HomeMy WebLinkAboutFin Budget Update 2016-17SAN RAFAEL
THE CITY WITH A MISSION
Agenda Item No: 5.b
Meeting Date: August 21, 2017
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Finance P'
Prepared by: Mark Moses, City Manager Approval:
Finance Director
TOPIC: UPDATE ON FISCAL YEAR 2016-2017 GENERAL FUND FINANCIAL RESULTS
SUBJECT: UPDATE ON FISCAL YEAR 2016-2017 UNAUDITED RESULTS FOR THE GENERAL
FUND AND RESOLUTION ADOPTING AMENDMENTS TO THE FISCAL YEAR
2016-2017 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 2017-2018
budget, staff provided updates on the fiscal performance of the General Fund, and provided 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 2016-2017 City-wide budget was last amended by the City Council on April 17, 2017,
during the second of two interim budget reviews conducted during the year. Since the close of the fiscal
year on June 30, 2017, staff has reviewed the revenues and expenditures, particularly those in special
revenue funds and other purpose funds. This review 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, 2017. None of these
amendments results in deficit spending in any of the subject funds.
ANALYSIS:
General Fund
At the June 5, 2017 City Council Meeting, staff projected net General Fund results after allocations of
$337.6 thousand. Following the year-end close, this number is being revised to $487.7 thousand, an
increase of $150.1 thousand. While revenues have fallen short of the $73.9 million projections by
approximately $900 thousand, expenditures have come in at approximately $1.0 million under the
authorized appropriations of $70.4 million. Property -related taxes ended the year strong, while sales tax
FOR CITY CLERK ONLY
File No.: 8-5
Council Meeting: 08/21/2017
Disposition: Resolution 14380
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
revenues ended at the lowest level in three years. In addition, charges for services did not meet
projections, largely due to a leveling off of plan check fees coupled with a drop in state reimbursements
for fire strike team support. The lagging revenues may result in an adjustment to fiscal year 2017-2018
projections; however at this time staff believes that sales tax projections for the current year already
incorporate the most recent information available.
Expenditure savings were primarily attributable to unfilled staff positions.
No changes to General Fund operating appropriations are required for fiscal year 2016-2017; however
$9,998 needs to be reallocated from expenditures to transfers out to support the matching on a public
safety grant. Under the previous City Council direction, transfers out of the General Fund from
Measure E Public Safety funds to the San Rafael Essential Facilities project have been adjusted to
$5,422,622 to reflect actual project expenses through June 30, 2017.
Non -General Fund
The following table lists the expenditures through June 30 2017, for which funds need 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 fees, 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 2017-2018 budget was developed.
As a result of making these changes, the City's financial statements for fiscal year 2017-2018 will
reflect spending within the authorized levels.
Projected
Preliminary
General Fund
FY 2016-17
Unaudited
$ Difference
(rounded)
Revenues
$73,878,000
$73,000,000
($878,000)
Transfers in
1,382,303
1,382,303
0
Total Resources
$75,260,303
$74,382,303
($878,000)
I
Expenditures
$70,367,047
$69,380,000
($987,047)
Transfers out — operating
1,786,091
1,796,089
9,998
Total Operating Uses
I
$72,153,138
$71,176,089
($977,049)
Operating Results
$3,107,165
$3,206,214
$99,049
I
Allocations/Use of fund balance
SREF Capital Transfers
($3,900,000)
($5,422,622)
($1,522,622)
Emergency reserve
(320,000)
(320,000)
0
Purchase Order rollover
140,923
140,923
0
Use of unassigned funds
1,309,500
1,309,500
0
Use of prior year Measure E funds
1,573,734
1,573,734
I
Net After Allocations
$337,588
$487,749
$150,161
No changes to General Fund operating appropriations are required for fiscal year 2016-2017; however
$9,998 needs to be reallocated from expenditures to transfers out to support the matching on a public
safety grant. Under the previous City Council direction, transfers out of the General Fund from
Measure E Public Safety funds to the San Rafael Essential Facilities project have been adjusted to
$5,422,622 to reflect actual project expenses through June 30, 2017.
