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Home My WebLink About1995-02-14; City Council; 13033; MID-YEAR FINANCIAL REPORT FOR FISCAL YEAR 1994-951 P 5 E fla z E! c 0 a A 0 z 3 8 CI)OF CARLSBAD - AGE- \ BILL q+ uu4 DEPT. HD.‘ CITY ATTY‘ CITY MGR~ AB # 13! ow1 O3 4/95 ’ TITLE: MID-YEAR FINANCIAL REPORT MTG. FOR FISCAL YEAR 1994-95 DEPT. RECOMMENDED ACTION: FIN 1. Accept and file Financial Status Report for Mid-Year 1994-95 2. Adopt Resolution No. 9 5 -q3 adding the position of Equipment Mechanic I1 to the City’s personnel allocation. ITEM EXPLANATION: The attached report summarizes the financial status of the General Fund, the Carlsbad Municipal Water District, the Sewer Enterprise fund and the Redevelopment Agency based on data for the first half of fiscal year 1994-95. A few significant items are highlighted below. Please see the report for more details. General Fund Revenues for the General Fund through December total $1 8.6 million which is 7% or $1.2 million over budgeted amounts. The most significant revenue that is not meeting expectations is property tax, falling below estimates by $581,000 or 10%. This is due to the decline in the City’s assessed valuations which was not expected as we began the fiscal year. Sales tax revenues on the other hand are ahead of budget by $287,000 or 6% and are led by auto and truck sales. Development related revenues are also performing ahead of budget and include construction permits, planning and engineering fee receipts. Construction permit revenue is ahead of budget by 168,000 or 123%. While the forecast called for 130 residential building permits to be issued during 1994-95, to date 190 permits have been issued. Planning revenues are up by $274,000 or 162% over budget as more applications have been received. Engineering receipts are up by $1 33,000 or 150%, however, returns are expected to level off for the remainder of the year. General Fund expenditures for the first half of the year total $18.2 million leaving an available balance of $21 million or 54% of the total budget. Other Funds The Water and Sewer operating funds are each performing within their budgeted levels. Operating income through the first half of the year for the Water District is $1.4 million and for the Sanitation fund is $1 77,000. It is expected that these funds will end the year with operating revenues slightly greater than operating expenses. The Redevelopment Agency’s budget shows a reduction in property tax revenues through December, down $122,000, and is due to declines in assessed values within the redevelopment area. Budaet Revision The 1994-95 adopted budget contains funds for three City employed Equipment Mechanics and one full time temporary. Throughout the year staffing levels have been Q @ PAGE TWO OF AGENDA BILL NO. I3,O 37 reviewed to determine the best way to staff fleet maintenance and it is recommended that the temporary position be converted to an Equipment Mechanic II. This will result in a total of four funded Mechanic positions. Conversion of the position to a City employee will result in a savings of approximately $12,000 annually. No additional funds are required as they are currently appropriated in the temporary help account. FISCAL IMPACT: No additional funds are required. Existing appropriations will be transferred within the Fleet Maintenance program. It is anticipated that staffing the Equipment Mechanic as a regular City position will save approximately $1 2,000 per year. EXHIBITS: 1. Resolution No. 9 5- '43 adding the position of Equipment Mechanic II to the City's personnel allocation. 2. Financial Status Report - Second Quarter, Fiscal Year 1994-95 3. Memo from Community Services Director to Finance Director dated 2/8/95 providing justification for staffing one Equipment Mechanic II position as a regular City employee. 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 a e RESOLUTION NO. 95-43 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ADDING ONE EQUIPMENT MECHANIC II POSITION TO THE CITY PERSONNEL ALLOCATION -- WHEREAS, the City Council of the City of Carlsbad, California adopted the 1994-95 operating budget; and WHEREAS, the 1994-95 operating budget identifies staffing levels; and WHEREAS, the staffing level in Fleet Maintenance has been reviewed. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. The above recitations are true and correct. 2. That the staffing level in Fleet Maintenance is increased by one - -- Equipment Mechanic II. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council on the 14th day of FEBRUARY , 1995, by the following vote, to wit: AYES: Council Members Lewis, Nygaard, Kulchin, Finnila, Hall NOES: None ABSENT: None I 20 21 22 23 24 25 26 27 28 ATTEST: ALETHA L RAUTENKRANZ, City Clerk (SEAL) rnIBII1 L e e Financial Status Report Second Quarter - Fiscal Year 1994-95 Prepared by Finance Department INTRODUCTION The economy appears to have bottomed out in 1993-94 and as a result Carlsbad has experienced some growth in revenue during fiscal year 1994-95. While indicators reflect a growing economy, it is not expected to rebound at the levels set in the 80’s. A cadre of local economists gathered at the San Diego Economic Roundtable on January 13, 1995 and shared their expert opinions on where San Diego County’s economy is anticipated to go. The economists noted that new wage and salary jobs were on the rise and that there will be 6,700 new jobs accounted for in 1994, and that another 8,000 are projected for 1995. Also projected to rise is the County’s population, up by approximately 50,000 as well as housing building permits, estimated at an annual total of 6,600. Several panelists cautioned that attempts made by the fed to control inflation may however hamper economic growth in this area. Rising interest rates put a damper on spending, construction and housing affordability. The upward movement in interest rates also affects home owners with adjustable mortgages as the amount of discretionary funds becomes more limited. As we end the first half of 1994-95 General Fund revenues including interest total $18.6 million, an increase of $1.2 million or 7% over budgeted estimates. Many revenue sources are above budget estimates, however there are several major revenues which continue to show declines including property taxes, other state subventions, recreation fees and interest. These revenue returns will be addressed in the following report. The financial status of the Water District, Sanitation Enterprise and Redevelopment Agency will also be reviewed. GENERAL FUND Taxes Throughout the fiscal year, the City looks forward to the December and April property tax payments. We now have the December figures which show property tax revenues of $5.1 million, falling short of budget estimates by $581,000 or 10%. However, the January payment will also include a large portion of the amount collected by the County in December and this is expected to increase the property tax revenue to just slightly under budget. Since the City did experience a 2.5% decline in assessed values this year, the shortfall is not unexpected. The latest revisions estimate that annual property tax receipts will come in below the original budget projection by approximately $500,000. Sales tax returns total $5.2 million and exceed budget estimates by $288,000 or 6%. Auto sales are showing the most noteworthy increase, while retail sales are holding steady and in some cases showing declines. Early reports on 1994 holiday sales or 34%. These include grading, plumbing and electrical permits as well as other miscellaneous permits. There were 190 increase of 97 or 51 % over last year at this time. The table to the right demonstrates the positive correlation between the number of residential building permits issued and the construction related revenues received. Both the number of building permits issued to date, an permits issued and the revenues are projected to end 1994-95 higher than anticipated. It is projected that a total of 400 building permits will be issued, with a Building Dept Revenues Rev in ($WO)IPermtts Actual 1 ,OW 91 92 93 94 95 0 Fiscal Year - Building Fees + Constr & Other ++$ Permits Iss a m Financial Status