HomeMy WebLinkAboutFin Financial Update 2016.12f SAN RAFAEL
THE CITY WITH A MISSION
Agenda Item No: 8.c
Meeting Date: December 19, 2016
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Finance -,
Prepared by: Mark Moses, City Manager Approval:
Finance Director
TOPIC: INTERIM FINANCIAL UPDATE AND BUDGET AMENDMENTS TO REFLECT
OPERATIONAL ACTIVITY AND CITY MANAGER RECOMMENDATIONS
SUBJECT: (1) FIRST FISCAL YEAR 2016-2017 INTERIM FINANCIAL UPDATE
(2) CITY MANAGER RECOMMENDATIONS
(3) RESOLUTION AMENDING FISCAL YEAR 2016-2017 BUDGET
RECOMMENDATION: ADOPT RESOLUTION
BACKGROUND:
The Finance Department performs an ongoing review of the City's financial performance, and provides
monthly reports on the General Fund results to the City Council Finance Committee. This report
presents the City's financial condition in the current fiscal year (2016-2017) based on actual revenue
and expenditure performance for the period July 1 through November 30, 2016, and budget actions
taken through December 6, 2016, as compared to the budget approved by City Council on June 6,
2016.
Based on this review and analysis, revisions are recommended to address the following categories:
(1) Revenue projections
(2) Expenditure plan changes, including adjustments based on labor contracts approved after
budget adoption.
The major General Fund content of this report and staff recommendations were reviewed by the City
Council Finance Committee (Mayor Phillips and Councilmember Gamblin) at its December 6, 2016
public meeting.
FOR CITY CLERK ONLY
File No.: 8-5
Council Meeting: 12/19/2016
Disposition: Resolution 14256
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Paae: 2
ANALYSIS:
GENERAL FUND:
Revenues and Other Sources:
Revenues: Since the budget was prepared in May 2016, there have not been any formal changes to
the projected revenues of $74,513,000, or transfers in of $1,212,520; however, the Finance Committee
has been apprised of impacts to revenues as they become known, and the full City Council was
updated on what was identified by the time of its workshop of September 21, 2016.
The revenue forecast is being increased by $775,000. This increase is driven solely by adjustments
made to bring the fiscal year 2016-2017 projections in line with the actual ending results for fiscal year
2015-2016. Transfers in are being increased by $169,783 to close out funds no longer needed in
special revenue funds.
The table below presents the proposed changes to General Fund revenues and transfers in, which add
$944,783 to the total resources.
Revenues and Other Public Sources:
Figure 1
Revenues
Property Tax — true up projections to FY15-16 actual $225,000
Transactions and Use Tax — true up projections to FY15-16 actual (121,000)
Transient Occupancy Tax — true up projections to FY15-16 actual 400,000
Charges for Services — true up projections to FY15-16 actual 319,000
Other adjustments to true up projections to FY15-16 actual (48,000)
Total proposed revenue changes $775,000
Transfers in
Reclassify Homeless Initiative funds to General Fund $119,835
Reimburse General Fund for excess grant matching 49,948
Total proposed transfers in changes $169,783
Total proposed changes to General Fund sources $944,783
Revenues and Transfers in as adopted fiscal year 2016-2017 75,725,520
Revenues and Transfers in as adjusted through December 5, 2016 75,725,520
Revenues and Transfers in as proposed $76,811,226
Expenditures and Other Uses:
Since budget adoption, the only change to the general fund expenditures and transfers out was the
incorporation of purchase order commitments of $140,923 (column two of Figure 3) from the previous
year.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
In addition, expenditure adjustments are needed to reflect the commitments made in labor agreements
that were approved after the budget had been prepared. These adjustments, which impact salary,
pension contributions and health benefits, total $1,265,000 in expenditures, and $50,000 in transfers to
other City funds. A further adjustment to expenditures is an allowance of $300,000 to cover
improvements to the Boyd Gate House that would prepare this facility for use by City employees. This
adjustment is recommended by the City Manager in order to address the needs of staff that will require
temporary facilities due to the Public Safety Center Project.
Finally, an expenditure adjustment of $319,835 is being made to accommodate the reclassification of
the Homeless Initiative activity from a separate special revenue fund into the General Fund. The
General Fund is the appropriate fund in which to record this activity, now that the City is no longer
receiving funding from outside sources. This change has no net impact on the projected operating
results because the increase in expenditures is offset by a $119,835 increase in transfers in (Figure 1)
and a $200,000 decrease in transfers out (Figure 2)
Changes to the General Fund expenditures and transfers out are detailed below.
