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HomeMy WebLinkAbout1993-05-04; City Council; 12213; THIRD QUARTER FINANCIAL REPORT FOR FISCAL YEAR 1992-93I c 2 2 z 0 F 0 U 8 3 8 z OF CARLSBAD - AGE - A BILL 5c DEPT. HD. CITY ATTV cW P AB# !a,a TITLE; MTG. DEPT. FIN RECOMMENDED ACTION; THIRD QUARTER FINANCIAL REPORT FOR 5/4/93 CITY MGR: FISCAL YEAR 1992-93 Adopt Resolution No. 93 - 132transferring a General Fund appropriation to the Gas Tax Fund. ITEM EXPLANATION: This report summarizes the fiscal status of the General Fund, the Redevelopment Agency, the Sewer Enterprise Fund and the Carlsbad Municipal Water District based on data through the first three quarters of fiscal year 1992-93. Staff is also asking the City Council to consider a budget transfer of $300,000 from the General Fund to the Gas Tax Fund. In January, the Finance Department determined that the General Fund budget should be reduced to end the year with a balanced budget. During the month of February, departments worked together to arrive at a plan. Salary savings due to unfilled positions along with maintenance and operating reductions allowed department budgets to be reduced by $526,000. Further reductions were attained by decreasing the General Fund contingency account to $112,000. Staff further recommends that $300,000 in street program costs be funded by the Gas Tax fund. While the transfer will help assure a balanced General Fund budget at year end, it will be necessary to use fund balance from the Gas Tax. The Gas Tax fund balance at June 30, 1993, will be approximately $1.8 million following the pursue the street maintenance program as outlined at the beginning of the year. GENERAL FUND REVENUES Total revenues to the General Fund through March are down almost $1 million compared to receipts received from the same period last fiscal year. This decline was anticipated and Carlsbad's revenues presently match those budgeted (Exhibit 2). Total revenues of $24.9 million have been received. If the economy continues to perform at the present level, it appears that the 1992-93 estimated revenues of $38.3 million can be attained. All indications are that the economy will continue with its lackluster performance throughout 1992-93, and even to 1993-94. As noted in the April 1,1993 San Diego Union, economist David Hensley of the UCLA Business Forecast projects that California will remain in recession through 1993, as well as into 1994. He notes that the recession is the result of aerospace and commercial aircraft manufacturing layoffs, and projects that California government will continue to lay off staff. Hensley further comments that California experienced a weak Christmas. budget transfer. Utilities and Maintenance notes that the City will be able to t e 0 c PAGE TWO OF AGENDA BILL NO. /a! dl 3 As shown in the attached graphs (Exhibit 3), the City's largest single revenue, property taxes, are below the projected budget by 1% or $57,000 at the end of the third quarter. The City has received $7.5 million in property tax receipts to date; during the last quarter of 1993 as was received in 1992, we will reach our budgeted revenue total. We continue to look to April's tax receipts to provide a better picture of the annual property tax revenues. Sales tax revenues are behind budget by 2% or $165,000 at the end of the third quarter. This is an improvement from the February, 1993 report which showed sales tax receipts behind the budget by 6%. March's receipts show a boost of $240,000 over the same period last year and some of the improvement can be attributed to the Price Club. We are anticipating that the year's receipts will be within $100,000 