2020-02-04 CC Agenda Packet - ITEM #D7 - PRESENTATION - FY 18-19 year-end financial reviewC I T T O F �}
ESEGUN
W.
*INCORPORATED 19174
FY 2018- 19 YEAR-END FINANCIAL
REVIEW (UNAUDITED) - WITH A
FOCUS ON THE GENERAL FUND &
ENTERPRISE FUNDS
February 4, 2020
• FY 2018-19 Estimated Revenue Budget: $74,465,624
• FY 2018-19 Year-end Revenues (unaudited): $78,826,161
• $4,360,537 above budgeted estimates
• FY 2018-19 Expenditure Budget: $79,081,046
• FY 2018-19 Year-end Expenditures (unaudited): $77,880,492
• $1,200,554 below the adopted FY 2018-19 budget
• FY 2018-19 Estimated Ending GF balance: $14,865,064
• FY 2018-19 Revised Ending GF balance (unaudited):
$17,648,934
2
1 Transient Occupancy (TOT)
2 Sales & Use Tax
3 Business License
4 Property Tax
5 Tax Resolution Agreement
6 Utility User's Taxes (UUT)
7 Charges for Services
8 Other Revenues
9 Franchise Tax
10 License & Permits
11 Cogeneration Electric
12 Interest on Investments
13 Fines & Forfeitures
Total General Fund
Revenues, Net of Transfers
Transfers In
Total General Fund
Revenues
$ 14,598,200
$ 14,500,000
0.68%
13,023,091
11,900,000
9.44%
12,225,018
11,800,000
3.60%
8,468,829
8,057,164
5.11%
6,171,627
5,800,000
6.41%
5,960,961
5,010,000
18.98%
5,366,420
5,393,625
-0.50%
5,278,843
4,369,747
20.80%
2,709,760
3,900,000-30.52%
2,322,187
1,668,388
39.19%
1,460,258
925,000
57.87%
674,417
824,000-18.15%
566,550
317,700
78.33%
78,826,161 74,465,624 6%
$789826,161 $7494659624 6%
Adopted Revenues: $74,465,624
Year End (unaudited): $78,826,161
Variance of +$4.3 million
Highlights:
• Sales & Use Tax:
$1,123,091
• UUT
$
950,961
• Licenses/Permits
$
653,799
• Cogen
t
$
535,258
• Business License
t
$
4251018
• Property Tax
t
$
411,465
• Franchise Tax
l
$1,190,240
3
•/0,4,1Year-end
GF Expenditures:
DepartmentsBudget
($ in millions)
Actuals
Budget
Budget: $79,081,046
. -.
1
Police
$22.97
$21.75
106%
Revised Year-end actual
2
Fire
16.60
15.96
104%
(unaudited): $77,880,492
Admin Support (City
Attorney, City Clerk, City
Reduction of -$1.2 million
3
Treasurer, CMO, IS, HR,
8 77
8.73
101%
comparing year-end to adopted
& Finance)
4
Public Works
7.36
8.51
87%
budget
5
Non -Departmental
6.70
8.25
81%
Savings primarily from an
6
Recreation & Parks
6.66
7.27
92%
average of —25 vacancies
7
Planning & Building
2.76
2.83
97%
throughout the fiscal year
Safety
8
Library
2.44
2.36
103%
Police & Fire: City Council
9
City Council
0.27
0.29
92%
adopted new MOUs in
Total General Fund
November 2018 that resulted in
Expenditures
$74.53
$75.95
98%
(Net of Transfer)
an increase to salary and
Transfers Out
3.35
3.13
95%
benefits
Total General
Fund
$77.88
$79.08
94%
• PW & Rec/Park had several
Expenditures
vacancies throughout 2018-19
..................................................................................................................................................................................................................................................................................................................................................................................
4
Beginning Fund Balance at October 1, 2018 $21,0641124 $21,0649124
Plus Year-end revenues for FY 2018-19
Less Year-end expenditures for FY 2018-19
Ending Fund Balance at September 30,
2019 (unaudited)
75,559,271
(77,840,000)
$1897839395
i
J-
78,826,161
(77,880,492)
$22,009,793
5
Beginning Fund Balance at October 1, 2019 16 $18,783,395 $22,009,793
Plus estimated revenues for FY 2019-20 7615101208
Less estimated expenditures for FY 2019-20
(includes transfer out to CIP of $2,470,000) (80,428,539)
Less Continued Appropriations
Estimated Ending Unassigned Fund Balance at
September 30, 2020 1 14,865,064
17% General Fund Reserve 19 13,252,952
Over/(Under) reserve policy at September 30,
2020 1, 612,112
Equivalent to 2% of General Fund reserves
(transfer funds to the Pension Trust) (1,559,000)
76,510,208
(80,428,539)
(442,528)
17,648,934
13,328,181
4,320,753
(1,559,000)
9
• Revenues
FY 2018-19 Budget
$3016681000
FY 2018-19 Actuals (unaudited)
$3752205048
variance
$ 6,552,049
+$2M in recycled water sales to Chevron, $1 M associated with new connection
fees & deposits, $750k in increased interest income earned on fund balance, &
$2.8M an accounting accrual correction that will recognize revenue in FY
2019-20
• Expenses:
FY 2018-19 Budget $30,645,150
FY 2018-19 Actuals (unaudited) $28,44002
variance $ 212041348
$2.2M in carryover CIP to FY 2019-20 (Water infrastructure
replacement)
• Revenues
FY 2018-19 Budget
$3,810,000
FY 2018-19 Actuals (unaudited)
$5,0751288
variance
$112651288
• +$410k associated with new connection fees & deposits, $375k in
developer fees (D.R. Horton), & $165k increased interest income earned on
fund balance, & $315k an accounting accrual correction that will recognize
revenue in FY 2019-20
• Expenditures
FY 2018-19 Budget
$5,110,042
FY 2018-19 Actuals (unaudited)
$412471846
variance
$ 862,196
$862k in carryover CIP to FY 2019-20
• Revenues
FY 2018-19 Budget
$1,45309
FY 2018-19 Actuals (unaudited)
$1,64303
variance
$ 189,984
Golf course & driving range revenue is higher than budgeted due to
the golf course and driving range
• Expenses
FY 2018-19 Budget
$102,814
FY 2018-19 Actuals unaudited
$114691955
variance
$ 2225859
Overall expenses are less than budgeted due to lower expenses in
the golf course operations, lower expenses related to food &
beverage, and lower expenses in the driving range operations
• Total cost savings of $11.72 million implemented over the
past three years through being proactive &strategic at
addressing the rising pension costs
• Set-up IRS Section 115 Pension Trust — Pension
Stabilization Fund with PARS
Trust Balance of $4.37 million as of December 31, 3019
Annualized rate of return: 17.62%
10
• At the Department level, the City spent under budget mainly
due to vacancies. This is reflected in the FY 2018-19
unaudited year-end results of $77.88 million compared to
the adopted amount of $79.08 million.
• Once the FY 2018-19 financial audit is complete, the
audited results will be presented to City Council in April
2020.
• The mid -year review will take place during May 2020.
During the mid -year review, staff will present to City Council
strategic uses for the undesignated General Fund reserves
estimated at $2.7 million that fall in line with the City's
adopted Strategic Plan and City Council priorities.