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Home My WebLink About2007/11/06 Item 6 CITY COUNCIL AGENDA STATEMENT ITEM TITLE: :$}\I~ CIIYOF "A..€~ (HULA VISTA "7 'Gl (p 1 07 Item ~ . FY 2006-2007 ANNUAL FINANCIAL STATUS REPORT SUBMITTED BY: DIRECTOR OF FINANCEfTREASURER .il ~k ~' CITY MANAGER '. 1\ · 415THS VOTE: YES D NO 0 BACKGROUND I This report is provided in order to meet the City Charter requirement of publishing the City's Combined Statement of Revenues, Expenditures and changes in Fund Equity (Attachment D) in the local newspaper within 120 days of the close of the fiscal year. The statement is scheduled for publication in the October 26th issue of The Star News, which is the City's adjudicated newspaper of general circulation. REVIEWED BY: ENVIRONMENTAL REVIEW Not Applicable RECOMMENDATION That Council accept the report. BOARDS/COMMISSION RECOMMENDATION Not Applicable DISCUSSION This report is provided in order to meet the City Charter requirement of publishing the City's Combined Statement of Revenues, Expenditures and changes in Fund Equity (Attachment D) in the local newspaper within 120 days of the close of the fiscal year. The statement is scheduled for publication in the October 26th issue of The Star News, which is the City's adjudicated newspaper of general circulation. 6-1 We will provide the Council with a complete report of fiscal year 2006-07 financial data upon presentation of the City's audited Comprehensive Annual Financial Report. The General Fund began fiscal year 2006-07 with an available fund balance or reserve of $14.9 million. We are projecting that the ending available fund balance for fiscal year 2006-07 to be approximately $10.4 million, which is a $4.5 million reduction from the previous year. Available fund balance or reserve is generally defined as the balance of resources currently available for appropriation and therefore, does not include legally required reserves, designations for capital improvement projects or reserves for encumbrances or advances. Actual Expenditures and Transfers-Out for the year amounted to $166.1 million, supported by Actual Revenues and Transfers-In of $161.6 million, a net effect (decrease) to available fund balance of $4.5 million. Schedules A and B are summary statements of actual revenues and expenditures for fiscal year 2006-07. The fiscal year 2006-07 Council Adopted General Fund budget totaled $170.1 million. The mid-year appropriations of approximately $2.7 million with offsetting revenues of $2.2 million for a net cost to the General Fund of $0.5 million were approved during the fiscal year. The General Fund net cost appropriations were the Fire Department overtime ($450,000), approval of the City's share of a park ranger station in the Otay Valley Regional Park ($100,000), two charter amendments on the November 2006 elections ballot ($50,000) and the costs incurred for administering a special municipal election ($39,682). The closure of several General Fund capital improvement projects ($164,267) partially mitigated the net costs of those amendments. Schedule C provides a complete listing of all budget amendments approved for the 2006-07 fiscal year. The graph displays the end of year reserve balances compared to prior years. The available fund balance has decreased from 8.8% to 6.3% of the General Fund budget, which is below the Council Policy reserve level of 8 percent. Fund Balance Reserves July 1 (with 8% Reserve Trendline) $35 $31.2 $30 $23.7 $25.1 $25 $20.6 " $20 c: ~ :E $15 $10 $5 $0 01/02 02/03 03104 04/05 05/06 06/07 07/08 Fiscal Year Attachment D is an unaudited Summary Report of Revenue, Expenditures, and Changes in Fund Equity (excluding the Redevelopment Agency, Trust Funds and the 6-2 Public Financing Authority) for the fiscal year ended June 30, 2007. Please note that the column titled "General Funds" includes not only the General Fund, but also other Funds such as self-insurance reserves, which are combined with the General Fund for financial reporting purposes. As required by Charter Section 504 (f), this statement will be published in the local newspaper as discussed above. Total Fund Balance for all Funds (excluding Trust Funds, Redevelopment Agency and the Public Financing Authority), including legally required reserves and other reservations of Fund Balance, decreased by $18.6 million