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HomeMy WebLinkAbout1994-11-15; City Council; 12931; FIRST QUARTER FINANCIAL REPORT FOR FISCAL YEAR 1994-95L e 0 cc fL 9 2 z 0 F i3 2 8 A z 3 OTY OF CARLSBAD - AGWDA BILL >’ W! AB R J&;q 21 TITLE: DEPT. HI& MTG. 11/15/94 FIRST QUARTER FINANCIAL REPORT FOR CITY ATTY DEPT. FIN FISCAL YEAR 199495 CITY MG; RECOMMENDED ACTION: Accept and file repan, ITEM EXPMNATION: The attached report summarizes the fiscal status of the General Fund, the Carlsbad Municipal Water District, Sewer Enterprise, and Redevelopment Agency based on data through the first quarter of fiscal year 1994-95. 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. FISCAL IMPACT: None. EXH I BITS: 1. Financial Status Report - First Quarter, Fiscal Year 1994-95 e 0 Financial Status Report First Quarter - Fiscal Year 1994-95 Prepared by Finance Department At the end of the first quarter, General Fund revenues excluding interest totaled $7.3 the first quarter, the revenue news was indeed good as most revenue categories posted increases. This report will detail the performance of General Fund revenues and expenditures, followed by a discussion on the Water District, Sewer Enterprise Fund and Redevelopment Fund. GENERAL FUND Taxes While property taxes appear to be over budget by $500,000, this aberration is the result of payment timing from the County assessors office to the City. Last year payments were minimal during the first quarter, while this year they have been more timely. The property tax funds while welcome, are not considered a harbinger of future returns as most receipts are posted in December and April. Proceeds in these months will provide a far better perspective of revenue performance in this category. Sales taxes are up 13% or $272,000 over budget estimates. Sales taxes are also considered a good indicator of the general economy, and a comparison to the same period in 1993-94 shows a growth of $225,000 or 11%. Auto sales are showing the greatest increase, while restaurants and business services are also up. The boost experienced in sales taxes is indeed a good economic sign. As noted in the October 1994 issue of the Economic Bulletin, economists watch for changes in durable good sales, i.e., automobiles, furniture, building materials, to gauge consumer's well-being and as an indication of future economic activity. Sales of durable goods rebound more vigorously once consumers regain confidence in the economy. Further as goods became worn, acquisitions of new items were deferred and are now being purchased. The Economic Bulletin concludes that increasing durable good sales are an important sign that consumers are regaining financial vitality and the economy is gathering strength. Also showing positive returns are the Transient Occupancy Taxes (TOT) which are ahead of budget $67,000 or 11%. Summer months are usually strong tourist months meaning that first quarter gains in this revenue may not be sustainable. Again citing the October 1994 Economic Bulletin it is noted that "Sales by eating and drinking establishments in San Diego never faltered over the past few years, a confirmation in part to the strength of San Diego's thriving tourist industry." While this statement applies to the entire County, Carlsbad has recently experienced a rise in restaurant sales tax revenue and in conjunction with a summer increase in TOT, may signal a recovering tourist industry. million, an increase of $2,3 million or 45% over budgeted estimates. As the City ended 0 Financial Status Report Page Two Franchise Taxes are over budget estimates by $52,000 or 38% with the majority of the increase due to the change in the Daniels Cablevision franchise rate. The tax rate went from 3% to 5% in January 1994 so we have not yet experienced a full year of