HomeMy WebLinkAboutItem 4.4 - 3129 FY 19-20 Q2 Financial Review (2)
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STAFF REPORT
CITY COUNCIL
DATE: March 17, 2020
TO: Honorable Mayor and City Councilmembers
FROM:
Linda Smith, City Manager
SUBJECT:
Fiscal Year 2019-20 2nd Quarter Financial Review
Prepared by: Lisa Hisatomi, Administrative Services Director
EXECUTIVE SUMMARY:
The City Council will receive a financial report through the second quarter of Fiscal Year
2019-20 and consider amendments to the Fiscal Year 2019 -20 Budget via a budget
change.
STAFF RECOMMENDATION:
Receive the report and approve the budget change.
FINANCIAL IMPACT:
Approval of the budget change will result in the addition of $1,710,000 to the General
Fund revenue and $126,500 to the General Fund expenditures. Total General Fund
reserves are projected at $159,036,991 by June 30, 2020. 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
2019-20 General Fund Amended Budget and projected 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 $1,710,000 higher than the Amended
Budget, accounting for the net impact of higher property tax, sales tax, transient
occupancy tax, and interest income, combined with decreases in development revenue
and lease revenue. Property tax revenue is projected to be $500,000 higher than
budget, accounting for the net impact of continued increases in property values in
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Dublin and decrease in supplemental property taxes. Sales tax accounts for $1,000,000
of the additional revenue, primarily due to better performance in the State and County
Pools. Transient occupancy tax is expected to come in $350,000 higher than budget
due in part to revenue from the City’s recently constructed hotel. Interest income is
anticipated to come in $500,000 higher than budget, as the City’s total cash has
increased, and Staff have worked with Chandler Asset Management to maximize
earnings on those funds. Development revenue is expected to be $500,000 lower than
budget due to the slowing down of development activities in the City. In addition,
property lease revenue is projected to be $140,000 lower than budget due to the
temporary relocation of Alameda County Fire Department during construction of the
Public Safety Complex.
On the expenditure side, Staff is requesting for an increase of $136,000 in contract
services to account for additional costs in street sweeping due to a rate increase in the
most recent street sweeping contract and increased street inventory ($56,000); increase
in costs associated with maintaining, installing, and inspecting the City’s traffic signal
system due to additional traffic signal and street lighting, in addition to installation and
maintenance support to Police Services’ cameras and license plate readers ($60,000);
and additional building maintenance needs at the Shannon Center, including exterior
window film ($20,000). Capital Outlay expenditure budget increases are also needed for
the replacement of Regional Meeting Room chairs ($30,000); and the installation of
scaffolding for slide tower inspection and purchase of industrial scales for the Wave
($33,500 combined).
After incorporating those changes, total reserves are projected at $159,036,991, as
illustrated in the table below.
General Fund Reserve Changes
Actual
2018-19
Adopted
2019-20
Amended
2019-20*
Q2
Adjustment
New
Amended
2019-20
Revenue $102,226,802 $94,482,462 $95,641,093 $1,710,000 $97,351,093
Expenditures ($76,964,506) ($78,930,801) ($84,948,379) ($199,500) ($85,147,879)
Operating Budget Impact $25,262,297 $15,551,661 $10,692,714 $1,510,500 $12,203,214
Transfers In $144,098 $1,075 $76,075 $76,075
Transfers Out ($1,314,129) ($5,553,000) ($20,178,973) $73,000 ($20,105,973)
Unrealized Gains/Losses $5,020,840
Impact on Reserves $29,113,106 $9,999,736 ($9,410,184) $1,583,500 ($7,826,684)
Total General Fund
Balance $166,863,675 $176,863,411 $157,453,491 $159,036,991
Change to reserves from prior year ($7,826,684)
* Amended budget includes $14,625,973 in CIP and $2,892,865 in operating
expenditure carry over from FY 18-19.
The decrease in reserves is due entirely to the planned use of reserves for capital
projects. The City has $20,105,973 budgeted in transfers out of the General Fund, the
majority of which ($14,967,418) are covered by Committed and Assigned Reserves.
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The following is a detailed list of transfers out of the General Fund.
