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Home My WebLink AboutFin Budget Amendments FY2014-15C►ry of Agenda Item No: 3.d ••,•/ Meeting Date: April 20, 2015 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: FINANCE Prepared by: Mark Moses Finance Director City Manager Approva,?INAZ - SUBJECT: (1) FISCAL YEAR 2014-2015 SECOND INTERIM FINANCIAL UPDATE (2) RESOLUTION AMENDING FISCAL YEAR 2014-2015 BUDGET 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 1, 2014, 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 25, 2014, and budget actions taken through December 1, 2014, as compared to the budget approved by City Council on June 16, 2014. This report extends the review of actual revenue and expenditure performance through March 31, 2015, and includes all City Council budget actions through April 6, 2015. Based on this review and analysis, revisions are recommended to address the following categories: (1) Revenue projections (2) Expenditure plan changes The major General Fund content of this report was reviewed and discussed with the City Council Finance Committee (Mayor Phillips and Councilmember Colin) at its January, February, March and April 2015 meetings. Staff will keep the Finance Committee and the City Council apprised of any significant changes that impact the fiscal year 2014-2015 budget as the City progresses through the development and approval of the fiscal year 2015-2016 budget. FOR CITY CLERK ONLY File No.: g Council Meeting: 1412 Disposition: SM V -7i 0Ar l �c SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 ANALYSIS: GENERAL FUND: Revenues and Other Sources: The table below presents the proposed changes to General Fund revenues which add $392,000 to total sources. There are no proposed changes to transfers in. Revenues: Since the budget adoption in June 2014, the projected revenues were increased from $67,874,773 to $68,435,320. Most of this adjustment was attributable to late adjustments to prior year property tax and sales tax revenues. The following are the proposed, subsequent adjustments to the revenue forecast, which has been increased to $68,827,320, which is 0.6% higher than the current budget. With transfers in unchanged at $1,290,207, total revenues and other sources will total $70,117,527. Positive adjustments to revenues include a $92,000 increase in property tax -related revenues, the majority of which was related to collections of supplemental taxes; $75,000 in business tax; $275,000 in permits and licensing; and $100,000 in plan review. The latter two adjustments result mostly from revenue -generating services associated with the expansion of the BioMarin facility. Some of these revenues, however, were offset by additional contract costs associated with the delivery of services. Due to the predominantly nonrecurring nature of the source of these adjustments, they are not expected to have a significant impact on future revenue growth. Other revenues, which include damage recovery, miscellaneous fees and reimbursements, have dropped by over 50 percent from the levels recorded in the previous few years. This trend has prompted a reduction in revenue projections by $150,000. Sales taxes and transactions and use tax experienced a lull during the quarter ending December 31, 2014. Projections for future sales tax -related revenues may be tempered, if this plateau continues. Sales tax and transactions and use taxes contribute 46% of General Fund revenues. Revenues Property Tax related (supplemental, unitary, unsecured) 92,000 Business Tax 75,000 Permits & Licensing 275,000 Plan review 100,000 Other Revenues (damage reimbursements, misc. revenues) (150,000) Total proposed General Fund revenue changes $392,000 Transfers in — proposed changes $0 Total proposed changes to General Fund sources $392,000 Revenues and Transfers in as adopted fiscal year 2014-2015 $69,164,980 Revenues and Transfers in as adjusted through December 1, 2014 $69,725,527 Revenues and Transfers in as proposed through April 20, 2015 $70,117,527 SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3 Expenditures