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Home My WebLink About1998-11-03; City Council; 14922; Financial Status ReportCITY OF CARLSBAD -AGENDA BILL AB# /Y,%- TITLE: FIRST QUARTER MTG. 1 l/03/98 FINANCIAL STATUS REPORT DEPT. FIN FOR FISCAL YEAR 1998-99 RECOMMENDED ACTION: Accept and file report. ITEM EXPLANATION: Financial Uodate The attached Financial Status Report summarizes the fiscal status of the General fund, the Water and Sanitation Enterprises, and the Redevelopment Agency through the first quarter of fiscal year 1998-99. Revenues for the General fund through September total $12 million, which is 11% or $1.2 million ahead of the expected budget. Sales tax and transient occupancy tax revenues account for the majority of the increase. Revenues for the Water and Sanitation Enterprises and the Redevelopment Agency also reflect increases compared to the previous year. 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. EXHIBIT: First quarter financial status report for fiscal year 1998-99. . Financial Status Report- Prepared by the finance Department Sentember 30.1998 INTRODUCTION CITY OF CARLSBAD General Fund revenues for Catlsbad total $12 million as of the end of skJ!s ..mlE Tk!m first quarter of 1998-99. As of September, revenues are $1.3 million or 12% over Fiscal Year 1997-98. The top two increases contributing to the Property Taxes overall increase in revenues were in sales tax and transient occupancy tax. Compared to FY 97-98, sales tax has increased 20%, and transient Sales Tax occupancy tax is up 35% as of September 1998. Significant decreases from the prior year can be found Transient Occumncv Tax in engineering fees, down 50% and planning fees which are down 21% as of September 1998. Actual 1997-98 compared to Actual 1998-99 Year-To-Date . :.: ::,:,::: :: :: : : .: .: ::: :: :. :. : : : : ,: : .. : : : : : :..: : : : :,. e -i.;i ;*ggi : .::. .’ .: Ennineerina Fees . . : .: ::. ::..:.: : : : :.. ::: ::. :, :. j: :,,:::,::::::: : ; i.:,;jj:ji.i: c) . . . : :,:::: : L&g : ‘..;;.;: i::.? .;:y:.. ..:. Planning Fees Buildina Permits GENERAL FUND Taxes Sales tax revenues have risen 20% over last years collections and are 16% or $568,000 ahead of the expected budget. The addition of the Carlsbad Company Stores, as well as increasing sales citywide, contributed to the growth. An increase of 8% had been budgeted due to a healthy economy and additional retail outlets. We are seeing retail sales continue to grow statewide. SALES TAX PROPERTY TAX TRANSIENT TAX Tax Revenue Fiscal Year Comparison Property taxes are down 5% over the previous year. Since the largest property tax receipts come in December and April, this is not indicative of the year to come. FRANCHISE TAX 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 in millions 0 Actuals 97-93 n Actuals 9899 Financial Status Report Paqe Two Transient occupancy taxes total approximately $1.9 million year to date, a $485,000 increase over the prior year and 30% above the expected budget. This is due to the opening of the Four Seasons Resort and the favorable tourism season that is being experienced throughout San Diego County. According to the Economic Bulletin: “San Diego is having a stellar tourism season in 1998. Revenues from hotels have accelerated because demand has risen while the supply of hotel rooms has ‘not increased. Because of this dynamic within the local hotel market, the combination of high occupancy rate and average room rates, pushed San Diego into first position among the nation’s leading 25 hotel markets according to the San Diego Convention and Visitors Bureau.