Project
Adopted
2019-20
Amended
2019-20
Q2
Adjustment
New
Amended
2019-20
Funded by
Committed /
Assigned
Reserve
Citywide Signal Comm. Upgrade 1,500,000 1,500,000 1,500,000
Civic Center HVAC and Roof
Replacement 2,000,000 2,000,000 2,000,000
Don Biddle Community Park 600,000 600,000 600,000 600,000
Dublin Heritage Park Cemetery
Improvements 1,491,737 1,491,737 1,491,737
EV Charging Stations 148,357 148,357 148,357
Fallon Sports Park Phase 2 9,995 9,995 9,995
Imagine Playground at Dublin Sports
Ground 2,000,000 3,145,576 3,145,576 2,245,576
Maintenance Yard Facility Improve 71,753 71,753 71,753
Police Services Building 5,900,000 5,900,000 5,900,000
Stormwater Trash Capture 1,000,000 1,000,000 1,000,000
AVB - Wildwood Rd Intersection
Improvements 193,000 (73,000) 120,000
City Entrance Monument Signs 285,000 285,000
Citywide Bicycle & Pedestrian
Improvements 108,000 432,000 432,000
Dougherty Rd. Improve - Sierra Ln 93,485 93,485
Dublin Blvd Extension 123,000 123,000
Financial System Replacement 1,845,000 1,845,000 1,845,000
San Ramon Road Landscape
Renovation 238,660 238,660
San Ramon Road Trail
Improvements 101,410 101,410
Subtotal Transfers Out - CIPs $4,553,000 $19,178,973 ($73,000) $19,105,973 $14,967,418
Transfers Out - ISF $1,000,000 $1,000,000 $1,000,000
Total General Fund Transfers Out $5,553,000 $20,178,973 ($73,000) $20,105,973
A summary of the changes to specific reserves is provided as Attachment 2 (General
Fund Reserves Summary).
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) Affordable Housing Fund - increase budget by $50,000 to account for additional
applications for the City’s First Time Homebuyer Loan Program.
2) Impact Fees - decrease various Traffic Impact Fees ($2,334,037), Fire Impact
Fees ($86,899), and Public Facilities Fees ($4,164,155) revenues due to lower
than anticipated development activities in the City.
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3) Public Art Fund - increase budget by $20,000 for public art inspection services
for Dublin Sports Grounds ($10,000); Clover Park and Sunrise Park ($4,000),
and Sean Diamond Park ($6,000).
4) Adjustments for Amador Valley Blvd - Wildwood Road & Stagecoach
Intersections Improvements (ST0317) - due to modifications in the design of the
project that resulted in a reduction of bio-retention area, the project cannot be
funded by Measure D funds and part of General Funds . This adjustment will
reduce project funding sources by $40,000 and $73,000 for Measure D and
General Fund respectively and increase Measure B Bike and Ped funding for the
project by $40,000.
5) Increase budget for Public Safety Complex (GI0116) - increase $240,000 to
account for IT equipment added to the project, funded by the IT Fund; and
increase by $34,250 for environmentally friendly improvements (addition of
recycled content flooring and strawbale walls), funded by the Measure D Fund.
6) Shift current budget for Dublin Boulevard Extension - Fallon Road to North
Canyon Parkway (ST0216) by $5,750,422 and Annual Street Resurfacing
(ST0119) by $75,000, to future years to free up funding for other CIPs. This
action will not change the total project budget.
STRATEGIC PLAN INITIATIVE:
Strategy #1: Assure the City's long-term financial sustainability.
Strategic Objective A: Maintain strong conservative fiscal policies.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
None.