and Other Uses: Expenditures: General fund operating expenditures are being increased by $123,000 to cover additional plan check costs beyond what was incorporated in the original budget. Most of the additional costs were related to work on the BioMarin expansion referred to above. In addition, appropriations approved for the City's participation in the Marin Major Crimes Task Force initiative are being reduced by $92,000 (from $140,000 to $48,000) to reflect only four months of activity during fiscal year 2014-2015, since that contract did not become effective until March 2, 2015.) Transfers out: There are no proposed changes to transfers out. -Expenditures Adopted Budget Plan Check Consulting (increase to support revenue generation) $123,000 Marin County Major Crimes Task Force — reduce for late start (92,000) Total proposed General Fund expenditure changes $31,000 Revenues 67,874,773 -Transfers out 68,435,320 no adjustments 0 Transfers in 1,290,207 Total proposed Transfers out $0 0 1 1,290,207 Total proposed changes to General Fund uses $31,000 $560,547 $69,725,527 Expenditures and Transfers out as adopted fiscal year 2014-2015 $64,422,287 Expenditures and Transfers out as adjusted through December 1, 2014 $64,595,617 -Expenditures and Transfers out as proposed through April 20, 2015 $64,901,912 General Fund — Operating Results: The following table summarizes the recommended General Fund changes, the impact on the General Fund budget for fiscal year 2014-2015, and the impact on Net Operating Results and Unassigned funds. General Fund Adopted Budget Approved Changes Current Budget Proposed Changes Revised Budget Revenues 67,874,773 560,547 68,435,320 392,000 68,827,320 Transfers in 1,290,207 0 1,290,207 0 1 1,290,207 Total Sources $69,164,980 $560,547 $69,725,527 $392,000 $70,117,527 Expenditures 62,772,287 125,666 62,897,953 31,000 62,928,953 Measure E Spending 0 275,295 275,295 0 275,295 Transfers out 1,650,000 47,664 1,697,664 0 1,697,664 Total Appropriations $64,422,287 $448,625 $64,870,912 $31,000 $64,901,912 Net Operating Results $4,742,693 $111,922 $4,854,615 $361,000 $5,215,615 SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4 Allocations of Net Operating Results Measure E Reserve 3,733,666 (275,295) 3,458,371 0 3,458,371 Emergency Reserve 1,000,000 0 1,000,000 0 1,000,000 Unassigned funds $9,027 $387,211L $396,244 $361,000L—__$757=,244 The recommended changes increase the projected net operating results from $4,854,615 to $5,215,615, an increase of $361,000. Unassigned funds increase from $396,244 to $757,244. A complete revenue and expenditure schedule showing the adopted general fund budget, approved changes -to -date, and the proposed changes is provided in Attachment I. Staff will make recommendations regarding the use of unassigned funds in connection with the proposed budget for fiscal year 2015-2016. Any funds not expended by June 20, 2015 will be available to increase the General Fund Emergency Reserve or for future programming. OTHER FUNDS: The adopted budgeted appropriations for other funds, including approved carryforward of funds approved in prior years and changes approved since July 1, 2014, total $56,707,054. These expenditures and transfers will result in the spending of approximately $6.8 million in accumulated funds (i.e., fund balance), primarily in the areas of street and infrastructure maintenance, 5`h Avenue property purchase, and vehicle replacement. Staff has identified the following revenue additions, which total $128,144 $75,000 — adjust for actual Camp Chance revenues $43,144 — 2014 CERT grant $10,000 - Library Improvement fund (various revenue sources) Proposed expenditure increases from other funds include the following, which total $234,409 $75,000-- adjust for actual Camp Chance program expenditures $16,780 — adjust for actual youth grant -related expenditures $35,485 — formally appropriate founds for Spinnaker Pt. Lagoon study (approved January 2015) $54,000 — Grand Avenue Bridge improvements $43,144 — adjust for actual spending of 2014 CERT grant funds $10,000 — additional operating expenditures from the Library Improvement fund (funded by donations, grants and copy machine charges) SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 5 The following table summarizes the impact of the recommended changes to the resources and appropriations for other funds. Other Funds Adopted Budget Approved Changes Current Budget Proposed Changes Revised Bud et Operating/Capital Revenue 36,711,443 1,803,930 38,515,373 128,144 38,643,517 Transfers in 1,720,000 1,588,999 3,308,999 234,409 3,308,999 FY14-15 Sources 38,431,443 3,392,929 41,824,372 128,144 41,952,516 FY13-14 rollover 665,513 665,513 665,513 FY13-14 CIP Carry Over $91,438,831 7,368,455 7,368,455 $265,409 7,368,455 Total Sources $38,431,443 1 $11,426,897 T$49,858,340 $128,144 $49,986,484 -Expenditures 39,634,389 14,171,122 53,805,511 234,409 54,039,920 Transfers out 1,360,207 1,541,335 2,901,542 2,901,542 Appropriations $40,994,596 $15,712,457 $56,707,053 $234,409 $56,941,462 Net Results $2,563,153 $4,285,560 $6,848,713 $106,265 $6,954,978 CITY-WIDE IMPACT: The following table summarizes the impact of the recommended appropriation changes across all funds. All Funds Adopted Budget Approved Changes Current Budget Proposed Changes Revised Budget General Fund 64,422,287 448,625 64,870,912 31,000 64,901,912 Other Funds 40,994,596 15,712,457 56,707,053 234,409 56,941,462 Less interfund (13,978,052) (1,714,160) (15,692,212) (15,692,212) Net Expenditures $91,438,831 $14,446,922 $105,885,753 $265,409 $106,151,162 RECOMMENDATION: Accept the report and adopt the resolution as presented. ATTACHMENTS Attachment I: General Fund — Proposed budget changes Resolution with exhibit W founcil Material 'Staff Reports?014+City 'FlscalYearl4-I5 Interim Financial Update,doc ATTACHMENT CITY OF SAN RAAFAEL General Fund - Proposed Changes: 2nd Interim Update April 20, 2015 Description Adopted Budget Previously Approved Current Budget Proposed Chan es Budget as Proposed REVENUE Property Tares and related 15,773,000 90,361 15,863,361 92,000 15,955,361 Sales Tax/Triple Flip 20,423,900 354,000 20,777,900 20,777,900 TUT - 1/2 cent 7,467,334 7,467,334 7,467,334 TUT (Measure E - add'1 1/4 cent) 3,733,666 3,733,666 3,733,666 Franchise Tax 3,307,739 3,307,739 3,307,739 Business Tar 2,639,761 2,639,761 75,000 2,714,761 Transient Occupancy Tar (TOT) 2,421,000 2,421,000 2,421,000 CSA #19 Fire Service 1,600,000 1,600,000 1,600,000 VLF Backfill 4,591,000 4,591,000 4,591,000 Other Agencies (Prop 172,OPT, State Mandate) 777,712 116,186 893,898 893,898 Permits & Lic (bldin , elec,encroachment, use, alarm) 1,883,000 - 1,883,000 275,000 2,158,000 Fine & Forfeitures (traf,veh) 463,368 463,368 463,368 Interest & Rent (inv.eam, rents) 268,994 1 268,994 268,994 Charges for Sery (incl.dev'l fees, plan review) 1,977,000 - 1,977,000 100,000 2,077,000 Other Revenue (damage reim, misc.income) 547,299 547,299 (150,000) 397,299 SUBTOTAL 67,874,773 560,547 68,435,320 392,000 68,827,320 TRANSFERS IN _ from Gas Tax/Meas A Fund 400,000 400,000 400,000 from SRSD Sewer Maint Fund 251,057 251,057 251,057 from Parking Services Fund 362,630 362,630 362,630 from Employee Retirement Fund 276,520 276,520 276,520 SUB TOTAL 1,290,207 1,290,207 1,290,207 TOTAL: REV & TRFS 69,164,980 560,547 69,725,527 392,000 70,117,527 EXPENDITURES Salaries 27,025,905 27,025,905 27,025,905 MCERA 14,455,928 14,455,928 14,455,928 Benefits 7,568,711 7,568,711 7,568,711 Services 10,004,058 398,295 10,279,353 31,000 10,310,353 Supplies 1,170,054 (14,334) 1,155,720 1,155,720 UtilitiesCommunications 1,430,027 (75,172) 1,354,855 1,354,855 Other (e .lease, sofware, cc fees, LAFCO,MGSA) 711,092 140,000 851,092 851,092 Debt Services (POB) 276,513 75,172 351,685 351,685 Equipment 130,000 130,000 130,000 Funded from prior periods (P.O. rollover) - - - _ SUBTOTAL 62,772,287 523,961 63,173,248 31,000 63,204,248 TRANSFERS OUT 1,650,000 47,664 1 1,697,664 1,697,664 TOTAL: EXP& TRFS 64,422,287 571,625 64,870,912 31,000 64,901,912 Operating Results 4,742,693 (11,078) 4,854,615 361,000 5,215,615 Allocations Assigned to Measure E Reserve (less spending) 3,733,666 (275,295) 3,458,371 - 3,458,371 Assigned to Emergency Reserve 1,000,000 1,000,000 - 1,000,000 Net Operating Results after Allocations 9,027 264,217 396,244 36 1,0-00-F, 757,244 W 1Accaunling and Budgeting\3udgetll4-15\Council\Council 4-20-15 FY14-15 Interim Amend: ng -Fin UpdatelGeneralFund-Attachment RESOLUTION NO. 13905 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL ADOPTING AMENDMENTS TO THE 2014-2015 BUDGET WHEREAS, the City Council approved Resolution 13748 on June 16, 2014, adopting the fiscal year 2014-2015 budget; and WHEREAS, following the adoption of the fiscal year 2014-2015 budget, the City Council has taken various actions amending the budget, including the approval of Resolution 13845 in connection with the first interim budget review on December 1, 2014; and WHEREAS, throughout the year, 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 for the remainder of this fiscal year; NOW, THEREFORE, BE IT RESOLVED, by the San Rafael City Council that Resolution 13845 for fiscal year 2014-2015 is amended to increase total general fund revenues to $68,827,320 with transfers in unchanged at $1,290,207 as presented on Exhibit I Table I attached hereto; and increase general fund expenditure authorization to $63,204,248 with transfers out at $1,697,664, as presented on Exhibit I, Table II attached hereto. Further, the Resolution is amended for other fund revenues to $38,643,517 and transfers in to $3,308,999, expenditures to $54,039,920 and transfers out unchanged at $2,901,542 as presented on Exhibit I Table III attached hereto. These changes result in net City-wide appropriations of $106,151,162 as presented 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 20th of April 2015, by the following vote, to wit: AYES: COUNCILMEMBERS: Bushey, Colin, Gamblin and Vice -Mayor McCullough NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: Mayor Phillips G • �s�,.rRwe ESTHER C. BEIRNE, City Clerk WACouncil Material\Resolutions\2015\CityWmend City budget 14-15-9month.doc EXHIBIT I TABLE I CHANGES TO GENERAL FUND REVENUES AND OTHER SOURCES General Fund Current Budget FY2014-15 Proposed Changes Revised Budget Revenues 68,435,320 392,000 68,827,320 Transfers in 1,290,207 64,870,912 31,000 1,290,207 Total Resources 69,725,527 392,000 70,117,527 TABLE II CHANGES TO GENERAL FUND EXPENDITURES AND OTHER USES General Fund Current Budget FY2014-15 Proposed Changes Revised Budget Expenditures 63,173,248 31,000 63,204,248 Transfer out 1,697,664 - 1,697,664 Total Appropriations 64,870,912 31,000 64,901,912 TABLE III CHANGES TO OTHER FUNDS Other Funds Current Budget FY2014-15 Proposed Changes Revised Budget General Fund 64,870,912 31,000 64,901,912 Revenues 38,515,373 128,144 38,643,517 Transfers in 3,308,999 - 3,308,999 FY14-15 Sources 41,824,372 128,144 41,952,516 FYI 3-14 Rollover 665,513 265,409 665,513 FY13-14 CIP Carry Over 7,368,455 7,368,455 Total Resources 49,858,340 128,144 49,986,484 Expenditures 53,805,511 234,409 54,039,920 Transfer out 2,901,542 2,901,542 Total Appropriations 56,707,053 234,409 56,941,462 Net Results (6,848,713) (106,265) (6,954,978) TABLE IV CITY-WIDE APPROPRIATIONS All Funds Current—Budget FY2014-15 Proposed Budget Revised Budget General Fund 64,870,912 31,000 64,901,912 Other Funds 56,707,053 234,409 56,941,462 Less interfund (15,692,212) (15,692,212) Net Expenditures 105,885,753 265,409 106,151,162 CITY OF SAN RAFAEL ROUTING SLIP / APPROVAL FORM INSTRUCTIONS: USE THIS FORM WITH EACH SUBMITTAL OF A CONTRACT, AGREEMENT, ORDINANCE OR RESOLUTION BEFORE APPROVAL BY COUNCIL / AGENCY. SRRA / SRCC AGENDA ITEM NO. 3 . I DATE OF MEETING: April 20, 2015 FROM: Mark Moses DEPARTMENT: Finance DATE: April 13, 2015 TITLE OF DOCUMENT: (1) FISCAL YEAR 2014-2015 SECOND INTERIM FINANCIAL UPDATE (2) RESOLUTION AMENDING FISCAL YEAR 2014-2015 BUDGET Department Head (signature) *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** (LOWER HALF OF FORM FOR APPROVALS ONLY) APPROVED AS COUNCIL / AGENCY AGENDA ITEM: CityMan�ignature) NOT APPROVED REMARKS: APPROVED AS TO FORM: Lai.. City Attorney (signature)