Report Page Three Also up are business licenses by $1 19,000 or 29%. About one fifth of the increase, or $23,000 can be attributed to audits, while the remaining four fifths is due to license renewals. State Subventions The largest revenue within this category is vehicle license fees which total $967,000 through December. This is an increase over budget of $109,000 or 13% and is largely attributed to increased auto and truck sales. The other revenue source is the homeowner's exemption and shows income of $42,000, below budget by $9,000 or 18%. Charqes for Services Charges for services are up $750,000 or 58% ahead of budget. The largest increases over budget include planning fees up $274,000 or 162% and building fees up $1 33,000 or 150%. Engineering fees, also development related, are up by $1 82,000 or 58%. The engineering staff believe that much of their work occurred early in the year and that it will not be replicated during the second half of the year. The building department staff on the other hand, estimates that construction activity will continue at similar levels for the remainder of the year. Ambulance fees are up $72,000 or 58% over budget. This is due to increased follow-up on billings and the increase in rates approved by Council last June. Recreation fees continue to come in below budgeted levels. To date receipts total $391,000, a decrease of $60,000 or 13% from budget estimates and is due to reduced revenues from the lagoon program and lower than anticipated facility rentals. Other charges or fees are ahead of budget by $147,000 or 92%. This is due to the once a year December posting of administrative charges assessed by the General Fund to Assessment Districts. Additionally, Seascape was refunded which brought in a one time $35,000 in September. These revenues are expected to come in at budgeted levels at the end of the year. Interest revenues have been accrued through December and show earnings of $569,000 for the General Fund. This is below budget estimates by $344,000 or 38% and is due to the effect of declining interest rates on the portfolio. While market interest rates are presently rising, the City's investment pool will be slower to react to market rates due to our "buy and hold" strategy for these funds. Other revenue sources are up by approximately by $292,000 or 99%. Several actions account for the increase and include a one time transfer of accumulated fees paid by property owners in Zone 6, 1 1 and 12 totaling $1 48,000 that was posted to the General Fund. These funds were collected through an agreement to assist in operation costs for Fire Station #6. The City received a life insurance dividend check of $63,000 and posted a $1 5,000 Federal Emergency Management Agency reimbursement check for expenses incurred in 1992-93. 0 0 Financial Status Report Page Four ExDend itures To date, $18.2 million has been expended or is committed to be spent. This equals approximately 46% of the total $39.2 million budget leaving 54% available for the remainder of the year. If funds were spent evenly throughout the year, we would expect to have only 50% available as of the end of December. However, it is typical for the City to spend slightly more in the second half of the year than what is spent in the first half. Therefore, it appears that spending is within budget and as expected at this time. GENERAL FUND REVENUE COMPARISON THROUGH DECEMBER 31, 1994 ESTIMATE ACTUAL THROUGH THROUGH DOLLAR PERCENT DEC 1994 DEC 1994 CHANGE CHANGE Taxes 12,177,000 12,131,000 (46,000) -0% Licenses and permits 709,000 1,077,000 368,000 52% State Subventions 909,000 1,009,000 100,000 11% Charges for services 1,297,000 2,046,000 749,000 58% Fines and forfeitures 120,000 126,000 6,000 5% Interest 91 3,000 569,000 (344,000) -38% Interdepartmental charge: 1,000,000 1,049,000 49,000 5% Other revenue sources 295,000 587,000 292,000 99% TOTAL REVENUES 17,420,000 18,594,000 1 ,I 74,000 7% e 0 Financial Status Report Page Five TAX REVENUE BUDGET TO ACTUAL 2ND QTR 94-95 (IN MILLIONS) ............ ................... ................... ................... ................... ................... ................... ................... 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(3 ih"wzK" ULWY 2, K 45znzF~ 8 K mgEwww "nzgprr : m z$&p1 =a Z- up Z9g& Y amw<~oO 0) I- o= I- GENERAL FUND EXPENDITURESTATUS BY DEPARTMENT TOTAL AVAILABLE % BUDGET COMMIllED* BALANCE AVAILABLE** DEPT DESCRIPTION FY 1994-95 12/31/94 1 2/31 194 12/31/94 GENERAL GOVERNMENT CITY COU NClL 168,548 75,181 93,367 55.4% CITY MANAGER 776,045 364,692 41 1,353 53.0% CITY CLERK 40,900 30,165 10,735 26.2% ATTORNEY 468,336 205,533 262,803 56.1% FINANCE 1,033,478 473,389 560,089 54.2% TREASURER 101,200 39,496 61,704 61 .O% PURCHASING 357,382 183,554 173,828 48.6% HUMAN RESOURCES 862,689 319,362 543,327 63.0% OTHEWNON -DEPT/CONTI NGENCY 2,245,637 1,317,844 927,793 41.3% TOTAL GENERAL GOVERNMENT 6,445,238 3,206,662 3,238,576 50.2% INFORMATION SYSTEMS 391,023 197,446 193,577 49 5% PUBLIC SAFETY POLICE 8,898,489 4,117,480 4,781,009 53.7% FIRE 6,784,312 3,125,615 3,654,697 53.9% TOTAL PUBLIC SAFETY 15,682,801 7,247,095 8,435,706 53.8% COMMUNITY DEELOPMENT COMMUNITY DEVELOPMENT 906,680 381,750 524,930 57.9% ENGINEERING 3,158,726 1,402,158 1,756,568 55.6% PLANNING 2,099,983 876,815 1,223,168 58.2% BUILDING 780,000 403,534 376,466 48.3% TOTAL COMMUNITY DEVELOPMENT 6,945,389 3,064,257 3,881,132 55.9% LIBRARY AND THE ARTS LIBRARY 2,462,422 1 ,170,773 1,291,649 52.5% CULTURAL ARTS 259,762 123,395 136,367 52.5% TOTAL LIBRARY 8 ARTS 2,722,184 1,294,168 1,428,016 52.5% COMMUNITY SERVICES COMMUNIN SERVICES ADMIN. 645,402 291,975 353,427 54.8% PARKS & RECREATION 3,423,867 1,658,793 1,765,074 51.6% STREETS & FACILITIES 3,365,162 1,459,649 1,905,513 56.6% TOTAL COMMUNITY SERVICES 7,434,431 3,410,417 4,024,014 54.1% .) TOTAL GENERAL FUND 39,230,043 18,222,599 21,007,444 53.5% I 0 m Financial Status Report Page Eight WATER DISTRICT Revenues Revenues to the Water District total $7.5 million through December 1994, representing an increase of $1.2 million or 19% over last year’s receipts. Water sales accounts for the largest portion of the increase, up $634,000 or 12%. The next largest revenue source is in charges for current services which is up $327,000 or 37% over the prior year. Boln water sales and charges for services reflect increases due to the higher rates assessed in 1994-95. Interest has been accrued and reflects returns of $182,000 to date, an increase of $1 18,000 over last year. Expenses To date, expenses total $6 million, an increase of $269,000 or nearly 5% over those occurring last year at this time. Purchased water shows the largest increase, up $236,000 or 6.9% and is due to the higher rates assessed by Metropolitan Water District. All other expense accounts reflect expected spending patterns. Through December, the Water Enterprise shows an operating income of $1.4 million. REVENUES: WATER SALES 5,099,086 5,733,128 634,042 12.4 CHARGES FOR CURRENT SERVICES 2,100,000 893,617 1,220,190 326,573 36.5 FINES, FORFEITURES & PENALTIES INTEREST OTHER REVENUES TOTAL OPERATING REVENUE EXPENSES : SAlARIES/BENEFITS I NTE RD E P ARTM ENTAL SERVICES PURCHASED WATER 3,429,825 3,665,867 UTILITIES OUTS1 DE SE RVI CES/M AI NTE NANCE GENERAL OFFICE EXPENSE MATERIALS AND SUPPLIES DEPRECIATION CAPITAL OUTLAY MISCELLANEOUS EXPENSES TOTAL OPERATING EXPENSES OPERATING INCOME/LOSS 494,541 1,439,112 944,57 1 191.t e 0 Financial Status Report Page Nine SANITATION ENTERPRISE Revenues The Sanitation Enterprise shows revenues of $2.4 million, an increase of $5,000 over last years income, Charges for services is up $33,000 and is offset by interest revenues which have declined from 1993-94 earnhgs by $37,000 or 31%. Expenses A total of $2.2 million has been expended to date, an increase of $126,000 or 6% over last year. Most of the increase can be attributed to depreciation expenses, up $1 00,000. Through December 1994, the Sanitation Enterprise fund shows an operating income of $1 77,000. REVENUES: CHARGES FOR CURRENTSERVICES INTEREST OTHER REVENUES TOTAL OPERATING REVENUE EXPENSES: SALARIES/BENEFITS 221,020 (22,411) INTERDEPARTMENTAL SERVICES UTILITIES/RENTALS AND LEASES OUTS1 DE SERVl CES/M AI NTENANCE MATERIALS AND SUPPLIES DEPRECIATION 650,000 100,000 CAPITAL OUTLAY MISCELLANEOUS EXPENSES - ENCINA PLANT SERVICES TOTAL OPERATING EXPENSES OPERATING INCOME/LOSS 0 0 Financial Status Report Page Ten REDEVELOPMENT Revenues Revenues total $581,000 for the Redevelopment Agency which is a decrease of $1 10,000 from last year at this time. The largest source of funds for the Agency is property taxes which total $528,000 to date, a decrease of $122,000 from last years receipts. As with the General Fund property taxes, December is a key month for the Agency. The decreased receipts reflect assessed valuations which have fallen by 14% in the redevelopment area. Interest earnings are up over last year by $24,000 for a total to date of $46,000. Expenditures A total of $820,000 has been spent or is committed to be spent which leaves 48% of the appropriated funds available for use. Spending within the Agency does not occur at an even pace as reflected in the rentals and leases category. To date all funds for rentals and leases have been encumbered, far the entire year. PROPERW TAXES 527,552 (121,758) INTEREST MISCELLANEOUS REVENUES SALARIES/BENEFITS INTERDEPARTMENTAL SERVICES UTILITIES RENTALS & LEASES OUTS1 DE SERVICES/MAI NTENANCE GENERAL OFFICE EXPENSE DEBT EXPENSE MISCELLANEOUS EXPENSES TOTAL EXPENDITURES EXCESS OF REVENUES OVER EXPENDITURES (1) Total committed includes expenditures and encumbrances. (2) Amount available would be 50% if funds were spent evenly throughout the year. 0 February 8, 1995 EXHIBIT 3 TO: FINANCE DIRECTOR FROM: Community Services Director FUNDING MECHANIC II POSITION/FLEET OPERATIONS The 1994-95 Budget contains funds for three (3) Mechanic II positions and one (1) full-time Mechanic II temporary position. During the past six months, staff has reviewed the staffing levels of Fleet Operations and have determined that the temp. position should be converted to full-time. The conversion will result in a savings of approximately $1 2,000 annually. Additional justification is as follows:: (A) .. ..F A survey of eight (8) cities throughout the county indicated that the average number of pieces of rolling stock maintained was 53.8 pieces of equipment to each 1 mechanic. In Carlsbad the ratio is 120.3 to 1 mechanic. Carlsbad rolling stock, total as of Dec. '89 CMWD impact, June '92 Carlsbad rolling stock totals as of April '94 Carlsbad ratio 120.311 APWA standard, Journeyman Level 28.011 County-wid e average 53.811 Using county average, Carlsbad should have The vacant Mechanic II position is presently being filled through Western Temporary Services. The current rate for that position is $25.40 per hour. The City's rate for a Mechanic II position at the E-step is $21.83, which includes all fringe benefits. Based on the hourly comparison, the City would realize a savings of approximately $7,500 per year by eliminating the temporary position and filling it with a full-time City employee. Fleet Operations is not tied to any growth management standards. As the City grows there are no measures other than what I have indicated about how to quantify additional personnel needs or contractual services. The need for additional Mechanic II positions was also noted during our outreach program conducted by staff in December of 1994. it was determined after meeting with all Departments throughout the City that to perform at expected levels two (2) additional Mechanic II positions would be required and that if funds were available in Fiscal Year 1995-96 a request to add one more position would be made making the grand total of Mechanics in Fleet Operations to be five (5). (B) 31 1 - 50 361 6.1 Mechanics (C) (D) (E) * G e e February 7, 1995 Page 2 In conclusion, Fleet Operations cannot provide the level of service required without continuing to employ a full-time Mechanic I1 through a temporary agency or by hiring a full-time City employee in this position. Thank you for your consideration in this matter. If you should have any questions, please contact me at 434-2825. e DAVID BRADSTREET C\WPBO\WPdata\Mechanic.Mem