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2025-02-18 CC Agenda Packet - ITEM D13 - Mid-Year BudgetCITY OF ELSEGUNDO FY 2024=25 Second Quarter Financial Report & Mid -Year Adjustment Requests February 18, 2025 City of El Segundo 1 350 Main St. EI Segundo, CA 90245 1. FY 2024-25 Second Quarter (Q2) -Financial Report 2. FY 2024-25 Mid -Year Adjustment Requests 3. Staff Recommendations 4. Next Steps FY 2024-25 Q2 - Financial Report 3 • General Fund had realized $29.9M or 32% current year revenues versus $29M or 33% prior year • The big 5 revenues sources are on pace to meet or exceed budget • Q3 Financial Report will provide better financial picture Q2 General Fund RevenuesActuals: $29,875,433 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 sd , C3. 'PS PLr -Ile 0, d' o> P,P f s G AS P� P �� 7 ry J �a SP "t PP Pri r �A P i s yc s o-% P y ....................................................................................................................................................... ......... ......... _................ ................. ...... A 5 w Top 5 Revenue Q2 FY25 & Q2 FY24 00 00 Y $0 SALES & USE TAX BUSINESS LICENSE TRANSIENT PROPERTY TAX UTILITY USER TAX OCCUPANCY TAX (UUT) EIQ2 FY25 Q2 FY24 6 Fiscal Year 2024-25 Actual Revenues Revised Full Year Variance in .. Percentage BudgetRevenue Source Received Through ..- -. 1 Sales & Use Tax $4,626,390 $15,487,500 ($10,861,110) 30% 2 Business License 2,831,454 14,000,000 (11,168,546) JEF200/o 3 Transient Occupancy Tax 5,364,115 13,387,500 (8,023,385) 40% 4 Property Tax 4,624,424 13, 391, 758 (8,767,334) 35% 5 Chevron Tax Reso Agreement 0 5,500,000 (5,500,000) 0% 6 Utility User Tax (UUT) 3,508,702 11,165,700 (7,656,998) 31% 7 Charges for Services 2,449,531 5,150,122 (2,700,591) 48% 8 Transfers In 0 36,000 (36,000) 0% 9 Franchise Tax 21,251 4,536,000 (4,514,749) 0.5% 10 Other Revrues 1,545,186 2,513,657 (968,471) 61 % 11 Intergovernmental 18,407 200.000 (181,593) 9% 1` trie & Iits 1,177, 282 2, 582, 372 (1,405,090) 46% 13 Interest & Rental Income 3,507,7361 4,736,926 (1,229,190) 74% 14 Fines & ForfeituresAwna 200,953 346,727 (145,774) 5 Total General Fund Revenues 7 Fiscal Year 2024-25 BudgetActual Revised Full Variance in Percentage Fund Name Revenuesto Year Dollar Received Date 1 General Fund $29,875,433 $93,034,263 ($63,158,830) 32% 2 Water Fund 20,134,501 34,630,327 (14,495,826) 58% 3 Transportation Funds 4,387,077 2,604,345 1,782,731 168% 4 Debt Service POBs 1,442,927 9,500,324 (8,057,397) 15% 5 Wastewater Fund 3,136,505 5,742,073 (2,605,569) 55% 6 General Fund CIP 5,145,629 5,245,732 (100,103) 98% 7 Equip. Replacement Fund 1,686,456 1,686,456 (0.89) 100% 8 Workers Comp. Fund 1,870,758 3,542,207 (1,671,450) 53% 9 General Liability Fund 1,550,000 3,105,000 (1,555,000) 50% 10 Dev. Services Trust 115,174 270,000 (154,826) 43% 11 Public Safety Special Rev. 555,605 2,521,934 (1,966,329) 22% 12 Other Special Rev. 124,005 977,364 (853,359) 13% 13 Rec & Econ Dev Trust Fund 121,835 1,124,250 (1,002,415) 11 % 14 Cultural Development Fund 346,462 250,000 96,462 139% 15 Debt Service Fund 2,835 35,000 (32,165) 8% 16 Solid Waste Fund 300,000 300,000 0 100% 17 Senior Housing Fund 1,014,110 1,038,771 (24,662) 98% 18 Golf Fund 0 0 0 19 Economic Uncertainty 0 0 0 0% � ...... 8 General Fund has expended $45.8M or 46% current year versus $45M or 47% prior year • Departmental vacancies continues to be high, vacancy rate close to 10%+ • O&M costs are on pace with budget 9 Q2 General Fund ExpendituresActuals: $45,822,471 $13,500,000 $11,500,000 $9,500,000 $7,500,000 $5,500,000 $3,500,000 $1,500,000 -$500,000 Ao Al OG E ................................................................. 