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HomeMy WebLinkAboutFin Budget Amendments FY2014-15ctry OF Agenda Item No: 4.e n. Meeting Date: December 1, 2014 Department: FINANCE Prepared by: Mark Moses Finance Director kCity Manager Approval: T- V SUBJECT: (1) FISCAL YEAR 2014-2015 INTERIM FINANCIAL UPDATE (2) RESOLUTION AMENDING FISCAL YEAR 2014-2015 BUDGET RECOMMENDATIONS: ADOPT RESOLUTION BACKGROUND: The 1`inance Department performs an ongoing review the City's financial performance, and provides monthly reports on the General Fund to the City Council Finance Committee. This report presents the City's financial condition in the current 'fiscal year (2014-2015) based on actual revenue and expenditure performance for the period July I 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. Based on this review and analysis, revisions are recommended to address the -fiotlowing categories; (I ) Revenue projections (2) Expenditure plan changes The major General Fund content of this report and staff recommendations were reviewed by the City Council Finance Committee (Mayor Phillips and Councilmember Colin) at its October 23 and November 6, 2014 meetings,. ANALYSIS: GEiNIER11L FUVD: Revenues and Other Sources: The first table on page 2 presents the proposed changes to General Fund revenues and transfers in, which add $560,547 to total sources. Revenues: Since the budget adoption in June 2014, there have not yet been any changes to the projected revenues of $67,874,7731. The following are the proposed adjustments to the revenue forecast, which has been increased to $68,4315.320. -which is 0.8% higher than the adopted budget. With transfers in unchanged at $1,290,207, total revenues and other sources will total $69,725,527. FOR CITY CLERK ONLY File No.: I( - 1-=� Council Meeting: V;I-fi Ir. f 4 L; Disposition: SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 There are three significant, one-time revenues added to the projections: $116,186 in State reimbursements for mandated programs (SB -90), a County -initiated ERAF adjustment of $90,361 for FY I ' ) - 14. and a sales tax true -up payment, based on final sales tax Filings for FY 13 -14 of $354,000. There were no revenue adjustments having an impact on future revenues. Transfers in: There are no proposed changes to transfers in. LI LRevenuesI . ............. .................... Attiusiments with one-time impact _SB -90 State Mandated Cost Recovery ------------------- 116,186 1 Property tax - ERAF adjustment for FY13-14 1 90,361 Sales Tax - true -up (additional revenues from FY13-14) 354,000 - -------------___------- [2.1c.#ns_ImenIs. wilh-o.ng i g of future 0ture impact ............. .. . ......... 'Total proposed General Fund revenue changes 5560,547 Transfers in - proposed changes $o ..... .......................... ___ . .... . ... ..... ............................... ...... ____ Total proposed chan es to General Fund sources $560,547 . ............... -Revenues and Transfers in as adopted fiscal year 201.4-2015 $69,164,980 Revenues and Transfers in. as adjusted th nber 1, 2014 $69,725�527 .......... . — ---------------- - Expenditures and Other Uses: Expenditures: General fund operating expenditures are being increased to cover the City's participation. in the Marin Major Crimes Task. Force initiative. This item was discussed at the City Council meeting of October 20, 2014, at which time the City Council approved staff's recornmendation to partner with the County of Marin on this program. These funds are being appropriated from a portion of the additional General Fund revenues projected for the fiscal year. TransfL,rs out: The sole recommended transfer out corresponds to matching funds for one oftwo federal grants provided by the Transportation Authority of Marin (TAM). The acceptance of these grants is presented in a separate City Council action item. Expenditures Marin County Major Crimes Task Force 140,000 Total j2roposed General Fund expenditure changes 5140,000 Transfers out City Match - Federal Grant via TAM for transit center relocation 33,330 Total proposed Transfers out 533,3301 Total proposed changes to General Fund uses S173,330 ------- - - - --------------- SAN RAFAEL CITY COUNCIL AGENDA REPORT / Pale: 3 I Expenditures and Transfers out as adopted fiscal year 2014-2015 $64,422,287 Expenditures and Transfers out as adjusted through December 1, 2014 1, $64,595,617 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 FundChane ---- — ----- I Adopted Budget ProposedRevised es I Budget Revenues 67,874,773 560,547 68,435,320 Transfers in 1,290,207 0 1.290,207 FY14-15 Sources 69,164,980 560,547 69,725,527 FY13-14 rollover Total Sources 569J64,980 $560,547 S69,725,527 17xxpen d -it tires 62,772,287 . ............. 