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HomeMy WebLinkAbout4.11 Fiscal Year 2022-23 1st Quarter Financial ReviewCELEBRATING STAFF REPORT CITY COUNCIL DUBLIN CALIFORNIA Agenda Item 4.1 1 DATE: December 6, 2022 TO: Honorable Mayor and City Councilmembers FROM: Linda Smith, City Manager SU B.ECT : Fiscal Year 2022-23 1st Quarter Financial Review Prepared by: Lisa Hisatomi, Director of Administrative Services EXECUTIVE SUMMARY: The City Council will receive a financial report through the first quarter of Fiscal Year 2022-23 and consider amendments 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 $209,689,170 by June 30, 2023. DESCRIPTION: The focus of this report is the Fiscal Year 2022-23 General Fund Amended Budget. The Amended Budget includes any budget amendments already approved by the City Council since July 1, 2022, as well as carry-over budgets from Fiscal Year 2021-22. 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. On the operating expenditure side, Staff is recommending an increase of $300,000 for property damage repairs that will be submitted for insurance reimbursement. The increase is needed due to an anticipated lag in reimbursement revenue from the City's insurance company, Plan JPA. The General Fund Summary (Attachment 1) incorporates the Fiscal Year 2022-23 budget carryovers for operating programs ($1,856,112) and the Capital Improvement Program (CIP) Page 1 of 3 293 ($12,510,109), and the recommended change of $300,000. Total General Fund Reserves are projected at $209,689,170 by the end of the fiscal year, as shown in the table below. The decrease in reserves, comparing to the prior year, is primarily due to planned CIP expenditures, a one-time lump sum contribution to the Dougherty Regional Fire Authority unfunded pension liability, and a contribution to the Internal Service Fund for replacements. The General Fund Reserves Summary (Attachment 2) provides a detailed allocation of the reserves. Table 1: General Fund Summary FY2021-22 Actual FY 2022-23 Adopted New FY 2022-23 Amended Total Reserves, Beginning of Year Revenues Expenditures Net Operating Budget Impact Transfers In Unrealized Gain/Loss Transfers Out/Contribution to Other Total Reserves, End of Year Change from Prior Year $209,764,495 114,572,363 (80,931,058) 33,641,305 312,874 (15,525,055) (4,336,114) $223,857,505 $208,866,308* 108,709,762 (94,018,847) 14,690,915 77,900 (11,067,815) $212,567,308 $223,857,505 108,709,762 (96,465,975) 12,243,787 (26,412,122) $209,689,170 ($14,168,335) * FY2022-23 Adopted beginning reserve balance was based on the FY 2021-22 year-end projection. Other Funds Staff requests the City Council's approval to amend the budget for the following: • EMS Special Revenue Fund - Appropriate $10,000 for a special assessment revenue audit and Alameda County's fee for tax collection. • Information Technology Fund - Appropriate $18,000 for higher -than -budgeted maintenance and licensing fees for Situational Awareness Cameras. • Measure D Fund - Adjust the CIP and operating budget to account for expenditures eligible for Measure D funding, primarily related to SB 1383 implementation and recycling containers. This results in a net increase in appropriations by $223,765. • Local Recycling Program Fund - Appropriate $60,000 for education materials and outreach services for SB 1383. STRATEGIC PLAN INITIATIVE: None. NOTICING REQUIREMENTS/PUBLIC OUTREACH: The City Council Agenda was posted. Page 2 of 3 294 ATTACHMENTS: 1) General Fund Summary Q1 FY 2022-23 2) General Fund Reserves Summary Q1 FY 2022-23 3) Budget Change Q1 FY 2022-23 Page 3 of 3 295 GENERAL FUND SUMMARY - Q1 FY 2022-23 Attachment I Actual 2021-22 Adopted 2022-23 Amended 2022-23 New Amended Q1 Adjustment 2022-23 Property Tax Sales Tax Sales Tax Reimbursements Development Revenue Transient Occupancy Tax Other Taxes Licenses & Permits Fines & Penalties Interest Earnings Rentals and Leases Intergovernmental Charges for Services Other Revenue a $55,186,388 26,456,903 (346,696) 9,803,444 1,255,575 7,025,567 354,643 70,714 2,269,289 1,647,882 324,519 8,022,099 2,502,034 $55,163,000 26,400,000 (405,555) 7,702,334 1,400,000 6,560,000 351,373 85,000 1,510,000 1,477,330 290,000 6,496,124 1,680,156 $55,163,000 26,400,000 (405,555) 7,702,334 1,400,000 6,560,000 351,373 85,000 1,510,000 1,477,330 290,000 6,496,124 1,680,156 $55,163,000 26,400,000 (405,555) 7,702,334 1,400,000 6,560,000 351,373 85,000 1,510,000 1,477,330 290,000 6,496,124 1,680,156 Subtotal Revenues - Operating $114,572,363 $108,709,762 $108,709,762 $108,709,762 Transfers In Unrealized Gains/Losses Salaries & Wages Benefits Services & Supplies Internal Service Fund Charges Utilities Contracted Services Capital Outlay Debt Service Payment Contingency & Miscellaneous $312,874 (15,525,055) $77,900 $77,900 $11,670,597 4,728,716 3,894,567 3,907,323 2,511,166 52,920,629 339,943 958,117 $13,249,383 5,488,704 5,178,309 4,932,571 3,485,435 59,695,219 432,737 1,333,050 223,440 $13,541,615 5,567,488 5,394,934 4,932,571 3,485,435 61,202,517 504,925 1,333,050 203,440 $13,541,615 5,567,488 5,394,934 4,932,571 3,485,435 300,000 61,502,517 504,925 1,333,050 203,440 Subtotal Expenditures - Operating Operating Impact (REV-EXP) $80,931,058 $94,018,847 $33,641,305 $14,690,915 $96,165,975 $12,543,787 $300,000 $96,465,975 ($300,000) $12,243,787 Transfer Outs & Contributions to Other Funds Transfers Out (CIPs) - Com./Assig. Resery Transfers Out (CIPs) - Undesignated Contribution to OPEB/PERS Contribution to ISF $2,803,478 532,636 1,000,000 $2,291,645 2,316,170 4,460,000 2,000,000 $13,759,910 6,120,013 4,460,000 2,000,000 13,759,910 72,198 6,192,212 4,460,000 2,000,000 Subtotal - Transfers Out & Contributions 4,336,114 11,067,815 26,339,924 72,198 26,412,122 Total Expenditures $85,267,172 $105,086,662 $122,505,899 $372,198 $122,878,097 GF Impact (Include CIP & Transfers) $14,093,010 $3,701,000 ($13,718,237) ($372,198) ($14,168,335) TOTAL GENERAL FUND BALANCE $223,857,505 $227,558,505 $210,139,268 $209,689,170 Contracted Services Detail Actual 2021-22 Adopted 2022-23 Amended 2022-23 New Amended 2022-23 Police Services (1) Fire Services (1) Maintenance Services (MCE) Development Other Contracted Services $21,437,403 14,699,226 5,875,493 3,876,551 7,031,956 $22,294,777 14,609,570 5,933,838 4,107,935 12,749,099 $21,788,548 14,699,227 5,933,838 5,259,552 13,521,353 $21,788,548 14,699,227 5,933,838 5,259,552 300,000 13,821,353 Total Contracted Services $52,920,629 $59,695,219 $61,202,517 $300,000 $61,502,517 (1) Police and Fire liability insurance amounts are not included above, they are included in Services & Supplies. 296 RESERVE DESCRIPTION GENERAL FUND RESERVES SUMMARY- Q1 FY 2022-23 Actual 2021-22 Increase 2022-23 Decrease 2022-23 Net Change Attachment 2 Projected 2022-23 Non -Spendable 41.6 Prepaid Expenses Restricted Cemetery Endowment $10,541 10,541 $4, 261,640 60,000 di $10,541 10,541 $4, 261, 640 60,000 Developer Contribution - Downtown 1,490,000 1,490,000 Developer Contr - Heritage Park 19,000 19,000 Developer Contr - Nature Park 60,000 60,000 Section 115 Trust - Pension 1,882,640 1,882,640 Heritage Park Maintenance Committed Advance to Public Facility Fee 750,000 $73,346,367 9,523,096 ($9,786,690) ($9,786,690) 750,000 $63,559,678 9,523,096 Downtown Public Improvement 15,176,230 (426,221) (426,221) 14,750,009 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 Opportunity 1,026,591 (132,093) (132,093) 894,498 One -Time Initiative - Capital 6,419,657 (1,420,149) (1,420,149) 4,999,508 One -Time Initiative - Operating 503,860 503,860 Public Safety Reserve 2,600,000 2,600,000 Specific Committed Reserves Cemetery Expansion (CIP) 13,748 (13,748) (13,748) Contribution to Public Facility Fee 6,000,000 6,000,000 Cultural Arts Center (CIP) 7,139,197 (6,964,197) (6,964,197) 175,000 Don Biddle Park (CIP) 675,193 (675,193) (675,193) Fallon