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HomeMy WebLinkAboutFIN General Fund Update and City-Wide Budget Amendments____________________________________________________________________________________ FOR CITY CLERK ONLY Council Meeting: 9/04/2018 Disposition: Accepted Report and Adopted Resolution No. 14571 Agenda Item No: 4.h Meeting Date: September 4, 2018 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Finance Prepared by: Nadine Hade, Interim Finance Director City Manager Approval: ______________ TOPIC: GENERAL FUND UPDATE AND CITY-WIDE BUDGET AMENDMENTS SUBJECT: UPDATE ON FISCAL YEAR 2017-2018 UNAUDITED RESULTS FOR THE GENERAL FUND AND RESOLUTION ADOPTING AMENDMENTS TO THE FISCAL YEAR 2017-2018 CITY-WIDE BUDGET FOR THE PURPOSE OF CONFIRMING AUTHORIZED APPROPRIATIONS AND TRANSFERS RECOMMENDATION: ACCEPT REPORT AND ADOPT RESOLUTIONS AS PRESENTED BACKGROUND: During the process of developing and recommending the fiscal year 2018-2019 budget, staff provided updates on the fiscal performance of the General Fund and projections through fiscal year-end. Now that the City has closed its books for the fiscal year, staff is in a position to provide an update to the City Council that will provide a more accurate picture of the year-end results. The fiscal year 2017-2018 City-wide budget was last amended by the City Council on December 18, 2017, during an interim budget review. Since the close of the fiscal year on June 30, 2018, staff has reviewed the revenues and expenditures, particularly those in special revenue funds and other special purpose funds. This review has yielded a small number of adjustments that are clean up in nature. These adjustments are recommended by the City’s outside auditors and their approval by the City Council provides for complete budget accountability. The purpose of these amendments is to formally authorize the expenditures and transfers required in certain funds to fulfill their respective purposes and functions through June 30, 2018, as well as recognize the accounting treatment of the 2018 Lease Revenue Bonds for the Essential Public Safety Facilities project. None of these amendments results in a deficit fund balance in any of the subject funds. This item was reviewed by the City Council Finance Committee at its meeting of August 29, 2018. ANALYSIS: General Fund At the June 18, 2018 City Council Meeting, staff projected a deficit of $159,075 for the fiscal year-ended June 30, 2018. Following the preliminary year-end close, this number is projected at $155,035, a SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 decrease of $4,040. The reduction in the deficit is due to an increase in projected revenues of $483,000 netted with additional expenditures of $478,960. Staff is recommending increasing expenditure authorization by $478,960 to cover the increase in expenditures. There is no net fiscal impact associated with this activity as it is offset by additional revenues. The General Fund received $53,733,397 in financing sources from the sale of 2018 Lease Revenue Bonds for the Essential Public Safety Facilities project, approved by the City Council on March 5, 2018. From these proceeds, $52,987,673 was transferred to the Essential Public Safety Facilities project fund. The remaining $745,724 was retained in the general fund to make a bond interest payment of $391,029 and to cover bond issuance costs of $354,695. A portion of the bond proceeds earned $48 of interest which was also transferred to the project fund, bringing the total amount transferred to $52,987,721. This activity was not included in the budget projections presented to City Council on June 18, 2018 as the technical accounting analysis was not yet completed. Since the expenditures are accompanied with a revenue source, there is no net impact to the current year results. Following the final