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