HomeMy WebLinkAboutFin Budget Amendments & UpdateCITY OF�
Agenda Item No: 5.a
Meeting Date: April 18, 2016
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: FINANCE
Prepared by: Mark Moses City Manager Approval:
Finance Director
TOPIC: City Budget
SUBJECT: (1) FISCAL YEAR 2015-2016 SECOND INTERIM FINANCIAL UPDATE
(2) RESOLUTION AMENDING FISCAL YEAR 2015-2016 BUDGET
(3) FISCAL YEAR 2016-2017 OPERATING BUDGET PREVIEW
RECOMMENDATIONS: ADOPT RESOLUTION
BACKGROUND: The Finance Department performs an ongoing review of the City's financial
performance, and provides monthly reports on the General Fund to the City Council Finance Committee.
On December 7, 2015, an interim financial update was provided to the City Council that was based on
actual revenue and expenditure performance for the period July 1 through November 30, 2015, as
compared to the budget approved by City Council on May 18, 2015.
This report extends the performance period of actual revenues and expenditures through
March 31, 2016, and includes all City Council budget actions through April 4, 2016.
Based on this review and analysis, revisions are recommended to address the following categories:
(1) Revenue projections
(2) Expenditure plan changes
Staff will keep the Finance Committee and the City Council apprised of any significant changes that
impact the current fiscal year 2015-2016 budget.
ANALYSIS:
2015-2016 GENERAL FUND:
Fiscal year 2015-2016 General Fund Operating Results (budgeted revenues and expenditures) continue
to track with the projections as adjusted in December 2015. Therefore, there are no proposed changes at
this time.
FOR CITY CLERK ONLY
File No.: 8-5
Council Meeting: 04/18/2016
Disposition: Resolution 14106
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
General Fund — Operating Results: The following table summarizes the General Fund budget for
fiscal year 2015-2016, and the impact on Net Operating Results and Unassigned Funds.
Total Sources 73,752,116 730,665 74,482,781
Expenditures
Adopted
Approved
Current
P.O. Rollover
Budget
Changes
Budget
Revenues
$72,394,767
$877,287
$73,272,054
Transfers in
1,357,349
(262,287)
1,095,062
FY15-16 Sources
73,752,116
615,000
74,367,116
FY14-15 rollover
$4,270,820
115,665
115,665
Total Sources 73,752,116 730,665 74,482,781
Expenditures
66,921,296
506,250
67,427,546
P.O. Rollover
115,665
115,665
Transfers out
2,560,000
31,250
2,591,250
Total Appropriations
69,481,296
653,165
70,134,461
Net Operating Results
$4,270,820
$77,500
$4,348,320
Allocations
Measure E Reserve
$3,468,000
$3,468,000
Infrastructure Reserve
400,000
400,000
Emergency Reserve
365,000
365,000
Unassigned Funds $37,820 $77,500 $115,320
2015-2016 OTHER FUNDS (Non -General Fund):
The adopted budgeted appropriations for all other funds, including approved carryforward of funds
approved in prior years and changes approved since July 1, 2015, total $67,629,866. These expenditures
and transfers will result in the spending of approximately $8.3 million in accumulated funds (i.e., fund
balance), primarily in the areas of street and infrastructure maintenance and vehicle replacement.
Staff has identified the following revenue additions, which total $461,000:
• $392,000 — additional Paramedic Tax revenues (Emergency Medical Services Fund)
• $ 69,000 — additional Runoff Fee revenues (Stormwater Fund)
Staff recommends that the additional Paramedic Tax revenues be allocated to supplement Measure E
revenues dedicated to public safety facility improvements, which are used for paramedic services. The
additional Runoff Fee revenues will be programmed as part of the Capital Improvement Program.
Proposed expenditure increases from other funds include the following, which total $59,000 (sufficient
balances in these funds to support the additional appropriations):
• $55,000 — Sustainability Program: (1) additional trash and recycling container replacements on
4th street; (2) Climate Change Action Plan staff support; and (3) water conservation pilot
program.
• $ 4,000 — Library staff training (Measure C)
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
The following table summarizes the impact of the recommended changes to the resources and
appropriations for other funds.
