HomeMy WebLinkAbout4.7 Fiscal Year 2021-22 1st Quarter Financial ReviewSTAFF REPORT
CITY COUNCIL
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Agenda Item 4.7
DATE:November 16, 2021
TO:Honorable Mayor and City Councilmembers
FROM:Linda Smith, City Manager
SUBJECT:Fiscal Year 2021-22 1st Quarter Financial ReviewPrepared by:Lisa Hisatomi, Director of Administrative Services
EXECUTIVE SUMMARY:The City Council will receive a financial report through the first quarter for Fiscal Year 2021-22and consider amendments to the Fiscal Year 2021-22 Budget via a budget change.
STAFF RECOMMENDATION:Receive the report and approve the budget change.
FINANCIAL IMPACT:Approval of the budget change will allow for minor adjustments to operating budgets. Total General Fund reserves are projected at $201,629,952by June 30, 2022.
DESCRIPTION:The focus of this report is the Fiscal Year 2021-22 General Fund Amended Budget. The Amended Budget includes any budget amendments already approved by the City Council since July 1, 2021, as well as carry-over budgets from Fiscal Year 2020-21. The Budget Change Form (Attachment 3) lists all new amendments needing City Council approval. Based on the current information available, Staff is not recommending any change to the revenue estimates except the transfer of $134,516.30 from the Enforcement Grant Fund to the General Fund for the reimbursement of DUI enforcement costs in prior years.On the operating expenditure side, Staff is recommending an increase of $35,000 in the risk management program to cover higher insurance premiums as part of the City’s participation in Plan JPA.The General Fund Summary (Attachment 1) incorporates the Fiscal Year 2020-21 budget carryovers for operating programs ($2,027,817) and Capital Improvement Program
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($12,517,349), and the recommended changes. Following these changes, total General Fund Reserves are projected at $201,629,952 by the end of the fiscal year, as shown in the table below. The General Fund Reserves Summary (Attachment 2) provides a detailed allocation of the reserves.Table 1: General Fund SummaryFY 2020-21 Actual FY 2021-22 Adopted New FY 2021-22 AmendedTotal Reserves, Beginning of Year $190,649,224 $207,650,181 $207,650,181 Revenues 103,086,306 98,397,780 98,558,604 Expenditures (74,121,779)(83,917,877)(87,017,326)Net Operating Budget Impact 28,964,528 14,479,903 11,541,278 Transfers In 273,623 56,600 191,116 Unrealized Gain/Loss (3,936,480)Transfers Out/Contribution to Other (8,300,714)(6,038,550)(17,752,623)Total Reserves, End of Year $207,650,181 $216,148,134 $201,629,952 Change from Prior Year ($6,020,229)Other FundsStaff requests the City Council’s approval to amend the budget for the following:
Enforcement Grant Fund - Increase Transfers Out by $134,516.30 to reimburse the General Fund for reimbursement of DUI enforcement costs.
Information Technology Fund - Appropriate $61,572 for the OpenGov transparency software maintenance and license costs, as the software was implemented after the budget was adopted.
Federal Asset Seizure Fund - Appropriate the remaining balance in the fund ($650.35) for the police investigation program.
STRATEGIC PLAN INITIATIVE:Strategy 2: Explore New City Revenue Streams for Long Term Financial StabilityObjective 2D: Continue to maintain strong fiscal policies.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:The City Council Agenda was posted.
