The URL can be used to link to this page

2011-05-03 CC Agenda Packet - ITEM F9 - FY 2010-2011 Midyear Financial ReviewG1tv Y 0, FY 201 0=201 1 SFcv Midyear Financial Review Focus of the Financial Review 1. Review the status of all revenues and expenditures through March 31f 2011 and provide estimated yearend projections. 2. Approve FY 2011-2012 Budget Calendar. or Summary Revenues and Expenditures — FY 2010-2011 GENERAL FUND Revenue M&0/0) Underru Expenditures Overrun, ifi.3%) urplu Projected Year -End 10/11 ,316,650 (171,041) (1,487,691) Summary Revenue and Expenditures — FY 2009-2010 Budget vs Fy 2010-2011 Budget GENE FUN Revenues xpendi L Budget ,Al 10/11 $52r4l,3,5� 5,2,,4,1, 0,,1 Budges 09/10 2,328,4 2,328,4 rianc 118,244 918,244 General Fund Revenue - Mid Year Comparison 12,000,000 10,500,000 9,000,000 7,500,000 6,000,000 4,500,000 3,000,000 1,500,000 0 ❑ Prior Year Midyear FY 2009-2010 ❑ Current Year Midyear FY 2010-2011 rease from Prior Year c,��,� .``INN � g 1%0 Grp �' God v O` 4 General Fund Revenue - Yearend Comparison 12,000,000 10,500,000 9,000,000 7,500,000 6,000,000 4,500,000 3,000,000 1,500,000 0 `,�_` .,�•� C`p\ Q\� \�i NI \ �� ```�� mac. Business License Tax ♦ The General Funid's second largest revenue source ♦ Year-end revenue is expected to come in $1,200:f000 below budget for this category Business License Tax Revenue Sales and Use Tax and Sales Tax in Lieu ♦ Largest revenue source combined ♦ Statistics show an increase of 7.1% in LA County and 6.8%, in Southern California compared to the same period last year Actual sales receipts were up 38.7% compared to the same period last year, which is attributed to a one-time purchase by one oaf our ma��jjc�r tax payers. These two categories combined are. expected to come in slightly over budget El Segundo Sales Tax Revenue by_ Class (Plaza El Segundo) General Consumer Goods 14.91 % Autos and Transportation 1.45% Restaurants and Hotels 11.30% Buildings and Construction 1.28% Fuel and Service Stations 8.91 % Food and Drugs 3.80% 60% 50% 40% 30% 20% 10% 58% 28% 17°�0 14°fo 15% 13% 0 8%i 7% -9 0 4% 1% 1% I'�,�� AleNs 0% oar°�` rs��Uc�`o dustcy OCUgs e S�at�ors er Goods \ No16 (a NO NO Go ess Prd od P \ d 5et`c G°r5kN s Pr Potios P 5�,\60 io F o � ue\ No Genet a� V estau ®EI Segu� s californ EL SEGUNDO V. CALIFORNIA SALES AND USE TAX CAT E G O RI E S rior Year Actuals, 7,230,732 Prior Year Actuals, $2,837,197 FY 2010- FY 2010- 2011 2011 Adopted Year-end Budget, Estimate, $8,185,000 $89185,000 FY 2010- FY 2010- 2011 2011 Adopted Year-end Budget, Estimate, $294009000 $294979000 Property Tax The assessed value decrease between 2009-2010 and 2010-2011 was $-19.4 million, which contributed to the overall decline in assessed value this year. This was the first time there has been a negative inflationary adjustment since the adoption of Proposition 13. Resiidential parcels account for 20% or $1.2 million Property Tax Revenue a6� PropTax Dol, I a r B rea kd ow n * Data .source. L. A. Counter Assessor 2009110 Annual Tax Increment Tab/es as provided by KdL;,, C6)rea & Con)e) A,1 llbczfibn S) 0).530)9 0),1375 0,1117 S; 0,0632 $0,06111 $ 0�0433 $0,0169 $0,0122 $0-,0117 $0,0110 $1,0000 Flub4[c Entity Los Angeles County Ed1uioa.t0n(!al Aug. Fund Impound Ell Seguindo Unified School District Tax Diistrilct #1 (CITY OF EL SEGUNDO) Eduicat:iiornllal Rev. Augmentation Fund Ell Camiino Community College District La Couinty Flood Control Maint. L A\ C;auinty Ffw C-ouiriitSchool Service Fund- El Segundo Allll Otherf s Tot,alll Allocation Property Tax Dollar Breakdown Data Source; L.A. County Assessor 2010111 Annual Tax Increment Tab/es as provided by HdL, Coren & Cone AI11ocaifi'bn $ 0.,1111375 0.1:1 117 0.0669 0.0632 $0,0625 $0,0553 $0,0362 $0,0720 1., 00)00 P ub f 1 c E n t i tv Lois Angeles County Educational Aug. Fund Impound Cen.tinela Valley Union HS School District Edbcati,onal Rev. Augmentation Fund Tax District #1 (CITY OF EL SEGUNDO) Wiiseburn School District Centii ola Valley HS-Elem. School Fund Ell Camino Community College District All Others, Total' Alllocatio,,n. Transient Occupancy Tax This revenue is currently 3.1% or approximately $57,500 above the same period last year Staff is estimating the hotels will maintain consistent occupancy levels through the summer and this revenue is estimated to come in on target with budget. TOT Revenue V Charges for Services and Licenses & Permits � The housing and construction industries are showing signs of slow recovery e The City has received $1,760,260 or 50.1% combined through midyear. Charges for Services/Licenses & Permits Revenue El!e,,(atrit, Utility Users Tax Th'Is tax �s est�imatedl to come in higher than budget by a pproxlmalte�y $74,000 attributable to an increase in c;onsumption, 'M they commercial and industrial sector As of r r iidyear,, tNs revenue source is at 51.13% of the Adopted Budget Electric UUT Revenue Frainchise Tax an This year'snuall' payment from the two to,, tag r,o�d�,u�,ce:rs was $157, 500 higher than I!astl y,e�a,,, s p)al ment primarily due to a slight ii n cr,asee) 1,n,,,,,, the ri, ce of natural gas. Franchise Tax Revenue Cogenerated Electric Utility Users Tax • Natural gas prices have continued to be unstable and this revenue source is projected to end the year approximately $300,000 below our budgeted amounts. • Base,d'i on estimates by our cogenerated plant, they are reporting t at consumption levels remain consistent; which means that the price point is what's driving this tax down. Cogen UUT Revenue Gas Utility Tax ♦ Continued uncertainty of the operational status of the, power plant � Staff estimates total revenues will come in be,low budget by approximately $675,000 Gas Utility Tax Revenue Interest on Investments ♦The average rate of return for the portfolio is currently 3.1% �► Estimated year-end rate of return is expected, to remain the same Interest on Investments GENERAL FUND ESTIMATED YEAR-END EXPENDITURES FY 2010-2011 GENERAL FUND BUDGET REDUCTIONS - FY 2010-2011 Expenditure Group Non -Personnel Salaries and benefits Total General Fund Expenditure Reductions Reductions $1,095,491 8,822,709 $ 919189200 PERSONNEL COST REDUCTIONS - FY 2010-2011 PERSONNEL COST REDUCTIONS VALUE ($) VALUE (%) Reduction in Workforce $ 1,530,550 5.10% Layoffs $ 544,068 1.81 % Concessions by Labor Groups $ 3,1521350 10.51 % 1 TOTAL REDUCTIONS IN PERSONNEL COSTS $5,2269968 17.420/ Total Estimated Personnel Savings FY 2010-11 $499299000 Vacation hours forfeited, $2189447 c)ndepartment, $165,842 / Library, $3431779 — i Recreation and Parks, $541,897 Administrative Support, $978,778 Public Works, $521,806 Police, $722,774 Fire, $902,860 Elected Officials, $133,538 Planning /Building Safety, $399,237 Expenditures By Function — General Funds Budaet vs. Year-end Estimate J r) r��1 r J �I __a ' J Actions to Reduce Expenditures for the Remainder of FY 2010-2011 (continued) ♦Grant Opportunities to offset General Fund expenditures ♦ Reduction of expenditures through donations >> The Fire Department is continuing to run down', staffing llevels to reduce overtime; *Ali employee labor groups have agreed to labor concessions for the remainder of the FY 2010-2011 fiscal year Summary With half of the fiscal year complete, the realizing the savings from the employee concessions and expenditure reductions. City is * Staff is continuing to monitor expenditures to meet budget at year end. ♦ While revenues are estimated to end the year $1.3 million below plan or 2.5% this is still a preliminary estimate. The FY 2010-11 revenue budget was created using historical trends and factoring in the impacts of the recession. ♦ We wi1'1' continue toJ focus on understanding the drivers that i pact the City's major revenue sources. ♦ All', year-end', est.imates will be updated at the 3rd Quarter Review FY 2011-2012 Budget Calendar - Key Steps in Process - Jul ne 8t"' City Council Strategic Planning Session June 9th-23rd Kickoff of Budget Process to Departments June 27th' -3O;t Department Budget Sessions with the City Manager JJuine 3Qth -July 211,st Fiinance compiles preliminary budget Augu!st, 1,61h Ciity Council receives Preliminary Bud g et Sept, 6;th Ciit: i Council Public Hearing - Annual Operating & CIP Budget Sept. 20t' Ado p.tiion of the 2011-2012 Budget 0 INCORPORATED O'N 0