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2024-02-20 CC Agenda Packet - ITEM D6 - Mid-Year BudgetCITY or ELSE GUNDO FY 2023=2024 Second Quarter Financial Report & Mid -Year Budget February 20, 2024 City otEI Segundo 1 350 Main St. EI Segundo, CA 90245 1. FY 2023-2024 Second Quarter (Q2) -Financial Report 2. FY 2023-2024 Mid -Year Review & Adjustments 3. Staff Recommendations z FY 2023-24 Q2 - Financial Report 3 • General Fund had realized $23.9M or 27% revenues versus $30M or 37% • The big 5 revenues sources are on pace to meet or exceed budget • Q3 Financial Report will provide better financial picture 4 Fiscal Year 2023-2024 --------------------------- --------------------- 1 ;Sales & Use Tax 2 Business License ------------; ------------------------------------------- 3 ;Transient Occupancy Tax 4 Property Tax ----r------------------------------ ---------- 5 Chevron Tax Reso Agreement 6 :Utility User Tax (UUT) ____ $5, 341, 906 �r 2,821,181. 3,905,880 169,528 0 5,519,821 $14, 750, 000 14, 300, 000 12, 750, 000 12, 539, 805 -- — ------- ---------- ] 5,500,0001 10,634,0001 7 Charges for Services s� 1,692,651, 4,952,040 -----------•------------------------------ 8 --_____ ;Transfers In _ --------------------------- 0; 50,000 ----.----------------------------- --------.----------_- --------------- 9 -----------�-- Franchise Tax -------- ------ ---------_ M ��----------------•-- 66,108 --__-_____-------------- 4,200,000 10 Other Revenues 1,403,522 3,112,944 -----------+----.---------- 11 -�------_.-_._�-----.----w-«_.�. Intergovernmental --�-_--_-�--------- -------------------------------- 48,031 130,000 ----------- 12 +-------------------------------------------- ;License & Permits r--------------------------------- s r-------------------------------- 980,413 2,182,000 13 Interest & Rental Income 1,759,855. 2, 867, 620 -----------•-------------- 14 ------- ------- ---------------- r--------------- Fines & Forfeitures ----------------•------------------- 162,300 -- ------ 327,101 5 27% OF BUDGETED GENERAL FUND REVENUE RECEIVED SALES & USE TAX, 36% Trending on budget. FRANCHISE TAX, 2% Annual payments from SCE & The Gas Co. received in April. (6 MONTHS) TRANSIENT OCCUPANCY TAX, UTILITY USER TAX, CHARGES FOR SERVICES, TRANSFERS -IN, 31 °/cC 520/6: 34% 00/0: Trending on budget. Trending above the Planning/Building-Safety Fees; Traffic Safety Fund adopted budget. Paramedic Transport; transfer to occur later in Recreation & Cultural Arts the Fiscal Year. OTHER REVENUE, 45% Traffic Control Plan Checks revenue is exceeding budget due to programming. �Ir INTERGOVERNM ENATAL, LICENSES & PERMITS, 37°/u 450/6: Reimbursement from ESUSD Trending close to budget in for school librarians and Building -Safety permits. commercial hauling permits. a street repaving project and a large fiber project. 411 INTEREST &RENTAL INCOME, BUSINESS LICENSE TAX, 6120°/d % Assessed and collected Includes the City's investment earnings, leased property, and the December 1-January 31. TopGolf ground lease. .............................. ................................................... ................................... I....... 41 f PROPERTY TAX, FINES & FORFEITURES, 50°/u Trending in line with budget for City Code Fines; Parking Fines; Towing Services Fines. 1 °/d TAX RESOLUTION AGREEMENT Payments received in December & January, and April & May. Future reports should reflect a January payment ... ...................... 0°/d Chevron TRA is remitted each year and is due March 31st. • General Fund has expended $45.6M or 47% versus $41 M or 41 % • Departmental vacancies continues to be high, vacancy rate close to 10%+ • OT budget for Fire Department is being re-evaluated • O&M costs are on pace with budget 1,281,039 449,602 200,802 166,231 2,754,376 2,116,401 835,450 516,545 235,329 FY 2023-24 Mid -Year Review & Adjustments 01 • Revenues & Expenditure changes less than 1 % of adopted budget ➢ Revenue adjustment: $16,980 ➢ Expenditure adjustment: $309,914 ➢Net Change in budget: $117,315 (General Fund) $292,934 (All Funds) 10 Fund Name RecommendedFY 2023-24 Revised Year -End Bu.. ..- •- Adjustments Recommended .. 1 :General Fund ................_.._.............._.._................__..........-......................................._.................... $88,295,510 .................................................... $0 $88,295,510E ............................................_........ ..._......_.._....- 0.00% ..- . _ 2 :Water Fund 36,850,000 �.� ............. 0 36,850,000 .._.....••••._..............-•----..._.....................W._................ 0.00% 3 :Transportation Funds 2,254 935 0 2 254,935• 0.00% 4 Debt Senrice POBs 9,497,716 0 9,497,716 0.00% 5 'Wastewater Fund ...... ._........... _ 5,200,000 _ ..._. 0 .........._...._..._._......._......... W..-......... 