Figure 2
Expenditures
Adjust salaries per actual labor agreements $1,000,000
Adjust pension contributions per actual labor agreements 115,000
Adjust benefits per actual labor agreements 50,000
Boyd Gate House improvements 300,000
Homeless Initiative (now reported in General Fund) 319,835
Total proposed expenditure changes $1,784,835
Transfers out
Reclassify Homeless Initiative funds to General Fund ($200,000)
Transfer to Community Services Funds for MOU obligations 50,000
Adjust Capital Transfers to align with Measure E revenue projections (40,000)
Total proposed transfers out changes ($190,000)
Total proposed changes to General Fund uses $1,594,835
Expenditures and Transfers in as adopted fiscal year 2016-2017 75,708,070
Expenditures and Transfers in as adjusted through December 5, 2016 75,848,993
Expenditures and Transfers with proposed changes $77,443,828
General Fund — Operating Results: The following table summarizes the recommended General Fund
changes, the impact on the General Fund budget for fiscal year 2016-2017, and the impact on Net
Operating Results and Unassigned funds.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4
Figure 3
General Fund
Revenues
Transfers in
FY16-17 Sources
FY15-16 P.O. reserve
Total Resources
Expenditures
P.O. Rollover
Operating Transfers out
Capital Transfers out
(from Measure E to SREF)
Total Appropriations
Net Results — sub -total
Allocations
Emergency Reserve
Use of prior period funds
Final Results:
Unassigned funds
Adopted
Approved
Current
Proposed
Revised Budget
Budget
Changes
Budget
Changes
809,500
$74,513,000
$1,309,500
$74,513,000
$775,000
$75,288,000
1,212,520
1,212,520
169,783
1,382,303
75,725,520
75,725,520
944,783
76,670,303
140,923
140,923
140,923
75,725,520
140,923
75,866,443
$944,783
76,811,226
69,731,979
69,731,979
1,784,835
71,516,814
140,923
140,923
140,923
1,936,091
1,936,091
(150,000)
1,786,091
4,040,000 4,040,000 (40,000) 4,000,000
75,708,070 140,923 75,848,993 1,594,835 77,443,828
$17,450
$0 $17,450
($650,052)
($632,602)
(260,000)
(260,000)
(180,000)
(440,000)
809,500
809,500
500,000
$1,309,500
$566,950
$566,950
($330,052)
$236,898
The proposed changes decrease the current projected net results before allocations from $17,450 to
negative $632,602, a decrease of $650,052. This is primarily due to the personnel costs associated
with the final labor agreements. An additional $180,000 needs to be allocated to the emergency
reserve, in order to support the higher expenditure levels. The impact on unassigned funds is mitigated
by the use of funds in the amount of $500,000 set aside during the prior fiscal year for personnel
funding. Projected unassigned funds for the year now total $236,898.
The changes to General Fund Sources and Appropriations are summarized in Tables I and II of
Exhibit I to the attached Resolution.
OTHER FUNDS:
The adopted budgeted appropriations for Other Funds, including approved carryforward of funds
approved in prior years and changes approved since July 1, 2016, total $62,086,457 (Figure 5). These
expenditures and transfers result in the spending of approximately $2.7 million in accumulated funds
(i.e., fund balance), primarily in the areas of infrastructure maintenance (e.g., streets and storm drain)
and equipment replacement. Key projects contributing to the use of fund balance are: Rossi Pump
Station, Del Presidio Blvd., 750 Grand Avenue and other street repair and pump station maintenance.
These net results are supported by a beginning balance in Other Funds of $50,524,483.
Proposed changes include the consolidation of the Homeless Initiative Fund into the General Fund.
Special revenue fund transfers in are reduced by an additional $40,000, due to an adjustment to
projected Measure E revenues for the year. These reductions are substantially offset by corresponding
expenditure reductions and adjustments to transfers out. The reductions to these uses reflect both the
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 5
consolidation of the Homeless Initiative Fund into the General Fund, and the lowering of revenue
projections for Measure E.
Projected Paramedic Tax revenues in the Emergency Medical Services Fund are being increased by
$300,000, to reflect the portion of prior year billings anticipated by fiscal year-end.