“’ Develooment Fee Revenues Engineering fees, which are fees received for the improvement and grading plan check and inspection services, have decreased by $489,000 or 50% from 1997-98. This is 34% below our expected revenue for engineering fees. A 25% decline was budgeted due to the reductions in the plan check and inspection fees adopted by Council in December 1997. Development Fee Revenue Fiscal Year Comparison ENGINEERING Down 50% BUILDING PERMlTS BUILDING DEPT FEES PLANNING 0 100 200 300 400 500 600 700 800 900 1000 in Thousands 1 [7Actuals 97-98 n Acbals 98-99 / An increase in building permit revenue has been seen bringing in a total of $566,000 to date, a 16% or $77,000 increase over the previous year. A total of 174 permits for new homes were issued during September which is up from 134 in August. Most of the residential activity in September was in the La Costa Valley and Ranch0 Carillo areas which totaled 102 units. Non-residential activity slowed this month with an increase of only 83,656 in commercial and industrial square feet as compared to 436,767 in the prior month. Building department fees are $379,000 as of the end of September which is about the same as this time last year. Planning fees total $214,000 as of September 1998, showing a decline from last year of 21% or $57,000. Planning fees were anticipated in the budget estimates to be about the same as last year. In total, development fee revenues were $1.6 million as of the end of September. This is $466,000 or 22% less than development revenues collected in the prior year and $129,000 or 7% less than the expected budget. Since development revenues can fluctuate throughout the year, it is still too early to determine whether we will meet our expected development revenues for the year, therefore, we will continue to monitor these closely. ’ Greater San Diego Chamber of Commerce, Economic Bulletin, September 1998. “June ‘98 Greater San Diego Chamber of Commerce Economic Indicators” p.6. 4 ..J Financial Status Report Page Three Other Revenues Total vehicle license fees are $829,876 which is 12% or $89,965 more than at this time last year. VEHICLE LICENSE Vehicle license fees (VLF) are FEES collected by the Department of Motor Vehicles and disbursed by the State BUSINESS Controller to the city. The State LICENSES taxes motor vehicles in lieu of local property taxes. Other Revenue Fiscal Year Comparison RECREATION FEES up 12% AMBULANCE FEES FINES 8. FORFElTURES Business license taxes as of September 1998 are $383,850, a 10% increase over last year’s revenue of $350,305. Business licenses issued to date totalled 1,307 compared to 1,339 issued as of the end of September 1997. 0 100 200 300 400 500 600 700 800 900 Recreation fees total $272,000 as of in Thousands September 1998 which is a 3% or 1 0 Acbals 97-98 H Actuals 98-99 1 $7,600 decrease from the previous year. The main reason for the slight decrease is that some of the youth sports programs started one week earlier this year which caused some of the revenue to be recorded in the prior year. Ambulance fees total $187,902 and are ahead of last year’s total as of September by 8% or $13,198. The increase is due to an increase in the fees which went into effect January 1998, as well as an 80% increase in our Medicare reimbursement rate which went into effect in August 1998. Fines and forfeitures consist mainly of receipts from parking citations and the City’s share of fines from moving violations. They total $213,778 year to date which is 108% or $110,000 more than in fiscal year 1997-98 and 75% greater than the expected budget of $136,000. This increase is mainly due to new legislation which became effective on July 1, 1998. This legislation returned to cities the portion of moving violation fines which were diverted to the state during the recession. The result should be an increase in fines and forfeitures revenues of approximately $250,000. Income from investments and property year to date totals $460,000 and is 15% more than last year’s revenues at this time. The increase is mainly due to higher cash balances held during the year. Interdepartmental charges are down slightly from the prior year. Engineering overhead for September has not yet been booked which resulted in the actual charges as of the end of September being $30,000 less than the expected budget. Financial Status RePort Paae Four GENERAL FUND REVENUE COMPARISON YEAR-TO-DATE EXPECTED Actual Revenue Actual Revenue Change From ‘AXES PROPERTY TAX SALES TAX TRANSIENT TAX FRANCHISE TAX BUSINESS LICENSE TAX TRANSFER TAX ‘OTAL TAXES iTATE SUBVENTIONS VEHICLE LICENSE FEES HOMEOWNERS EXEMPTIONS OTHER ‘OTAL STATE SUBVENTIONS .ICENSES AND PERMITS BUILDING PERMITS OTHER LICENSES & PERMITS ‘OTAL LICENSES & PERMITS :HARGES,FOR SERVICES PLANNING FEES BUILDING DEPT. FEES ENGINEERING FEES AMBULANCE FEES RECREATION FEES OTHER CHARGES OR FEES ‘OTAL CHARGES FOR SERVICES :lNES AND FORFEITURES INCOME FROM INT &‘PROPERTY NTERDEPARTMENTAL CHARGES )THER REVENUE SOURCES TOTAL GENERAL FUND BUDGET FY 1998 FY 1999 YTD 98 to Percent As of 9130198 As of 9130197 As of 9130198 YTD 99 Change 563,727 526,008 501,494 (24,514) -5% 3,513,932 3,415,649 4,082,523 666,874 20% 1,443,750 1,385,043 1,870,117 485,074 35% 230,557 240,161 244,855 4,694 2% 393,173 350,305 383,850 33,545 10% 37,870 54554 177539 122,985 100% 6,183,008 5,971,720 7,260,378 1,288,658 22% 722,387 739,871 829,876 90,005 12% 0 0 0 0 0% 0 0 27,518 27,518 100% 722,387 752,819 857,394 104,575 14% 420,163 488,912 566,164 77,252 16% 352,808 339,898 397,844 57,946 17% 772,972 828,810 964,008 135,198 16% 282,084 270,382 213,803 (56,579) -21% 340,410 379,587 378,739 (848) 0% 734,714 973,862 489,607 (484,255) -50% 183,750 174,704 187,902 13,198 8% 311,895 293,987 272,881 (21 ,I 06) -7% 140,562 138,895 109,750 (29,145) -21% 1,993,416 2,231,417 1,652,682 (578,735) -26% 136,537 102,812 420,000 400,933 412,500 390,330 132,500 92,488 213,778 462,040 381,689 248,482 110,966 61,107 (8,641) 155,994 1.269,122 108% 15% -2% 169% 1o3773*32ol 10.771.329 (1) 12.040.451 12% (1) General fund revenues are 11% over budget estimates as of September 1998. hancial Status Report Page Five Expenditures Total General fund expenditures as of September 1998 are $15.5 million. This figure includes expenditures and encumbrances. This leaves $42.1 million or 73.1% available through fiscal year end June 30, 1999. If funds were spent in the same proportion as the previous year, the General fund would have 72.9% available. The following table identifies the allocation of contingency funds during the fiscal year. To date, $255,243 has been authorized out of the contingency account for management salary increases. Explanation Adopted Budget CONTINGENCY ACCOUNT USE OF FUNDS Resolution Amount Date Numbe $3,943,700 6/l 6198 I 98-l 91 Management Salary Increases Current Balance (255,234) 9/l I98 98-248 $3.6669466 A detailed schedule of General fund expenditures is provided on the following page. hancial Status Report Page Six GENERAL FUND EXPENDITURE