of the sales tax revenue projection, with the deficit being made up during the last quarter of 1992-93. Statewide, the San Diego Union reported that March, 1993 sales taxes were down 3.3% from March, 1992 receipts. This reflects the continuing recession and lackluster fiscal growth, which lags behind the pessimistic projections. The article further noted that March, 1993 was the first month that the snack tax assessment while our annual estimate is for $12,9 million, If the City receives the same amount had expired. Through March, transient occupancy taxes (TOT) show an increase of 7% or $21,000 over expected revenues, reflecting a total of $1.9 million in receipts. TOT receipts collected are through the month of February. Since no special events occurred one could speculate that poor weather in other parts of the country prompted travelers to select Carlsbad as a destination. Development revenues continue to falter as evidenced by a $300,000 or 17% deficit from expected receipts to actual revenues received. Much of the difference can be attributed to a plan check fee reimbursement. Construction Permits are the only development related revenue showing an increase; at $15,000, or 9%, over the budget. The Business License Tax is ahead of the budget by $55,000 or 7%. Other revenues mental charges, interest, and other charges and fees. EXPENDITURES The attached expenditure status by department (Exhibit 4) reflects the budget reductions made in February. The schedule shows amounts spent or encumbered by department through March 31, 1993. Departments are doing well at holding down their expenditure levels. The General Fund has almost 30% of its budget available, which is approximately 5% more than if funds had been spent evenly throughout the year. which are corning in ahead of projections include ambulance fees, interdepart- I 0 0 . PAGE THREE OF AGENDA BILL NO. i ai 2/17 In summary, by comparing the current revenue estimate against the revised budget, we will have sufficient funds to be balanced at the end of the fiscal year. RESERVES The General Fund available fund balance at the beginning of 1992-93 was host $8 million (Exhibit 5) and by year end, it is estimated to be $6.6 million. Several factors influenced the change in the City's General Fund reserves including the funding of major facilities maintenance and increasing the worker's compensation insurance reserves. Staff will recommend as part of the 1993-94 budget that General Fund reserves be set aside for two additional purposes. First, it is anticipated that $2 don Will need to be set aside for the anticipated refunding of aerospace sales taxes. The State Board of Equalization must refund sales taxes paid by aerospace companies for purchases made in connection with federal defense contracts. Although the method of payback has not yet been determined, the State estimates the City's liability may be as much as $2 million. Second, $205,000 needs to be set aside for the payment of PERS on the City-paid employee PERS contributions. The PERS reserve would fund one year of PERS on City-paid employee contributions and is a precaution in light of a retiree lawsuit against PEW, which is on appeal. An increase of $1.5 million in the General Fund balance will occur as a result of a refund of PERS surplus funds held in trust by the City since 1991-92. The laws& over the State's use of the surplus was resolved and the General Fund will receive its proportionate share of the refund this year. . REDEVELOPMENT AGENCY STATUS REVENUES Property taxes through March show that receipts are $33,000 higher than last year's receipts (Exhibit 6). This is insignificant, especially