accounting for the Public Safety Essential Facilities projects, capital transfers of $8,788,886 were made from Measure E Transaction and Use revenues to the project fund. Of this amount, $4,025,000 corresponds to revenues received in fiscal year 2017-2018 and $4,763,886 corresponds to revenues set aside in prior years. FY 17-18 Budget Projections Updated to include Recommended Updated to include presented to bond, energy loan Adjustments to Recommended City Council and capital activity Revenues/Expenditures Adjustments General Fund June 18, 2018 June 30, 2018 September 4, 2018 September 4, 2018 Revenues $77,562,000 $77,562,048 $483,000 $78,045,048 Transfers in 1,356,344 1,356,344 - 1,356,344 Financing Sources - 2018 Lease Rev Bonds - 53,733,397 - 53,733,397 Financing Sources - PG&E CEC Loan - 1,080,800 - 1,080,800 Total Resources $78,918,344 $133,732,589 $483,000 $134,215,589 Expenditures $72,633,000 $73,378,723 $478,960 $73,857,683 Transfers out – operating 2,350,000 2,350,000 0 2,350,000 Total Operating Uses $74,983,000 $75,728,723 $478,960 $76,207,683 Measure E to Public Safety Facilities $4,025,000 $8,788,886 - $8,788,886 Bond Proceeds to Public Safety Facilities - 52,987,721 - 52,987,721 PG&E Loan to Energy Projects - 1,080,800 - 1,080,800 Total Capital Transfers Out $4,025,000 $62,857,407 $0 $62,857,407 Net Results before Allocations ($89,656)($4,853,541)$4,040 ($4,849,501) (Allocations) / Use of reserved funds Measure E - Public Safety Facilities - $4,763,886 - $4,763,886 Emergency reserve (120,000)(120,000)- (120,000) Purchase Order rollover 50,581 50,581 - 50,581 Total Results ($159,075)($159,075)$4,040 ($155,035) Allocation of unassigned funds $159,075 $159,075 ($4,040)$155,035 Net After Allocations $0 $0 $0 $0 SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3 Other Funds The following table lists the expenditures through June 30, 2018, for which a total of $168,745 needs to be appropriated. The primary reasons for these changes include (1) unanticipated operational needs, and (2) underestimated expenditure amounts. Some expenditures were needed to provide services that were offset by grants or other revenue sources. There were sufficient resources in each of these funds to support these expenditures, and none of the expenditures has an impact on the assumptions under which the fiscal year 2018-2019 budget was developed. As a result of making these changes, the City’s financial statements for fiscal year 2018-2019 will reflect spending within the authorized levels. Proposed adjustments to appropriations: Fund Purpose of authorization Amount Funding Source 230 – Police Youth Services Camp Chance 2018 Program $33,117 donations 234 – Pt. San Pedro Median Assessment District Median maintenance (work described in engineers report) 32,517 property assessments 235 – Baypoint Lagoon Assessment District Miscellaneous costs 101 property assessments 237 – Loch Lomond Marina CFD #2 County collection charges 130 property assessments 281 – Safety Grants Crime analytics, traffic enforcement 102,880 non-federal and federal grants Total Recommended Adjustments $168,745 Special Revenue Funds FISCAL IMPACT: This action authorizes the formal appropriation of resources in the 2017-2018 fiscal year to support the actual expenditure and transfer activity through June 30, 2018 as described in this report. No spending authority beyond what was actually spent or committed as of June 30, 2018 is created through this action. RECOMMENDATION: Staff recommends that the City Council accept the report and adopt the Resolution as presented. ATTACHMENT: Resolution with exhibit RESOLUTION NO. 14571 RESOLUTION OF THE SAN RAFAEL CITY COUNCIL ADOPTING AMENDMENTS TO THE CITY OF SAN RAFAEL BUDGET FOR FISCAL YEAR 2017-2018 FOR THE PURPOSE OF CONFIRMING AUTHORIZED APPROPRIATIONS AND TRANSFERS WHEREAS, the City Council