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Home My WebLink About1993-11-16; City Council; 12469; 1993-94 1st quarter financial report2. , FIRST QUARTER FINANCIAL REPORT FOR FISCAL YEAR 1993-94 Accept and file report, ITEM EXPLANATION: The attached report summarizes the fiscal status of the General Fund, the Carlsbad Municipal Water District and Sewer Enterprise based on data through the first quarter of fiscal year 1993-94. Although it is important to continually monitor revenues throughout the year, first quarter receipts are not necessarily an accurate predictor for the remainder of the year. Many revenues, such as property tax and sales tax, fluctuate significantly from quarter to quarter. The City is also revising the budgeted revenues and expenditures for 1993-94 downward by $1.3 million due to the State and economy. These adjustments will be made in future reports. FISCAL IMPACT: 1. Financial Status Report - First Quarter, Fiscal Year 1993-94 $B 0 K < 2 it z 2 4 =! 0 z 3 G 8 0 0 Financial Status Report First Quarter - Fiscal Year 1993-94 Prepared by Finance Department GENERAL FUND Revenues Total General Fund revenues for the first quarter of 1993-94 are down by 16% or $870,000 from what was budgeted. The majority of the decrease is due to timing of accounting entries rather than actual decreases in revenues. After adjusting for the timing differences, total general fund revenues are below budget by $172,000. The details are presented below. THE GOOD NEWS Sales tax revenues are above the budget by 5% or $95,000. Municipal Resource Consultants, the City’s sales tax auditors, report gains in department store sales (mainly Price Club), new auto sales and business services sales. Could this be a sign that consumer confidence in the economy is on the rise? Economic indicators and the daily news do not generally support this premise. Business License revenues have exceeded the budget to date by $45,000. This is the result of the temporary assignment of a code enforcement officer working with businesses and continued emphasis on collection of the delinquent accounts. Ambulance fee collections are above budget by $22,000. Improved collection procedures are the most likely cause of the noted increase. THE BAD NEWS Property Tax revenues are below the budget to date by $66,000 or 92%. The County has postponed all tax payments until after October. We should be receiving our payments, including interest, sometime in the second quarter. More significant revenue figures will emerge following the receipt of the December property tax payments. Interest revenues look as if they are below budget by $415,000; however, this is due to the timing of accounting entries and does not accurately reflect the amount of interest revenue that has been earned to date. The interest accruals will not be made until the second quarter report, thus no comparison to budget is meaningful at this time. Development revenues are also below the anticipated budget for the first quarter. As a group these revenues are down by $470,000 or approximately 50%. In June, 1993, the San Diego Union reported that Spring home sales were down so sharply for the year that a reversal in the trend was not sustainable. It appears to be the case in Carlsbad as well. 0 0 Financial Status Report Page Two During the first quarter of 1993-94, the number of building permits issued totaled 27, while for the same period last year, 49 permits had been issued. In addition to a decline in the number of permits issued, the San Diego Economic Bulletin reports that construction valuation throughout the County is equivalent to 1982 values, an ominous sign for today’s economy. Vehicle-in-lieu revenues are below budget by $229,000 or 34%. A representative from the State Division of Accounting indicated that throughout the State vehicle-in-lieu revenues are below