considering that April and May are key months for these tax receipts. It appears that the Agency's budgeted 1992- 93 revenues, which were revised downward in February, will be met. EXPENDITURES Redevelopment Agency expenditures to date show that 19% of the funds remain available. If spending were to occur evenly throughout the year, 25% of the funds would have been available at this point. Although it appears that spending is exceeding the budget, one of the twice yearly debt service bond payments was made in March, 1993. As the March payment was $724,000, a large portion of Redeyelopment's budget was expended at once, J e 0 . PAGE FOUR OF AGENDA BILL NO. 12, d 13 resulting in a skewed spending pattern. The special payment required by the 1992 State Budget Act ($260,000) has not yet been expended. Salary and supply expenditure accounts have more level spending patterns throughout the year, and reflect the expected amount of funds available at this point. SEWER OPERATIONS FUND STATUS REVENUES Total revenues to the Sewer Fund through March show a 2% or $53,000 increase over the same period last year (Exhibit 7). Higher service charges were offset by a like decrease in other revenues to the Sewer Enterprise. The decrease is due to a one-time meter flow adjustment that resulted in a refund to the Sewer Fund in last year. As of the end of the third quarter, the annual estimate for the Sewer Fund revenues has been revised to reflect the August 1992 sewer rate increase to $4.2 million. EXPENDITURES Spending is down by 8% or $180,000 from last year at this time. En&a Plant Services are lower this year to adjust for an over payment made in 1991-92. It is anticipated that the Plant Services will end the year at a spending level of $1.7 million, $300,000 below the budgeted amount. Salaries and benefits show an increase in spending over last year of $104,000 or 35%. The spending increase is due to staffing alterations made after the City and Carlsbad Municipal Water District (CMWD) combined management efforts. A review of the revised 1992-93 budget indicates that the Sewer Fund will end the year in a balanced position. CARLSBAD MUNICIPAL WATER DISIWCX REVENUES CMWD revenues through March show an increase of $595,000 or 10% over the same period last year (Exhibit 8). As of the end of March, water sales revenues are up 16.5% or $729,000 which is due to the rate increase implemented in October, 1992. Water sales volume, however, is below what was anticipated due to the abundant rainfall this year and successful conservation efforts. Revenues are behind last year's in the fines, forfeitures and penalties category due to the effort to write off old uncollectible accounts. 0 e .I PAGE FlVE OF AGENDA BILL NO. 1%; %! 3 As of the end of the third quarter, the annual revenue estimate for CMWD has been revised downward by $1.7 million for a total of $10.1 million. The revision was necessary to accommodate the decreased volume in water sales. EXPENDITURES Operating expenses to date show that spending is higher than for the same period last year by 15% or $868,000, but well within the current budget. The majority of the increase is in purchased water, up $709,000, as the cost of water to CMWD has increased over 1991 -92. Depreciation and interdepartmental services are expected to come in at the budgeted amounts, while personnel costs and other operating expenses are expected to be lower than budget for the 1992-93 fiscal year. A review of the revised 1992-93 budget shows that the annual estimate for revenues is not sufficient to produce a balanced budget. It is anticipated that the decline in water usage could result in an operating loss of approximately $582,000 by year end. EXHIBITS: 1. 