In addition, expenditure adjustments are needed to reflect the commitments made in labor agreements
that were approved after the budget had been prepared. These adjustments, which impact salary,
MCERA contributions and health benefits, total $151,250 and specifically impact the Parking,
Emergency Medical Services, Recreation and Childcare funds. A downward adjustment to
expenditures reducing authority by $413,766 is proposed to bring the budget in line with current service
levels and operational scope of the Other Funds.
Changes to the Other Funds revenues, expenditures and transfers are detailed in the following table:
Figure 4
Revenues
Additional paramedic tax revenues $300,000
Reduced outside revenues for Homeless Initiative (200,000)
Total proposed revenue changes $100,000
Transfers in
Reduced transfers from Measure E revenues (40,000)
Transfer to Community Services Funds for MOU obligations 50,000
Reduce General Fund transfers to Homeless Initiative separate fund (200,000)
Total proposed transfers in changes ($190,000)
Expenditures
Adjust salaries per actual labor agreements 151,250
Adjust other expenditures to reflect actual service levels (413,766)
Total proposed expenditure changes ($262,516)
Transfers out
Reclassify Homeless Initiative funds to General Fund $119,835
Reimburse General Fund for excess grant matching 49,948
Total proposed transfers out changes $169,783
Net proposed changes to Other Funds (R+TI-E-TO) $2,733
The net impact of all proposed changes on Other Funds is $2,733. Thus the planned spending of the
$50.5 million beginning fund balance remains at $2.7 million.
The following table presents the adopted budget, approved changes and proposed changes to the
FY2016-2017 Other Funds budget.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Paae: 6
Figure 5
Other Funds
Adopted
Budget
Approved
Changes
Current
Budget
Proposed
Changes
Revised
Budget
Operating/Capital
$42,689,466
$50,073
$42,739,539
$100,000
$42,839,539
Revenue
$75,708,070
$140,923
$75,848,993
$1,594,835
$77,443,828
Transfers in
6,176,091
475,000
6,651,091
(190,000)
6,461,091
FY16-17 Sources
48,865,557
525,073
49,390,630
(90,000)
49,300,630
FY15-16 Rollover
248,627
248,627
248,627
FY15-16 CIP Carry
9,768,360
9,768,360
9,768,360
Over
Total Sources
$48,865,557
$10,542,060
_
$59,407,617
($90,000)
$59,317,617
Expenditures
49,111,963
11,086,973
60,198,936
(262,516)
59,936,420
Transfers out
1,412,520
475,000
1,887,520
169,783
2,057,303
Total
Appropriations
50,524,483
11,561,973
62,086,456
(92,733)
61,993,723
Net Results 1 ($1,658,926) 1 ($1,019,913) 1 ($2,678,839) 1 $2,733 1 ($2,676,106)
These proposed changes to Other Fund Sources and Appropriations are presented in Table III of
Exhibit I to the attached Resolution.
CITY-WIDE FISCAL IMPACT:
The following table summarizes the impact of the recommended appropriation changes across all
funds.
Figure 6
RECOMMENDED ACTION: Adopt Resolution.
ATTACHMENTS:
Resolution with attached Exhibit "I" (Amendment)
Adopted
Approved
Current
Proposed
Revised
All Funds
Budget
Changes
Budget
Changes
Budget
General Fund
$75,708,070
$140,923
$75,848,993
$1,594,835
$77,443,828
Other Funds
$50,524,483
$11,561,973
$62,086,456
($92,733)
$61,993,723
RECOMMENDED ACTION: Adopt Resolution.