Sports Park III Contingency 510,500 (100,000) (100,000) 410,500 Lease Revenue Bond Payoff 6,000,000 6,000,000 Maintenance Facility (CIP) 55,089 (55,089) (55,089) Utility Undergrounding (CIP) 3,500,000 3,500,000 Assigned $93,266,322 ($9,633,178) ($9,633,178) $83,633,144 Accrued Leave 1,308,044 1,308,044 Catastrophic Loss 17,710,320 17,710,320 CIP Carryovers 4,088,843 (4,088,843) (4,088,843) Fiscally Responsible Adjustment 325,000 325,000 Municipal Regional Permit 2,209,778 (2,182,419) (2,182,419) 27,359 Non -Streets CIP Commitments 3,276,777 (4,277) (4,277) 3,272,500 Operating Carryovers 1,600,546 (1,600,546) (1,600,546) Parks and Streets Contingency 201,270 201,270 Pension & OPEB 17,000,000 17,000,000 Relocate Parks Dept 500,000 500,000 Service Continuity 3,150,000 3,150,000 Dublin Blvd Extension - Placeholder 20,000,000 20,000,000 Specific Assigned Reserves ARPA Revenue Replacement 665,878 665,878 Climate Action Plan 3,000,000 (62,000) (62,000) 2,938,000 Contribution to ISF 1,500,000 1,500,000 Facade Improvement Grants 364,256 364,256 HVAC Replace. & Civic Ctr Improv. (CIP) 3,278,409 (1,307,892) (1,307,892) 1,970,517 Pavement Management 2,000,000 2,000,000 Public Safety Complex (CIP) 87,200 (87,201) (87,201) Village Pkwy Pavement Reconstruction 11,000,000 (300,000) (300,000) 10,700,000 Unassigned $52,972,635 $19,419,868 ($14,168,335) $5,251,533 $58,224,167 Unassigned -Unrealized Gains (11,008,294) (11,008,294) Unassigned (Available) 63,980,929 56,224,167 TOTAL RESERVES $223,857,505 $19,419,868 ($33,588,203) ($14,168,335) $209,689,170 297 Attachment 3 CITY OF DUBLIN FISCAL YEAR 2022-23 BUDGET CHANGE FORM Budget Change Reference #: City Council's Approval Required From Un-Appropriated Reserves X Budget Transfer Between Funds From Designated Reserves Other OPERATING EXPENDITURES General Fund - Public Works - Contract Services 10016000.64001 $300,000.00 Property damage repair costs that will be submitted for insurance reimbursement IT Internal Service Fund - Information Systems - Software 66051400.61108 $18,000.00 Higher than budgeted maintenance and licensing fee for Situational Awareness Camera Measure D Fund - Environmental Services 23026200.61xxx (Operating Supplies/Training) $15,335.00 Increase in promotional materials/giveaways, conferences/training 23026200.64102 (MCE Additional Services) $15,000.00 MCE cost for compost/mulch application at Dublin Pride 23026200.61108 (Software) $36,000.00 Green Challenge and Recyclist database 23026230.61104 (Operating Supplies) $65,000.00 Three stream containers for public locations, compost for carbon sequestration pilot project, water bottle fill stations. Contract services for SB 1383 implementation 23026230.64001 (Contract Services) $175,000.00 franchise agreement technical assistance. Local Recycling Program Fund - Environmental Services 23046200.61104 (Operating Supplies) $45,000.00 Three stream containers for public locations, SB 1383 educational materials. 23046200.64001 (Contract Services) $15,000.00 SB 1383 outreach and inspections of edible food generators. CIPs Imagine Playground Dublin Sports Ground PK0518.1001 (General Fund) $48,320.32 Change funding source for the CIP, CIP does not PK0518.2302 (Measure D Fund) ($48,320.32) have any eligible expenditures that are reimbursable by Measure D Fund, remaining 10010010.89101 (General Fund Transfers Out) $23,378.16 projects costs are consulting service that are not 23020000.49999 (Measure D Fund Transfers In) $23,378.16 eligible for Measure D Fund Police Services Building G10116.2302 (23020010.89101) (Measure D Fund Transfers Out) ($34,250) CIP does not have any eligible expenditures that G10116.9400.9401 (Improvements) ($34,250) are reimbursable by Measure D Fund, make 33009310.49999 (Transfers In) ($34,250) available the funding for operating programs As Presented at the City Council Meeting 12/6/2022 **********Finance Use Only********** Posted By: Date: 298