2. 3. 4. 5. 6. 7. 8. Resolution No. 9 3 * 1302 authorizing the appropriation transfer of $300,000 from the General Fund to the Gas Tax Fund. General Fund Revenue Comparison through March, 1993 Budget to Actual Revenue Graphs General Fund Expenditure Status by Department General Fund 1992-93 Fund Balance Revenue and Expenditure Schedule - Redevelopment Agency Revenue and Expenditure Schedule - Sewer Operations Fund Revenue and Expenditure Schedule - Carlsbad Municipal Water District I. .- 1 . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 0 0 RESOLUTION NO. 9 3 - 13 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING THE TRANSFER OF APPROPRIATION FROM THE GENERAL FUND TO THE GAS TAX FUND WHEREAS, the City Council of the City of Carlsbad has adopted the annual operating budget for fiscal year 1992-93; and WHEREAS, certain controls have been placed on the use and transfer of budget funds; and WHEREAS, the City Council will endeavor to balance the General Fund operating budget through the budget transfer mechanism; and WHEREAS, the Gas Tax Fund has sufficient available funds which are authorized for street purposes. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the City Council hereby authorizes an appropriation transfer of $300,000 from the General Fund to the Gas Tax Fund. Said /// /// /// /// /// /// /// I. b .- m 1 2 3 4 5 6 7 8 9 10 11 12 13 15 14 16 17 18 19 20 21 22 23 24 25 26 27 28 0 0 funds will be applied to the street maintenance program of the City of Carlsbad. PASSED, APPROVED AND ADOPTED at a regular meeting of the , 1993, by the following vote, City Council on the 4th day of to wit: MAY AYES: Council Members Lewis, Stanton, Kulchin, Nygaard, Finni: NOES: None ABSENT: None ATTEST: ALETHA L2JG.ALRt- L. RAUTENKRANZ, City Clerk (SEAL) EXHIBIT 2 a 0 1. ? L $$?$$?$?$?$$ 8 cw OO-mNaN~ 0 I ITTTm Z Eg I I 0 oa no cn E+ z a e z 0 $2 00 no Wg =: 20 a aEs 0s zg nnn 0v-cuTrbl-dai;j. Q) dmcobNOcu0 * co -ir a,m m,w c3 0- a Tv-cuQd~ 0 u; 66buj-rna3-6-d 6 SZ v r -T-Y Y ObmbNbOu? c9 YLOa-bmmLO o,co,Q,~"ku?!m,u?? it _I=: g~gg~~~$! b- a:? mm,co,~---~- a u3 cv d aiv-v-ol v-F T gs W oock 20 L$ w+.H Tab-o)aQcD q- acvd-ao)moLo Q) 0 - m, co, a, Y- 0, m, a --ctFo-Tomo Tr- m- co_ m- cu 0, cu- - * b Za w I 8 =0 Fu2 av-v-cu -- Z$$ o)aoacuombo) a- $ T V)I< W z W c3 a, v) v) gg * v)v) 62 w E 2 -0 as! 3 a, 9% z Doat ng $% W cQ)L,g E: s a2 0 *m 59 u gv,a,aMg-E J v) a,gg$g2E$ a $o$rc995 5 w 3 -s m3v)c I-3v,OiiCCO I- - - --__ - .. . 0 e 4. T m TAX REVENUE - BUDGET TO ACTUAL JULY 1992 - MARCH 1993 DOLLARS IN MILLIONS 8 __..__.______._______ 6 ..................... 4 2 TOT TAX 0 PROP. TAX SALES TAX DEVELOPMENT FEE REVENUE - BUDGET TO ACTUAL JULY 1992 - MARCH 1993 DOLLARS IN THOUSANDS 700 600 500 400 300 200 100 0 __....__.... _______________..______.. ____________. ____.___..________._____. _._____.____. __________._.__.._____ 0 BUDGET pi .___.___..__.. ____._._______________ UP9% DOWN 11 ___________.__ ____.________.__.._.. + %+ 46 +@ 4% $ & %f+% &+@ 1.3" *+%+6 0% Q+% 8 %+G <%Q+ qkV .(e QG < a?" GQ@ L. + 0 0 OTHER REVENUE - BUDGET VERSUS ACTUAL JULY 1992 - MARCH 1993 DOLLARS IN THOUSANDS 2000 ........................... 1500 ............ ....UP.7%....... ..... mi 1000 ......... 500 0 CP ,.."" & ,.."" 4.5 ,..*' 4% $9 L t= *GG 6% B 4% B...' 9 4% c."" +$? 5 Q+ \ % 4% Gb tt**h EXHlBIT 4 0 0 CITY OF CARLSBAD GENERAL FUND EXPEN DlTU RE STATUS BY DEPARTMENT 4- . TOTAL AVAILABLE % BUDGET COMMITTED* BALANCE AVAlLABLl DEPT DESCRIPTION FY 1992-93 03/31 /93 03/3 1 /93 03/31 /9: GENERAL GOVERNMENT 1010 CITY COUNCIL 159,368 1 12,821 46,547 29 .: 1020 CITY MANAGER 623,799 489,480 134,319 21 .! 