ATTACHMENTS:
Resolution with attached Exhibit "I" (Amendment)
RESOLUTION NO. 14256
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN
RAFAEL ADOPTING AMENDMENTS TO THE 2016-2017 BUDGET
WHEREAS, the City Council approved Resolution 14131 adopting the fiscal year
2016-2017 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 14131 for fiscal year 2016-2017 is amended to increase total general fund
revenues to $75,288,000 and increase transfers in to $1,382,303 as presented on
Exhibit I Table I attached hereto; and increase general fund expenditure authorization
to $71,657,737 with transfers out reduced to $5,786,091, as presented on Exhibit I,
Table II attached hereto. Further, the Resolution is amended to increase other fund
revenues to $42,839,539, reduce transfers in to $6,461,091, decrease expenditures to
$59,936,420, and increase transfers out to $2,057,303 as presented on Exhibit I Table
III attached hereto. These changes result in City-wide General Fund appropriations of
$77,443,828 and other fund appropriations of $61,993,723 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 19th of December 2016, by the
following vote, to wit:
AYES: COUNCILMEMBERS: Bushey, Gamblin & Mayor Phillips
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: Colin and McCullough
amaL,
ESTHER C. BEIRNE, City Clerk
W ACouncil Material\Resolutions\2016\City\Amend City budget 16-17-5month.doc
TABLE I
CHANGES TO GENERAL FUND REVENUES AND OTHER SOURCES
TABLE II
CHANGES TO GENERAL FUND EXPENDITURES AND OTHER USES
Adopted Budget FY
Approved
General Fund
2016-17
Changes
Revenues
74,513,000
140,923
(Transfers in
1,212,520
140,923
IFY16-17 Sources
75,725,520
76,811,226
IFY15-16 Rollover
-
140,923
Total Resources
75,725,520
140,923
TABLE II
CHANGES TO GENERAL FUND EXPENDITURES AND OTHER USES
TABLE III
CHANGES TO OTHER FUNDS
W1:11:1111111111
Current Budget Proposed Changes Revised Budget
74,513,000
Adopted Budget FY
Approved
General Fund
2016-17
Changes
Expenditures
69,731,979
140,923
(Transfer out
1,936,091
140,923
(Transfer out-CIP
4,040,000
76,811,226
Total Appropriation
75,708,070
140,923
TABLE III
CHANGES TO OTHER FUNDS
W1:11:1111111111
Current Budget Proposed Changes Revised Budget
74,513,000
775,000
75,288,000
1,212,520
169,783
1,382,303
75,725,520
944,783
76,670,303
140,923
1,594,835
140,923
75,866,443
944,783
76,811,226
Current Budget Proposed Changes Revised Budget
69,872,902
1,784,835
71,657,737
1,936,091
(150,000)
1,786,091
4,040,000
(40,000)
4,000,000
75,848,993
1,594,835
77,443,828
Adopted Budget FY
Approved
Other Funds
2016-17
Changes
Current Budget
Proposed Changes
Revised Budget
(Revenues
42,689,466
50,073
42,739,539
100,000
42,839,539
Transfers in
6,176,091
475,000
6,651,091
(190,000)
6,461,091
FYI6-17Sources
48,865,557
525,073
49,390,630
(90,000)
49,300,630
FY15-16 Rollover
248,627
248,627
248,627
FYI5-16CIP Carry Over
9,768,360
9,768,360
9,768,360
(Total Resources
48,865,557
10,542,060
59,407,617
(90,000)
59,317,617
1
Expenditures
49,111,963
11,086,973
60,198,936
(262,516)
59,936,420
(Transfer out
1,412,520
475,000
1,887,520
169,783
2,057,303
(Total Appropriation
50,524,483
11,561,973
62,086,456
(92,733)
61,993,723
1
Net Results
(1,658,926)
(1,019,913)
(2,678,839)
2,733
(2,676,106)
TABLE IV
CITY-WIDE APPROPRIATION SUMMARY
Adopted Budget FY
Approved
All Funds
2016-17
Changes
Current Budget
Proposed Changes
Revised Budget
(General Fund
75,708,070
140,923
75,848,993
1,594,835
77,443,828
Other Funds
50,524,483
11,561,973
62,086,456
(92,733)
61,993,723
(Less interfund
(19,587,880)
(475,000)
(20,062,880)
20,217
(20,042,663)
Net Expenditures
106,644,673
11,227,896
117,872,569
1,522,319
119,394,888
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: 12/19/2016
From: Mark Moses
Department: Finance
Date: 12/6/2016
Topic: INTERIM FINANCIAL UPDATE AND BUDGET AMENDMENTS TO REFLECT
OPERATIONAL ACTIVITY AND CITY MANAGER RECOMMENDATIONS
Subject: (1) FIRST FISCAL YEAR 2016-2017 INTERIM FINANCIAL UPDATE
(2) CITY MANAGER RECOMMENDATIONS
(3) RESOLUTION AMENDING FISCAL YEAR 2016-2017 BUDGET
Type: ® Resolution ❑ Ordinance
❑ Professional Services Agreement ® Other: Staff Report
APPROVALS
® Finance Director
Remarks: ready for review - Van will accept changes after 12/6
® City Attorney
Remarks: LG -Approved 12/6/16 with one comment on staff report.
® Author, review and accept City Attorney / Finance changes
Remarks: Van Bach
® City Manager
Remarks:
