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Home My WebLink About2006/12/19 Item 14 COUNCIL AGENDA STATEMENT Item:L Meeting Date: 12/19/06 Item Title: Quarterly Financial Status Report for the Quarter Ended September 30, 2006 Director of FinanCelT~reL/n\L Interim City Manager d I (4/5ths Vote: Yes _ No--1L) Submitted By: Reviewed By: Section 504 (f) of the City Charter requires quarterly fiscal status reports to be filed by the Director of Finance through the City Manager. Recommendation: That Council accept the report as submitted. Boards and Commissions: N/A Discussion: Attached for your consideration is the financial status report for the first quarter of fiscal year 2007. The detailed Fiscal Status Report for the quarter ending September 30, 2006, assumes that the City will continue to maintain a reserve level above the 8.0% Council general fund reserve policy. All revenue variances discussed in this report will be reflected in the updated Five Year Financial Forecast, which will be presented to the City Council as part of the fiscal year 2008 budgetary workshop. Decision Maker Conflicts: Staff has reviewed the decision contemplated by accepting this report and has determined that it is not site specific and consequently the 500 foot rule found in the California Code of Regulations section 18704.2(a)(1) is not applicable. Fiscal Impact: Since this report is for informational purposes only, there is no fiscal impact relative to accepting this report. 14-1 The City General Fund ended the fiscal year 2006 with an available balance of $14.9 million or 8.8% of the operating budget. Based on updated revenue projections and the implementation of the citywide contingency plan, the general fund reserves are projected at 8.4% or $14.3 million, a slight decrease of 0.4%, or $600,000, from the prior fiscal year. The reserves are anticipated to drop due to a shortfall in development revenues. Based on preliminary estimates, reserves may reach 8.8% or $14.9 million once the deyelopment processing fee study is completed and approved. The actual amount will depend upon the implementation schedule of the fee study. The 8.8% reserve level assumes a March 1, 2007 implementation date. Currently under review by the Fire Department and the Office of Budget & Analysis is overtime usage. Based on year to date overtime usage, the Fire Department is anticipating budgetary overages. The analysis will be discussed as part of the second quarter fiscal status report. It is important to note that the Fire Department overtime overage has not been quantified and is therefore not reflected in the qeneral fund reserve proiections. The projections also assume that no further mid-year appropriations from the general fund reserves will be approved, which may be difficult to achieve considering the various significant projects currently in progress. Proiected General Fund Available Fund Balance General Fund Reserves July 1, 2006 14,927,405 Projected Revenues & Transfers In 165,377,394 Projected Expenditures & Transfers Out 165,980,143 Revenues over (under) Expenditures (602,749) Projected Available Fund Balance as of June 30, 2007 $ 14,324,656 Reserves as Percentage of General Fund Operating Budget 8.4% Projected Reserves (Assuming Updated Fees) $ 14,927,405 Reserves as % of General Fund Operating Budget (Assuming Fee Update) 8.8% 14-2 FINANCIAL STATUS REPORT First Quarter Fiscal Year 2007 Prepared by the Finance Department ~\f?- --- O1\'Of CHUlA VISfA INTRODUCTION The purpose of this report is to provide the City Council, management and the citizens of Chula Vista an update on the City's fiscal status based on the most recent financial information available. The projections presented in this report were prepared through the hard work and efforts of the various Department Heads, departmental analyst, Finance Department staff and the Office of Budget and Analysis. The City began the fiscal year with a balanced general fund budget, which included appropriations for expenditures and transfers out of $170.1 million, supported by estimated revenues and transfers in of $170.1 million. During the first quarter, Council approved $518,575 in additional appropriations supported by additional revenues of $341,575 resulting in a net impact to reserves of approximately $177,000 as described in Schedule D. Overall, general fund discretionary revenues such as property taxes and sales taxes continue to be strong as projected. However, the utility users tax (UUT), franchise fees and real property transfer taxes are projected to be $1.7 million less than initially projected. This amount represents about 1.6% of general fund discretionary revenues. In addition, the development services departments are projecting a shortfall in development revenues of approximately $2.4 million in the current fiscal year. Other departmental revenues are also projected lower by $942,093, primarily within the Recreation Department ($575,930) due to lower than anticipated recreation class registration fees. These shortfalls in the Recreation Department will be fully offset by identified expenditure savings. SUMMARY OF PROJECTED REVENUE SHORTFALLS % of Budgeted Revenues $ (1,651,608) $ (2,445,196) $ (942,093) $ (5,038,897) -3% Net Tax Revenue Shortfalls Development Revenue Shortfalls Other Departmental Revenue Shortfalls Total To address the anticipated shortfalls in revenues, a citywide contingency plan has been implemented. The City went through an extensive contingency planning process, working with departments to identify expenditure savings within existing budgets to assist in mitigating impacts to the general fund reserves. The remaining impacts will be mitigated by actively managing vacant positions. It is anticipated that these changes can be implemented in the short-term with little to no impact on existing service levels. In addition, a development processing fee study is currently taking place which, if approved, is projected to generate approximately $600,000 in revenues during the current fiscal year. A summary of the revenue shortfalls and the anticipated savings are summarized as follows. 14-3 FINANCIAL STATUS REPORT First Quarter Fiscal Year 2007 Page 2 SUMMARY OF FISCAL ISSUES AND SOLUTIONS Issues Amount Solutions . Amount. Projected Revenue Shortfall: Tax Revenues (net) Development Revenues Other Departmental Revenues Mid-Year Appropriations $1,651,608 $2,445,196 $ 942,093 $ 177,000 $5,215,897 Contingency Plan Savings $ Mgmt Vacant Positions (est). $ 'Development, Fee Study (est) $ $ 3,968,700 644,448 602,749 5,215,897 'Represents net impact of Mid. Year Council Approved Appropriations. "Fee study currently taking place. To be brought forward for Council consideration early next calendar year. GENERAL FUND RESERVES The City General Fund ended the fiscal year 2006 with an available balance of $14.9 million or 8.8% of the operating budget. Based on updated revenue projections and the implementation of the citywide contingency plan, available reserves are projected at 8.4% or $14.3 million at the end of the current fiscal year. Based on preliminary estimates, reserves may end the year at 8.8% or $14.9 million once the development fee study is completed and approved. General Fund Reserves July 1, 2006 Projected Revenues & Transfers In Projected Expenditures & Transfers Out Revenues over (under) Expenditures 'Projected Available Fund Balance as of June 30, 2007 Reserves as Percentage of General Fund Operating Budget 14,927,405 165,377,394 165,980,143 $ (602,749) 14,324,656 8.4% Projected Reserves (Assuming Updated Fees) Reserves as % of General Fund Operating Budget (Assuming Fee Update) $ 14,927,405 8.8% GENERAL FUND EXPENDITURES Total General Fund expenditures and encumbrances through September 30,2006 were $37.7 million. Actual expenditures year to date are comparable on a quarter by quarter basis as reflected under the attached schedule A. 14-4 FINANCIAL STATUS REPORT First Quarter Fiscal Year 2007 Page 3 Overall, through identified departmental savings and management of vacant positions, expenditure savings of $4.6 million are projected to largely mitigate the impacts of the projected revenue shortfalls of $5.0 million. The expenditure savings have been identified as salary savings based on managing vacancies citywide ($3.6 million or 2.6% of the total general fund personnel budget), supplies and services savings ($936,853) and savings in other expenses ($34,105). The continqencv plan has been implemented bv manaQement and is beinq monitored departmentallv: Schedule A also lists the expenditures to date and projected savings by department. Currently under review by the Fire Department and the Office of Budget & Analysis is Fire overtime usage. Based on year to date overtime usage, the Fire Department is anticipating budgetary overages. The review is anticipated to be completed early in calendar year 2007. In addition, health insurance costs are anticipated to increase by approximately $470,000 for the remainder of the fiscal year. At this time, any general fund impacts from the health insurance cost increases will be mitigated by reallocating existing budgets between departments as part of the year-end budget clean up. MAJOR DISCRETIONARY REVENUES Overall, the major discretionary revenues, such as sales taxes and property taxes continue to be strong. However, franchise fees, utility users tax and real property transfer tax are projected to be under budget by approximately $1.7 million or -1.6%. At this time, due to a citywide contingency plan, which has been implemented by management, no general fund impacts are anticipated due to these shortfalls. GENERAL FUND MAJOR DISCRETIONARY REVENUES Fiscal Year 2006 Fiscal Year 2007 Maior Discretionarv Revenues Actual Budnet Proiected Variance % Variance Property Taxes $ 22,192,789 $ 26,999,041 $ 27,649,041 650,000 2.4% Sales Taxes $ 26,715,515 $ 30,997,040 $ 30,997,040 0 0.0% Franchise Fees $ 9,492,759 $ 11,368,337 $ 10,528,835 (839,502) ~7.4% f.rransient Occupancy $ 2,336,204 $ 2,581,975 $ 2,581,975 0 0.0% Utility Users $ 6,363,446 $ 8,030,681 $ 6,617,984 (1,412,697) -17.6% Business License $ 1,234,912 $ 1,238,340 $ 1,238,340 0 0.0% Real Property Transfer $ 2,122,860 $ 2,648,554 $ 2,035,145 (613,409) -23,2% "State Motor Vehicle License Fees $ 18,354,839 $ 17,864,139 $ 17,864,139 0 0.0% ,Aiscellaneous Revenues $ 1,602,222 $ 1,082,930 $ 1,646,930 564,000 52.1% otal $ 90,415,546 $102,811,037 $101,159,429 (1,651,608\ -1.6% *Property Taxes in Fiscal Year 2006 are net of the $1.8 million state takeaway related to ERAF III. ""'In Fiscal Year 2006, VLF total reflects reimbursement from State due to previous takeaways. 14-5 FINANCIAL STATUS REPORT First Quarter Fiscal Year 2007 Page 4 SAL~S-'!.~E~{~l!l!~~T $31.0 MILLlO'!!.!:.F/OJJ~ET-~eJ31. O_MILL/()_~L_ Sales and use tax revenue is the City's single largest discretionary revenue source, accounting for 30.6% of the total projected discretionary revenue for the General Fund in fiscal year 2007. During fiscal years 2005 and 2006 sales tax revenues increased by 10.2% and 13.2% respectively primarily due to increased population and the opening of several new commercial centers in the eastern section of the City. During fiscal year 2007, sales tax revenues are projected to increase by 16.0% from the prior year due to the expansion of the auto park and the highly anticipated and publicized opening of the Otay Ranch Town Center Mall. Growth in sales tax reveoue has averaged 7% per year over the past five years. Sales Tax Revenue $35,000,000 $30,000,000 $25.000,000 $20,000,000 $15,000,000 $10,000.000 $5,000,000 $0 1997 1999 2007 2001 2003 2005 P~OPE'!T'!J_;Y<~~.J~UDf!~!' $27.0 MILLION, PROJECTE~ $27.6 ~/LLlo'!L.___._._.____.. Property taxes continue to grow Countywide, although at a slower rate than in previous years. The pace of new and existing home sales slowed dramatically and is anticipated to continue the trend of slow growth into fiscal years 2008 and 2009 and will be reflected in the next two-year proposed budget. Property Taxes $28,000,000 $24,000.000 $20,000,000 $16,000,000 $12,000,000 $8,000,000 $4,000,000 $0 19971998199920002001 200220032004200520062007 For comparison purposes, the property tax revenue does not reflect $1.8 million in State takeaways in fiscal year 2005 and 2006. 14-6 FINANCIAL STATUS REPORT First Quarter Fiscal Year 2007 Page 5 According to the most recent County of San Diego Assessor's Office Report, assessed values in Chula Vista have increased by 15.43% for fiscal year 2007 compared to 20% in the 2006 fiscal year. Based on the updated report from the County Assessor, property tax revenues are projected to come in higher than budgeted by approximately $650,000. Growth in Assessed Value 25.00% 20.00% 5.00% ~. "W""''''''''''m~",,",,' 15.00% 10.00% 0.00% 1995 1997 1999 2001 2003 2005 2007 L -Chula Vista '~""';'County Overall "'As represented in the chart, this is the 8th straight year that the City has seen double-digit growth in assessed values. 13EA~~I!OPERTY TRANSFER TAX (BUDGET $2.6 MILLION, PROJECTED $2.0 MILLION) When real property is sold, the County assesses a transfer tax. The tax rate is $1.10 per thousand multiplied by the selling price of the property. The City receives 50% of the transfer tax for sales within Chula Vista. Property transfer taxes are reflective of the housing market. Due to the significant slow down in real estate construction and the cooling of resale homes during the current fiscal year, the revenue projections are being adjusted downward by $600,000. S~A_!~",!OTOR VEHICLE LICENSE FEES (BUDGET $17.9 MIL,-:!ON~R_OJE~!ED !17.9 MILLION) . The VLF revenue has gone through many changes in the past two years. The fee was initially established back in 1948 and directed to local government. The State had previously assessed a 2% of value Motor Vehicle License Fee on car registrants on behalf of local governments. During fiscal year 2004, the State dropped the fee from 2% to 0.67%. Except for the first three months of that year, the State back-filled this fee reduction with other State funds, keeping local government revenue whole. Beginning in fiscal year 2005, the local government share of VLF has narrowed. Cities continue to receive the 0.67% portion of the fee directly from the State, but this amount is now net of County realignment and administrative reductions. The State backfills the gap created by the fee reduction from 2% to 0.67% with an additional allocation of local property tax from County ERAF funds, referred to as the VLF swap. After 2006, the VLF swap will be valued at the original 2005 amount, and increased by the jurisdiction's annual growth in assessed valuation. These changes in valuation are reflected in the fiscal year 2007 budget and are projected to come in at budgeted levels. 14-7 FINANCIAL STATUS REPORT First Quarter Fiscal Year 2007 Page 6 fRJ!<~~f1~SIl_~'!~~J~UD~~T~[).J!!_:~~/LL~~N,f!.'!_9JEE!~~$11!:~~/L~~ONL_____. Franchise fee revenues are generated from public utility sources such as San Diego Gas & Electric (2% on gas and 1.25% on electricity), trash collection franchises (9.05% fee), and cable franchises (5% fee) conducting business within City limits. SDG&E is the single largest generator of Franchise Fees and accounts for approximately 50% of the total franchise revenues, which are received semi-annually, in' March and August. SDG&E collects the franchise fee from Chula Vista customers and through a municipal surcharge imposed on the South Bay Power Plant based on their usage of natural gas. Due to the volatility of the price of natural gas and fluctuation in usage this component is difficult to project. Trash franchise fees and cable fees are more predictable due to the fixed rates charged and the monthly and quarterly receipt of the revenues respectively. Total franchise fees received in fiscal year 2006 were $9.5 million, which was $457,000 less than projected in the prior year third quarter fiscal status report. At this time, we are projecting franchise fee revenues to come in at approximately $10.5 million. This is $840,000 less than budgeted in the current year due to the prior year shortfall. Staff will continue to monitor this revenue source and provide updated projections in the second quarter report. Franchise Fees In $9.0 ~ $80 $7.0 i $6.0 $5.0 $4.0 $3.0 $2.0 $1.0 $- /~ / .. / ~. .... ~. / ~ /. .. / , . 2001 2002 2003 2004 2005 2006 2007 -~+-- Energy _____ Trash/Cable UTl~/T~lI.~Il.RS_!.~X.{~l!EGET!~.~ MILLION, PROJEC~~[)J6.6 MILLION) The City adopted its Utility Users Tax (UUT) in 1978. The City of Chula Vista imposes a UUT on the use of telecom at the rate of 5% of gross receipts, which represents 66% of the total UUT revenues received. The UUT on natural gas services is $0.00919 per therm and $0.00250 per kilowatt on electricity services, which equates to approximately a 1% tax. UUT revenues are projected to grow using population factors and are adjusted downward to account for market saturation in the wireless telecom sector due to the shift in usage of land line telephones to cellular telephones and to internet and other private-network communications. SDG&E is the predominant energy provider with dozens of telecommunications providers. UUT is received on a monthly basis from the various providers. Total UUT revenues received in fiscal year 2006 were $6.4 million, of which $2.2 million was from energy and $4.2 million was from telecommunications. The total was $872,000 less than projected in the fiscal year 2006 third quarter fiscal status report. 14-8 FINANCIAL STATUS REPORT First Quarter Rscal Year 2007 Page 7 The shortfall in UUT was due to one-time credits for billing errors by SDG&E of approximately $84,000 and the relatively mild winter and summers which resulted in lower energy usage. Some large telecommunications providers and taxpayers have taken the position that the UUT does not apply to long distance, VolP (voice over internet), and cellular phone charges. Although pending litigation and potential legislation could adversely affect the telecommunications revenues, they are unlikely to do so during the next twelve months. We are therefore projecting revenues to come in I -+-Energy ".--Telecom __Total relatively flat at $6.6 million resulting in an overall budgetary shortfall of $1.4 million. Utility Users Tax ~ $7.0 c Jl $6.0 :IE $5.0 $4.0 $3.0 $2.0 $1.0 $0.0 .... ~ -- ..-. '.' --. ..- / -. -...------.. 2001 2002 2003 2004 2005 2006 2007 DEVELOPMENT RELATED REVENUES Current projections of development related revenues citywide indicate unanticipated revenue shortfalls of approximately $2.4 million in the development services departments, including the Planning & Building, and Engineering Departments, and the Construction Inspection section of Public Works Operations. These shortfalls are projected in both the fee based and deposit based revenue budgets, at $1.5 million and $900,000 respectively. These revenue shortfalls are discussed in detail in the following sections. Budgetary adjustments to mitigate this impact totaling $1.2 million have been identified in the Planning & Building and Engineering Departments and are also discussed below. Additional revenues generated by the pending Building & Planning fee updates further reduce this impact by $602,749, to $654,448. DEVELOPMENT SERVICES GENERAL FUND IMPACT SUMMARY TotllI Budgeted Revenues $ 9,790,564 $ 6,922,290 $ 16,712,854 Projected Revenues $ 7,851,078 $ 6,416,580 $ 14,267,658 Revenue Shortfall $ 1,939,486 $ 505,710 $ 2,445,196 Budget Adjustments $ (682,289) $ (505,710)) $ (1,187,999) 'Development Fee Study (est.) $ (602,749) $ $ (602,749) General Fund Impact $ 654,448 $ $ 654,448 *Fee study currently taking place. To be brought forward for Council consideration early next calendar year. 14-9 FINANCIAL STATUS REPORT First Quarter Rscal Year 2007 Page 8 D~,!~~()!",,!~!.~RO~~~StN~Et.:.E.~ (BUDGET ~6. 7 MtLLtON~~'!.()JEC!.~D $5.2 MtL!:~()_NL_.__ Development related revenues consist of two categories: development processing fee revenues and deposit based revenues. In all, a $2.4 million shortfall is projected in development related revenues. Of that amount, $1.5 million is attributable to development processing fee revenues and is discussed in this section. The remaining $900,000 shortfall is attributable to deposit based revenues, and is discussed in the following section of this report. Development processing fee revenues, which include building permits, planning fees, other building department fees, and engineering fees, reflect a significant decrease year-to-date. One of the major sources of development revenues are building permits, which are down 15% compared to last fiscal year. The decrease in building permit revenue is derived from the combination of a decrease in the valuation of new construction and a decrease in the number of residential building permits issued. Residential Building Permits Units Issued by Fiscal Year 4,000 3,500 3,000 2,500 2.000 1,500 1,000 500 o 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 DSingle Family .Multi-Family New residential building permits pulled year to date (as of November 30) totaled 291. This represents a 50% decrease from the 589 residential units pulled as of November 30, 2005. This same measure was as high as 1,180 units in November of 2004. In total, 2,216 units were permitted in fiscal year 2005 and 1,406 residential units were permitted in fiscal year 2006. The highest fiscal year residential construction activity occurred in fiscal year 2004, with the permitting of 3,694 units. These historic trends are illustrated in the 'Residential Building Permits' chart above. Current projections for fiscal year 2007 reflect the permitting of 1,200 residential units, a reduction of 68% since fiscal year 2004 and the lowest level since 1998. The decline in building permits issued will translate into a significant shortfall in development related fee revenues of approximately $1.5 million in the current fiscal year. An additional shortfall of $900,000 in deposit-based revenues is projected as well, bringing the total development revenue shortfall to $2.4 million. This deposit based revenue shortfall is discussed in the next section of this report. In response to declining development activity, the operating budgets for the development services groups were reviewed, and projected general fund impacts were quantified. The Office of Budget & Analysis prepared this analysis using information provided in the pending Maximus development processing fee studies, along with detailed development phasing projections provided by the development community and 14-10 FINANCIAL STATUS REPORT First Quarter Fiscal Year 2007 Page 9 the Planning & Building Department. In addition to providing requested data, the Planning & Building Department was directly involved in analysis of their budget and concurs with the assumptions used in this report. Incorporating the fee study and development phasing information, development related revenues for the current fiscal year are projected to total $5.2 million. This projection assumes the issuance of approximately 1,200 new residential construction permits this fiscal year, under the City's existing fee structure. This projection represents a revenue shortfall of $1.5 million (or 22%), as compared with the approved revenue budget of $6.7 million. The validity of this projection is critically tied to the accuracy of information contained in the pending Maximus fee studies and the aforementioned development forecast. DEPOSIT BASED REVENUES Of the projected $2.4 million revenue shortfall in the development services departments, $1.5 million is attributable to the development related fee revenues detailed above. The remaining $900,000 revenue shortfall projected is associated with staff time reimbursement revenues. These reimbursement revenues are generated from deposit- based accounts (chiefly development related), as well as a small amount for Development Impact Fee program administration, and redevelopment project areas. DEVELOPMENT SERVICES BUDGETARY ADJUSTMENTS In response to projected shortfalls of $2.4 million in the Planning & Building and Engineering Departments, a number of actions have been identified to mitigate impacts to the general fund. These actions include updates to the Planning & Building development processing fee schedules to generate additional permit revenues, along with expenditure budget adjustments to generate budgetary savings. In the Planning & Building Department, budgetary savings of $682,289 have been identified for the current fiscal year. These savings reduce their projected general fund impact from $1.9 million to $1.25 million. Additional revenues to be generated by the pending Building & Planning fee updates further reduce this impact. These updates are anticipated to generate additional fee revenues of $602,749, assuminq council adoption of the fees and an effective date for the new fees of March 1. 2007. As previously described, this projection assumes the permitting of approximately 1,200 new residential units. Assuming the generation of these additional revenues, the remaining unmitigated general fund impact for the Planning & Building Department is projected to total $654,448. 14-11 FINANCIAL STATUS REPORT First Quarter Fiscal Year 2007 Page 10 PLANNING & BUILDING DEPARTMENT GENERAL.FuND IMPACT . FISCAL YEAR 2007 . Budgeted Revenues $ Projected Revenues $ Revenue Shortfall $ 9,790,564 7,851,078 1,939,486 Budget Adjustments $ 'Development Fee Study (est.) $ General Fund Impact $ (682,289) (602,749) 654,448 'Fee study currently taking place. To be brought forward for Council consideration early next calendar year Annualized over a full fiscal year, expenditure budget adjustments in the Planning & Building Department will generate savings of at least $1.3 million in fiscal year 2008. When combined with increased fee revenues anticipated from the