1030 CITY CLERK 28,700 16,964 11,736 40.! 1210 AlTORNEY 368,463 265,970 102,493 27.1 1310 FINANCE 897,678 634,198 263,480 29.4 1320 TREASURER 85,380 51,416 33,964 39.1 141 0 PURCHASING 371,029 252,959 118,070 31 .I 1510 HUMAN RESOURCES 775,984 485,912 290,072 37.1 1610 RESEARCH &ANALYSIS 249,737 160,369 89,368 35.; 373,364 264,849 108,515 29, 198,326 139,800 58,526 29.: 1710 INFORMATION SYSTEMS 1910 INSURANCE/RISK MANAGEMENT 1990 MISC. NON-DEPARTMENTAL 1 ,O 14,650 279,432 735,218 72.! lm OTHER (INCL CONTINGENCY) 1 ,446,158 1,232,669 21 3,489 14.1 TOTAL GENERAL GOVERNMENT 6,592,636 4,386,839 2,205,797 33 .! PUBLIC SAFETY 21xx POLICE 8,798,925 6,391,860 2,407,065 27 .( 22xx FIRE 6,792,906 4,958,076 1,834,830 27.1 TOTAL PUBLIC SAFETY 15,591,831 11,349,936 4,241,895 27.: COMMUNITY DEVELOPMENT 30xx COMMUNITY DEVELOPMENT ADMIN. 709,393 419,100 290,293 40. 31xx ENGINEERING 3,768,175 2,858,557 909,618 24, 32xx PLANNING 2,172,886 1,534,706 638,180 29, 341 1 HISTORIC PRESERVATION 5,572 2,402 3,170 56 3610 BUILDING 835,998 620,439 21 5,559 25 TOTAL COMMUNITY DEVELOPMENT 7,492,024 5,435,204 2,056,820 27. CULTURE & RECREATION 40xx LIBRARY 2,315,991 1,711,056 604,935 26 41xx PARKS & RECREATION 3,830,710 2,676,732 1 ,I 53,978 30 42xx CULTURAL ARTS 251,525 171,428 80,097 31 TOTAL CULTURAL ARTS 6,398,226 4,559,216 1,839,010 28. MAINTENANCE & UTILITIES 4,352,183 2,697,187 1,654,996 38. TOTAL GENERAL FUND 40,426,900 28,428,382 11,998,518 29. * Total committed includes expenditures & encumbrances. ** Amount available would be 25% if funds were spent evenly throughout the year. TR KEXP93. WK 1 EXHIBIT 5 0 0 . I 1992-93 GENERAL FUND BALANCE USE OF FUND BALANCE: WORKER’S COMP INSURANCE (459,000) MAJOR FAC I UTI ES MA1 NTENANCE (1 93,500) (652,500) NEW RESERVES IN 1992-93: PERS ON CITY-PD EMPLOYEE PERS CONTRIBUTION AEROSPACE SALES TAX (2,000,000) (2,205,000) (205,000) SUBTOTAL INCREASE IN FUND BALANCE: AB702 PERS SURPLUS FUNDS 1,500,000 4 EXHIBIT 6 CARLSBAD REDEVELOPMENT 0 A ENCY OPERATIONS AND DEBT SERVICE FUNDS 0 *, = MARCH 31,1993 PIWPERTYTAXES 1,331,000 (~looo) 750,615 784,026 3 INTEEST 69,266 68,376 RENTS MlSCEuANEouS RNENUES TOTAL MNUE 852,975 883,446 3( SALARIESIBENEFKS UTiunES FIENTALsaLEASEs cuTslrEs€msMmm GENERAL OmCE EXPENSE MATERlALSANDSUPPIJES DEBT MPENSE MlSCEUANEOUS EXFENSES TOTAL EXPENDITUFZS EXCESS OF MMS OMR INTERDEPARTMENTAL SERvlcES 160.035 56.145 M.0 ExeENormRES Total committed includes expenditures and encumbrances. ** Amount available would be 25% if funds were spent evenly throughout the year. Fib REDEMLPlMOSTANS A EXHIBIT 7 .@ CARLSBAD MUNICIPAL WATER DISTRICT SEWER OPERATIONS FUND MARCH 31,1993 0 REVENUES: CHARGES FOR CURRENT SERVICES INTEREST OTHER REVENUES TOTAL OPERATING REVENUE EXPENSES: SAIARIES/BENEFITS 398,771 104,427 35.48 INTER DEPARTMENTAL SERVICES UTI LlTlES RENTALS AND LEASES (2,209) (77.95) OUTSIDE SERVICES/MAINTENANCE GENERAL OFFICE EXPENSE MATERIALS AND SUPPLIES DEPRECIATION ENCINA PLANT SERVICES 1 ,I 12,215 (325,678) (22.65) CAPITAL OUTLAY MISCELLANEOUS EXPENSES TOTAL OPERATING EXPENSES Of ERATlNG INCOME/LOSS File: SEWERNOSTATUS tAHltSII M P e e CARLSBAD MUNICIPAL WATER DISTRICT A I' WATER OPERATIONS MARCH 31 , 1993 REVENUES: FINES, FORFEITURES & PENALTIES INTEREST OTHERREVENUES TOTAL OPERATING REVENUE EXPENSES: SALARIES/BENEFITS 1,461,321 1,308,656 (152,665) (10.45) INTER DEPARTMENTAL SERVICES PURCHASED WATER 2,971,221 . 3,680,279 709,058 23.86 UTILITIES OUTSIDE SERVICES/MAINTENANCE GENERAL OFFICE EXPENSE MATERIALS AND SUPPLIES DEPRECIATION CAPITAL OUTLAY MISCELLANEOUS EXPENSES TOTAL OPERATING EXPENSES OPERATING INCOME/LOSS File: H2U/MOSTATUS