STATUS BY DEPARTMENT TOTAL AVAILABLE % BUDGET COMMITTED* BALANCE AVAILABLE** EPT DESCRIPTION FY 1998-99 9130198 9130198 9130198 3LICY/LEADERSHIP GROUP CITY COUNCIL 213,741 43,215 170,526 79.8% CITY MANAGER 996,178 253,577 742,601 74.5% CITY CLERK 422,083 98,511 323,572 76.7% CITY ATTORNEY 629,920 150,957 478,963 76.0% CITY TREASURER 137,540 22,107 115,433 83.9% TOTAL POLICY/LEADERSHIP 2,399,462 568,367 1,831,095 76.3% DMINISTRATIVE SERVICES FINANCE 1,240,858 279,075 961,783 77.5% PURCHASING 519,678 133,710 385,968 74.3% HUMAN RESOURCES I,51 9,690 356,980 1,162,710 76.5% TOTAL ADMINISTRATIVE SERVICES 3,280,226 769,765 2,510,461 76.5% UBLIC SAFETY POLICE 11,890,772 2,818,398 9,072,374 76.3% FIRE 8,344,857 1,971,975 6,372,882 76.4% TOTAL PUBLIC SAFETY 20,235,629 4,790,373 15,445,256 76.3% DMMUNITY DEVELOPMENT COMMUNITY DEVELOPMENT ADMIN 552,011 141,634 410,377 74.3% GEOGRAPHIC INFORMATION 263,138 42,044 221,094 84.0% ECONOMIC DEVELOPMENT 142,997 24,097 118,900 83.1% PLANNING 2,453,111 668,827 1,784,284 72.7% BUILDING 1,494,494 412,342 1,082,152 72.4% TOTAL COMMUNITY DEVELOPMENT 4,905,751 1,288,944 3,616,807 73.7% DMMUNITY SERVICES PARK PLANNING & RECREATION 490,164 95,450 394,714 80.5% MGT RECREATION 2,462,955 628,947 1,834,008 74.5% SENIOR PROGRAMS 353,913 64,156 289,757 81.9% LIBRARY 3,419,145 873,779 2,545,366 74.4% CULTURAL ARTS 383,555 99,134 284,421 74.2% TOTAL COMMUNITY SERVICES 7,109,732 1,761,466 5,348,266 75.2% UBLIC WORKS PUBLIC WORKS ADMINISTRATION 700,021 151,540 548,481 78.4% ENGINEERING 4,082,066 1,285,311 2,796,755 68.5% PARKS 2,411,653 548,939 1,862,714 77.2% STREETS & TRAFFIC SIGNALS 2,793,366 1,075,735 1,717,631 61.5% FACILITIES 1,875,062 469,356 1,405,706 75.0% TOTAL PUBLIC WORKS 11,862,168 3,530,881 8,331,287 70.2% ON-DEPARTMENTAL & CONTINGENCY COMMUNITY PROMOTION (CCVB) 352,680 119,180 233,500 66.2% OTHER NON DEPARTMENTAL 601,632 148,901 452,731 75.3% OPERATING TRANSFERS OUT 2,958,OOO 2,538,OOO 420,000 14.2% CONTINGENCY 3,688,466 0 3,688,466 100.0% TOTAL NON-DEPT 8s CONTINGENCY 7,600,778 2,806,081 4,794,697 63.1% 3TAL GENERAL FUND 57,393,746 15,515,877 41,877,870 73.0% l * Amount available would be72.9% if funds were spent in the same proportion as the previous year.. kinancial Status Report Page Seven WATER ENTERPRISE Revenues Total water revenues are $4.5 million year-to-date. This is 4.9% increase over fiscal year 1997-98. The main reason for the increase is the increased water sales which are $180,000 or 5.5% ahead of last year at $3.4 million. This is due to more usage as a result of new customers. Exoenses Operating expenses in the Water Fund total $3.2 million which is 4.3% or $132,493 more than last year. Increases are seen in the general supplies, depreciation and higher capital outlay expenses this year. Revenues through September are $1.3 million higher than the amount expended. CARLSBAD MUNICIPAL WATER DISTRICT WATER OPERATIONS FUND SEPTEMBER 30,1998 FY 1997-98 Y-T-D Y-T-D % BUDGET 9130197 g/30/98 DIFFERENCE DIFFERENCE REVENUES: WATER SALES 13,300,000 3,256,099 3,436,334 180,235 5.5 CHARGES FOR CURRENT SERVICES 3,245,200 696,388 762,857 66,469 9.5 FINES, FORFEITURES & PENALTIES 210,000 48,425 60,702 12,277 25.4 INTEREST 725,000 179,017 162,911 (16,106) Kw OTHER REVENUES 555,000 108,244 75,258 (32,986) (30.5) TOTAL OPERATING REVENUE 18,035,200 4,288,173 4,498,062 209,889 4.9 EXPENSES: STAFFING INTERDEPARTMENTAL SERVICES PURCHASED WATER MWD/CWA READY-TO-SERVE UTILITIES OUTSIDE SERVICES/MAINTENANCE GENERAL OFFICE EXPENSE MATERIALS AND SUPPLIES DEPRECIATION