Non -General Fund
The following table lists the expenditures through June 30 2017, for which funds need 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 fees, 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 2017-2018 budget was developed.
As a result of making these changes, the City's financial statements for fiscal year 2017-2018 will
reflect spending within the authorized levels.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
Proposed adjustments to appropriations:
Purpose of
Amount
Fund
authorization
Funding Source
Public Safety / Crime prevention
spending of additional
donations & grants
grants and donations
$388,680
donations and grants
(200,202,204,230,281)
received prior to fiscal
year-end
Approximately half
Recreation(222)
( )
To cover unanticipated
from $155,315 in
recreation program
$311,432
additional current year
costs
revenues and the
remainder from fund
balance.
Emergency drainage
Community Facilities
Loch Lomond #10
repairs in response to
$25,000
District assessments
hill slides
Parks Capital Improvement (407)
Tennis court resurfacing
$10,440
Tennis -related fees
Open Space (405)
Tax assessment
$4,463
Land purchase funds
Proposed adjustments to appropriations outside the General Fund total $740,015.
FISCAL IMPACT: This action authorizes the formal appropriation of resources in the 2016-2017 fiscal
year to support the actual expenditures through June 30, 2017 as described in this report. No spending
authority beyond what was actually committed through June 30, 2017 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. 14380
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL ADOPTING
AMENDMENTS TO THE CITY-WIDE BUDGET FOR FISCAL YEAR 2016-2017
WHEREAS, the City Council approved Resolution 14131 adopting the fiscal year 2016-2017
budget, and has taken other actions throughout the year amending said budget; and
WHEREAS, the City Council reviews periodic reports and recommendations from staff
regarding the City's financial condition, including updated revenue projections, newly available
resources over which the City Council has discretion, and emerging operational issues that require a
change in budget authority; and
WHEREAS, staff has submitted a report and made recommendations regarding changes to the
operating budget for fiscal year 2016-2017, based on the identification of operational areas in need of
adjustment; and
WHEREAS, there are certain special revenue funds whose required appropriations are affected
by actual demand for paid services; and
WHEREAS, there are sufficient resources in the designated funds to support the
recommendations presented; and
WHEREAS, after examination, deliberation and due consideration, the City Council has
accepted the staff report and recommendations.
NOW, THEREFORE, BE IT RESOLVED, by the San Rafael City Council that Resolution
14131 for fiscal year 2016-2017 is further amended to increase other fund transfers in by $9,998, from
$8,080,149 to $8,090,147; and other fund expenditures by $740,015, from $67,906,647 to
$68,646,662. These changes are presented on Exhibit A.
NOW, THEREFORE, BE IT FURTHER RESOLVED, by the San Rafael City Council that
the City Manager has the authority to make further adjustments to accommodate actual results in
special revenue funds whose expenditures are impacted by actual demand for services within the
overall appropriations within the special revenue fund category. The City Manager will report to the
City Council the result of any actions taken under this authority.
