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Home My WebLink About8.3 Mid-Year Financial Report 3so- Sn M E M O R A N D U M TO : ty Council FROM Q- � City Manager SUBJECT : Fiscal Year 1984-85 Mid-Year Financial Review DATE : February 20 , 1985 This report provides an overview of the City ' s financial condition at the mid-point of Fiscal Year 1984-85 . Budget projections are revised for both revenues and expenditures based on what has occurred during the first half of the fiscal year and what the City can likely expect to occur during the second six months of the fiscal year. This report reviews both revenues and expenditures , as well as their impact on reserve funds . 1984-85 Revenues Staff has prepared revised revenue estimates for Fiscal Year 1984-85 as shown in Exhibit A ( see attached ) . The first column identifies the total revenues received by the City during the prior fiscal year , 1983-84. The second column identifies the revenues which the City has already received or will receive for, the six month period ending 12/31/84. All figures , with the exception of sales tax, are based on actual revenue received to date . The sales tax revenue estimate is based on actual sales tax receipts through 11/6/84 plus an estimate of revenues to be received for November and December 1984. The second column more accurately represents the City ' s actual receipts as of 12/31/84 than is represented in the 12/31/84 financial statement which was previously provided to the City Council . The third column shown in Exhibit A identifies revenue estimates included as part of the 1984-85 City Budget which was adopted by the City Council in June of 1984. The fourth column identifies revised revenue estimates for Fiscal Year 1984-85 . These revisions are based upon actual receipts , conversations with the State and County Officials , who disburse revenues to the City ; and also conversations with private developers regarding the timing of private development and the impact of that development on capital projects . The revised 1984-85 revenue estimate is $8 ,490 ,620 or approximately $1 ,140 , 000 (15 . 5/) more than estimated in the 1984-85 adopted City Budget . There are several primary reasons for increased revenues . 1 . Sales Tax ($720 , 000) - Since the 1984-85 Budget was adopted prior to settlement of the City ' s sales tax lawsuit , sales tax revenue estimates were budgeted at the 95% rate and did not include the sales tax settlement of approximately $300 , 000 . These two factors alone account for an addi- tional $485 , 000 in sales tax revenue . In addition, the economy has been very strong during the first six months of the Fiscal Year, accounting for the remaining sales tax revenue of $235 ,000. 2 . Interest ($343 , 000) - Interest revenue for 1984-85 are estimated at $900 , 000 . This is attributable to a one time interest payment of $34,600 which the City received from Alameda County in conjunction with the sales tax settlement ; an average interest rate of 11 . 8/ on investments during the first six months of the Fiscal Year , while the budget was predicated upon a 10% return ; and a late start on capital improvement projects , which made available larger sums of money to invest . 3 . Special Benefit Assessments ( $143 , 446) - At the time the 1984-85 Budget was approved , the Special Benefit Assessments had not been recog- nized as revenues because their status as a legitimate revenue was clouded by the Jarvis Proposition . Since the defeat of that measure , these monies must be recognized as revenues . It is anticipated that $27 ,000 will be generated by Landscaping and Lighting Assessment District 83-2 ( Amador Lakes/Larry Lee Development ) ; and $116 , 446 by the City' s Street Light Assessment District 83-1 . 4 . Hotel Transient Occupancy Tax ($131 , 500) - The City Council enacted this tax after the adoption of the 1984-85 Budget . This tax became effective in mid-October . Therefore , the estimated revenue generated from this tax represents approximately 8 1/2 months of receipts . 8. 