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Home My WebLink About2007/06/07 Item 1 CITY COUNCIL AGENDA STATEMENT ~\'f:. CITY OF .if>>CHULA VISTA 06/07/2007, Item~ ITEM TITLE: QUARTERLY FINANCIAL STATUS REPORT FOR THE QUARTER ENDED MARCH 31, 2007 DIRECTOR OF FINANCE/T~URER--j~ INTERIM CITY MANAGER j! 4/5THS VOTE: YES D NO 0 SUBMITTED BY: REVIEWED BY: BACKGROUND Section 514 (f) of the City Charter requires quarterly fiscal status reports to be filed by the Director of Finance through the City Manager. ENVIRONMENTAL REVIEW Not Applicable RECOMMENDATION That Council accepts the report. BOARDS/COMMISSION RECOMMENDATION Not Applicable DISCUSSION Attached for your consideration is the financial status report for the third quarter of fiscal year 2006-07. The detailed Financial Status Report for the quarter ending March 31,2007, assumes that the City will continue to maintain a reserve level at the 8.0% Council General Fund reserve policy. DECISION MAKER CONFLICT 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 The City's General Fund ended the fiscal year 2005-06 with an available balance of $14.9 million or 8.8% of the operating budget. Based on updated revenue J- J projections and the implementation of the citywide contingency plan, the General Fund reserves at the end of fiscal year 2006-07 are currently projected at 8.0% or $13.1 million as summarized below. Pro"ected General Fund Available Fund Balance 14,929,410 164,923,405 166,738,376 $ **Net of 1.8 million in bud et car overs for encumbrances and CIP The projected reduction of $1.8 million in reserves from the beginning of fiscal year 2006-07 is primarily due to the following: . Projected shortfalls in development related revenues of approximately $3.3 million as a result of the continued slow down in the housing market. . Tax revenue shortfalls of approximately $1.7 million primarily in utility users tax, franchise fees and real property transfer tax. . Departmental revenue shortfalls of approximately $2.1 million primarily due to lower than anticipated recreation classes, grant revenues and reimbursable staff time. . Net mid-year appropriations of $616,222 of which $450,000 was related to the Fire Department overtime, which staff determined was under budgeted based on an analysis recently presented to Council. The fiscal impacts related to these items will be largely offset through the mid- year contingency plan initiated by the City Manager. The plan identified departmental savings and implemented the active management of vacant positions resulting in projected expenditure savings of approximately $5.9 million, which will mitigate significant impacts to the reserves. The table below summarizes the projected impacts to reserves and are discussed in more detail in the attached report. acts to General Fund Reserves (3,259,539) (1 ,651 ,608) (2,148,505) {616,222 /-~ The currently projected $1.8 million reduction in the reserves at the end of the current fiscal year is about $1.3 million more than the $0.5 million reduction projected in the second quarter financial status report. The increase of $1.3 million is primarily explained by additional development related revenue shortfalls of $0.9 million and the appropriation of $450,000 for Fire Department overtime. The projected impact to the General Fund reserve is due to a number of factors. However, the reasons are still consistent with the discussions in the second quarter report. The most significant reason is the increase in the projected development revenues shortfall from $2.4 million to $3.3 million. Additionally, since the second quarter report, projected Departmental revenue shortfalls have increased by $1.6 million but are offset by a $1.6 million increase in Departmental expenditure savings. ATTACHMENTS Attachment 1 - Financial Status Report