Other Funds
Adopted
Approved
Current
ProposedRevised
Changes
Budget
Changes
Budget
Changes
Budget
April 2016
Budget
Operating/Capital
$38,621,826
$3,517,532
$42,139,358
$461,000
$42,600,358
Revenue
67,688,866
Prior year rollover/allocation
115,665
742,500
Transfers in
2,650,000
3,632,899
6,282,899
6,282,899
FY15-16 Sources
41,271,826
7,150,431
48,422,257
461,000
48,883,257
FY14-15 Rollover
2,158,321
2,158,321
2,158,321
FY14-15 CIP
8,729,884
8,729,884
8,729,884
Carry Over
Total Sources
$41,271,826
$18,038,636
$59,310,463
$461,000
$59,771,462
Expenditures
45,111,188
19,816,716
64,927,904
59,000
64,986,904
Transfers out
1,447,349
1,254,613
2,701,962
2,701,962
Total
Appropriations
46,558,537
21,071,329
67,629,866
59,000
67,688,866
I
Net Results
($5,286,711)
($3,032,693)
($8,319,404)
$402,000
I
($7,917,404)
The following table summarizes the citywide impact of the recommended appropriation changes across
all funds.
All Funds
General Fund
Other Funds
Total
Appropriations
Adopted
Approved
Current
Proposed
Changes
Revised
Budget
Changes
Budget
April 2016
Budget
69,481,296
653,165
70,134,461
1,095,062
70,134,461
46,558,537
21,071,329
67,629,866
59,000
67,688,866
$116,039,833 $21,724,494 $137,764,327 $59,000 $137,823,327
FISCAL YEAR 2016-2017 Budget Preview:
Preliminary revenue projections for fiscal year 2016-2017 show a 1.5% increase over the current year.
After considering one-time, special revenues that have impacted fiscal year 2015-2016 (i.e., catch up on
sales tax delayed by temporary changes made by the State, and delayed State reimbursement for
mandated programs), General Fund revenues are projected to increase approximately 3.7%.
FY15-16
FY16-17
Change
General Fund Revenues
Projection
Preliminary
Revenues (including one-time)
$73,272,054
74,378,000
1.5%
Transfers -in
1,095,062
1,114,000
Current Year Sources
74,367,116
75,492,000
Prior year rollover/allocation
115,665
742,500
Total Sources
74,482,781
76,234,500
2.3%
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4
On the expenditure side, MCERA rates are increasing modestly with the City's composite rate
increasing from 60.67% to 60.95% on eligible payroll for fiscal year 2016-2017. Unfortunately,
investment returns are not on pace to meet the 7.25% target for fiscal year 2015-2016, which is likely to
result in a more significant increase of 1% or higher in the contribution rate for fiscal year 2017-2018.
At the first mid -year budget review, held on December 7, 2015, commitments were made to fund the
following activities in fiscal year 2016-2017 from unassigned resources in the General Fund:
Program Resources allocated
to FY16-17
Director of Homeless Planning & Outreach
Two additional police officers (2 1/z years)
Additional patrol on 4th Street
Massage enforcement
Total
$ 62,500
$450,000
$150,000
$ 80,000
$742,500
These activities will be included in the preliminary fiscal year 2016-2017 budget to be presented on
May 2, 2016. Because there are very limited resources from which to support additional programs, it is
unlikely that any additional, major programming will be recommended for funding in fiscal year
2016-2017.
RECOMMENDATION: Accept the report and adopt the resolution as presented.
ATTACHMENTS:
Resolution with exhibit
Exhibit I: General Fund — Proposed budget changes
WACouncil Material\Staff Reports\2016\City\FIscalYearl5-16 Interim Financial Update.doc
RESOLUTION NO. 14106
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN
RAFAEL ADOPTING AMENDMENTS TO THE 2015-2016 BUDGET
WHEREAS, the City Council approved Resolution 13932 adopting the fiscal year
2015-2016 budget and has taken various actions since that time to adjust that budget;
and
WHEREAS, the changes in available funding sources and operational needs
require adjustments to some City budgets; and
WHEREAS, it is the intention of this Council to review recommendations from
staff regarding the City's financial condition, including revenue projections and available
resources and provide funding for various ongoing, capital and other service needs; and
WHEREAS, after examination, deliberation and due consideration, the City
Council has approved the staff report and recommendations, and directs the City
Manager to proceed with the implementation of these recommendations.
NOW, THEREFORE, BE IT RESOLVED, by the San Rafael City Council that
Resolution 13932 for fiscal year 2015-2016 is further amended to increase other fund
revenues to $42,600,358 with transfers in unchanged at $6,282,899, to increase
expenditures to $64,986,904 and transfers out at $2,701,962 as presented on Exhibit I
Table III attached hereto. These changes result in City-wide General Fund
appropriations of $70,134,461 and other fund appropriations of $67,688,866 as
summarized on Exhibit I Table IV.
I, ESTHER C. BEIRNE, Clerk of the City of San Rafael, hereby certify that the
foregoing resolution was duly and regularly introduced and adopted at a regular
meeting of the Council of said City on Monday, the 18th of April 2016, by the following
vote, to wit:
AYES: COUNCILMEMBERS: Bushey, Colin, Gamblin, McCullough & Mayor Phillips
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
ESTHER C. BEIRNE, City Clerk
W:\Council Material\Resolutions\2016\CityWmend City budget 15-16-9month.doc
EXHIBIT I
TABLE I
CHANGES TO GENERAL FUND REVENUES AND OTHER SOURCES
Revenues
72,394,767
877,287
73,272,054
73,272,054
Transfers -in
1,357,349
(262,287)
1,095,062
1,095,062
IFY15-16 Sources
73,752,116
615,000
74,367,116
74,367,116
IFYI 4-15 Rollover
-
115,665
115,665
115,665
Total Resources
73,752,116
730,665
74,482,781
- 74,482,781
TABLE II
CHANGES TO GENERAL FUND EXPENDITURES AND OTHER USES
Expenditures
Adopted Budget FY
1
Approved
67,427,546
I
67,427,546
General Fund
2015-16
Changes
Current Budget
Proposed Changes
Revised Budget
Expenditures
66,921,296
506,250
67,427,546
67,427,546
(Transfer -out
2,560,000
31,250
2,591,250
2,591,250
IFYI 4-15 Rollover
-
115,665
115,665
115,665
Total Appropriation
69,481,296
653,165
70,134,461
-
70,134,461
TABLE III
CHANGES TO OTHER FUNDS
Adopted Budget FY
Approved
Other Funds
2015-16
Changes
Current Budget
Proposed Changes
Revised Budget
Revenues
38,621,826
3,517,532
42,139,358
461,000
42,600,358
Transfers -in
2,650,000
3,632,899
6,282,899
-
6,282,899
FYI5-16Sources
41,271,826
7,150,431
48,422,257
461,000
48,883,257
IFY14-15 Rollover
2,158,321
2,158,321
2,158,321
FYI4-15CIP Carry Over
8,729,884
8,729,884
8,729,884
(Total Resources
41,271,826
18,038,636
59,310,462
461,000
59,771,462
I
Expenditures
45,111,188
19,816,716
64,927,904
59,000
64,986,904
(Transfer -out
1,447,349
1,254,613
2,701,962
-
2,701,962
Total Appropriation
46,558,537
21,071,329
67,629,866
59,000
67,688,866
INet Results (5,286,711) (3,032,693) (8,319,404) 402,000 (7,917,404)
TABLE IV
CITY-WIDE APPROPRIATION SUMMARY
Adopted Budget FY Approved
All Funds 2015-16 Changes Current Budget Proposed Changes Revised Budget
General Fund 69,481,296 653,165 70,134,461 - 70,134,461
(Other Funds 46,558,537 21,071,329 67,629,866 59,000 67,688,866
(Less interfund - - -
(Total Appropriations 116,039,833 21,724,494 137,764,327 59,000 137,823,327
ROUTING SLIP / APPROVAL FORM
INSTRUCTIONS: Use this cover sheet with each submittal of a staff report before approval
by the City Council. Save staff report (including this cover sheet) along
with all related attachments in the Team Drive (T:) --> CITY COUNCIL
AGENDA ITEMS 4 AGENDA ITEM APPROVAL PROCESS 4 [DEPT -
AGENDA TOPIC]
Agenda Item #
Date of Meeting: 4/18/2016
From: Mark Moses
Department: Finance
Date: 4/7/2016
Topic: FY16-2ND INTERIM FINANCIAL UPDATE & FY17 BUD.REVIEW
Subject: UPDATE BUDGE FOR FYI 5-16 AND PREVIEW FYI 6-17 PROPOSED BUDGET
Type: ® Resolution ❑ Ordinance
❑ Professional Services Agreement ❑ Other: Staff Report
APPROVALS
® Finance Director
Remarks:
® City Attorney
Remarks: LG -Approved 4/11/16.
® Author, review and accept City Attorney / Finance changes
Remarks:
® City Manager
Remarks:
