HomeMy WebLinkAboutStaff Report 4.B 02/04/2008M
CITY OFPFTALUMA,CALIFOMIA February 4, 2008
AGENDA BILL
Agenda Title: Meeting Date:
Fiscal Year 2007-08 Mid -year Budget Review February 4, 2008
Other Funds: Enterprise, Special Revenue, Internal Service, PCDC and CIP
(Projects) Funds Meeting Time: ® 3:00 PM
❑ 7:00 PM
Category: ® Presentation ❑ Consent Calendar ❑ Public Hearing ❑ Unfinished Business ❑ New Business
Department: I Director:
Administrative Services I Steven Carmichael
Cost of Proposal:
None
Amount Budgeted:
N/A
Attachments to Agenda Packet Item:
1. Exhibit A — Mid Year Adjustments
Summary Statement:
Contact Person:
Steven Carmichael
JeH 1 _N Ann.+�'VYvX
J 1
Phone Number:
778-4352
Account Number:
N/A
Name of Fund:
N/A
The main focus of this report will be to provide an analysis and overview of the following: Enterprise Funds
(Airport, Ambulance, Marina, Transit, Wastewater, Water), Special Revenue Funds (includes Housing Elements
and Impact Fees), Internal Service Funds (Employee Benefits, General Services, Information Technology, Risk
Management, Vehicle Replacement and Worker's Compensation), Capital Improvement Projects and PCDC.
This mid -year budget review is intended to provide the City Council with an update on the revenues and
expenditures for all the other funds (excluding the general fund which was summarized in a separate agenda bill).
Recommended Citv Council Action/Suggested Motion:
N/A
Reviewed by Admin. Svcs
uo
Date: i 66
Rev. # Date Last Revised:
Reviewed by City Attornev:
Date: 0
I File:
Approved WON Manager:
Date:
CITY OF PETALUMA, CALIFORNIA
February 4, 2008
AGENDA REPORT FOR
MID -YEAR BUDGET REVIEW OTHER FUNDS AND
CAPITAL IMPROVEMENT PROJECTS RECAP
1. EXECUTIVE SUMMARY:
This report provides an overview of the Other Funds excluding the City's General Fund as of
December 31, 2007. The mid -year budget review is intended to provide the City Council with an
update on the revenues and expenditures for each fund for FY 2008.
In addition, this report will provide a recap of all the capital improvement projects. The Capital
Improvement Projects Budgets have been adjusted to reflect all budgeted appropriations through
fiscal year 12-31-07.
2. BACKGROUND:
The City of Petaluma follows General Accepted Accounting rules for governmental accounting
procedures of "Fund Accounting" method of accounting. This method separates various Fund
groups and identifies them as Enterprise, Special Revenue, Internal Service Funds and PCDC.
These funds are separate and distinct from the City's General Fund which is the major operating
fund of the City.
C� �l l I►1 3
Special Revenue Funds are Non -Major Governmental Funds that have been identified for
specific purposes. The City has a number of Special Revenues Funds. The larger of these funds
are summarized with budget and actual information as follows:
Y Housing
Low to Moderate Income Housing Fund (2130)
This fund accounts for the Redevelopment Agency's 20% set-aside funds, as required by
law of tax increment. The activity of this fund consists of supporting development of
affordable housing and affordable housing programs in the community.
Total FY 2008 budgeted revenues were projected to be $2,800,000. At mid -year we
received $1,371,103. Total budgeted expenditures were projected to be $2,857,500 with
actual expenditures at mid -year reported at $240,909.
• Impact Fees
• Community Facilities (2210)
The Community Facilities Impact Fee Fund was established to collect development fees
from developments causing impacts on existing facilities or necessitating the construction
ON
of new community facilities. Total FY 2008 budgeted revenues were projected to be
$150,000. At mid -year we have received $93,226 or 62% of budget expectations. A
study has been completed recommending changes to increase all impact fees. Changes to
the impact fees will e approved in April at the completion of the General Plan process.
• Public Facilities (2212)
The Public Facilities Impact Fees Fund was established specifically to collect fees for
capital improvements, expansions or remodeling of public facilities. Total budgeted
revenues for FY 08 were projected to be $81,000. At mid -year we have received
$114,845 or 142% of budget.
• Storm Drainage (2230)
Storm Drainage Impact Fees Fund revenue is budgeted at $110,000. Mid -year receipts
are $37,312 or 34%.
• Housing In -Lieu (2240)
This fund accounts for the impact fees collected from developer's in -lieu of providing
affordable housing. The proceeds of this fund provide housing assistance to low income
individuals in the community. Total budgeted revenues for FY 08 is projected to be
$1,400,000. At mid -year we have collected about $520,493 or 37% of budgeted
projections.
• Parkland Acquisition (2251)
Total budgeted revenues for this fund are $839,000. Revenues at mid -year are $737,972
or 88%.
• Traffic Mitigation (2270)
This fund accounts for the impact fees collected from developers to mitigate the effects of
the development being constructed. The fees are to be used for improvements necessary
to accommodate the traffic volumes generated by the new development. Budgeted
revenues for FY 08 are projected to be $1,300,000. At mid -year actual collections are
$756,869 or 58% of budget projections.
• Street Maintenance and Reconstruction (2630)
The Street Maintenance Fund accounts for revenues received from the solid waste
surcharge, imposed as part of the franchise fee on the waste hauler. This revenue will be
expended on street maintenance activities. Budgeted expenditures were set at $2,280,450
with actual expenditures at mid -year of $1,144,124 or 50% of budget. Budgeted
revenues are $1,382,500 with 12/31/07 receipts of $456,000. Additional work is
scheduled for this spring that will increase the expenditure percentage closer to budget.
• Gas Tax (2410)
The Gas Tax Fund reports receipts and disbursements of funds under Streets and
Highways Code Section 2105, 2106, 2107, and 2107.5 of the State of California.
Expenditures in this fund must be street related. Budgeted FY 08 revenues were
3
$1,030,000, with mid -year actual receipts of $352,542 or 34% of budget projections. All
revenues received are transferred to Street Maintenance and Reconstruction Fund.
• Transient Occupancy (TOT) (2650)
The Transient Occupancy Tax Fund reports the hotel and motel occupancy tax receipts,
and the disbursements to local, non-profit groups, which sponsor community events, or
promote tourism. The City's tax rate is 10% of room rentals under 30 days in duration.
Total FY 08 Budgeted Revenues were projected to be $1,400,000. At mid -year we
reported actual receipts of $742,276 or 53% of budget estimates.
ENTERPRISE FUNDS:
Enterprise Funds are Proprietary Funds that are treated as a business operation, collecting its own
revenues and being charged for its own expenditures and capital improvements.
• Airport Fund (6100)
The City maintains a municipal airport that provides service for mainly small aircraft for
pilots in and around Petaluma. Total budgeted revenues for FY O8 are projected to be
$1,625,000. The expenditures were budgeted at $1,601,000 (including capital) with mid-
year actual coming in at $339,978.
• Ambulance Fund (6200)
The City operates it own ambulance service. Total budgeted revenues for FY 2008 are
$1,800,000 with mid year revenues of $578,119. The total budget is $2,484,150 with
expenditures at 12/31/2007 of $870,913.
• Marina Fund (6300)
The City operates a public marina with 190 slips. The total budgeted revenues for FY
2008 are projected to be $196,000. At mid -year total revenues were at $121,251 or 60%
of projections. Total expenditures are budgeted at $471,500. Actual expenditures at mid-
year are $89,338. This budget will continue to be exceeded each year as we accrue debt
($190,000) to the State for the original loan not budgeted due to inadequate revenues.
• Transit Fund (6400)
Total budget for FY 2008 is $2,567,200. Through 12/31/07, $763,023 has been spent.
The revenue budget is $2,757,100 with $731,923 or 27% collected through 12/31/07.
• Waste Water Fund (6510)
This fund is part of the Department of Water Resources and Conservation, which
provides comprehensive and integrated management of Petaluma's water resources,
including collection and treatment of wastewater. This fund is self -financed through
charges for sewer, connection fees and interest earnings from residential, commercial and
industrial users. Total budgeted expenses were $42,197,250 and actuals including CIP
are $41,176,381. The vast majority ($28,198,000) goes towards the new Wastewater
Treatment Plant. Budgeted revenues (non -capital) are $42,425,500 with receipts of
$7,989,346, or 19%.
• Water Fund (6520)
This fund is part of the Department of Water Resources and Conservation, which
provides comprehensive and integrated management of Petaluma's water resources,
including reliable delivery of high quality water. The water utility fund is self -financed
through user service charges for residential, commercial and industrial users. Total
budgeted expenses were $13,219,170 with actuals of $4,087,482. The cost of water ($4.5
million) is the significant expense in this budget. Total revenue budget is $17,659,000
with receipts of $6,804,743. Revenues should equal budget with spring and summer
water usage.
The recommended increase in Proprietary Funds is $185,000 which you have previously
approved as part of approval to hire treatment plant staff in-house, but need to come back to
Council in order to go in the budget ordinance.
INTERNAL SERVICE FUNDS:
Internal Service Funds are funds set up to account for division units that provide services to
other departments or divisions. Allocations are made to "charge back" based on "cost of
services" used by each department of division. Due to the chargeback for services rendered,
the revenues always equal the cost incurred in these funds.
• Employee Benefits (7100)
Employee Benefit Fund accounts for City Employees' dental, unemployment and vision
benefits and retirement benefits. These charges are directly allocated based on payroll
allocations directly into the employee benefits fund. Budgeted revenues and expenses
from the charges for FY 08 are projected to be $692,300. At mid -year, actual charges
were $334,365 or 48% of budget projections.
• General Services (7200)
The General Services Fund accounts for purchasing, printing and mail services for all
departments throughout the City. Budgeted revenues and expenditures (charges to
departments) were projected to be $770,600. At mid -year the actual charges were
reported at $388,166 or 50% of projections.
• Information Technology (7300)
The Information Technology Fund accounts for the cost of purchasing, operations and
maintenance of the City's data processing, voice and other computer systems. Total
budget revenues and expenditures for FY 08 were projected to be $1,890,150. Actual
expenditures at mid -year reported at $833,651 or 57% of budget. This division is over
budget due to most of the new equipment was purchased in the first 6 months of the fiscal
year.
• Risk Management (7400)
Risk Management Fund accounts for the accumulation of the resources and expenses
related to the City's risk management activities and general insurance programs.
Total revenues and expenditures were budgeted at $1,979,150 with mid -year actual
reported at $910,012 or 46% of budget estimates.
• Vehicle/Equipment Replacement (7500)
The Vehicle/Equipment Replacement Fund accounts for the accumulation of resources
and related expenditures incurred for the replacement of major equipment and vehicles in
the City. The budgeted expenditures for FY 08 are also set at $243,400. At mid year, the
amount spent was $213,421.
• Workers' Compensation (7600)
Workers' Compensation Fund accounts for the accumulation of resources, and expenses
related to funding workers' compensation benefits for City employees. Total budgeted
revenues (charges through payroll) and expenses were projected to be $1,047,900.
Actual charges at mid -year are reported at $1,090,034 or 104% of budget.
• CAPITAL IMPROVEMENT PROJECT FUNDS (CIP)
The Capital Improvement Project Funds account for the collection or resources and the
related expenditures on acquisition and construction of major capital improvements projects
in the City. For reporting purposes, this report will include those capital projects that are
normally reported in the Proprietary funds.
The Capital Project Funds are categorized by functional areas as follows:
1.
Public Transportation
2.
PCDC Projects
3.
Parks and Recreation
4.
FEMA
5.
Flood and Surface Water
6.
Water Utility
7.
Wastewater Utility
For Fiscal Year 2007-08 a net total of $48,034,000 of projects were budgeted in the City's
Capital Improvement Program (CIP). The details of budget compared to actual expenses at
mid -year are summarized in the following chart:
CIP 07/08 Reconciliation
Total Budget Life -to -Dale Life -to -Dale Life -to -Date
thin 07/08
Actuals
07/08 Actuals
07-08
07-08
103,063
07/08 Budpet
thm 12/31/07
expended
balance
General Government CIP
558,000
59,705
10.7%
498,295
Police CIP
1,000,000
16,476
126%
983,524
Fire CIP
1,400,000
125,068
8.9'%
1,274,932
Park/Rec CIP
2,032,000
17,672
0.9%
2,014,328
Public Works
5,941,000
666,311
I12%
5,274,689
PW Flood
1,031,000
8,517
0.8%
1,022,483
PCDC CIP
7,579,000
1,892,994
25.0%
5,686,006
FEMA CIP
1,720,000
524,253
30.5%
1,195,747
Transit°
595,000
375,094
63.096
219,906
Waste Water*
25,945,000
25,535,948
98.4%
409,052
Water-
233,000
17,311
7.4%
215,689
TOTALS
48,034,000
29,239,349
60.996
18,794,651
*GL=07-08 est expenditures
for enterprise funds
Total Budget Life -to -Dale Life -to -Dale Life -to -Date
thin 07/08
Actuals
%expended
balance
644,000
103,063
16.05".