Prepared by: Phillip Davis, Assistant Director of Finance, Finance Department Lisa Partee, Senior Management Analyst, Finance Department ;-3 FINANCIAL STATUS REPORT Third Quarter Fiscal Year 2006-07 Prepared by the Finance Department ~\ft. - - ~ mY'" CHUA VIS1A 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 analysts, 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. Through the end of the third quarter, Council approved a total of $2,524,563 in additional appropriations supported by additional revenues of $1,908,341 resulting in a net impact to reserves of approximately $616,222 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 budgeted although there is no change from the second quarter report. 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 $3.3 million in the current fiscal year, which is an increase of $0.9 million from the second quarter report. Other departmental revenues are also projected lower by $2.1 million primarily within the Recreation Department due to lower than anticipated recreation class registration fees ($545,000); the Police Department due to an unanticipated shortfall in grant related revenue ($339,000), CVHF Booking Fees ($337,000), and State Subvention Booking Fees ($259,000); and within several departments due to a lack of reimbursable staff time ($225,000) and other miscellaneous revenues ($395,000). These shortfalls in the Recreation Department, Police Department and for staff time reimbursements will be fully offset by identified expenditure savings. SUMMARY OF PROJECTED REVENUE SHORTFALLS Net Tax Revenue Shortfalls Development Revenue Shortfalls Other Departmental Revenue Shortfalls Total $ (1,651,608) $ (3,259,539) $ (2,148,505) $ (7,059,652) -4.1% % of Budgeted Revenues 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 /- if FINANCIAL STATUS REPORT Third Quarmr RscaI Year 2006-07 Page 2 assist in mitigating impacts to the general fund reserves. The remaining impacts will be partially mitigated by actively managing vacant positions. It is anticipated that these changes can be implemented with little to no impact on existing service levels. A summary of the revenue shortfalls and the anticipated savings are summarized as follows. SUMMARY OF FISCAL ISSUES Projected Revenue Shortfall: Tax Revenues (net) Development Revenues Other Departmental Revenues *Mid-Year Appropriations $1,651,608 $3,259,539 $2,148,505 $ 616,222 $7,675,874 Dept Projected Exp Savings $ 5,860,917 Projected Impact to Reserves $ (1,814,957) *Represents net impact of Mid- Year Council Approved Appropriations. GENERAL FUND RESERVES The City General Fund ended the fiscal year 2005-06 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 8.0% or $13.1 million at the end of the current fiscal year. 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 14,929,410 164,923,405 166,738,376 $ (1,814,971) 13,114,439 8.0% **Net of $1.8 million in bud et car overs for encumbrances and CIP GENERAL FUND EXPENDITURES Total General Fund expenditures and encumbrances through March 31, 2007 were $126.5 million. Actual expenditures year to date are comparable on a quarter-by- quarter basis as reflected under the attached Schedule A. 1- 5 FINANCIAL STATUS REPORT Third Quarter RscaI Year 2006-07 Page 3 Overall, through identified departmental savings and management of vacant positions, expenditure savings of $5.9 million are projected to partially mitigate the impacts of the projected revenue shortfalls of $7.1 million. The expenditure savings have been identified as salary savings based on managing vacancies citywide, supplies and services savings and savings in other expenses. The contingency plan has been implemented by management and is being monitored departmentally. Schedule A also lists the expenditures to date and projected savings by department. Health insurance costs were projected in the second quarter to increase citywide by approximately $470,000 for the remainder of the fiscal year. 