3 Page 2 5 . Sales of Property ($125 ,000) - Proceeds from the sale of San Ramon Road Right-of-Way to Barratt Inc . These estimated increases in revenue are offset primarily by : 1 ) $140 ,000 less in Park Dedication In-Lieu Fees , all of which was collected during the last week of June 1984 ; 2 ) $126 , 000 in Park & Recreation Fees which will not be collected this year ; 3 ) $80 ,000 in Federal Aid Urban revenues related to the major street rehabilitation project for which the City will not be reimbursed during 1984-85 ; 4) $58 ,000 in reimbursements related to Capital Improvement Projects which will not be completed during 19$4-85 • 1984-85 Expenditures City operating expenditures for this fiscal year are anticipated to be $3 , 145 , 971 which is $214 ,000 or 6 . 4% less than budgeted. This is primarily attributable to the following factors : ' 1 . Delayed recruitments in Planning, Recreation and Police . 2 . Underutilization of litigation reserve . 3 . Overtime and salary savings with Sheriff ' s contract . 4. Delayed recruitment of additional animal control field services officer by County . 5 . Savings on slurry seal contract . 6 . Delays in program development in Recreation. 7 . Savings on Planning Consultant ' s services . 8 . Lower level of building inspection activity than anticipated . These savings are partially offset by increased insurance costs ; and increased engineering costs which are due to the increased demand for engineering services . Estimated Capital Improvement expenditures for Fiscal Year 1984-85 total $2 , 382 , 000 , which is approximately 50% of the total amount budgeted . This under-expenditure of budgeted funds is primarily due to the following: 1 . Several projects will not be fully underway until summer of 1985 • These projects include : a . Dublin Boulevard Utility Underground Project b . San Ramon Road ( Phase II ) C . Landscaping Major Arterials 2 . The City has not made sufficient progress with other agencies in j order to proceed with some projects , and therefore , it is likely that no costs will be incurred during 1984-85 . These projects include : a . Sewage Facility Expansion b . San Ramon Road/Alcosta Boulevard Traffic Signal C . Bus Shelters d. Kolb Park i J 3 . The City has realized substantial savings in recent construction contracts which have been awarded . This results in actual expense being less than budgeted . In addition to the Capital Improvements expenditures identified , it is also possible that the San Ramon Road Specific Plan Area Assessment District could be formed this fiscal year . As you may recall , the Assessment District would provide for the westerly extension of Amador Valley Boulevard along with improvements to the west side of San Ramon Road in that vicinity . If this district is formed , bonds would be issued and some expense could be incurred . It is not known at this time whether that would occur prior to the end of the Fiscal Year. As indicated in the attached exhibits , revenues should surpass expenditures by $2 .96 million. Although some of the difference will be encumbered for partially completed projects , the remainder will still positively impact the City ' s reserves . This will enable the City to continue to upgrade services to the community and undertake additional Opital improvements . EXHIBIT A 1984-85 REVENUE PROJECTION ESTIMATED (1) ADJUSTED REVENUES ACTUAL AS OF BUDGET ESTIMATED ALL FUNDS 1983-84 12/31/84 1984-85 1984-85 PROPERTY TAX $ $ $ $ Current Year Secured 314,062 159,269 323,000 321,000 Current Year Unsecured 32,194 33,870 36,500 49,000 Prior Year Secured - 1,604 - 5,000 Prior Year Unsecured - - - 2,500 Total-Property Tax 346,256 194,743 359,500 377,500 TAXES OTHER THAN PROPERTY Sales & Use Tax 3,321,668 2,135,000(2) 3,280,000 4,000,000(2) Real Property Transfer Tax 47,212 27,098 35,000 40,000 Electric Franchise 73,738 - 77,400 77,400 Gas Franchise 31,047 - 32,600 32,600 Cable TV Franchise 26,047 25,450 26,500 25,450 Hotel Transient Occupancy Tax - 40,924 - 131,500 Total-Taxes Other Than Property 3,499,712 2,228,472 3,451,500 4,306,950 LICENSES & PERMITS Building Permits 334,952 90,792 224,000 235,000 Animal Licenses 7,191 4,588 7,500 7,600 Bus Bench Ad Permits - - 350 350 Encroachment Permits 1,612 2,484 2,000 5,000 Other Permits 1,592 - 1,000 - Total-Licenses & Permits 345,347 97,864 234,850 247,050 FINES & FORFEITURES Vehicle Code Fines 50,730 25,267 55,000 52,000 Other Court Fines 11,004 10,014 6,000 15,000 Total-Fines & Forfeitures 61,734 35,281 61,000 67,000 REVENUE FROM USE OF MONEY & PROPERTY Interest 405,210 446,812 557,000 900,000 Rents & Concessions 3,988 28,578 48,000 52,000 Total-Revenue from Usejof Money & Property 409,198 475,390 605,000 952,000 INTERGOVERNMENTAL REVENUE - STATE Motor Vehicle In Lieu Tax 390,342 202,288 422,000 422,000 Trailer Coach In Lieu Tax 2,408 - 2,000 2,500 Cigarette Tax 83,072 51,607 91,300 91,300 Off Highway Vehicle In Lieu Tax 328 147 300 300 Homeowner's Property Tax Relief 17,214 2,550 19,000 19,000 Business Inventory Tax 24,108 - - - State Gas Tax (2106) 94,277 42,942 83,500 83,500 State Gas Tax (2107) 183,477 82,253 160,500 160,500 . State Gas Tax (2107.5) 4,000 4,000 4,000 4,000 Transportation Development Act Grant 8,292 4,446 8,892 8,892 Office of Traffic Safety Act Grant - 2,639 37,400 37,400 Total-Intergovernmental Revenue - State 807,518 392,872 828,892 829,392 j.. EXHIBIT A Page 2 ESTIMATED (1) ADJUSTED REVENUES ACTUAL AS OF BUDGET ESTIMATED ALL FUNDS 1983-84 12/31/84 1984-85 1984-85 INTERGOVERNMENTAL REVENUE - FEDERAL General Revenue Sharing 231,211 107,497 207,400 218,787 Community Development Block Grant 75,380 44,212 84,000 74,212 Federal Aid Urban Funds - - 510,000 430,000 Total-Intergovernmental Revenue - Federal 306,591 151,709 801,400 722,999 CHARGES FOR SERVICE Zoning & Subdivision Fees 34,251 30,473 30,000 45,000 Engineering Plan Check & Inspection Fees 77,526 54,994 85,000 95,000 Sales of Maps & Documents 2,222 1,429 2,500 2,900 Animal Shelter Fees - - - - Special Police Department Services 5,005 2,929 5,000 5,900 Park & Recreation Fees 4,120 10,122 158,000 32,000 Other Charges for Services - - 500 500 Building Use Insurance - 1,348 - 2,700 Zone 7 Drainage Fees - 102 - 200 Total-Charges for Service 123,124 101,397 281,000 184,200 OTHER REVENUES Proceeds from Sales of Property - 124,884 - 124,884 Miscellaneous 1,290 8 500 500 Park Dedication Fees 490,904 26,400 405,000 265,000 Shannon Lease Subsidy - 11,999 24,000 23,999 Reimbursement for Public Damage - 3,142 - 4,800 Non Government Contributions 40,918 87,480 298,000 240,000 Total-Other Revenues 533,112 253,913 727,500 659,183 SPECIAL BENEFIT ASSESSMENTS Street Light District 83-1 - 43,513 - 116,446 Lighting & Landscaping District 83-2 - 17,604 - 27,000 Total-Special Benefit Assessments - 61,117 - 143,446 TOTAL REVENUE - ALL FUNDS $6,432,592 $3,992,758 $7,350,642 $8,490,620 (1) All figures in this column are adjusted to actual as of 12/31/84, except as noted. (2) Sales tax has been estimated for the month of December. This figure also includes 299,742 which the City received from its sales tax law suit. I EXHIBIT B 1984-85 EXPENDITURE PROJECTION ACTUAL BUDGET ESTIMA`T'ED ALL FUNDS 1983-84 1984-85 1984-85 OPERATING EXPENSES City Council 26,308 45,570 44,500 City Manager/Clerk 123,853 162,330 156,500 Legal Services 37,761 60,000 50,700 Finance 6,937 11,980 12,500 Building; Management 85,530 110,500 102,000 Insurance 8,106 12,500 40,600 Elections 8,096 - - Non-Departmental - 36,680 - Police Services 1,237,449 1.349,320 1,330,000 Ambulance Services 2,148 - - Crossing Guards 15,096 16,500 16,500 Animal Control 28,459 43,000 38,000 Traffic Signals & Safety Lighting 58,467 70,600 73,000 Disaster Preparedness 132 12,000 11,400 Street Maintenance 126,981 260,650 242,000 Street Sweeping & Litter Pick-up 59,270 60,200 58,000 Street TrE!e Vaintenance 27,775 24,750 24,750 Beautification 17,096 32,000 32,000 Paratransit Services 14,113 14,084 14,084 Vector Control Services - 8,925 4,500 Library Service 29,600 41,437 41,437 Parks & Recreation 24,438 282,266 179,000 Planning 154,623 226,065 194,000 Building & Safety 100,616 197,244 173,000 Engineering 195,600 173,350 204,000 Assessment District 83-1 - 108,000 103,500 Assessment District. 83-2 - - - Total Operating Expenses $2,388,454 $3,359,951 $3,145,971 CAPITAL IMPROVEMENTS General 107,468 73,100 75,000 Community Improvements 155,432 1,622,258 685,000 Parks - 405,000 - Streets 363,638 2,648,136 1,622,000 Total Capital Improvements 626,538 4,748,494 2,382,000 Total Expenditures $3,014,992 $8,108,445 $5,527,971 i