approved Resolution 14342 adopting the fiscal year 2017-2018 budget; and WHEREAS, the City Council approved Resolution 14445 amending the fiscal year 2017-2018 budget, and took other actions during the year to authorize spending ; and WHEREAS, as part of the fiscal year-end closing process, staff has reviewed and analyzed actual revenues, expenditures and transfers through June 30, 2018, has identified a need for additional budget adjustments, and has submitted its analysis and recommendations in a report to the City Council; and WHEREAS, after examination, deliberation and due consideration, the City Council has approved the same report and recommendations; NOW, THEREFORE, BE IT RESOLVED, by the San Rafael City Council that Resolution 14342 for fiscal year 2017-2018 is further amended to authorize the following adjustments to appropriations, which are reflected in the Consolidated Funds Schedule (Exhibit I attached hereto and incorporated herein by reference): Fund Description Amount General Fund – 001 increased costs; offset by revenue $478,960 Police Youth Services - 230 Camp Chance 2018; funded by donations 33,117 Pt. San Pedro A.D. – 234 median maintenance; funded by assessments 32,517 Baypoint Lagoon A.D. – 235 misc costs; funded by assessments 101 Loch Lomond CFD #2 - 237 county charges; funded by assessments 130 Safety Grants – 281 crime analytics, traffic enforcement; funded by grants 102,880 Total Special Revenue Funds $168,745 I, LINDSAY LARA, Clerk of the City of San Rafael, hereby cert ify that the foregoing resolution was duly and regularly introduced and adopted at a special meeting of the Council of said City on Tuesday, the 4th of September 2018, by the following vote, to wit: AYES: NOES: ABSENT: COUNCILMEMBERS: Bushey, Colin, Gamblin, McCullough & Mayor Phillips COUNCILMEMBERS: None COUNCILMEMBERS: None ___________________________ LINDSAY LARA, City Clerk EXHIBIT I TABLE I CHANGES TO GENERAL FUND REVENUES AND OTHER SOURCES General Fund Adopted Budget FY 2017-18 Approved Changes Current Budget Proposed Changes Revised Budget Revenues 76,724,443 837,605 77,562,048 483,000 78,045,048 Transfers in 1,356,344 1,356,344 - 1,356,344 Financing Sources - 54,814,197 54,814,197 - 54,814,197 FY17-18 Sources 78,080,787 55,651,802 133,732,589 483,000 134,215,589 FY16-17 Rollover 50,549 32 50,581 50,581 Total Resources 78,131,336 55,651,834 133,783,170 483,000 134,266,170 TABLE II CHANGES TO GENERAL FUND EXPENDITURES AND OTHER USES General Fund Adopted Budget FY 2017-18 Approved Changes Current Budget Proposed Changes Revised Budget Expenditures 72,513,946 916,272 73,430,218 478,960 73,909,178 Transfer out 2,350,000 2,350,000 2,350,000 Transfer out-CIP 4,025,000 58,832,407 62,857,407 62,857,407 Total Appropriation 78,888,946 59,748,680 138,637,626 478,960 139,116,586 TABLE III CHANGES TO OTHER FUNDS Other Funds Adopted Budget FY 2017-18 Approved Changes Current Budget Proposed Changes Revised Budget Revenues 44,376,578 2,732,926 47,109,504 - 47,109,504 Transfers in 6,475,000 61,786,020 68,261,020 68,261,020 FY17-18 Sources 50,851,578 64,518,946 115,370,524 - 115,370,524 FY16-17 Rollover 7,806,379 7,806,379 7,806,379 FY16-17 CIP Carry Over - - - Total Resources 50,851,578 72,325,325 123,176,903 - 123,176,903 Expenditures 51,526,218 37,966,407 89,492,625 168,745 89,661,370 Transfer out 1,456,344 2,953,565 4,409,909 - 4,409,909 Total Appropriation 52,982,562 40,919,972 93,902,534 168,745 94,071,279 Net Results (2,130,984) 31,405,353 29,274,369 (168,745) 29,105,624 TABLE IV CITY-WIDE APPROPRIATION SUMMARY All Funds Adopted Budget FY 2017-18 Approved Changes Current Budget Proposed Changes Revised Budget General Fund 78,888,946 59,748,680 138,637,626 478,960 139,116,586 Other Funds 52,982,562 40,919,972 93,902,534 168,745 94,071,279 Net Expenditures 131,871,508 97,715,087 229,586,595 647,705 230,234,300