estimates, although no explanation was available. Funds that would come in as a result of the budget balancing legislation will be received in either one or two lump sum payments, and they have not occurred yet. Expenditures General Fund expenditures through September 30, 1993 total $9.9 million and represent 25% of the annual current budget. Expenditures show a $342,000 decrease when compared to the same period last year. While this appears to be a good position, the savings will be reduced after $275,000 in worker’s compensation and general liability charges are posted. Most departmental expenditures are similar to what they were last year for the first quarter. There are however two areas that contain substantial spending decreases, Community Development and Parks & Recreation. Engineering contracts and expenditures declined $293,000 due to less reliance on outside engineering consultants, completion of the federally mandated storm water study, and salary savings from unfilled inspector and engineer positions. Planning contracts decreased by $1 09,000 due to the augmented use of staff instead of consultants to study various elements in the General Plan update. Building appears to have increased expenditures over last year however, the timing of the encumbrance for building plan check consultants is the cause. Parks administration and operations show a $1 07,000 reduction in expenditures. A portion of management/administrative salaries are now charged to special benefit districts and several vehicles have been reassigned. Summaw Although revenues appear below expectations at the end of the first quarter, it is difficult to predict an entire year’s outcome from one quarter of activity. Many revenues, such as property tax and sales tax, fluctuate significantly from quarter to quarter. General Fund expenditures and encumbrances are down from last year and several departments have achieved significant savings. Much of the savings will be erased however, after booking worker’s Compensation and general liability charges. 0 0 Financial Status Report Page Three The City is presently revising budgeted 1993-94 revenues and expenditures downward by $1.3 million due to the State and economy as indicated below. These adjustments will be made in future reports. BUDGET ADJUSTMENTS Property tax loss $19.31 per capita (1,298,000) Little Roundabout ($1.02 per capita) (68,500) Total (1,366,500) TP&D shift 405,000 Little Roundabout 68,500 Total 473,500 Sales tax sharing 339,000 Total Estimated State Impact (554,000) (720,000) Total General Fund Revision (1,274,000) Vehicle in Lieu Fees Property tax reduction due to economy Redevelopment payment required 91,434 CMWD Revenues The current 1993-94 budget reflects a plan that will find the Water District essentially balanced at the end of the year. Both revenues and expenditures are budgeted at $12.2 million. Through September 30, 1993, revenues have exceed expenditures by approximately $570,000. Revenues from water sales have increased by $400,000 or 19.6% over last years same period receipts and is due to higher water rates. The rate increase did not take effect until October, 1992. Fine, forfeiture and penalty revenue is also up from that received last year, by $84,000, and is due to the large number of write- offs that occurred in 1992-93. This artificially lowered the revenue amounts received in last year. As is similar to the General Fund, interest revenues have not had the accrual reversal offset yet, which renders a revenue comparison here difficult. Expenditures Just as revenues are above last year’s receipts, expenditures are also occurring at an accelerated rate, up $310,000 over 1992-93 first quarter. The cost of purchased water 0 0 Financial Status Report Page Four shows the greatest meaningful increase, up approximately $245,000, (1 9.4%) and is due to the District’s higher cost