ATTACHMENTS:
1. General Fund Summary, FY 2019-20 Q2
2. General Fund Reserves, FY 2019-20 Q2
3. Budget Change Form
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GENERAL FUND SUMMARY ATTACHMENT 1
FY 19-20 QUARTER 2 UPDATE
Actual
2018-19
Adopted
2019-20
Amended
2019-20
Q2
Adjustment
New Amended
2019-20
Revenues
Property Tax $44,293,602 $46,874,754 $47,534,754 $500,000 $48,034,754
Sales Tax 24,817,037 21,693,878 21,693,878 1,000,000 22,693,878
Sales Tax Reimbursements (91,062) (466,500) (466,500) (466,500)
Development Revenue 10,603,008 8,446,542 8,446,542 (500,000) 7,946,542
Other Taxes 8,223,510 6,799,400 6,799,400 350,000 7,149,400
Licenses & Permits 291,788 233,147 233,147 233,147
Fines & Penalties 130,993 111,432 111,432 111,432
Interest Earnings 3,195,567 2,000,000 2,000,000 500,000 2,500,000
Rentals and Leases 1,100,888 1,104,127 1,104,127 (140,000) 964,127
Intergovernmental 287,811 234,919 234,919 234,919
Charges for Services 7,559,259 6,436,057 6,436,057 6,436,057
Community Benefit Payments 600,000 200,000 641,000 641,000
Other Revenue 1,214,402 814,706 872,337 872,337
Subtotal Revenues - Operating $102,226,802 $94,482,462 $95,641,093 $1,710,000 $97,351,093
Transfers In 144,098 1,075 76,075 76,075
Unrealized Gains/Losses 5,020,840 -
Total Revenues $107,391,740 $94,483,537 $95,717,168 $1,710,000 $97,427,168
Expenditures
Salaries & Wages 11,237,770 12,330,169 12,328,705 12,328,705
Benefits 4,780,663 6,368,041 6,685,366 6,685,366
Services & Supplies 3,179,408 3,496,548 3,732,688 3,732,688
Internal Service Fund Charges 2,985,004 2,977,333 2,977,333 2,977,333
Utilities 2,744,523 2,728,912 2,749,475 2,749,475
Contracted Services 46,675,752 50,653,983 51,969,099 136,000 52,105,099
Capital Outlay 1,287,107 153,580 4,313,478 63,500 4,376,978
Contingency & Miscellaneous 4,074,279 222,235 192,235 192,235
Subtotal Expenditures - Operating $76,964,506 $78,930,801 $84,948,379 $199,500 $85,147,879
Transfers Out - CIPs 314,129 4,553,000 19,178,973 (73,000) 19,105,973
Transfers Out - ISF 1,000,000 1,000,000 1,000,000 1,000,000
Total Expenditures $78,278,634 $84,483,801 $105,127,352 $126,500 $105,253,852
Operating Impact $25,262,297 $15,551,661 $10,692,714 $1,510,500 $12,203,214
Impact on Total Reserves $29,113,106 $9,999,736 ($9,410,184)$1,583,500 ($7,826,684)
TOTAL GENERAL FUND BALANCE $166,863,675 $159,036,991
GENERAL FUND RESERVES ATTACHMENT 2
FY 19‐20 QUARTER 2 UPDATE
Reserve Balances
Actual
2018‐19
Increase
2019‐20 Budget
Decrease
2019‐20 Budget
NET
CHANGE
Projected
2019‐20
Non‐Spendable $12,818 $0 $0 $0 $12,818
Prepaid Expenses 12,818 ‐ 12,818
Restricted $1,938,000 $441,000 $0 $441,000 $2,379,000
Heritage Park Maintenance 750,000 ‐ 750,000
Cemetery Endowment 60,000 ‐ 60,000
Developer Contr ‐ Downtown 1,049,000 441,000 441,000 1,490,000
Developer Contr ‐ Nature Pk 60,000 ‐ 60,000
Developer Contr ‐ Heritage Pk 19,000 ‐ 19,000
Committed $47,267,326 $0 ($12,852,839) ($12,852,839) $33,910,627
Economic Stability 8,000,000 ‐ 8,000,000
Public Safety Reserve 2,000,000 ‐ 2,000,000
Downtown Public Impr 4,000,000 (3,000,000) (3,000,000) 1,000,000
Economic Development 2,806,486 (2,806,486) (2,806,486) ‐
Emergency Communications 532,113 (1,736) (1,736) 530,377
Fire Svcs OPEB 3,584,672 ‐ 3,584,672
Innovations & New Opport 1,133,753 (237,656) (237,656) 896,098
One‐Time Initiative ‐ Operating 503,860
One‐Time Initiative ‐ Capital 5,837,548 (2,387,901) (2,387,901) 3,449,647
Specific Committed Reserves
Maintenance Facility (CIP)71,753 (71,753) (71,753) ‐
Don Biddle Park (CIP)1,000,000 (600,000) (600,000) 400,000
Cemetery Expansion (CIP)5,270,876 (1,491,737) (1,491,737) 3,779,139
Fallon Sports Park II (CIP)110,500 (9,995) (9,995) 100,505
Fallon Sports Park III Contingency 3,000,000 ‐ 3,000,000
Utility Undergrounding (CIP)1,170,190 ‐ 1,170,190
Advance to Public Facility Fee 6,000,000 ‐ 6,000,000
Dublin Sports Ground (CIP)2,245,576 (2,245,576) (2,245,576) ‐
Assigned $56,409,710 $0 ($13,495,947) ($13,495,947) $42,913,764
Accrued Leave 1,001,744 ‐ 1,001,744
Operating Carryovers 2,805,459 (2,805,459) (2,805,459) ‐
CIP Carryovers 1,606,912 (1,606,912) (1,606,912) ‐
Non‐Streets CIP Commitments 2,462,100 ‐ ‐ 2,462,100
Catastrophic Loss 15,764,599 ‐ 15,764,599
Service Continuity 3,150,000 ‐ 3,150,000
Pension Rate Stabilization Plan 2,000,000 ‐ 2,000,000
Pension & OPEB 14,000,000 ‐ 14,000,000
Fiscally Responsible Adj 325,000 ‐ 325,000
Municipal Regional Permit 2,360,673 (183,575) (183,575) 2,177,098
HVAC Replacement (CIP)2,000,000 (2,000,000) (2,000,000) ‐
Relocate Parks Dept 250,000 ‐ 250,000
Parks and Streets Contingency 250,000 ‐ 250,000
Specific Assigned Reserves ‐ ‐ ‐
Civic Ctr Renovation‐Police Wing 1,000,000 ‐ ‐ 1,000,000
Public Safety Complex (CIP)5,900,000 (5,900,000) (5,900,000) ‐
Façade Improvement Grants 304,157 ‐ 304,157
Contribution to ISF 1,000,000 (1,000,000) (1,000,000) ‐
Fire Equipment Replacement 229,066 ‐ 229,066
Unassigned $61,235,820 $26,348,786 ($8,267,684)$18,081,102 $79,316,922
Unassigned‐Unrealized Gains 2,186,891 ‐ 2,186,891
Unassigned (Available) 59,048,929 77,130,031
TOTAL RESERVES $166,863,675 $26,789,786 ($34,616,470)($7,826,684) $159,036,991
4.4.b
Packet Pg. 371 Attachment: 2. General Fund Reserves, FY 2019-20 Q2 (FY 19-20 Q2 Financial Review)
Budget Change Reference #:
From Un-Appropriated Reserves X Budget Transfer Between Funds
From Designated Reserves Other
Public Safety Complex – Police Services Building
GI0116.9400.9401 (Improvements - Not Building)$34,250
GI0116.9600.9603 (Machinery & Equipment)$240,000
3300.9301.49999 (Transfers In)$274,250
GI0116.2302 (2302.9301.89101) - Measure D Fund - Transfers Out $34,250
GI0116.1001 (6605.9301.89101) - General Fund - Transfers Out $240,000
Amador Valley Blvd - Wildwood Road & Stagecoach Intersections Improvements
ST0317.9400.9401 (Improvements - Not Building)($73,000)
3600.9601.49999 (Transfers In)($73,000)
ST0317.2302 (2302.9601.89101) - Measure D Fund - Transfers Out ($40,000)
ST0317.2205 (2205.9601.89101) - Measure B Bike & Ped Fund -
Transfers Out $40,000
ST0317.1001 (1001.9601.89101) - General Fund - Transfers Out ($73,000)
ST0216.9200.9201 (Contract Services - General)($3,994,983)
ST0216.9200.9202 (Contract Services - Design)($1,753,983)
ST0216.9200.9201 (Professional Services - General)($1,456)
ST0216.4301 (4301.9601.89101) - EDTIF1 Transfers Out ($5,750,422)
3600.9601.49999 (Transfers In)($5,750,422)
ST0119.9400.9401 (Improvements - Not Building)($75,000)
ST0119.2201 (2201.9601.89101) - Gas Tax Fund Transfers Out ($75,000)
3600.9601.49999 (Transfers In)($75,000)
PK0419.9200.9205 (Inspection Services)$10,000
PK0419.2801 (2801.9501.89101) Public Art Fund Transfers Out $10,000
3500.9501.49999 (Transfers In)$10,000
PK0317.9200.9205 (Inspection Services)$4,000
PK0317.2801 (2801.9501.89101) Public Art Fund Transfers Out $4,000
3500.9501.49999 (Transfers In)$4,000
ATTACHMENT3
Annual Street Resurfacing
Reduce budget that is not anticipated to spend, free
up funding for other street CIPs
Modification in design of the project that resulted in
reduction of bio-retention area, project is not eligible
for Measure D funds and resulted in reduction in
General Funds match.