the higher rate. State Subventions Vehicle License Fees show an increase of $67,000 or 17% over budget estimates for a total revenue of $468,000. The increase in the vehicle license fees correlates with increased auto sales reflected with the sales tax information. The Finance Bulletin published by the California Department of Finance also reinforces the figures reflected in Carlsbad’s revenues noting that new car and noncommercial light truck registrations were up 4.4% over 1993 levels through July 1994. Charges for Services This revenue category is up 54% or $379,000 over budget estimates led by an increase in Planning fees of $159,000 or 150%. Development related fees are performing better than expected and also include Engineering fees up $94,000 or 58% and Building Department fees, up $48,000 or 122%. As a total the three development related charges for service revenues are up $609,000 or 51% over estimates. A total of fifty-one building permits were issued through the first quarter yielding an increase of twenty over the same period last year. The combination of increased development related revenues and building permits issued indicates that construction activity has increased. According to the Assistant City Engineer, David Hauser, the levels , attained during the first quarter are probably not sustainable. He continues to note that there are two projects expected to bring in development related revenues this year, Evans Point and Kaiza. Mr. Hauser attributes the bump in development revenue to activity on the Evans Point project and believes that the early pace will not be matched as the year progresses. However the outlook for next fiscal year, 1995-96, projects a substantial increase demand conditions are expected to set off a mini-boom in San Diego’s housing market in late 1995 or early 1996. The housing market is expected to gain momentum due to: 1) increased affordability; 2) pent-up demand and 3) a healthier employment outlook. Ambulance receipts are up $38,000 or 62% over budget estimates and is due to rate increases as well as active delinquency collection activities. Recreation fees are off by $1 6,000 or 6% for the first quarter. There are no indications at this point that the fees will not be up to budget by year end. according to the Economic Bulletin. The June 1994 issue stated that supply-and- e 0 Financial Status Report Page Three Other Revenues Sources There are two one time occurrences that happened during the first quarter to boost other revenue by $345,000 over budget estimates. First, the transfer of $250,000 from the Worker’s Compensation fund balance to the General Fund was posted per the adopted 1994-95 budget. Second, accumulated fees paid by property owners in Zone 6 totaling $148,000 were transferred to the General Fund. These funds were collected through an agreement to assist in operation costs for Fire Station #6. GENERAL FUND REVENUE COMPARISON THROUGH SEPTEMBER 30,1994 ESTIMATE ACTUAL THROUGH THROUGH DOLLAR PERCENT SEPT 1994 SEPT 1994 CHANGE CHANGE Taxes 2,863,000 3,787,000 924,000 32% Licenses and permits 323,000 352,000 29,000 9% State Subventions 403,000 473,000 70,000 17% Charges for services 701,000 1,080,000 379,000 54% Fines and forfeitures 70.000 81.000 1 1,000 16% Interdepartmental charges 500,000 51 5,000 1 5,000 3% Other revenue sources 147,000 977,000 830,000 565% TOTAL REVENUES 5,007,000 7,265,000 2,258,000 45% 0 0 Financial Status Report Page Four TAX REVENUE BUDGET TO ACTUAL 1ST QUARTER FY 94-95 (IN MILLIONS) BUDGET4 UP 13% UP IN ................... F] ................... DEVELOPMENTFEEREVENUE BUDGET TO ACTUAL 1ST QUARTER FY 94-95 .............. .............. .............. .............. pi OTHERREVENUE BUDGET TO ACTUAL 1ST QUARTER FY 94-95 (IN THOUSANDS) 600 500 400 6% DOWNIK UP62% 300 200 