of purchasing the commodity it sells. Accounting procedures have affected the results of two expenditures in the first quarter. First, interdepartmental expenses were not charged during the first quarter of 93-94, whereas this entry did occur last year; in effect lowering expenses. Second, depreciation expense was not posted last year, but was entered this year, raising expenses by $200,000. SANITATION Revenues As with the Water District budget, the Sanitation Enterprise has a budget with matched expenditures and revenues for the year. At the end of the first quarter, revenues have exceeded expenditures by nearly $380,000. The largest revenue source is charges for current services, which is up $95,000 over 1992-93 first quarter receipts. This is due to the rate increase which went into effect in August of 1992. Expenditures Total expenditures are below those of 1992-93 by approximately $1 50,000. Similar to both the General Fund and the Water District, interdepartmental charges were not booked for the first quarter of 1993-94, resulting in expenses being understated by approximately $1 00,000. * GENERAL FUND REVENUE COMPARISON THROUGH SEPTEMBER 1993 ESTIMATE ACTUAL THROUGH THROUGH DOLLAR PERCENT SEPT. 1993 SEPT. 1993 CHANGE CHANGE Taxes 2,627,000 2,942,000 31 5,000 12% Licenses and permits 351,000 357,000 6,000 2% State Subventions 690,000 450,000 (240,000) - 35% Charges for services 1,013,000 757,000 (256,000) - 25% Fines and forfeitures 63,000 71,000 8,000 13% Interest 296,000 (1 21,000) (41 7,000) -141% Interdepartmental charges 365,000 88,000 (277,000) -76% Other revenue sources 17,000 11,000 (Woo) -35% TOTAL REVENUES 5,422,000 4,555,000 (867,000) -16% 0 OTHER REVENUE YTD BUDGET TO ACTUAL SEPTEMBER 1993 0 DOLLARS IN THOUSANDS 800 700 600 500 400 300 200 100 0 .............................................. .............................................. .............................................. ........................................... ............. ...................... DOWN 11% ............ @ 49 &5"" &b5 d5 e+* ,$F & <\Q* \ + 4% 8..p ,.."" 9 8 G % *&+ 4% <* <p *!5 %Q5 ct*. 5 DEVELOPMENT FEE REVENUE YTD BUDGET TO ACTUAL SEPTEMBER 1993 DOLLARS IN THOUSANDS ........................ ..................... 0 0 8888at 888 888888* * bp * * * ED00)br Or? YcqqTcqcl?k ???RS 7:e (u EDrrNr rrb1 88888 * E& OWc9WrnF @c crioc6CdCdcj CdojOiQO 2 Q v-.I- 17 I IO E6 ' 888SSS8 8 Q gm gD 8 9 9 9 9 9 9 OD OD L@ s88ggg 999990 gS88O 9008 9 9 0. -$!! AF e zzgsg6 $-gs$: *c9c ~(uqs$za $ f 02 ,,%---m v) ma urn ww?k 8 ssssssg g 8 8 a Q $3- 88888 999998- om00 - g%gg",g ; g g $ z g? lrt$?gi!Ig asagg. we b N 0- N ED 0 q,_ea)- 8 e rug roc9 s In Q, bz: r- (u 8'888888 9999990 8 0- 8 0- 8 0- 8: 0. s JW8 qqq9qo row- m OOrnbQ)(u 10 ._ c9 PC ED b- m6 w(urn(uw10~ # g 6 b 0 (0- d(uF2 Zb*b gsg v- (u; (u 4 ?gg qv--qorW ). J sp a (u 88888 EDbb10a) bp a, gEEs$ ggg gEgEggg * 3 g 8 3 OlnSTk mqcq w?;?;" $ 2 5: 8s -torn LaF ii COG cJAxk6 rw(u*'r *=aFI I I I YT I K m2m a,OG I I Ill 2 y v?V?Z% 9 9 0 Ci$$3lSO sszss 5 5 5 0) Wsg%g 'oa?.ln' --._ vNrr *< ,rg(usg 888 9 9 0- 990-9999 0. Q 0. 9 9 *a)v-a)*rn(O r II Ill nn- 8S8 70 bO6@3@3@3 rr VY v 0, t 9999990_ 0- 0- sag 9 9 0- ssssg 9 9 9 9 0 m- (u b- ' a- t 0- Fr b m m k ;*q 7- r m I w= 2 888 9 9 0- 88888 9 9 9 9 0- Nq._(uN k @ S8888g :a)c9 us oE& (9kbED(\!co To! K a2l 8gggZ6 9 r m a I (ur v-b Na)N nnh nnn ggggg n 000 0 oon0o 00800 000 000 88ssssQ 88 n 000 0 z W LT mom z -3- U E.$ v 2sg ccJvc9 (uc? .u 3 n in6 2 w 02s rwl- z egg (u s ' :Q+ (urnc9-J-co co*(u~(u g g 02% 69qw I e@ r 3 y Y 888 (3 * Nr, Y "? 8888888 on 0 88888 9 9 9 9 0- 88888 8 9 9 9 9 9 0 a! ED*ba)OO, 3 !