CITY OF DUBLIN
FISCAL YEAR 2019-20
BUDGET CHANGE FORM
City Council's Approval Required
CIP
Increase budget for procurement of IT equipment
and environmentally friendly improvements
Public Art - Dublin Sports Grounds
Dublin Boulevard Extension - Fallon Road to North Canyon Parkway
Reduce budget that is not anticipated to spend, free
up funding for other street CIPs
Increase budget to account for public art inspection
services
Public Art - Clover Park and Sunrise Park
Increase budget to account for public art inspection
services
G:\Quarterly Reports\FY 19-20\Q2 FY20\z_Q2 FY20 Budget Adj_031720 z_Q2 FY20 Budget Adj_031720
Budget Change Reference #:
FISCAL YEAR 2019-20
BUDGET CHANGE FORM
City Council's Approval Required
PK0418.9200.9205 (Inspection Services)$6,000
PK0418.2801 (2801.9501.89101) Public Art Fund Transfers Out $6,000
3500.9501.49999 (Transfers In)$6,000
1001.3202.64001 (Street Sweeping - Contract Services)$56,000
1001.2801.64001 (Traffic Signals - Contract Services)$60,000
1001.1801.71101 (Building Management - Furniture)$30,000
780102.4000.4045 (Shannon Ctr - Building Maint - Addt'l Services)$20,000
780502.6000.6004 (Wave - Equipment ISF)$33,500
Measure D Fund
2302.5201.61104 (Operating Supplies)($40,900)
2302.5201.61118 (Community Promotion Supplies)($14,800)
2302.5201.64001 (Contract Services)($47,500)
Affordable Housing Fund
2901.5701.66101 (First Time Homeowner Loans)$50,000
1001.0000.41101 (Current)$1,000,000
1001.0000.41201 (Supplemental)($500,000)
1001.0000.42101 (Sales Tax)$1,000,000
1001.0000.42301 (TOT)$350,000
REVENUES
General Fund - Property Taxes
General Fund - Sales Tax
Adjustment to account for net impact of continued
increases in property values and decrease in
supplemental property taxes
General Fund - Transient Occupancy Tax To account for taxes generated by new hotel
Adjustment to account for better performance in the
Autos and Transportation, Business and Industry,
and State and County Pools.
Increase budget to account for additional
applications for the City’s First Time Homebuyer
Loan Program.
OPERATING EXPENDITURES
Public Art - Sean Diamond Park
Increase budget to account for public art inspection
services
Reduce budget that is not anticipated to spend, free
up funding for other CIPs
General Fund
Increase budget to account for increased per mile
sweeping rates and increased street inventory
Increase budget to account for the installation of
exterior window film throughout the facility at the
Shannon Center for the purpose of graffiti prevention
Increase budget to account for the installation of
scaffolding to allow for staff to monitor proper
hydraulic flow to slides and purchase of two scales
at The Wave’s slide tower for verification of rider
weight.
Increase budget to account for unforeseen
expenses due to PGE- power shut down events,
wind storm events, support to Police situational
cameras and ALPR installations and encroachment
permits
Increase budget to procure for new chairs to replace
the existing chairs in the Regional Meeting Room,
which is used by the City, community groups, and
the public
G:\Quarterly Reports\FY 19-20\Q2 FY20\z_Q2 FY20 Budget Adj_031720 z_Q2 FY20 Budget Adj_031720
Budget Change Reference #:
FISCAL YEAR 2019-20
BUDGET CHANGE FORM
City Council's Approval Required
1001.0000.46101 (Interest)$500,000
1001.0000.44231 (Building Permits)($500,000)
1001.1802.46241 (Leases)($140,000)
4103.0000.49161 (Community Park Improvements)($1,448,597)
4104.0000.49161 (Neighborhood Park Improvements)($846,803)
4105.0000.49161 (Community Buildings)($1,197,101)
4106.0000.49161 (Library)($86,327)
4107.0000.49161 (Civic Center)($477,543)
4108.0000.49161 (Aquatic)($107,784)
4102.0000.49161 (Fire Impact Fee)($86,899)
4301.0000.49161 (EDTIF1)($971,790)
4302.0000.49161 (EDTIF2)($494,629)
4305.0000.49161 (Dougherty Valley TIF)($300,000)
4306.0000.49161 (TVTD)($567,618)
3/17/2020
Posted By:Date:
**********Finance Use Only**********
As Presented at the City Council Meeting
General Fund - Leases
Public Facilities Fund - Developer Contributions
Fire Impact Fee Fund - Developer Contributions
Adjustment to account for current development
activities in the City
General Fund - Interest
General Fund - Building Permits Adjustment to account for current development
activities in the City
Adjustment to account for interest earned due to
increase in cash balance
Traffic Impact Fee Fund Developer Contributions
Adjustment to account for Alameda County Fire
Department temporary vacated Public Safety
Complex during construction
G:\Quarterly Reports\FY 19-20\Q2 FY20\z_Q2 FY20 Budget Adj_031720 z_Q2 FY20 Budget Adj_031720