100 0 ......................... .............. ...................... .............. pl ,&* 9.." &&P *& & ++ + **\ 4. #+* 8 * &p **& &* &P **e' 4, e Financial Status Report Page Five YEAR-TO-DATE GENERAL FUND REVENUE FOR FISCAL YEAR 1994-95 YRTODATE ~TODAE FYWTOS FYSTOSS ACTUAL ESTIMATED* SUD~OACT BUD~O RMNUE REVENUE Dollar Percent REVENUES REVENUES Dollar Perce 9130193 9/30/94 Change Change 1993-94 1994-95 Change Chan TAXES PROP $666,000 $505,000 499,000 8316.67% 511,124,000 11,300,000 176,000 TRANSIENT TAX =,000 670,000 =,000 5.68% 3,153,000 3,000,000 (153,000) FRANCHISE TAX 134,000 188,000 %000 40.30% 1,183,000 1,200,000 17,000 SALES TAX 2136,000 2361,000 =,000 10.53% 10,840,000 10,600,000 (240,000) TRANSFER TAX 32000 m,ooO 31,000 96.88% m,w 190,OOO (19,ooo) TOTAL TAXES 2,942,000 3,787.000 845,000 28.7s 26,509,000 26,290,oOO (219,000) - LICENSES AND P CONSTRUCTION 73,000 83,000 10,000 13.70% ~,ooO 300,000 (ss.ooo) - BUSINESS LICENSES 204,000 182,000 (22,000) -10.78% 1,094,000 1,000,000 (94000) LICENSE TAX-CONSTRUCTION 10,000 5,000 (5,000) -50.00% 44,000 f4000 6,000 OTHER LICENSES &PERMITS 70,000 82000 1 2000 17.14% 320,000 ~,000 (20,000) TOTAL LICENSES & PERMITS 357,000 =2000 (5,000) -1.40% 1,824,000 1,650,000 (174,000) - SUWENTIONS VEHICLE LICENSE FEE 449,000 *,000 19,000 4.23% 2629,000 2,350,000 (279,000) - OTHER 1 ,000 5,000 4,000 400.00% =,000 3wooO ~,W TOTAL STATE SUBVENTIONS 450,000 473,000 24000 5.11% 2,863,000 2,650,000 (213,000) - SEWICES S =,m =,OOo 168,OOO 171.43% =,000 !=mJo 40,000 BUILDING DEPT. FEES 54000 87,000 =,000 61.11% 275,000 200,000 (75,000) - ENGINEERING FEES 177,000 =so00 79,000 44.63% w000 600,ooO (56,ooo) AMBULANCE FEES a3000 wJoo 29,000 4203% =,000 300,OOo (43,000) - RECREATION FEES 270,000' =,000 (14,000) -5.19% =,000 =,000 6,000 OTHER CHARGES OR FEES 89,000 117,ooO a,000 31.46% 4w-Joo 299,500 (139,500) TOTAL CHARGES FOR SERVICES 751.000 1,080,000 323,000 4267% 3,062,000 2,794,500 (267,500) 71.000 81,000 10,000 14.08% 232,000 -230,000 (2,W) INTERDEPARTME 88, 000 515,000 427,000 485.23% 2,392,000 2,oOO,ooO (392,000) - MNER REVENUE SOURGES 11,000 492,000 481,000 437273% 414,000 589,630 . 175,630 TOTAL €%NEW FU 4.676.000 6.780.OOQ &104.00Q 45.- p396.OOO 36301.134 j1.091.87 0) e 0 Financial Status Report Page Six GENERAL FUND EXPENDITURE STATUS BY DEPARTMENT TOTAL AVAILABLE % BUDGET COMMIllED* BALANCE AVAILABLE** DEPT DESCRIPTION FY 1994-95 9130194 9130194 9130194 GENERAL GOVERNMENT CITY COUNCIL 168,548 36,m 131,771 78.2% CIlY MANAGER 775,044 181,672 593,372 76 6% ATTORNEY 468,336 103,892 364,444 77.8% FINANCE 1,019,878 235,168 784,710 76.9% TREASURER 101,200 8,326 92,874 91.8% PURCHASING . 357,382 119,783 237,599 66.5% HUMAN RESOURCES 857,998 192,139 665,859 R.6% INFORMATION SYSTEMS 391,023 1 14,272 276,751 70.8% OTHEWNON-DEPT/CONTI NGENCY 2,076,426 599,869 1,476,557 71.1% TOTAL GENERAL GOVERNMENT 6,256,735 1,598,269 4,658,466 74.5% CITY CLERK 40,900 6,371 34,529 84.4% PUBLIC SAFETY POLICE 8,792,889 2,051,576 6,741,313 76.7% FIRE 6,772,312 1,562,436 5,209,876 76.9% TOTAL PUBLIC SAFETY 15,565,201 3,614,012 11,951,189 76.8% COMMUNITY DEVELOPMENT COMMUNITY DEVELOPMENT 906,680 21 2,040 694,640 76.6% ENGINEERING 3,118,726 799,668 2,319,058 74.4% PLANNING 2,099,983 502,054 1,597,929 76.iY' BUILDING 780,000 27l,441 508,559 65.2% TOTAL COMMUNITY DEVELOPMENT 6,905,389 1,785,203 5,120,186 74.1% LIBRARY AND THE ARTS LIBRARY 2,451,622 651,363 1,800,259 73.4% CULTURAL ARTS 260,722 66,992 193,730 74.3% TOTAL LIBRARY 8 ARTS 2,712,344 71 8,355 1,993,989 73.5% COMMUNITY SERVlCES ADMIN. 