1 1 .P r /1 0. 1 G6/ °'� dew o� 1 �y 4d ic�° aP4 �odk/° �4�dt' �d'd �j-0 r 1�7j '! .� Ole d,* 04. PCB d/ 'r / it �'° ,off dry 7� ,id7 y9rr �S y�,/c� 10 Fiscal Year 2024-25 Actual Appropriations Revised Full Year Variance in Dollar - Percentage Expenditure Source Expended Through Q2* Budget Budget to Actuals Expended* 1 Police $12, 733, 764 $22, 381, 342 ($9, 647, 577) 57% 2 irt .,431,631 MjMK-214 - o 3 Transfers Ou- 7, 024,159 15, 081, 546 (8, 057, 387) 47% 4 Public Works 3,832,645 10,250,794 (6,418,148) 37% 5 Non -departmental 2,758,629 6,785,227 (4,026,598) 41% 6 Recreation, Parks i rary 4,651,871 10,889,279 (6,237,408) 43% 7 Community Development 1,332,479 3,994,592 (2,662,113) 33% 8 Information Technology 1,825,282 3,911,403 (2,086,121) 47".() 9 City Manager 1,197, 920 2,882,713 (1,684,793) 42% 10 Finance 1,239,199 2,766,646 (1,527,446) 45% 11 Human Resources 666,552 2,134,785 (1,468,233) 31% 12 City Attorney 33 568 897,450 (563,882) 37°/. 13 City Clerk 179,511 658,095 (478,584) 27% 14 City Council _ 104,16524,27 (120,107) A.6%, 15 Covid-19 Reimbursements (488,905) 0 (488,905) 00/0 Total General Fund Expenditures $45,822,471 $98,990,357 46.29% *Does not include encumbrances .. _ .................................................................................................. ................... ....................... ... .............. ....... ................. I....... ........ I........ 11 M 1 Fiscal Year 2024-25 Actual Fund Name Expenditures to Revised Full Variance in Percentage Date Year Bu.. General Fund $45,822,471 $98,990,357 ($53,167,886) 46% 2 Water Fund 13, 459, 654 39, 333, 606 (25, 873, 951) ]MML�-340/�o 3 Transportation Funds 1,767,306 4,797,863 (3,030,557) 37% 4 Debt Service POBs 9,477,140 9,500,314 (23,174) 9.8% 5 Wastewater Fund 2,434,752 8,792,426 (6,357,674) 28% 6 General Fund CIP 2,806,743 30,357,549 (27,550,806) 9% 7 Equip. Replacement Fund 737,358 10,072,525 (9,335,167) 7% 8 Workers Comp. Fund 1,896,200 3,418,321 (1,522,121) 55% 9 General Liability Fund 2,777,70�-- 3,769,563 (991,568) 74% 10 Dev: Services Trust 800,000 (800,000) 0%' 11 Public Safety Special Rev. 611,940 2,961,575 (2,349,635) 21% 12 Other Special Rev. 148,826 2,232,535 (2,083,709) 7% 13 Rec & Econ Dev Trust Fund 21,104 136,000 (114,896) 16% 14 Cultural Dev. Trust Fund 115,619 272,604 (156,985) 42% 15 Debt Service Fund 454,290 542,851 (88,561) 84% 16 Solid Waste Fund 147,39 330,000 1 45% 17 Senior Housing Fund 53095 194,295 (189,201) 3% .: :9, *Does not include encumbrances 12 Description Estimated Beginning Unassigned Fund Balance on July 1, 2024 $40,701,761 Estimated FY 2024-25 Revenues $93,034,263 Estimated FY 2024-25 Expenditures $(98,990,357) Estimated Ending Fund Balance (June 30, 2025) $34,745,667 25% Reserve Requirement $24,747,589 Estimated Available Unassigned Reserve C$91998,078 000 01 13 FY 2024-25 Mid -Year Adjustment Requests 14 • Revenues &Expenditure changes less than 1 % of adopted budget � Revenue adjustment: $5,000 Expenditure adjustment: $406,294 Net Change in budget: $396,294 (General Fund) $4015294 (All Funds) 15 Revised Mid -Year BudgetRevised : • Name Recommended';' Increase Budget• •-. Changesd • 0% 1 General Fund* $93,034;263 $0 $L2,604,345 2 3 Fund 34,630,327 Transportation Funds 2,604,345 0 0% 4 I> ice - 9,500,324 :4,263 -- 5 Wastewater Fund 5,742,073 0 0% G - __ and CIP - 5,245,732 0% 7 Equip. Replacement Fund 1,686,456 0 1,686,456 0% 8 Workers Conip. Fund 3,542.207 ,207 0% 9 General Liability Fund 3,105,000 0 3,105,000 0% 10 Dev. Se►vices Trust 210,E 0 2,521,934 0% 11 Public Safety Special Rev. 2,521,934 12 Other Special Rev. 977,364 0 977,364 13 Rec & Econ Dev Trust Fund 1,124,250 0 1,124,250 0% 14 Cultural Development Fund 250,000 5,000 ,000 2.0% 15 Debt Service Fund 35,000 0 35,000 0% 16 Soli :. 300,000 0 J, 0,.000 Q�� 17 Senior Housing Fund 1,038,771 0 1,038,771 0% 18 Golf Fund 0 0 0% 19 Economic Uncertainty 0 01 0 0% *There are no recommended General Fund Revenue adjustments. 16 Revised Mid -Year Revised BudgetBudget Expenditure Source Recommended: % Increase Recommended:: - `•• • 1 General Fund $98,990,357 $396,294 $99,386,651 0.40% 2 Water Fund 39,333,606 0 39,333,606 0.00% 3 Transportation Funds 4,797,863 0 4,797,863 0.00% 4 Debt Service POBO 9,500,314 0 9,500,314 0.00% 5 Wastewater Fund 8,7923426 0 8,792,426 0.00% 6 General Fund CIP 30,357,549 0 30,357,549 0.00% 7 Equip. Replacement Fund 10,072,525 0 10,072,525 0.00% 8 Workers Comp. Fund 3,418,321 0 3,418,321 0.00% 9 General Liability Fund 3,769,563 0 3,769,563 0.00% 10 Dev. Services Trust 800,000 0 800,000 0:00% 11 Public Safety Special Rev. 2,961,575 0 2,961,575 0.00% 12 Other Special Rev. 2,232,535 5,000 2,237,535 0.22% 13 Rec & Econ Dev Trust Fund 136,000 0 136,000 0.00% 14 Cultural Dev. Trust Fund 272,604 5,000 277,604 1.83% 15 Debt Service Fund 542,851 0 542,851 0.00% 16 Solid Waste Fund 330,000 01111M 330,000 0.00% 17 Senior Housing Fund 194,2951 0 194,295 0.00% 17 Department / Request Amount City Manager: Add (1) back Executive Assistant position (frozen during budget) and convert to Management Analyst $43,561 Police: Add (3) Officers, (4) Trainee, O&M budget for new Officers $239,022 Fire: Firefighter salaries to Paramedic pay following promotion $68,711 Public Works: Pump Station 16 Repairs (maintenance), CalRecycle Grant $50,000 RPL: Friends of the Library donation for music programming* $5,000 Total Mid -Year Adjustment Request: $406,294 * $5,000 revenue adjustment not reflected in total Citv Manager: Add back Executive Assistant position (frozen during budget preparation and adoption), but convert to Management Analyst (9% increase) • Total Expenditure: $43,561 (4 months Salaries & Benefits budget) 19 Police Department: Add (3) officers of the 10 over hires: As of September 2024, the department has staffed 62 sworn officers, and 3 additional officers are anticipated to be hired by May 2025: $48,645 (2 months budget) 4 Trainees: $50,377 (4 months budget) Uniform Replacement: $50,000 Training Materials and. Supplies (ammunition): $15,000 Professional & Technical (Polygraph, Psych, Backgrounds): $15,000 Contractual Services (5 Radios): $60,000 • Total Expenditure: $239,022 20 Fire Department Salaries related to increasing Firefighter salaries to Paramedic pay following the promotion of Firefighters to medic rank Total Expenditure: $68,711 21 Public Works: O&M - Pump Station 16 Repairs (maintenance) • Total Expenditure: $45,000 CalRecycle Grant (Other Special Revenue Fund) • Total Expenditure: $5,000 Recreation, Park and Library: $5,000 donation to the Friends of the Library for music programming at the Library (Cultural Development Fund) • Revenue: $5,000 • Expenditure: $5,000 23 1. Approve to amend the FY 2024-25 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 2024-25 Financial Report. 6 M 2. Receive and File the Second Quarter Fiscal Year 2024-25 Financial Report. M 24 Proposed Fiscal Year 2025-26 Budget Calendar: • Budget Study Session #1 (April 29, 2025) N • Budget Study Session #2 (May 6, 2025) • 5-year Capital Improvement Program (May 6, 2025) • Master Fee Schedule to be updated by CPI-U (April 2025) • Public Hearing and Adoption for the Budget (tune 3, 2025) 0 0 9 Beginning of FY 2025-26 (July 1, 2025) 25