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. Fiscal Year 2005-06 Fiscal Year 2006-07 Maior Discretionary Revenues Actual Budae! Projected 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% ransient Occupancy $ 2,336,204 $ 2,581,975 $ 2,581,975 0 Q.OlJ; 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% Miscellaneous 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(1,651,608) -1.6% GENERAL FUND MAJOR DISCRETIONARY REVENUES *Property Taxes in Fiscal Year 2005-06 are net of the $1.8 million state takeaway related to ERAF lit. **In Fiscal Year 2005-06, VLF total reflects reimbursement from State due to previous takeaways. 1- f.t, FINANCIAL STATUS REPORT Third Quarter Fiscal Year 2006-07 Page 4 SALE_~T!,Xl!...SlE3.l!..D~l!...! E 1:~_'i'IL~/Ofi'f'I'/O~EE!~eE1_.0'i'ILLlONL... 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 2006- 07. During fiscal years 2004-05 and 2005-06 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 2006-07, 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 revenue 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 2001 2003 2005 2007 1999 PR!?PERTY TAXES (BuJ)G~!.:$27.0 MILLION, PROJECTED $27.6 MILLION} 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 2007- 08 and 2008-09 and is reflected in the 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 2004-05 and 2005-06. 1-7 FINANCIAL STATUS REPORT Third Quarter Fiscal Year 2006-07 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 2006-07 compared to 20% in the 2005-06 fiscal year. Based on the updated report from the County Assessor, property tax revenues are projected to be higher than budgeted by approximately $650,000. Growth in Assessed Value 25.00% 5.00% 20.00% 15.00% 10.00% 0.00% 1995 1997 1999 2001 2003 2005 2007 -County Overall __ j -Chula Vista *As represented in the chart, this is the 8th straight year that the City has seen double-digit growth in assessed values. REALPROPERTY TRANSFERT~!L~~eGET$2.6MILLION, PROJECTED $2.01ilILLlON} _~___nn._.__ _ 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. STATE MOTOR V~r/ICLEL.I,?~N~~t=.~~~L~U[)(,~T!17.9 MILLlON,PROJECTED $17~ MIL~ON} . 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 2003-04, the State dropped the fee from 2% to 0.65%. 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 2004-05, the local government share of VLF has narrowed. Cities continue to receive the 0.65% 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 0.65% 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 2006-07 budget and are projected to come in at budgeted levels. ! -8 FINANCIAL STATUS REPORT Third Quarter Fiscal Year 2006-07 Page 6 FRA~l?fI~~_F~E~Jl!'!e~~T!:D$11:_~ftIIIL_LlON, _PROJEC!E.e.$!~:~_ftII/~~~?/II) 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 2005-06 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 has continued to monitor this revenue source and anticipates no change from the second quarter projection. Franchise Fees .. $9.0 .~ $80 $7.0 :i1 $6.0 $50 $4.0 $3.0 $2.0 $1.0 $- . / .+-. .... .. / , ,. I / ,/ .. 2001 2002 2003 2004 2005 2006 2007 I I -----~_.._._..-..__.--.---I --- Trash/Cable I .- - Energy UTILITY USERS TAX (BUDGET $8.0 MILLION, PROJECTED $6.6 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 2005-06 were $6.4 million, of which $2.2 million was from energy and $4.2 million was from telecommunications. The total was 1-9 FINANCIAL STATUS REPORT Third Quarter RscaI Year 2006-{)7 Page 7 $872,000 less than projected in the fiscal year 2005-06 third quarter fiscal status report. 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 relatively flat at $6.6 million resulting in an overall budgetary shortfall of $1.4 million. Utility Users Tax '" $7.0 c ,g $6.0 :E $5.0 $4.0 $3.0 $2.0 $1.0 $0.0 --- -- ./ - 2001 2002 2003 2004 2005 2006 2007 I ~Energy .