ATTACHMENTS:1) General Fund Summary Q1 FY 2021-222) General Fund Reserves Summary Q1 FY 2021-223) Budget Change Q1 FY 2021-22
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Attachment 1GENERAL FUND SUMMARY - Q1 FY 2021-22
Actual
2020-21
Adopted
Budget
2021-22
Amended
Budget
2021-22
Q1 Adjustment
New Amended
2021-22
Revenues
Property Tax $53,007,086 $52,763,000 $52,763,000 $52,763,000
Sales Tax 24,860,469 22,528,000 22,528,000 $22,528,000
Sales Tax Reimbursements (219,445)(610,000)(610,000)($610,000)
Development Revenue 7,391,926 7,721,318 7,849,983 $7,849,983
Transient Occupancy Tax 743,962 750,000 750,000 $750,000
Other Taxes 6,441,357 5,732,706 5,732,706 $5,732,706
Licenses & Permits 334,852 313,434 313,434 $313,434
Fines & Penalties 75,394 107,432 107,432 $107,432
Interest Earnings 2,695,357 1,200,000 1,200,000 $1,200,000
Rentals and Leases 822,841 1,020,768 1,020,768 $1,020,768
Intergovernmental 300,618 285,000 285,000 $285,000
Charges for Services 4,794,938 5,268,891 5,268,891 $5,268,891
Other Revenue 1,836,951 1,317,231 1,349,390 $1,349,390
Subtotal Revenues - Operating $103,086,306 $98,397,780 $98,558,604 $98,558,604
Transfers In $273,623 $56,600 $56,600 $134,516 191,116
Unrealized Gains/Losses (3,936,480) -
Total Revenues $99,423,449 $98,454,380 $98,615,204 $134,516 $98,749,720
Expenditures
Salaries & Wages $10,666,813 $12,772,606 $12,772,606 $12,772,606
Benefits 4,754,632 5,372,420 5,372,420 $5,372,420
Services & Supplies 2,782,316 4,110,511 4,316,749 35,000 $4,351,749
Internal Service Fund Charges 3,685,246 3,907,323 3,907,323 $3,907,323
Utilities 2,399,088 3,045,467 3,045,467 $3,045,467
Contracted Services 49,039,885 54,367,888 55,839,451 $55,839,451
Capital Outlay 639,176 118,677 529,605 $529,605
Debt Service Payment - 975,720 $975,720
Contingency & Miscellaneous 154,622 222,985 222,985 $222,985
Subtotal Expenditures - Operating $74,121,779 $83,917,877 $86,982,326 $35,000 $87,017,326
Operating Impact (REV-EXP)$28,964,528 $14,479,903 $11,576,278 ($35,000)$11,541,278
Transfer Outs & Contributions to Other Funds
Transfers Out (CIPs) - Undesignated (1)$948,506 4,038,550 $4,336,480 $4,336,480
Transfers Out (CIPs) - Carryover from Prior Year -
Transfers Out (CIPs) - Com./Assig. Res 4,352,208 11,416,144 11,416,144
Contribution to OPEB/PERS 2,000,000 1,000,000 1,000,000 1,000,000
Contribution to ISF 1,000,000 1,000,000 1,000,000 1,000,000
Subtotal - Transfers Out & Contributi 8,300,714 6,038,550 17,752,623 - 17,752,623
Total Expenditures $82,422,492 $89,956,427 $104,734,950 $35,000 $104,769,950
GF Impact (Include CIP & Transfers)$17,000,957 $8,497,953 ($6,119,746)$99,516 ($6,020,229)
TOTAL GENERAL FUND BALANCE $207,650,181 $216,148,134 $201,530,435 $201,629,952
Contracted Services Detail
Actual
2020-21
Adopted
Budget
2021-22
Amended
Budget
2021-22
Q1 Adjustment
New Amended
2021-22
Police Services (3)$20,731,301 $22,294,777 $22,394,777 $22,394,777
Fire Services (3)13,846,016 14,609,570 14,609,570 $14,609,570
Maintenance Services (MCE)5,344,843 5,933,838 5,933,838 $5,933,838
Development (CDD and PW)3,059,578 4,107,935 4,820,159 $4,820,159
Other Contracted Services 6,058,148 7,421,768 8,081,106 $8,081,106
Total Contracted Services $49,039,885 $54,367,888 $55,839,451 $55,839,451
(1) Amended budget for operating expenditures includes $2,027,817 carryover from FY 20-21
(3) Police and Fire liability insurance amounts are not included above, they are included in Services & Supplies.