5,200,000: 0.00% 6 !General Fund CIP 8,432,500 0 8,432,500 0.00% 7 :Equip. Replcmt. Fund 2,261,969 0 2,261,969 0.00% 8 :Workers Comp. Fund 3,235,881 0 3,235,881 0.00% 9 ::General Liability Fund 3,115,000 0 3,115,000; 0.00% 10 :Dev. Services Trust 270,000 0 270,000 0.00% 11 :Public Safety Spcl. Rev. 1,266,231 0 _ 1,266,231 : 0.00% 12 :Other Special Rev. 795,700 0 795,7001 0.00% 13 : Rec & Econ Dev Trust 1,050,000 16, 980 1, 066, 980 1.62% 14 lCultural Dev. Trust Fund 500,000 0 500,000 _0.00% 15 ;Debt Service Fund ' 367,200 0 367,200 0.00% 16 :Solid Waste Fund _ 600,000 .....-.......... ................-............. 0 600,000 ............................. ............ ...... _.... .................. 0.00% ..... ............. .........4........._.............w........._..._....._..........»............. 17 :Senior Housing Fund - .........�......... .. _ - 203,099 0 203,099 _ .. 0.00% 18 :Golf Fund 0 0 - 0.00% .....1.9...;.......................................................................... Economic Uncertainty0 _........................ ......._................. .._.._._............. _...._....__...__._....._.............----...._._......_.._._......._...............__...._...._...... 0 -i 0.00°/ 11 Name BudgetFY 2023-24 Recommended Revised Year -End to Date BudgetFund Adjustments Recommended 1 :General Fund $96,879,693 $117,3151 $96,997,008` 0.12% 2 :Water Fund 31,837,693 0 31,837,693 0.00% 3 :Transportation Funds W 16,725,802 50,000 16,775,802 0.30% 4 :Debt Service POBs 9,497,706 0 9,497,706 0.00% 5 Wastewater Fund 6,875,554 0 6,875,5541 0.00% 6 � eneral Fund CIP ' G � 17,608, 913 0 17 608 ,913 0.00% 7 1Equip. Replcmt. Fund 18,233,737 0 18,233,737; 0.00% 8 'Workers Comp. Fund 3,405,200 0 3,405,200 0.00% 9 ;General Liability Fund 3,222,127 0 3,222,1271 0.00% 10 ;Dev. Services Trust 519,522 19,668 539,190 3.79% 0.00% 11 'Public Safety Spcl. Rev. ' 3,816,591 0 3,816,591 12 !Other Special Rev. 1,232,605 26,400 1,259,005 2.14% 13 ;Rec & Econ Dev Trust 188,400 96,531 284,931: 51.24% 14 `Cultural Dev. Trust Fund _.... _.......... ' .._._......._......... 298,196 0 298,196 _........... _......... 0.00%° ..................... ._... .......... _...........; 15 ........................................._................. 'Debt Service Fund 603,300 0 603,300 0.00%° 16 ;Solid Waste Fund 300,000 0 300,000�� 0.00% _...........4 ............ .......... ..._.............._.._..__......._.._....... ......._.._....._..._..... _ . ..._......_ ..__.._ ..__ .. _.. _........ 17 'Senior Housing Fund ...._ .._._.._ .... .._........_.._......_......._...._.._......... 963,461 0 .............................................................. 963,461 ............ ........................................._.. 0.00% _........_............_........... ....... ... 18 ........... _._.._....__ .......__ .._........... Golf Fund ............. ..._......_..........................._. 0 _.._.._. 0 - _.._......_.. .......... ....... 0.00% ... .. 19 ......................................... _..... . ......._......... :Economic Uncertainty 0 0 - 0.00%° jTotall 0: 09 - - ' 12 General Fund: Crossing guard services for the El Segundo Unified School District. The amount approved in the Fiscal Year 2023-2024 adopted budget was an estimate, as staff did not receive the proposal from All City Management (crossing guard service provider) until after the budget was adopted. • Expenditure: $17,315 13 General Fund: Aquatic Center Supplies and Maintenance expenditures for a vendor to service the filters at the Aquatic Center. Additional maintenance for future new heaters. Increase to cost of pool chemical supplies. • Expenditure: $100,000 Other Special Revenue: CalGreen Grant from the previous Fiscal Year. • Expenditure: $26,400 Transportation Funds: Increased inspection contracted services on more third -party projects than anticipated for the fiscal year, including on -call services for the Douglas Street sinkhole in September2023. • Expenditure: $50,000 14 Recreation and Economic Development Trust Funds: At the September 5, 2023 City Council meeting, City Council approved a resolution (Staff Presentation D.9) to waive fees associated with the World Series Championship Parade and Team Recognition Ceremony for the El Segundo Little League, with a not -to -exceed amount of $200,000. • Revenue: $16,980 • Expenditure: $96,531 15 Development Services Trust: Increased agreement with RRM Design Group at the May 3, 2022 City Council Meeting (Consent B.12) and requests the appropriation of the amended contract amount to be used in this fiscal year. • Expenditure: $19,668 16 1. Approve to amend the FY 2023-2024 Budget to reflect the revised year-end revenue estimates and year-end expenditures, which were noted in this Mid - Year Budget and Second Quarter Fiscal Year 2023-2024 Financial Report. 2. Approve to reclassify $42,423 from 001-264-0000-8840 Designated Smoky Hollow Parking In -Lieu to 001-299-0000-2990 General Fund Unassigned Fund Balance. 3. Approve the All City Management Crossing Guard Services Amendment#13 which will increase the not -to -exceed amount to total $164,037. 17