CAPITAL OUTLAY MISCELLANEOUS EXPENSES TOTAL OPERATING EXPENSES OPERATING INCOME/LOSS 2,276,587 462,589 474,691 12,102 2.6 891,411 221,493 225,444 3,951 1.8 9,198,OOO 1,906,416 1,923,434 17,018 0.9 307,000 0 0 0 0.0 128,900 22,716 23,717 1,001 508,864 51,398 48,019 (3,379) (6:; 189,112 23,500 48,888 25,388 108.0 326,758 51,077 70,962 19,885 38.9 1,300,000 289,255 325,000 35,745 12.4 107,699 18,659 41,763 23,104 123.8 43,900 6,508 4,186 WW (35.7) 15,278,231 3,053,611 3,186,104 132,493 4.3 2,756,969 1,234,562 1,311,958 77,396 6.3 kinancial Status Report Page Eight SANITATION ENTERPRISE Revenues Total operating revenue for the sewer operations fund is $1.4 million through September. This reflects a $94,000 or 7.2% increase from the prior year. The increase in charges for current services is mainly due to new customers. The largest portion of the Other Revenue category is a one-time termination payment of $41,670 received on the refinancing of an investment agreement. Exoenses Expenses are $950,795 as of the end of the first quarter which is comparable to the prior years expenses of $958,215. CARLSBAD MUNICIPAL WATER DISTRICT SEWER OPERATIONS FUND SEPTEMBER 30,1998 FY 1997-98 Y-T-D Y-T-D % BUDGET I 9/30/97 9130198 DIFFERENCE DIFFERENCI REVENUES: CHARGES FOR CURRENT SERVICES INTEREST OTHER REVENUES TOTAL OPERATING REVENUE 5,268,OOO 1,209,003 I ,249,OlO 40,007 3.: 450,000 98,908 96,188 (2,720) (2.8 30,000 0 56,376 56,376 0.1 5,748,OOO 1,307,911 1,401,574 93,663 7.: EXPENSES: STAFFING INTERDEPARTMENTAL SERVICES OUTSIDE SERVICES & OTHER MATERIALS AND SUPPLIES DEPRECIATION ENCINA PLANT SERVICES CAPITAL OUTLAY MISCELLANEOUS EXPENSES TOTAL OPERATING EXPENSES 718,383 123,984 155,829 184,314 49,271 49,372 427,738 17,425 31,716 92,988 6,528 11,353 1,200,000 314,088 300,000 1,725,OOO 433,640 390,000 81,079 3,763 6,103 42,600 9.516 6,422 4,472,1021 958,215 950,795 OPERATING INCOME/LOSS 1,275,898 I 349,696 450,779 31,845 101 14,291 4,825 (14,088) (43,640) 2,340 (3,094) (7,420) 25.’ 0.: 82.1 743; (10.1 62.: (32.5 (0.8 Financial Status Report Page Nine REDEVELOPMENT AGENCY Revenues Revenues for the redevelopment agency are down slightly from the prior year mainly due to lower overall interest earned. First property tax installment is due around November 1998. Exoenditures Through September, expenditures and encumbrances for the redevelopment agency total $833,313. Since most rents are encumbered for the whole year the available balance for rents is only 20.4%. The first debt payment was made in September 1998, the next is not due until March of 1999. Although the available balance is low, it is comparable to the prior years available balance of 48.3%. CARLSBAD REDEVELOPMENT AGENCY OPERATIONS AND DEBT SERVICE FUNDS SEPTEMBER 30,1998 H REVENUE FY 1998-99 I Y-T-D Y-T-D BUDGET 9130198 9130197 DIFFERENC PROPERTY TAXES 1,200,000 0 0 INTEREST 77,000 11,588 16,452 (4,861 MISCELLANEOUS REVENUES 118,300 70,484 69,436 1 ,OL 1,395,300 82,073 85,888 (3,Bl: TOTAL AVAILABLE % EXPENDITURES FY 1998-99 COMMITTED BALANCE AVAILABLE BUDGET g/30/98 (1) 9130198 g/30/98 (2) STAFFING 155,025 22,908 132,117 85 INTERDEPARTMENTAL SERVICES 97,494 23,269 74,225 76 RENTALS & LEASES 127,312 101,278 26,034 20 DEBT EXPENSE 1,098,500 667,851 430,649 39 OUTSIDE SERV/MAINT./MISC. 121,841 18,007 103,835 85 TOTAL EXPENDITURES 1,600,172 833,313 766,859 47 EXCESSOFREVENUESOVER EXPENDITURES (204,872) (751,240) (1) Total committed includes expenditures and encumbrances. (2) Amount available would be 75.0% if funds were spent evenly throughout the year.