(2) Amended Budget for Transfers Out to CIP includes $12,517,349 carryover from FY 20-21 and reduction of General Fund
contribution for the Citywide Energy Improvement project
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Attachment 2GENERAL FUND RESERVES SUMMARY- Q1 FY 2021-22
RESERVE DESCRIPTION
Actual
2020-21
Increase
2021-22
Decrease
2021-22
Net
Change
Projected
2021-22
Non-Spendable $13,266 $13,266
Prepaid Expenses 13,266 13,266
Restricted $2,379,000 $2,379,000
Cemetery Endowment 60,000 60,000
Developer Contr - Downtown 1,490,000 1,490,000
Developer Contr - Heritage Pk 19,000 19,000
Developer Contr - Nature Pk 60,000 60,000
Heritage Park Maintenance 750,000 750,000
Committed $70,694,542 ($9,559,797)($9,559,797)$61,134,745
Advance to Public Facility Fee 9,857,639 9,857,639
Downtown Public Impr 13,000,000 (200,000)(200,000)12,800,000
Economic Development 53,319 (53,310)(53,310)9
Economic Stability 8,000,000 8,000,000
Emergency Communications 532,113 532,113
Fire Svcs Pension/OPEB 5,671,094 5,671,094
Innovations & New Opport 1,031,719 (137,220)(137,220)894,498
One-Time Initiative - Capital 4,966,110 (1,476,078)(1,476,078)3,490,032
One-Time Initiative - Operating 503,860 503,860
Public Safety Reserve 2,600,000 2,600,000
Specific Committed Reserves
Cemetery Expansion (CIP)1,173,549 (1,173,549)(1,173,549)
Contribution to Public Facility Fee 6,000,000 6,000,000
Cultural Arts Center 4,539,197 (4,364,197)(4,364,197)175,000
Don Biddle Park (CIP)2,100,000 (2,100,000)(2,100,000)
Fallon Sports Park III Contingency 3,110,500 3,110,500
Lease Revenue Bond Payment 4,000,000 4,000,000
Maintenance Facility (CIP)55,443 (55,443)(55,443)
Utility Undergrounding (CIP)3,500,000 3,500,000
Assigned $66,743,520 ($1,752,252)($1,752,252)$64,991,268
Accrued Leave 1,296,514 1,296,514
Catastrophic Loss 17,710,320 17,710,320
CIP Carryovers 2,735,111 2,735,111
Fiscally Responsible Adj 325,000 325,000
Municipal Regional Permit 2,212,931 (454,237)(454,237)1,758,695
Non-Streets CIP Commitments 2,366,100 2,366,100
Operating Carryovers 1,882,745 1,882,745
Parks and Streets Contingency 201,270 201,270
Pension & OPEB 16,000,000 16,000,000
Relocate Parks Dept 500,000 500,000
Service Continuity 3,150,000 3,150,000
Specific Assigned Reserves
Climate Action Plan 3,000,000 3,000,000
Contribution to ISF 1,500,000 1,500,000
Façade Improvement Grants 374,157 374,157
HVAC Replace. & Civic Ctr Improv. (CIP)3,337,009 (1,145,652)(1,145,652)2,191,357
Public Safety Complex (CIP)152,363 (152,363)(152,363)
Village Pkwy Pavemt Recon 10,000,000 10,000,000
Unassigned $67,819,852 $11,312,049 ($6,020,229)$5,291,820 $73,111,672
Unassigned-Unrealized Gains 4,516,760 4,516,760
Unassigned (Available)63,303,092 68,594,912
TOTAL RESERVES $207,650,181 $11,312,049 ($17,332,279)($6,020,229)$201,629,952
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Attachment 3
Budget Change Reference #:
From Un-Appropriated Reserves X Budget Transfer Between Funds
From Designated Reserves Other
1001.1402.61601 $35,000.00
6605.1602.61108 $61,572.00
2111.1901.89101 $134,516.30
1001.1901.49999 $134,516.30
2107.2111.61104 $650.35
11/16/2021
Posted By:Date:
**********Finance Use Only**********
As Presented at the City Council Meeting
General Fund - Insurance - Insurance Premiums
Increase in insurance premium
IT Internal Service Fund - Information Systems - Software
OpenGov software, contract awarded after budget
adoption
Reimbursement of the Avoid 21 DUI enforcement
costs to General Fund
CITY OF DUBLIN
FISCAL YEAR 2021-22
BUDGET CHANGE FORM
City Council's Approval Required
OPERATING EXPENDITURES
Enforcement Grant Fund - Non-Dept- Transfers Out
Federal Asset Seizure Fund - Police - Operating Supplies
Appropriate remaining fund balance for police
investigation program
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