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 special meeting of the Council of said
City on Monday, the 21 st of August 2017, by the following vote, to wit:
AYES:
COUNCILMEMBERS:
Bushey, Gamblin, McCullough & Mayor Phillips
NOES:
COUNCILMEMBERS:
None
ABSENT:
COUNCILMEMBERS:
Colin
ae7� oe--4-
ESTHER C. BEIRNE, City Clerk
W:\\Council Material\Resolutions\2017\City\FinalAmend City budget 16-17.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
(825,000)
(Transfers in
1,212,520
169,783
IFY16-17 Sources
75,725,520
(655,217)
IFY15-16 Rollover
-
140,923
(Total Resources
75,725,520
(514,295)
TABLE II
CHANGES TO GENERAL FUND EXPENDITURES AND OTHER USES
TABLE III
CHANGES TO OTHER FUNDS
Adopted Budget FY Approved
Other Funds 2016-17 Changes
EXHIBIT A
Current Budget Proposed Changes Revised Budget
73,688,000
Adopted Budget FY
Approved
General Fund
2016-17
Changes
(Expenditures
69,731,979
635,068
(Transfer out
1,936,091
(150,000)
(Transfer out-CIP
4,040,000
1,382,622
(Total Appropriation
75,708,070
1,867,690
TABLE III
CHANGES TO OTHER FUNDS
Adopted Budget FY Approved
Other Funds 2016-17 Changes
EXHIBIT A
Current Budget Proposed Changes Revised Budget
73,688,000
73,688,000
1,382,303
1,382,303
75,070,303
75,070,303
140,923
140,923
75,211,226
75,211,226
Current Budget Proposed Changes Revised Budget
70,367,047
(9,998) 70,357,049
1,786,091
9,998 1,796,089
5,422,622
- 5,422,622
77,575,760
- 77,575,760
Current Budget Proposed Changes Revised Budget
(Revenues
42,689,466
3,161,390
45,850,856
-
45,850,856
ITransfers in
6,176,091
1,904,058
8,080,149
9,998
8,090,147
IFY16-17 Sources
48,865,557
5,065,448
53,931,005
9,998
53,941,003
FY15-16 Rollover
248,627
248,627
248,627
IFY15-16 CIP Carry Over
9,768,360
9,768,360
9,768,360
(Total Resources
48,865,557
15,082,435
63,947,992
9,998
63,957,990
I
(Expenditures
49,111,963
18,794,683
67,906,647
740,015
68,646,662
(Transfer out
1,412,520
841,218
2,253,738
-
2,253,738
(Total Appropriation
50,524,483
19,635,902
70,160,385
740,015
70,900,400
I
(Net Results
(1,658,926)
(4,553,467)
(6,212,393)
(730,017)
(6,942,410)
SAN RAFAEL STAFF REPORT APPROVAL
TH E CITY WITH A M I SS ION ROUTING SLIP
Staff Report Author: Mark Moses Date of Meeting: 08/21/2017
Department: Finance
Topic: UPDATE ON FISCAL YEAR 2016-2017 GENERAL FUND FINANCIAL RESULTS
Subject: UPDATE ON FISCAL YEAR 2016-2017 UNAUDITED RESULTS FOR THE GENERAL
FUND AND RESOLUTION ADOPTING AMENDMENTS TO THE FISCAL YEAR 2016-2017 CITY-
WIDE BUDGET FOR THE PURPOSE OF CONFIRMING AUTHORIZED APPROPRIATIONS AND
TRANSFERS
Type: (check all that apply) ❑ Consent Calendar ❑ Public Hearing
❑ Discussion Item ❑X Resolution ❑ Ordinance
❑ Professional Services Agreement ❑ Informational Report
*If PSA, City Attorney approval is required prior to start of staff report approval process
Was agenda item publicly noticed? ❑ Yes ONo I Date noticed: I ❑Mailed ❑Site posted ❑Marin IJ
Due Date
Responsibility
Description
CompletedDate
Initial / Comment
DEPARTMENT REVIEW
FRIDAY
Director
Director approves staff
8/4/2017
❑X
noon
report is ready for ACM,
MM
8/4
City Attorney & Finance
review.
CONTENT REVIEW
MONDAY
Assistant City Manager
ACM, City Attorney &
8/8/2017
0
morning
Finance will review items,
RW — when will you
8/7
make edits using track
have this finalized?
City Attorney
changes and ask questions
8/8/2017
0
using comments. Items will
LG -still needs reso
be returned to the author
8/8/2017
Finance
by end of day Wednesday.
0
MM
DEPARTMENT REVISIONS
FRIDAY
Author
Author revises the report
Click here to
0
noon
based on comments
enter a date.
8/11
receives and produces a
final version (all track
changes and comments
removed) by Friday at
noon.
ACM, CITY ATTORNEY, FINANCE FINAL
APPROVAL
MONDAY
Assistant City Manager
ACM, City Attorney &
Click here to
D
morning
Finance will check to see
enter a date.
8/14
their comments were
0
City Attorney
adequately addressed and
8/14/2017
LG
sign -off for the City
Manager to conduct the
Click here to
0
Finance
final review.
enter a date.
MM
TU ES
City Manager
Final review and approval
Click here to
D
noon
enter a date.
8/15