& ggg$g$ c9-J-00 b04-s; 9's o10,wPCEDs; z 5 g : 2 (u N t CJ aa w >. I- 8888888 8 8 00 8 8 9 9 9 9 0- 9 9 0- sssssso~ 9999 08000 (O s 88g 0 000 Ollnr-b 88888 8 9 9 9 9 9 0- '9 wEDa)co10ED 2- bus -yyp;X In us ,:bo by9W-, izg - 0 us In 01 v) w $ E5 E!a V)~LLWWW~ cn !!figcn t$ Mep"gg I.L n g Y 5 4.9 ~9amo 3KWJ 45zrwEi5 : 4 gzy4i3,O SWZ+OI amwuaoo l- z [r Y E GENERAL FUND EXPENDITURE STATUS BY DEPARTMENT INCRI(DECFi FROM % TOTAL BUDGET AVAILABLE** COMMITTED* DEPT DESCRIPTION FY 1993-94 06/30/93 09/30/93 PRIOR YEAf GENERAL GOVERNMENT 101 0 CITY COUNCIL 167,678 77.7% 37,453 (1 2,47 1020 CITY MANAGER 750,320 77.0% 172,678 14,2t 1030 CITY CLERK 17,680 89.5% 1,864 (8,l: 131 0 FINANCE 1,004,226 77.9% 222,068 7,8( 1210 ATTORNEY 462,974 81.9% 83,730 67' 1320 TREASURER 101,400 80.5% 19,773 31 6f 141 0 PURCHASING 352,353 68.2% 111,883 (1 6,8( 1 990 OTHERNON- DEPT'L/CONTINGENCY 2,389 , 095 57.5% 1,015,021 37,3' 151 0 HUMAN RESOURCES 821,505 79.5% 1 68,572 (24,8: 171 0 INFORMATION SYSTEMS 387,553 69.5% 11 8,246 154 TOTAL GENERAL GOVERNMENT 6,454,784 69.8% 1,951,288 10,5( PUBLIC SAFETY 21xx POLICE 9,036,751 76.7% 2,102,410 (W24 2% FIRE 6,938,635 75.7% 1,688,090 442 TOTAL PUBLIC SAFETY 15,975,386 76.3% 3,790,500 (l 680 COMMUNllY DEVELOPMENT 3Oxx COMMUNITY DEVELOPMENT ADMIN. 886,919 79.3% 183,680 37,G 31 xx ENGINEERING 3,269,125 76.7% 762,863 (293,G 3- PLANNING 2,103,257 76.7% 489,607 (1 OW 341 1 HISTORIC PRESERVATION 3,550 95.1 % 1 74 (1 ,c 361 0 BUILDING 898,834 65.9% 306,416 87,E TOTAL COMMUNITY DEVELOPMENT 7,161,685 75.7% 1,742,740 (278,2 CULTURE & RECREATION 4Oxx LIBRARY 2,484,367 75.2% 61 7,197 39, E 42xx CULTURALARTS 252,863 77.3% 57,326 (31 41 xx PARKS & RECREATION 3,825,207 77.9% 844,919 (1 07,: TOTAL CULTURAL ARTS 6,562,437 76.8% 1,519,442 (70,! MAINTENANCE 8 UTILITIES 3,871,370 77.1% 885,038 12,( TOTAL GENEW FUND 40,025,662 75.3% 9,889,008 (342,: * Total committed includes expenditures & encumbrances. ** Amount available would be 75% if funds were spent evenly throughout the year. TRKMP94.WK1 I TOTAL MAJOR PROJECTS TOTAL EXPEND] AVAIW0L€ APPROPR. ENCUMBR. BALANCE POINSETTIA COMMUNIN PARK 4,087,000 533,000 3,554,000 STREET ECWPAR E WIDENING 9,996,000 7,596,000 2,400,000 PAWI-5 INTERCHANGE 8,246,000 3,874,000 4,372,000 POINSETTIA lANE/I-5 INTERCHANGE 3,360,000 1,563,000 1,797,000 1,950,000 1,447,000 503,000 14 COSTA AVE / 1-5 INTERCHANGE STREETSCAPE PH V -CARLSBAD VlLL DR. 2,870,000 2,200,000 670,000 TAMARACK AVENUE 2,052,000 1,796,000 256,000 WATER 'D' RESERVOlR EXPANSION I 4,900,000 51 7,000 4,383,000 MAERKLE RES-PUMP & DISINFECT 2,838,000 2,239,000 599,000 PIPELINE - ECR/PAR E WIDENING 2,500,000 1,610,000 890,000 0 CARLSBAD MUNICIPAL WATER DISTRICT WATER OPERATIONS SEPTEMBER 30,1993 REVENUES: WATER SALES INTEREST OTHER REVENUES TOTAL OPERATING REVENUE EXPENSES: SALARIES/BENEFITS INTERDEPARTMENTAL SERVICES 82,788 (140,338) (62.90) PURCHASED WATER 1,254,954 1,498,859 243,905 19.44 UTILITIES OUTSIDE SERVlCES/MAINTENANCE GENERAL OFFICE EXPENSE MATERIALS AND SUPPLIES DEPRECIATION CAPITAL OUTLAY MISCELLANEOUS EXPENSES TOTAL OPERATING EXPENSES OPERATING INCOME/LOSS 262,588 . 572,639 310,051 1 18.08 File: H20MSTAT REVENUES: CHARGES FOR CURRENT SERVICES 4,408,000 INTEREST 100,000 OTHER REVENUES 45,000 TOTAL OPERATING REVENUE 4,553,000 EXPENSES: SALARIES/BENEFITS 561,199 INTERDEPARTMENTAL SERVICES 465,287 UTILITIES 49,000 RENTALS AND LEASES 11,000 OUTSIDE SERVlCES/MAINTENANCE 189,260 GENERAL OFFICE EXPENSE 35,300 MATERIALS AND SUPPLIES 122,615 DEPRECIATION 1,100,000 ENCINA PLANT SERVICES 1,969,000 LOSS ON DISPOSAL OF FIXED ASSETS 0 CAPITAL OUTLAY 35,700 MISCELLANEOUS EXPENSES 3,100 TOTAL OPERATING EXPENSES 4,541,461 OPERATING INCOME/LOSS 1 1,539 946,002 1,040,517 94,515 92 ' 91 5,245 1,024,725 109,480 112 (35,757) (16,885) 18,872 (52.i 5,000 1,093 (3,907) (78.1 126,357 124,603 (1,754) (1 .: 4,929 7,390 2,461 49.! 552 0 (552) (loo.( 9,896 4.898 (4.998) (501 4,721 4,466 (255) (5.d 15,595 2,816 (12,779) (81.! 0 0 0 EF 51 1,898 484,403 (27,495) (5.: 0 0 0 EF 7,110 0 (7,110) (loo.( 0 0 0 EF 119,204 18,532 (100,672) (84.d 800,202 647,108 (153,094) (19.' 115,043 377,617