or 8.2% during fiscal year 2006-07 to $209.3 million. The overall decrease is due to a variety of transactions occurring in the various funds as presented in Attachment D. A full analysis of the City's various funds will be provided in the Management's Discussion and Analysis section of the Comprehensive Annual Financial Report. The detailed data supporting this information is quite voluminous, but is available at your request. The published Comprehensive Annual Financial Report (CAFR) including the opinion of the independent auditors should also be available within the next forty- five to 60 days and will be provided to Council. Schedule E provides a complete listing of all budget adjustments between summary accounts approved by the City Manager in accordance with Council Policy 220-02 "Financial Reporting and Transfer Authority" during fiscal year 2006-07. 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 Acceptance of this report has no effect on the General Fund. ATTACHMENTS Schedule A - General Fund Revenue Schedule B - General Fund Expenditures by Department Schedule C - General Fund Budget Amendments Schedule D - Combined Statement of Revenues, Expenditures and Changes in Fund Equity Schedule E - General Fund Budget Transfers Prepared by: Phillip Davis, Assistant Director of Finance, Finance Department Lisa Partee, Fiscal Services Analyst, Finance Department 6-3 SCHEDULE A GENERAL FUND REVENUES Summary by Revenue Category as of June 30, 2007 AMENDED ACTUAL PERCENT REVENUE TYPE BUDGET TO DATE REALIZED Property Taxes $26,999,041 $26,667,759 98.8% Other Local Taxes Sales 30,997,040 28,827,392 93.0% Franchise 11,368,337 8,813,064 77.5% Transient Occupancy 2,581,975 2,551,570 98.8% Utility Users 8,030,681 6,981,762 86.9% Business License 1,175,429 1,183,755 100.7% Other 2,711,465 1,477,160 54.5% Total Other Local Taxes 56,864,927 49,834,703 87.6% Licenses & Permits Building, Plumbing, Electrical 3,678,859 2,066,769 56.2% Other 602,876 663,765 110.1% Total Licenses & Permits 4,281,735 2,730,534 63.8% Fines, Forfeitures & Penalties 1,462,125 1,315,262 90.0% Revenue from Use of Money & Property 2,550,687 2,355,304 92.3% Revenue from Other Agencies State Motor Vehicle License Fees 17,864,139 17,676,035 98.9% Police Grants 3,946,298 3,522,222 89.3% Other 3,731,205 3,734,018 100.1% Total Revenue from Other Agencies 25,541,642 24,932,275 97.6% Charges for Current Services Development-reiated Services 11,446,550 10,522,871 91.9% Other Charges 6,260,498 5,736,215 91.6% Total Charges for Current Services 17,707,048 16,259,086 91.8% Other Revenues Reimbursements from Other Funds 15,925,340 16,317,885 102.5% Other 2,073,255 2,471,930 119.2% Total Other Revenues 17,998,595 18,789,815 104.4% Transfers-In 18,850,749 18,679,982 99.1% TOTAL REVENUES & TRANSFERS-IN $172,256,549 $161,564,720 93.8% 6-4 SCHEDULE 8 GENERAL FUND Expenditure Status by Deparbnent as of June 30, 2007 ,.. Amended Actual Outstanding Total Expendttures Available De arbnent Bud et Ex: enditures Encum brances and Encumbrances Balance Legislative and Administrative City Council 1,638,747 1,510,112 3,000 1,513,112 125,635 Boards and Commissions 14,252 11,448 0 11,448 2,804 City Clerk 1,196,231 1,163,628 2,666 1,166,484 28,747 City Attorney 2,723,608 2,721,778 0 2,721,778 1,830 Administration 3,986,459 3,492,915 6,295 3,499,210 487,249 Information Technology Services 4,461,887 4,198,060 4,500 4,202,550 259,337 Human Resources 5,382,264 5,129,410 318 5,129,728 252,536 Finance 3,205.939 2,978.029 419 2.978,448 227,491 Total Legislative and Administrative 22,608,387 21,205,370 17,388 21,222,758 1,385,629 Non-Departmental 3,561,591 3,601,001 25,058 3,626,059 (64,468) Development & Maintenance Services General Services 11,017,212 10,796,937 8,975 10,805,912 211,300 Community Development 3,954,618 3,649.381 19,405 3,668.786 285,832 Planning and Building Services 10,616,759 10,075,239 0 10,075,239 541,520 Engineering 7.908,040 6,573,576 13,231 6,586,807 1.321.233 Public Works 21,372,349 20,900,377 495 20.900,872 471,477 Total Development & Maintenance Services 54,868,978 51,995,510 42,106 52,037,616 2,831,362 Public Safety Police 51,315.246 49,625,580 100 49,625,680 1,669,566 Fire 23,586.746 22.718239 199,521 22,917,760 668.986 Total Public Safety 74,901,992 72,343,819 199,621 72,543,440 2,358,552 Culture and Leisure Recreation 7,043,087 6.168,133 0 6,168,133 874,954 Library 10,393,439 9,642,064 35,660 9,677,724 715,715 Nature Center 1.194.857 1.100.507 0 1.100.507 94,350 Total Culture and Leisure 18,631,383 16,910,704 35,660 16,946,364 1,685,019 Total General Fund $174,572,331 $166,056,404 $319,833 $166,376,237 $8,198,094 *lncludes $1.8 million in budget carrryovers for encumbrances and CIP projects. 