634,402 145,778 488,624 77.m TOTAL COMMUNITY SERVICES 7,395 ,027 1,779,644 5,615,383 75.9% TOTAL GENERAL FUND 38,834,696 9,495,483 29,339,213 75.5% COMMUNITY SERVICES PARKS & RECREATION 3,389,463 827,109 2,562,354 75.6% STREETS & FACILITIES 3,371,162 806,757 2,564,405 76.1% * * Total committed includes expenditures & encumbrances. ** Amount available would be 75% if funds were spent evenly throughout the year. REVENUES: WATER SALES 9,900,000 CHARGES FOR CURRENT SERVICES 2,100,000 OTHER REVENUES 115,000 FINES, FORFEITURES & PENALTIES 209,0oO INTEREST I 10.000 TOTAL OPERATING REVENUE 12,434,000 WENSES! SAIARIES/BENEFITS 2,411,200 INTERDEPARTMENTAL SERVICES 940,900 PURCHASED WATER 7,065,000 ununEs 75,300 OUTSIDE SERVlCESlMAlNTENANCE 213,095 GENERAL OFFICE EXPENSE 136,339 MATEWALS AND SUPPLIES 300,743 DEPRECIATION 1,300,OOo CAPITAL OUTLAY 32,000 MISCELLANEOUS EXPENSES 55,100 TOTAL OPERATING EXPENSES 12,529,677 OPERATING INCOMUOSS (95,677) 2,492,979 3,047,958 554,979 22.3 383,212 550,673 167,461 43.7 61,402 98,704 37,302 60.8 (24,371) (28,904) (4,533) . 18.6 43,367 24,618 (18,749) (43.2) 2,956,589 3,693,049 736,460 - 24.9 431,836 469,394 37,558 8.7 82788 223.141 140,359 169.5 1,498,859 1,659,446 160,587 10.7 17,779 23,340 5,561 31.3 20,051 33,808 13,757 68.6 200,OOo 325,000 125,0oO 62.5 50,112 37,274 (1 2,838) (25.6) 67,385 28,117 (39,268) (58.3) 10,887 5,509 (5,378) (49.4) 4,253 8,126 3,873 91.1 2,383,950 2,813,161 429,211 18.0 572,~~ 879,~ 307,249 53.7 e 0 Financial Status Report Page Eight SANITATION The Sanitation budget now shows a projected operating loss of $1 1,000 due to $98,000 in expenses which were carried over from the previous year. Actual revenues versus expenditures to date show an operating income of $283,000. Revenues Compared to last year, revenues show an increase of 3% or $34,000 most of which can be attributed to charges for current services. As there were no rate increases implemented in 1994-95, the change is all due to an increase in utilization volumes, ExDenses Expenses to date are up $129,000 or 20% over the same period fast year. The largest increase is in interdepartmental services, up $92,000 which as explained above is a reflection of timing differences in the recording of this expense. By year end, it is expected that interdepartmental services will match the budget. CARLSBAD MUNICIPAL WATER DISTRICT SNVER OPERATIONS FUND SEPTEMBER 30,1994 REVENUES: CHARGES FOR CURRENT SERVlCES INTEREST OWR REVENUES TOTAL OPERATING REVENUE EXPENSES: SAIARIES/BENEFITS 112254 (12349) (9.9) INTERDEPARTMENTAL SERVIES 110,902 92370 498.4 UTIIlTIES/RENTALS AND LEASES OUTSIDE SERVICES/MAINTEMAFSCE 39,401 34,503 704.4 MATERlALS AND SUPPLIES 14,312 11,496 408.2 DEPRECIATION ENCINA PLANT SERVICES CAPITAL OUTLAY MISCEWEOUS MPMSES TOTAL OPERATING EXPENSS OPERATING lNCOME/LOSS 1 0 0 Financial Status Report Page Nine REDEVELOPMENT Revenues Revenues through September are below those received last year to date by $21,000. This is due to interest earnings which have not yet been recorded. This figure will become positive once interest earnings have been posted. Also down are miscellaneous incurred last year in association with a study completed for the bond refunding. Expenditures Expenditures to date total $295,000 of which the largest is rentals and leases on downtown parking lots, at $142,000. A full year’s expense has been encumbered and there should be no new costs associated within this category. All other expenditures are as expected for this time in the year. revenues by $16,000. The drop is due to a one time reimbursement for expenses CARLSBAD REDEVELOPMENT AGENCY OPERAmONS AND DEBT SERVICE FUNDS SEPTEMBER 30,1994 PROPEUIY TAXES INTEREST MISCELLANEOUS REVENUES SALARIES/BENEFITS INTERDEPARTMENTAL SERVlCES RENTALS & LEASES OUTSIDE SERVK=ES/MAJNENANCE GENERAL OFFICE EXPENSE . DEBT EXPENSE unums MISCELLANEOUS EXPENSES TOTAL EXPENDITURES EXCESS OF REVENUES OVER EXPENDITLJES (1) Total committed includes expendhrres and encumbrances. (2) Amoontavailablewarklbe75% iffundswemspentevenh’thrarghauttheyear.