140,000 . . . ..................................................................... 62,912,287 Transfers out 1.650,000 33,330 1.693,330 Total App pp nations $64,422,287 �F- $173,330 S64,5951617 'ro Net OL)erating Results 54,742,693 $387,217 $5,129,910 :1 Allocations of Net ................... ODeratinfy Results . ....... ......... [_Measure E Reserve 3 , 73 3,666 3,7-) 1666 Emergency Reserve 1,000,000 1,000,000 ................................................. ........... . . .$396,244--------- ---- - *------ Unassigned funds ....................... ­— The recommended changes increase the prQjected net operating results from $4.742.693 to $5.129,910, an increase of $387,217. 87,217. Unassigned funds increase from $9.027 to $396,244. At this time, staff is not recommending that any additional action be taken on the unassigned. funds. OTHER h'UiNTD-�: The adopted budgeted appropriations for other funds, including approved carryforward of funds approved in prior years and changes approved since July 1, 2014, total $52,821,180. These expenditures and transfers will result in the spending of approximately $4.9 million in accumulated funds (i.e., fund balance), primarily in the areas of infrastructure maintenance and vehicle replacement. Approximately one-half of the fund balance expenditures stems from spending in the gas tax fund for street projects, while the remainder is a result of planned vehicle replacements, city facilities maintenance projects, and miscellaneous project spending. Proposed changes will add $1.301.067 in revenues and $994,676 in expenditures to the current fiscal year. The largest contributors to the revenue change are $682.625 in contributions from San Rafael Sanitation District for the H Street drainage improvement project, $477,481 in new federal SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4 grants (via TAM), and $125,161 in internal charges to fund a new police equipment replacement fund. This fund will provide a more stable funding source for police equipment which was previously funded from the Police Department's operating budget. The remainder of the revenue change, $15,800, is being added to Library grant revenues in order to recognize its recent tech grant. Expenditure additions of $53 J9,893 ) for projects supported by the TAM grants., $270,000 for parking meter system improvements originally planned for the prior fiscal year, $125,161 for the police equipment replacement fund, and $15,800 for Library grant account for most of the $994,676 in additional proposed expenditures. The balance consists of a calculation adjustment to the Parking Fund personnel budget and a small increase in planned spending in the Library Fiduciary Fund. The table below summarizes the impact of the recommended changes to the resources and appropriations for other funds. - - - -- ------- Adopted Approved Current Proposed Revised Other Fund —T-Ipet yd Chan Budeet Budget —] Operating/Capital 11r ( 397,863 37,109,3106 1301.067 38 4 10, 373 Revenue L Transfers in 1,70,000 1,012,500 2.732.500 33,330, 2,765,830 FY14-15 Sources 38,431,443 1,410,363 39,841,806 1,334,397 41,176,203 FY13-14 rollover 665,513 665,513 665,513 FY1.3-14CIP 7,368,455 7,368,455 7,368,455 C S38,431,443 $47,875,7 $I,3ii, 1i $49,210,17'1 Total Sources I ............... . . .............. i E.T nditures 39,634.389 10,814,084 50.448,473 994,676 51,443,149 --------. . . . . .................. Transfers out 1,360,207 1-012.500 2,3172,2 2,372,707 - - ---------------- ------ — ------ ------------------- - - Approxi ns 540,994,596 511,826,584 552,821,180 $994,676 S53,815,856 Results. $2i, 15.3)52,282,254)�- FS S339,721 (54,605,6 8�66t [NLej___�,_J1-.44,4 4-� CITY4VIDE LV111.4C.T.- The following table summarizes the impact of the recommended appropriation changes across all funds. . ......................... . ...................... - .-----_.Ado v--p-ted An-praved 'IF - Cur—rent 7—Proposed Revised All Funds Bud et Chan es Budget Chan es i Bud-, --- — — ------ get General Fund 62,772,287 1 62,772,287 140,000 11 62,912,287 . .............. - — ---- Other Funds 39 634389 10.814,084 50.448.473 994,676 51,443,149 1: Less interfund (10,967.845) (10,967,845) (125,161) (11,093.006 Net Expenditures $91,438,831 $10,814,084 1 S103,262,430 L $102,252,915 s1,009,515 RECOMMENDATION: Accept the report and adopt the resolution as presented. ATTACHMENT Resolution with exhibit W,,Council [Material StaffReporis 201-1 Cny'Flsca1Y car 14-15 Interim Financial Update doc RESOLUTION NO. 13845 j - • • •m i a YW-110 61a I I ik, ECT -11i M 1:4 Z 1 &72 061111111 m I MKI 1 k E1 IYA 1 R VEZ11 I 11 WHEREAS, the City Council approved Resolution 13748 adopting the fiscal year 2014-2015 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 for the remainder of this fiscal year; NOW, THEREFORE, BE IT RESOLVED, by the San Rafael City Council that Resolution 13748 for fiscal year 2014-2015 is amended to increase total general fund revenues to $68,435,320 with transfers in unchanged at $1,290,207 as presented on Exhibit I Table I attached hereto; and increase general fund expenditure authorization to $62,912,287 with transfers out at $1,683,330, as presented on Exhibit 1, Table it attached hereto. Further, the Resolution is amended for other fund revenues to $38,410,373 and transfers in to $2,765,830, expenditures to $51,443,149 and transfers out to $2,372,707 as presented on Exhibit I Table III attached hereto. These changes result in net City-wide appropriations of $103,262,430 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 1st of December 2014, by the following vote, to wit: AYES: COUNCILMEMBERS: Bushey, Colin, Connolly, McCullough & Mayor Phillips NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None 1- . 9 e& , ESTHER C. BEIRNE, City Clerk WACouncil Material\Resolutions120141CityLAmend City budget 14-15-5month.doc TABLE I CHANGES TO GENERAL FUND REVENUES AND OTHER SOURCES General Fund Adopted Budget FY2014-15 Proposed Changes Revised Budget Revenues 67,874,773 560,547 68,435,320 Transfers in 1,290,207 1,290,207 FY14-15 Sources 69,164,980 560,547 69,725,527 FY13-14 Rollover - - Total Resources $ 69,164,980 $ 560,547 $ 69,725,527 TABLE 11 CHANGES TO GENERAL FUND EXPENDITURES AND OTHER USES General Fund Adopted Budget FY2014-15 Proposed Changes Revised Budget Expenditures 62,772,287 140,000 62,912,287 Transfer out 1,650,000 33,330 1,683,330 Total Appropriation $ 64,422,287 $ 173,330 $ 64,595,617 TABLE III CHANGES TO OTHER FUNDS Other Funds Current Budget FY2014-15 Proposed Changes Revised Budget General Fund 62,772,287 140,000 62,912,287 Revenues 36,711,443 1,301,067 38,410,373 Transfers in 1,720,000 33,330 2;765,830 FY14-15 Sources 38,431,443 1,334,397 41,176,203 FY13-14 Rollover $ 91,4.38,831 $ 1,009,515 1 665,513 FY13-14 CIP Carry Over 7,368,455 Total Resources 38,431,443 1,334,397 49,210,171 Expenditures 39,634,389 994,676 51,443,149 Transfer out 1,360,207 2,372,707 Total Appropriation 40,994,596 994,676 53,815,856 Net Results $ (2,563,153) $ 339,721 $ {4,605,686} TABLE IV CITY-WIDE APPROPRIATION SUMMARY All Funds Current Budget FY2014-15 Proposed Budget Revised Budget General Fund 62,772,287 140,000 62,912,287 Other Funds 39,634,389 994,676 51,443,149 Less interfund (10,967,845) (125,161) (11,093,006} Net Expenditures $ 91,4.38,831 $ 1,009,515 1 $ 103,262,430 CITY OF SAN RAFAEL INSTRUCTIONS: USE THIS FORM WITH EACH SUBMITTAL OF A CONTRACT, AGREEMENT, ORDINANCE OR RESOLUTION BEFORE APPROVAL BY COUNCIL / AGENCY. SRRA / SRCC AGENDA ITEM NO. DATE OF MEETING: December 1, 2014 FROM: Mark Moses DEPARTMENT: Finance DATE: November 24, 2014 TITLE OF DOCUMENT: , 11L Department Head (signature) (LOWER HALF OF FORM FOR APPROVALS ONLY) -D AS CqUNCIL / AGENCY APPROVED AS TO FORM: 17 6e{signs ture) City Attorney (signature)