540,937
2,154,000
22,905
1.196
2,131,095
3,771,000
2,048,572
54.3%
1,722,428
2,623,000
475,519
18.1%
2,147,481
24,724,000
12,263,668
49.6%
12,460,332
3,627,000
1,052,928
29.096
2,574,072
52,751,000
40,076,341
76.0%
12,674,659
1,720,000
524,253
30.596
1,195,747
2,677,000
1,155,005
43.196
1,521,995
157,101,000
122,996,183
78.3%
34,104,817
3,009,000
786,679
26.1%
2,222,321
254,801,000
181,505,116
71.2".6
73,295,884
• PCDC REDEVELOPMENT AGENCY
The total budget for the Redevelopment Agency is $24,874,700. The remaining balance left to
spend on capital projects is $20,681,013.
3. ALTERNATIVES: N/A
4. FINANCIAL IMPACTS: If Council approves requests, the following financial impacts
will result: Special Revenue Funds $89,850, PCDC $385,000, CIP $725,000 and Proprietary
Funds $140,000, Vehicle Replacement Fund $117,000 and Internal Services Fund $512,000.
5. CONCLUSION: Monitor the other funds categories especially those that affect the
general fund such as Internal Service Funds, and Capital Project funds that relate to
Intergovernmental revenue transfers to the general fund.
6. RECOMMENDATIONS: Review and provide direction to staff.
Exhibit A
FY 2007-08 Mid -Year Adjustments
Department Requests
Exnenditures
Department Cost
General Fund
Police — Supplies (incorrect amount budgeted) $200,000
Police — Temp. offices to be used until new bldg available $40,000
Police - Pistol Replacement $60,000
Public Works — Traffic signal replaced after accident $9,200
Third party insurance reimbursement
General Plan (51% of total) 113,450 *
Fire — Employee Recruiting $10,000
Fire — Outside Mechanical $10,000
Total General Fund $442,650
No General Fund Imnact
Low Cost Housing - Mobile Home Rent Stabilization $20,000
From 20% set aside fund balance
CIP — Replace roof and HVAC at Community Center $600,000
(Community Facilities/PCDC to each pay half of cost)
CIP — Remove Fuel Tanks Per Fire Department 125.000
$725,000
Administrative Services — Eden Systems Contract
IT Fund Balance $457,000 *
Water Resources $125,000 *
Administrative Services — Information Technology OT cost
For Pentamation failure $55,000
Administrative Services — HR Recruitment for new $15,000 *
Treatment Plant
Public Works — Sidewalk Replacement Program
Community Facilities Fund $30,000
[Il
Denartment
Eauinment Replacement Fund
Park & Rec — Director Vehicle to replace 12 year old pool car
Park & Rec — Park Maintenance all purchase utility vehicle
For trails
Park & Rec — Park Manager vehicle to replace vehicle
Not recommended for repairs due to condition/mileage
Public Works — 2 Vehicles for newly approved positions
Total Equipment Replacement Fund
Landscape Assessment Districts
LAD's — Increased services paid by LAD fund balances
Redevelopment AHencv
Eden Systems Contract
Public Works — Fire Sprinkler Program
Public Works — Sidewalk Replacement Program
General Plan (49% of total)
Total Redevelopment Agency
Revenues
Police — OTS/DUI Grant Sobriety Checkpoints
Police — ABC Grant Assistance
Police — OTS Enforce & Awareness
Fire — Dairymen's Fire Reimbursement
HR — Waste Water Treatment Plant Recruitments
Total General Fund Revenue
IT — Water Resources Share of Eden
IT — PDC Share of Eden
Total Internal Service Funds
* Previously approved by Council.
Cost
$28,000
$12,000
$22,000
$55.000
$117,000
$39,850
$56,000
150,000
70,000
109.000
$385,000
$23,000
124,500
302,908
74,500
15.000
$539,908
125,000
56,000
$181,000