,761,186$ (303,786)$ 8,457,400$
Other Transfers
Carryover from
16‐17
Adopted
17‐18
Amended
17‐18 Q2 Change Total
Transfer to Equip Replacement ‐ 750,000 750,000 750,000
Transfers to Public Facility Fees Fund ‐ 107,557 107,557 107,557
Total CIP's Not Funded by Reserves ‐$ 857,557$ 857,557$ ‐$ 857,557$
Total Transfers Out of General Fund3,531,774$ 2,440,629$ 9,618,743$ (303,786)$ 9,314,957$
ATTACHMENT 2
GENERAL FUND RESERVES SUMMARY
FY 2017-18 DESIGNATIONS
Proposed Q2:
Reserve Balances
Actual
2016-17
Increase
2017-18
Decrease
2017-18
NET
CHANGE
NET
CHANGE
Q2 Projected
2017-18
Non-Spendable 198,875$ -$ (159,613)$ (159,613)$ 39,262$
Prepaid Expenses 39,262 - 39,262
Advance to Public Facility Fees - - -
Advance to PERS Side Fund 159,613 (159,613) (159,613) -
Restricted 1,762,000$ -$ -$ -$ 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
Committed 36,213,716$ 75,000$ (2,920,316)$ (2,845,316)$ 763,433$ 33,368,400$
Economic Stability 8,000,000 - 8,000,000
Public Safety Reserve 1,600,000 - 1,600,000
Downtown Public Impr 452,170 (303,786) (303,786) 763,433 911,817
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) (76,033) -
Cemetery Expansion 5,272,210 (1,475,072) (1,475,072) 3,797,138
Fallon Sports Park 200,000 - 200,000
Civic Ctr Expansion 22,746 (22,746) (22,746) 0
Storm Drain Trash Capture 722,198 - 722,198
Shannon Center Parking Lot 967,680 75,000 (1,042,680) (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
Assigned 50,126,808$ 350,000$ -$ 350,000$ 50,476,808$
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 500,000 250,000 250,000 750,000
Fire Equipment Replacement 190,873 100,000 100,000 290,873
Unassigned 34,115,192$ 3,079,929$ (428,121)$ 2,651,808$ 2,223,686$ 36,767,000$
Unassigned-Unrealized Gains (3,860,531) (3,860,531)
Unassigned (Available)37,975,723 37,975,723
TOTAL RESERVES 122,416,591$ 3,504,930$ (3,508,051)$ (3,121)$ 122,413,470$
Budgeted Changes:
ATTACHMENT 3
Budget Change Reference #:
From Un-Appropriated Reserves X Budget Transfer Between Funds
From Designated Reserves Other
ST0217.9400.9401 (Improve. - Not Bldg)$400,000.00
3600.9601.49999 - Transfers In $400,000.00
ST0911.2201 (2201.9601.89101) - Transfers Out - Gas Tax $400,000.00
ST0815.1001 (1001.9601.89101) Transfers Out - General
Fund ($303,786.01)
ST0815.1001 (4304.9601.89101) Transfers Out - WDTIF $303,786.01
4304.9601.89101 -Transfers Out $155,860.99
1001.9601.49999 -Transfers In $155,860.99
PK0415.9200.9201 (Contrcat Services General)$40,000.00
PK0415.9400.9401 (Improve. - Not Bldg)$10,000.00
3500.9501.49999 - Transfers In $50,000.00
PK0415.2801 (2801.9501.89101) - Transfers Out - Public Art $50,000.00
1001.2405.52105 (PERS)$80,000.00
6605.1602.63104 (Internet Access)$13,800.00
6605.1602.64001 (Contract Services - General)$16,000.00
6605.1602.61108 (Software)$45,000.00
6605.1602.61108 (Software)$30,000.00
2701.8301.64091 (Street Light Dist. 1983-1)$2,300.00
2702.8301.64091 (Landscape Dist. - 1983-2)$1,200.00
2703.8301.64091 (Landscape Dist. - 1986-1)$1,200.00
2704.8301.64091 (Landscape Dist. - 1997-1)$1,200.00
2705.8301.64091 (Landscape Dist. - 1999-1)$1,700.00
2109.2402.64001 (EMS Fund)$2,000.00
2710.8301.64001 (CFD 2017-1)$123.00
Public Arts CIP - Emerald Glen Aquatic Complex
Public art fabrication and installation
Assessment districts administration
DRFA retirement unfunded liabilityGeneral Fund - DRFA
Consulting services for Dublin Crossing Assessment
Dist.
IT Fund - Information Services
Timesheet software
Assessment Dist Funds - Engineering - Engineering Contract Services
Library Community Room Upgrades and hardware
maintenance on the Compellent SAN
RecTrac hosting, Civic Plus, Adobe Acrobat Pro
licenses, and additional Office 365 licenses
ATTACHMENT 4
CITY OF DUBLIN
FISCAL YEAR 2017-18
BUDGET CHANGE FORM
Street CIP - San Ramon Road Arterial Management
City Council's Approval Required
CIP
Street CIP - Amador Plaza Road Bicycle and Pedestrian Improvements
Additional improvements to replace aging traffic signal
and communications infrastructure
Replace General Fund with WDTIF fund for the project
for current fiscal year and prior years
OPERATING EXPENDITURES
Additional internet access fee
G:\Quarterly Reports\FY 17-18\Q2\4. Budget Change 4. Budget Change
Budget Change Reference #:
FISCAL YEAR 2017-18
BUDGET CHANGE FORM
City Council's Approval Required
2710.8301.65101 (CFD 2017-1)$4,000.00
2107.2111.72102 Equipment - ISF $34,874.53 Police vehicle equipment
2106.2801.73103 (Improvement - Not Bldg)$21,000.00
2811.7101.64001 (Contract Services General)$6,812.00 Community TV capital contribution
1001.2402.48301 (Fixed System)$22,000.00
1001.2402.48302 (Sprinkler / Underground)$50,000.00
Assessment Dist CFD 2017- Current Assessments
2710.0000.43101 $7,194.00 New tax levy on 4 parcels
4101.0000.49161 (Community Parkland)$520,000.00
4102.0000.49161 (Neighborhood Parkland)$590,000.00
4110.0000.49161 (Community Nature Parkland)$170,000.00
4104.0000.49161 (Neighborhood Park Improv.)$600,000.00
4107.0000.49161 (Civic Center)$100,000.00
4201.0000.49161 $160,000.00
4301.0000.49161 (EDTIF1)$550,000.00
4302.0000.49161 (EDTIF2)$300,000.00
4304.0000.49161 (WDTIF)$55,000.00
4306.0000.49161 (TVTD)$50,000.00
2/20/2018
Posted By:Date:
Developers opted to pay in-lieu fee instead of using fee
credits and higher than anticipated development
activities
Higher than anticipated development activities
Higher than anticipated development activities
General Fund Revenues
Traffic Safety Fund - Traffic Signals
Installation of radar speed indicator signs
Consulting services for Dublin Crossing Assessment
Dist.
PEG Fund - Community TV
Federal Asset Seizure Fund - Police Support Services
**********Finance Use Only**********
As Presented at the City Council Meeting
REVENUES
Public Facilities Fund - Developer Contributions
Fire Impact Fee Fund - Developer Contributions
Developers paying the fee instead of using fee credit
and higher than anticipated development activities
Traffic Impact Fee Fund Developer Contributions
Higher than anticipated development activities
Higher than anticipated development activities
Developers opted to pay in-lieu fee instead of using fee
credits and higher than anticipated development
activities
G:\Quarterly Reports\FY 17-18\Q2\4. Budget Change 4. Budget Change