updated development processing fees ($1.3 million), these adjustments bring the Planning & Building Department's budget in line with historic general fund net impact levels. In the Engineering Department, budgetary savings of $505,710 have been identified for the current fiscal year. These savings completely offset the department's anticipated revenue shortfall. As in the Planning & Building Department, these budgetary adjustments will be reflected in the fiscal year 2008 budget in order to keep expenditures inline with development activity and revenues. The final group impacted by the slowdown in development activity is the Construction Inspection section of Public Works. The impacts of a development slowdown are delayed for this group, as compared with the Planning & Building and Engineering Departments. This delay is a result of this group's role in the development process, which is primarily limited to project construction. For the current fiscal year, a minor revenue shortfall is projected, which will be completely offset by personnel vacancies. BUDGET ADJUSTMENTS Per Council direction, a list of budget adjustments between summary accounts approved by the City Manager during the quarter are to be provided. There were no budgetary transfer requests during the first quarter of fiscal year 2007. Attachments: Schedule A - Expenditure Status by Department Schedule B - Revenue Status by Department Schedule C - Revenue Status at Fund Level Schedule D - Mid-Year Appropriations 14-12 Schedule A Financial Status Report GENERAL FUND Expenditure Status by Department as of September 30, 2006 *Amended Available Projected Projected % Available (1st qtr.) Department Budget Balance Expenditures Exp. Savings FY07 FY 06 Legislative and Administrative City Council 1,638,747 1,256,167 1,638,747 0 76.7% 77.4% Boards and Commissions 14,252 2,732 14,252 0 19.2% 62.2% City Clerk 1,155,549 896,002 1,147,949 7,600 77.5% 77.6% City Attorney 2,723,608 1,955,115 2,713,608 10,000 71.8% 75.1% Administration 3,980,019 3,018,849 3,766,376 213,643 75.9% 76.1% Information Technology Services 4,461,887 3,050,198 4,381,521 80,366 68.4% 75.8% Human Resources 5,382,264 3,325,759 5,275,503 106,761 61.8% 66.9% Finance 3,205,939 2,476,826 3,145,939 60,000 77.3% 78.1% Total Legislative and Administrative $22,562,265 $15,981,648 $22,083,895 $478,370 70.8% 74.2% Non-Departmental $3,605,844 $668,632 $2,961,396 $644,448 18.5% 44.9% Development and Maintenance Services General Services 10,984,041 8,394,873 10,735,233 248,808 76.4% 76.3% Community Development 3,954,618 2,842,102 3,879,350 75,268 71.9% 72.2% Planning and Building Services 10,616,759 7,825,425 9,934,470 682,289 73.7% 74.8% Engineering 7,908,040 6,283,952 7,011,551 896,489 79.5% 79,5% Public Works 21,372,349 16,194,375 21,207,495 164,854 75.8% 74.1% Total Development and Maintenance Services $54,835,807 $41,540,727 $52,768,099 $2,067,708 75.8% 75.3% Public Safety Police 50,335,289 39,751,780 49,954,364 380,925 79.0% 78.0% Fire 22,644,407 17,542,226 22,557,343 87,064 77.5% 77.5% Total Public Safety $72,979,696 $57,294,006 $72,511,707 $467,989 78.5% 77.8% Culture and leisure Recreation 7,008,706 5,376,297 6,341,683 667,023 76,7% 80.1% Library 10,232,049 7,920,743 9,971,921 260,128 77.4% 76.6% Nature Center 1,194,857 841,462 1,167,375 27,482 70.4% 73,3% Total Culture and leisure $18,435,612 $14,138,502 $17,480,979 $954,633 76.7% 77.6% Total General Fund $172,419,224 $129,623,515 $167,806,076 $4,613,148 75.2% 75.1% *Includes $1.8 million in budget carrryovers for encumbrances and CIP projects. *'* Anticipated Citywide Salary Savings due to management of vacant positions 14-13 Financial Status Report Schedule B GENERAL FUND Revenues Status By Department as of September 30, 2006 Amended Actual Projected Var. Proj. Percent Department Budget To Date Revenue To Budget Variance Legislative and Administrative City Council 0 0 $0 $0 0.0% Boards and Commissions 0 0 0 0 0.0% City Clerk 88,499 2,900 88,499 0 0.0% City Attorney 860,050 99,588 860,050 0 0.0% Administration 435,853 39,964 435,853 0 0.0% Information Technology Services 797,682 15,221 797,682 0 0.0% Human Resources 454,794 66,342 454,794 0 0.0% Finance 1,299,705 240,456 1,299,705 0 0.0% Total Legislative and Administrative $3,936,583 $464,471 $3,936,583 $0 0.0% Non-Departmental $109,730,236 $8,312,539 $108,078,628 ($1,651,608) -1.5% Development and Maintenance Services General Services 5,696,999 538,972 5,519,206 (177,793) -3.1% Community Development 3,432,743 631,637 3,368,475 (64,268) -1.9% *Planning and Building Services 9,790,564 1,751,303 7,851,078 (1,939,486) -19.8% Engineering 6,922,290 926,315 6,416,580 (505,710) -7.3% Public Works 15,627,901 3,342,615 15,627,901 0 0.0% Total Development and Maintenance Services $41,470,497 $7,190,842 $38,783,240 ($2,687,257) -6.5% Public Safety Police 8,662,959 685,747 8,563,034 (99,925) -1.2% Fire 975,018 137,792 975,018 0 0.0% Total Public Safety $9,637,977 $823,539 $9,538,052 ($99,925) -1.0% Culture and leisure Recreation 3,023,890 659,397 2,447,960 (575,930) -19.0% Library 2,340,216 136,390 2,316,039 (24,177) -1.0% Nature Center 276,892 97,861 276,892 0 0.0% Total Culture and leisure $5,640,998 $893,648 5,040,891 ($600,107) -10.6% Total General Fund $170,416,291 $17,685,039 $165,377,394 ($5,038,897) -3.0% Revenue Summary: Net Discretionary Revenue Shortfalls Development Revenue Shortfalls Other Departmental Revenue Shortfalls Total ($1,651,608) ($2,445,196) ($942,093) ($5,038,897) The revenue shortfalls projected in Planning & Building do not reflect the proposed fee update which is currently under review and will be brought forward for Council consideration early in calendar year 2007. 14-14 Financial Status Report Schedule C General Fund Revenues Summary by Revenue Category Fiscal Year 2006-2007 as of September 30, 2006 Amended Actual Projeccted Var. Proj. Percent Budget To Date Revenue To Budget Variance Property Taxes $26,999,041 $781,949 $27,649,041 $650,000 2.4% Other Local Taxes Sales 30,997,040 1,948,962 30,997,040 0 0.0% Franchise 11,368,337 1,632,968 10,528,835 -839,502 -7.4% Transient Occupancy 2,581,975 523,160 2,581,975 0 0.0% Utility Users 8,030,681 1,017,773 6,617,984 -1.412,697 -17.6% Business License 1,175.429 93.470 1,175,429 0 0,0% Other 2,711.465 172,031 2,098,056 -613.409 -22.6% Total Other Local Taxes $56,864,927 $5,388,364 $53,999,319 -$2,865,608 -5.0% Licenses & Permits Building, Plumbing, Electrical 3,678,859 608,373 3,130,204 -548,655 -14.9% Other 602,876 112,598 639,746 36,870 6.1% Total Licenses & Permits $4,281,735 $720,971 $3,769,950 -$511,785 -12.0%1 Fines, Forfeitures & Penalties $1,462,125 $356,790 $1,422,594 -$39,531 -2.7% Revenue from Use of Money & Property $2,430,673 $273,036 $2,265,852 -$164,821 -6.8% Revenue from Other Agencies State Motor Vehicle license Fees 17,864,139 320,601 17,864,139 0 0.0% Police Grants 3,449,822 34,760 3,391,374 -58.448 -1.7% Other 3.423,826 221,101 3.447,019 23,193 0.7% Total Revenue from Other Agencies $24,737,787 $576,462 $24,702,532 -$35,255 -0.1% Charges for Current Services Development-related Services 11,446,550 2,198,310 9,513,496 -1,933,054 -16.9% Other Charges 6,026,996 886,413 5,624,942 -402,054 ~6.7% Total Charges for Current Services $17,473,546 $3,084,723 $15,138,438 -$2,335,108 ~13.4% Other Revenues Reimbursements from Other Funds 15,496,796 1,186,062 15,196,007 -300,789 -1.9% Other 1,876,719 771,005 2,440,719 564,000 30.1% Total Other Revenues $17,373,515 $1,957,067 $17,636,726 $263,211 1.5% Transfers-In $18,792,942 $4,545,677 $18,792,942 0 0.0% TOTAL REVENUES & TRANSFERS-IN $170,416,291 $17,685,039 $165,377,394 -$5,038,897 -3.0% 14-15 Schedule D Fiscal Year 2006-07 as of September 30, 2006 General Fund Budget Amendments Per Council Resolutions Est. Add'l Add'l General Fund Description Revenues Approp Net 1m pact One-time grant from the Dept. of Alcoholic Beverage Control (ABC Grant) $88,048 $88,048 $0 Park ranger station and facilities for the Ctay Valley Regional Park $0 $100,000 ($100,000) Costs for inclusion on the ballot of two proposed charter amendments $0 $50,000 ($50,000) Reimbursement for special event services for the seventh Annual Otay Ranch Day $1,381 $1,381 $0 Contribution towards the cost of defibrillators for Chula Vista schools $0 $27,000 ($27,000) Grand funding (UASI 03 Part II) for first responder decontamination Equip. & Truck $46,303 $46,303 $0 Community donations in support of Fire Dept. ceremony and recognition event $6,540 $6,540 $0 Office of Traffic Safety Grant to fund staff, equip. & materials for STEP prog. $199,303 $199,303 $0 Total of 1st Quarter Budget Amendments $341,575 $518,575 ($177,000) 14-16