--.- Telecom ---*- Total DEVELOPMENT RELATED REVENUES Current projections of development related revenues citywide indicate unanticipated revenue shortfalls of approximately $3.3 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 $1.8 million and $1.5 million respectively. These revenue shortfalls are discussed in detail in the following sections. Projected expenditure savings to mitigate this impact totaling $1.8 million have been identified in the Planning & Building and Engineering Departments and are also discussed below. DEVELOPMENT SERVICES GENERAL FUND IMPACT SUMMARY Budgeted Revenues $ 9,790,564 $ 6,922,290 $ 16,712,854 Projected Revenues $ 7,423,419 $ 6,029,896 $ 13,453,315 Revenue Shortfall $ (2,367,145) $ (892,394) $ (3,259,539) Expenditure Savings $ 460,941 $ 1,336,533 $ 1,797,474 General Fund Impact $ (1,906,204) $ 444,139 $ (1,462,065) )-ID FINANCIAL STATUS REPORT Third Quar1Er Fiscal Year 2006-07 Page 8 DEVEL()PI1/ll!.!'!J:>~"!.O~~E~StNG.fE~~_(~l.J[)~_ET1~.!J'/'tLL~O"'~J:>~CJ.!~~C!~[)~!~._O MILLION) -~--- ------------------- Development related revenues consist of two categories: development processing fee revenues and deposit based revenues. In all, a $3.3 million shortfall is projected in development related revenues. Of that amount, $1.8 million is attributable to development processing fee revenues and is discussed in this section. The remaining $1.5 million shortfall is attributable to deposit based revenues, and is discussed in the following section of this report. 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 L__._~Sjngle Family 2003 2004 2005 2006 2007 .Mult.i~~a_~_~~ 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 25% 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. New residential building permits pulled year to date (as of March 31) totaled 658. This represents a 37% decrease from the 1,037 residential units pulled as of March 31, 2006. This same measure was as high as 1,403 units in January 2005. In total, 2,216 units were permitted in fiscal year 2004-05 and 1,406 residential units were permitted in fiscal year 2005-06. The highest fiscal year residential construction activity occurred in fiscal year 2003-04, with the permitting of 3,694 units. These historic trends are illustrated in the 'Residential Building Permits' chart above. Current projections for fiscal year 2006-07 reflect the permitting of 1,000 residential units, a reduction of 73% since fiscal year 2003-04 and the lowest level since 1998. Development related revenues for the current fiscal year are projected to total $5.0 million. This projection assumes the issuance of approximately 1,000 new residential construction permits this fiscal year. This projection represents a revenue shortfall of $1.8 million (or 26%), as compared with the approved revenue budget of $6.7 million. )-11 FINANCIAL STATUS REPORT Third Quarter RscaI Year 2006-07 Page 9 STAFF TIME REIMBURSEMENT REVENUES Of the projected $3.3 million revenue shortfall in the development services departments, $1.8 million is attributable to the development related fee revenues detailed above. The remaining $1.5 million revenue shortfall projected is associated with staff time reimbursement revenues. These reimbursement revenues are primarily generated by deposit-based accounts. The deposit accounts are funded by developers and reimburse the City for costs associated with development project processing. These reimbursements are based upon actual staff hours expended on projects, which are then billed to the developers' deposit accounts at full cost recovery. The remaining staff time reimbursement revenues are generated by work in redevelopment areas; special tax districts; Development Impact Fee (DIF) program administration; and Capital Improvement Program (CIP) project design, administration, and construction. As described in the previous 'Development Processing Fee' section, the City is experiencing a significant decline in development activity. This decline in development activity directly impacts staff workload, which in turn directly impacts deposit-based revenues. In fiscal year 2005-06, a total of $10.2 million in deposit-based revenues were included in the approved budget. Of this amount, the City's General Fund realized only $8.0 million, or 78%. In response to this revenue shortfall in fiscal year 2005-06, the revenue budget for fiscal year 2006-07 was reduced by 15%, from $10.2 million to $8.7 million. As of the end of the third quarter of fiscal year 2006-07, deposit-based reimbursement revenues are projected to generate a revenue shortfall in the current fiscal year of $1.0 million. The remaining reimbursement based revenue shortfall of $500,000 is associated with the other reimbursement revenue areas described above. DEVELOPMENT SERVICES BUDGETARY ADJUSTMENTS In response to projected shortfalls of $3.3 million in the Planning & Building and Engineering Departments, expenditure budget adjustments have been identified to generate budgetary savings, thereby mitigating impacts to the General Fund. In the Planning & Building Department, projected expenditure savings of $460,941 have been identified for the current fiscal year. These savings reduce the impact of their revenue shortfall from $2.4 million to $1.9 million. In the Engineering Department, projected expenditure savings of $1.3 million have been identified for the current fiscal year. These savings completely offset their revenue shortfall of $892,394 and further reduces their General Fund net cost by an additional $440,044. I-I&-. FINANCIAL STATUS REPORT Third Quarter Fiscal Year 20Q6-{)7 Page 10 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. The third quarter budget adjustments are detailed in Schedule E. 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 Schedule E - General Fund Budget Transfers 1- /3 Schedule A Financial Status Report GENERAL FUND Expenditure Status by Department as of March 31, 2007 'Amended Actual Exp. Outstanding Available Projected Projected % Available (3rd qtr.) Deoartment Budaet Year To Date Encumbrances Balance Exoendltures Exo.Savlnos FY07 FY06 Legislative and AdministratIve City Council 1,638,747 1,094,768 62,795 481,184 1,575,147 63,600 29.4% 30.7% Boards and Commissions 14,252 11.029 338 2,885 14,252 0 20.2% 56.4% City Clerk 1,155,549 829,866 35,627 290,056 1,147,949 7,600 25.1% 36.8% City Attomey 2,723,608 1,951,453 58,814 703,341 2,713,608 10,000 25.8% 33.4% Administration 3,986,459 2,496,958 388,344 1,101,157 3,673,033 313,426 27.6% 27.1% Information Technology Services 4,461,887 3,192,528 143,424 1,125,935 4,321,415 140,472 25.2% 36,9% Human Resources 5,382,264 3,810,428 436,756 1,135,080 5,275,503 106,761 21.1% 26.1% Finance 3,205,939 2,154,512 75,873 975,554 3,145,939 50,000 30.4% 26.3% Total Legislative and AdminIstrative $22,568,705 $15,541,542 $1,211,971 $5,815,192 $21,866,846 $701,859 25.8% 30.3% Non-Departmental $3,725,858 $4,677,160 $129,837 ($1,081,139) $3,725,858 $0 -29.0% 28.6% Development and Maintenance Services General Services 11,012,673 7,599,695 380,086 3,032,892 10,946,874 65,799 27.5% 28.3% Community Development 3,954,618 2,659,033 233,739 1,061,846 3,751,362 203,256 26.9% 30.8% Planning and Building Services 10,615,759 7,402,255 701,564 2,512,940 10,155,818 460,941 23.7% 29.9% Engineering 7,908,040 4,600,970 969,732 2,337,338 6,571,507 1,336,533 29.6% 34.5% Public Works 21,372,349 14,609,666 488,366 6,274,317 20,946,470 425,879 29.4% 29.9% Total Development and Maintenance Services $54,864.439 $36,871,619 $2,773,487 $15,219,333 $52,372,031 $2,492,408 27.7% 30.3% Public Safety Police 51,190,608 34,492,967 1,093,574 15,604,067 50,045,226 1,145,382 30.5% 29.6% Fire 23,447,970 16,082,325 290,005 7,075,640 23,278,195 169,775 30.2% 27.9% Total Public Safety $74,638,578 $50,575,292 $1,383,579 $22,679,707 $73,323,421 $1,315,157 30.4% 29.1% Culture and Leisure Recreation 7,043,087 4,324,878 839,743 1,878,466 6,223,171 819,916 26.7% 42.2% library 10,389,689 6,599,418 732,299 3,057,972 9,918,367 471,322 29.4% 30.3% Nature Center 1,194,857 786,059 70,756 338,042 1,134,602 60,255 28.3% 31.5% Total Culture and Leisure $18,627,633 $11,710,355 $1,642,798 $5,274,480 $17,276,140 $1,351,493 28.3% 34.6% Total General Fund $174,425,213 $119,375,968 $7,141,672 $47,907,573 $168,564,296 $5,860,917 27.5% 30.2% "Includes $1.8 milffon in budget carrryovers for encumbrances and CIP projects. 1-14 Financial Status Report Schedule B GENERAL FUND Revenue Status By Department as of March 31, 2007 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 3,275 88,499 0 0.0% City Attorney 860,050 301,974 860,050 0 0.0% Administration 442,292 240,434 384,377 (57,915) -13.1% Information Technology Services 797,682 424,720 737,576 (60,106) -7.5% Human Resources 454,794 174,112 419,333 (35,461 ) -7.8% Finance 1,299,705 685,921 1,299,705 0 0.0% Total Legislative and Administrative $3,943,022 $1,830,436 $3,789,540 ($153,482) -3.9% Non-Departmental $109,850,250 $55,586,833 $108,198,642 ($1,651,608) -1.5% Development and Maintenance Services General Services 5,725,631 4,039,847 5,667,010 (58,621) -1.0% Community Development 3,432,743 2,121,987 3,464,984 32,241 0.9% Planning and Building Services 9,790,564 5,027,290 7,423,419 (2,367,145) -24.2% Engineering 6,922,290 3,904,417 6,029,896 (892,394) -12.9% Public Works 15,627,901 8,358,689 15,413,922 (213,979) -1.4% Total Development and Maintenance Services $41,499,129 $23,452,230 $37,999,231 ($3,499,898) -8.4% Public Safety Police 9,529,056 3,988,852 8,665,032 (864,024) -9.1% Fire 1,328,581 1,142,013 1,420,154 91,573 6.9% Total Public Safety $10,857,637 $5,130,865 $10,085,186 ($772,451 ) ~7.1% Culture and leisure Recreation 3,058,271 1,447,159 2,305,541 (752,730) -24.6% Library 2,497,856 1,119,188 2,247,496 (250,360) -10.0% Nature Center 276,892 214,191 297,769 20,877 7.5% Total Culture and Leisure $5,833,019 $2,780,538 4,850,806 ($982,213) -16.8% Total General Fund $171,983,057 $88,780,902 $164,923,405 ($7,059,652) -4.1% 1-15 Financial Status Report Schedule C General Fund Revenues Summary by Revenue Category Fiscal Year 2006-2007 as of March 31, 2007 Amended Actual Projected Var. Proj. Percent Budget To Date Revenue To Budget Variance Property Taxes $26,999,041 $16,365,810 $27,649,041 $650,000 2.4% Other Local Taxes Sales 30,997,040 11,529,708 30,997,040 0 0.0% Franchise 11,368,337 3,246,288 10,528,835 (839,502) -7.4% Transient Occupancy 2,581,975 1,593,006 2,581,975 0 0.0% Utility Users 8,030,681 4,605,419 6,617,984 (1,412,697) -17.6% Business license 1,175,429 1,048,306 1,175,429 0 0.0% Other 2,711,465 933,660 2,088,422 (623,043) -23.0% Total Other Local Taxes $56,864,927 $22,956,387 $53,989,685 ($2,875,242) -5.1% Licenses & Permits Building, Plumbing, Electrical 3,678,859 1,606,799 2,134,141 (1,544,718) -42.0% Other 602,876 468,775 640,448 37,572 6.2% Total Licenses & Permits $4,281,735 $2,075,574 $2,774,589 ($1,507,146) -35,2% Fines, Forfeitures & Penalties $1,462,125 $991,915 $1,304,193 ($157,932) -10,8% Revenue from Use of Money & Property $2,550,687 $1,448,755 $2,351,281 ($199,406) -7.8% Revenue from Other Agencies State Motor Vehicle License Fees 17,864,139 9,100,164 17,864,139 0 0.0% Police Grants 3,819,871 1,573,987 3,481,370 (338,501) -8.9% Other 3,731,205 1,875,533 3,473,671 (257,534) -6.9% Total Revenue from Other Agencies $25,415,215 $12,549,684 $24,819,180 ($596,035) -2.3% Charges for Current Services Development-related Services 11,446,550 7,140,334 9,959,722 (1,486,828) -13.0% Other Charges 6,260,498 2,900,383 5,672,576 (587,922) .9.4% Total Charges for Current Services $17,707,048 $10,040,717 $15,632,298 ($2,074,750) -11.7% Other Revenues Reimbursements from Other Funds 15,786,564 9,145,144 14,987,421 (799,143) -5.1% Other 2,064,966 2,149,158 2,564,968 500,002 24.2% Total Other Revenues $17,851,530 $11,294,302 $17,552,389 ($299,141) -1.7% Transfers-In $18,850,749 $11,057,758 $18,850,749 $0 0.0% TOTAL REVENUES & TRANSFERS-IN $171,983,057 $88,780,902 $164,923,405 ($7,059,652) -4.1% 1-16 Schedule D Fiscal Year 2006-07 as of March 31, 2007 General Fund Budget Amendments Per Council Resolutions Est. Add'l Add'l General Fund Description Revenues Approp Net Impact One-time grant from the Dept. of Alcoholic Beverage Control (ABC Grant) S88,048 $88,048 $0 Park ranger station and facilities for the Otay Valley Regional Park $0 $100,000 ($100,000) Costs for inclusion on the ballot of two proposed charter amendments $0 $50,000 (S50,000) 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 QUBiter BUdget Ameiulmenl!; " " " . ' ", . $341,575 $518,5rS ($177,000) State contract with Police Dept. for In Custody Drug Treatment Program (ICOTP) $400,046 $400,046 $0 Reimbursement from Allied Waste for a public education booklet $30,304 $30,304 $0 Dept. of Education Even Start Family Literacy Program grant $5,833 $5,833 $0 Gates Foundation Public Access Computer Hardware Upgrade grant (PAC HUG) $39,000 $39,000 $0 One-time augmentation to the Public Library Fund (PLF) grant $57,807 $57,807 $0 Addition of two California Border Alliance Group (CBAG) funded positions $164,379 $159,591 $4,788 Agreement with Southwestern Community College for in-service training program $15,000 $15,000 $0 Donations to the Animal Care Facility $4,767 $4,767 $0 Grant from the San Diego County Law Enforcement Foundation (SDCLEF) $3,900 $3,900 $0 Total of 2nd Quarter Budget Amendments'" . '.' , $721,036 .' , $716,248 $4,788 MOU with Hilltop Middle School for extended after-school program hours $6,000 $6,000 $0 MOU with CasUe Park Middle School for extended after-school program hours $6,000 $6,000 $0 MOU with Chula Vista Middle School for extended after-school program hours $14,011 $14,011 $0 MOU with YMCA for provision of after-school program hours at middle schools $8,370 $8,370 $0 Donation to Library to be used to purchase books and DVDs $55,000 $55,000 $0 Addition of one Latent Print Examiner position $92,102 $92,102 $0 Donation to Fire Dept to be used to purchase equip., supplles, and repairs to facilities $116,000 $116,000 $0 Reimb. to Fire Dept from various agencies used to offset overtime/contractual costs $210,083 $210,083 $0 Telecom site lease revenue to be used for improvements/upgrades at McCandliss Park $120,014 $120,014 $0 HIDTA program funds to be used to purchase monitoring and surveillance equipment $205,670 $199,680 $5,990 Fire Department overtime costs $0 S450,000 ($450,000) Donation to Fire Dept to be used to purchase rescue related equipment $12,480 $12,480 $0 Total of 3rd Quarter Budget Am,mdments . . $845,730 $1,289,740 ($444,010) Year to Datel $1,908,341 $2,524,563 ($616,222)1 1-17 Schedule E General Fund Budget Transfers Approved by Administration Fiscal Year 2006-07 as of March 31, 2007 Deoartment From To Descriotion Amount .... Total of 1st Quarter Budaet Transfers .' $0 . . Total of 2nd Quarter Bud""t Transfers $0 Finance Personnel Services Supplies & Services Annual audit services $15,000 Public Works Supplies & Services Other Expenses Repair damage to city property $7,500 Public Works Utilities Sunnlies & Services Buildinqs and qround maintenance $15,000 ~ , . . Total of 3rd Quartet Bud_ Transfers ----:-c $37,500 Year to Date I $37,500 I 1-18