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CC 3-3-20 #12 Mid-Year Financial Report PresentationsMarch 3, 2020 Mid-Year Financial Report •Focus on timing of proposals & CIP Requests •Continued Transparency and Engagement •Biennial Budget as planning tool Changes to Process 2 Agenda •Budget Cycle •Budget Status to date •Major Revenue Trends and Projections •Major Expenditure Trends and Projections •Fund Balance •Funding Recommendations •Next Steps 3 Budget Cycle Proposed Budget May Final Budget June/July First Quarter November Mid-Year February/March Third Quarter May 4 FY 19-20 Amended Budget thru Dec-19: $ 207M $150.50 $35.30 $10.7 $10.50 In Millions Final Carryovers Encumbrances Approved Adjustments 5 FY20 Appropriation Changes since Adopted Budget Fund FY 19-20 Adopted Carryovers Encumbrances Adjustments Approved in 1st-2nd Quarters FY 19-20 Amended Budget as Dec 31, 2019 General $80,104,468 $8,478,803 $1,962,541 $2,247,428 $92,793,240 Special Revenue 9,837,377 15,746,048 4,075,806 $1,564,528 $31,223,759 Debt Service 3,172,838 ---$3,172,838 Capital Projects 37,944,918 9,906,136 4,179,420 $6,448,441 $58,478,915 Enterprise 11,524,189 804,884 30,265 $94,073 $12,453,411 Internal Service 7,948,361 315,039 470,637 $108,745 $8,842,782 Total All Funds $150,532,151 $35,250,910 $10,718,669 $10,463,215 $206,964,945 6 General Fund Revenue Dec-18 vs. Dec-19 Transient Occupancy Tax $1.1M or 35% Licenses & Permits $1.6M or 91% Total Revenue $2.4M or 7% 7 General Fund Expenditures Dec-18 vs. Dec-19 Total Expenditures -$8.4M or -17%Transfers Out -$8.8M or -46% Special Projects -$1.8M or -69% Materials $0.5M or 24% Salary & Benefits $0.6M or 5% Contracts $1.3M or 13% 8 Revenue Trend Analysis –General Fund 42% 62% 38%37%41%46% 0% 20% 40% 60% 80% Revenue Expenditures High Low FY 19-20 9 Unassigned Fund Balance –General Fund Adjustments: $16.04 •-$20M to Capital Reserve •-$4M to Pension Stabilization •$10M Net Vallco Adj •-$1.7M Other Mid Year Adj •-$0.9M Adj Jul-Dec 2019 •$.056M Other Minor Adj $29.15 $16.04 $13.11 $- $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 1st Quarter Year End Projection 2019-20 Adjustments Mid-Year End Projection 2019-20In Millions10 Unassigned Fund Balance –Capital Funds $12.00 $5.00 $17.00 $- $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 1st Quarter Year End Projection 2019-20 Adjustments Mid-Year End Projection 2019-20In MillionsAdjustments: $5.00 •$12.0M (included est $15M xfr) •$ 5.0M (difference $20-$15M) 11 Fund Revenue Expense Fund Balance General Parks & Recreation $0 $(19,200)$(19,200) Community Development 29,747,280 (21,125,634)8,621,646 Public Works 2,301,237 (2,260,781)40,456 Non-Departmental 0 (20,352,719)(20,352,719) Total General Fund $32,048,517 $ (43,758,334)$(11,709,817) Recommended Budget Adjustments Capital Project Funds Capital Improvement Plan $705,438 $(2,105,438)$ (1,400,000) Non Departmental 20,000,000 (352,719)19,647,281 Total Capital Project Funds $20,705,438 $(2,458,157)$18,247,281 TOTAL ALL FUNDS $52,753,955 $(46,216,491)$6,537,464 12 •Parks and Recreation: $19,200 Revenue1 Expenditure Blackberry Farm $6,000 •Freezer Repair •Senior Center •Hidden Treasures $5,280 •Hidden Treasures $7,920 1Revenue was received but not included in the proposal Adjustments by Department 13 •Community Development: $21,125,634 Expenditure Revenue •Vallco Town Center $20,056,634 $29,747,2801 •Vallco Specific Plan $1,069,000 1Revenue is from fees collected Adjustments by Department 14 •Public Works -$2,260,781 Revenue Expenditure •Vallco Town Center $2,301,2371 $2,001,076 •Street Lighting $105,000 •Senior Center Fire Sprinklers $42,500 •Traffic Calming $100,000 •BBF Tree Removal $12,205 1Revenue is from fees collected Adjustments by Department 15 •Capital Improvement Plan: $2,105,438 Revenue1 Expenditure •Library Expansion Revenue $705,438 $705,438 allocation •Sports Center Interior $1,400,000 improvements 1This represents a transfer in of $352,719 from the Non Departmental and a prefunding of expected savings in FY21 of $352,719 from Library extra hours budget to the Library Expansion Project. Adjustments by Department 17 •Non Departmental: $352,719 Revenue2 Expenditure •Library Expansion1 $352,719 •Transfer in $20,000,000 1Total Library expansion budget if approved would be $8,705,438 ($5M original budget, $3M Loan from GF, $705,438 Library extra hours savings.) 2This represents a transfer of cash from the General Fund to the Library Expansion Project and the Capital Reserve Adjustments by Department 18 •Accept the City Manager’s Mid-Year Financial Report for FY 2019-20 •Approve Budget Modification 1920-XXX for Mid-Year adjustments as described in the Mid-Year Financial Report •Adopt a resolution 20-XXX approving Mid- Year budget adjustments Recommendations 19 Next Steps ●FY 2019-20 ●Third Quarter Report to Council May 2020 ●FY 20-21 and FY 21-22 ●CIP Prioritization March 19, 2020 ●Revenue Measures/Forecast April 13, 2020 ●Community Budget Meeting 2nd or 3rd Week April ●Proposed Budget Printed May 1, 2020 ●Proposed Budget Hearing May 19, 2020 ●Final Budget Hearing June 16, 2020 Questions