6-5 SCHEDULE C Fiscal Year 2006-07 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) $88,048 $88,048 $0 PaM< ranger station and facilities for the Otay Valley Regional PaM< $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 atay Ranch Day $1,381 $1,381 $0 Contribution towards the cost of defibrillators for Chuta Vista schools $0 $27,000 ($27,000) Grand fundIng (UASI 03 Part H) for first responder decontamination Equip. & Truck $46,303 $48,303 $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 rtif8t.of::1St~~B~EIt~~~.~:;1~~d:~i*Ml'~J':;W':';~~1:F~*~),XrrA~':~ii~:~-:~~;:j~J]r(<;:t~,,: ',,;:;t, c ~~~1\;;;;,i$34t;S15" ;; ;!,,;f;'i~1$;~ ';"",;'t$.~ftful~l ,., '.-~," State contract with Police Dept. for In Custody Drug Treatment Program (ICDTP) $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 prog~m $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 $0 i1fti't~$a~Qdarte~i~~:~t~:r~sV&::'~F~Y-;&~~';';~0:'A~:j:t;;:"~!::::~;6t;;l '~'.', ;"C;'_"" "-,,,.,,.,,:, -t:~"i ',7~1l36' /~;}S(~;:' Im~24a: ;"'>ei',i':' '.<\.';'$:4,taa '>-'f, """. '",~,'".-"- "<;ir' MOU with Hilltop Middle School for extended after.school program hours $6,000 $6,000 $0 MOUwith Castle 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., supplies, 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 $450,000 ($450,000) Donation to Fire Dept to be used to purchase rescue related equipment $12,480 $12,480 $0 :_f~:9i_jttt;~liilij~get~1i~~Jt~,~~~t~~:;S~i~~;~f:~~~(!:-\~2;,y{ri';,'; ::'/S.'; ,.~:lr ';~c,. ;"'-'"'' . \~,;,~1~,.;$jij5~0} ;~j?,;,;$.1~llS;~~ jir%;,(WJ(6,fO) ',""', ~/":;;' Funds from Office of Traffic Safety for Click It or Ticket Program $65,000 $85,000 $0 Donations for the Animal Care Facility $2,453 $2,453 $0 Met ute Foundation Fit for Life grant $3,750 $3,750 $0 Addition of three CBAG positions $61,427 $59,638 $1,789 Costs for special municipal election $0 $39,682 ($39,682) Reimbursement for Fire Department overtime and support costs $138,776 $138,776 $0 Donations for the Animal Care Facility $2,086 $2,086 $0 CIP closures $0 ($184,267) $164,267 J:o'i>>l ...xi,>i;.<;ci" i;i;;'1;i"$~Il,;~tf Year to Datel $2.181,833 $2.671,681 ($489,848)1 6-6 SCHEDULE D City of Chula Vista Combined Summary Statement of Revenues, Expenditures and Ol.anges in Fund Equity Year Ended June 30, 2007 - Unaudited Total General Special Debt Service Capital Enterprise Internal AJlFunds Funds Revenue Funds Funds Project Funds Funds Service Funds Total Fund Equity June 30, 2006 $ 229,598,698 $ 39,885,953 $ 70,246,393 $ (14,193,384) $ 120,853,183 $ 7,040,813 $ 5,765,740 Revenues 2006-2007 Taxes 80,886,093 77,282,443 3,210,000 393,650 Intergovernmental Revenues 39,808,099 24.152.316 9,786,599 2,191,581 3,677,603 Licenses & Permits 2,870,424 2,730,534 139,890 Developer Fees 11,650,273 11,650,273 Charges for Current Services 60,442,700 16,259,086 35,047,814 1,335,443 2,433,008 5,367,349 Fines, Forfeitures & Penalties 2,226,822 1,315,262 911,560 Use of Money & Property 11,858,153 2.,.355,304 2,709,179 60 6,547,148 148,722 97,740 Other Revenues 23,706,312 21,970,469 485,827 948,366 150,980 150,670 Total Revenues 233,448,876 146,065,414 52,290,869 60 23,066,461 6,410,313 5,615,759 Transfers In 23,093,205 18,679,982 1,060,113 2,792,205 560,905 Total Revenues and Transfers In 256,542,081 164,745,396 53,350,982 2,792,263 23,627,366 M10,313 5,615,759 Expenditures 2006-2007: General Government 44,870,454 35,845,324 1,499,106 2,473 716,361 6,807,188 Public Safety 73,243,558 72,343,819 654,044 245,695 Public Works 63,375,385 38,270,890 22,939,644 2,164,851 Parks and Recreation 7,503,259 7,268,640 234,619 Library 9,660,809 9,642,064 18,745 Public Transit 7,434,251 7,434,251 Capital Ouday 36,299,762 400,584 7,439,706 28,459,472 Debt Service: Principal 1,592,801 1,592,801 Interest and Fiscal Charges 1,610,540 1,610,540 Total Expenditures 245,590,819 163,771,321 32,551,245 3,205,816 31,820,998 7,434,251 6,807,188 Transfers Out (1,875,241) (5,357,771) 14,657,701 (11,110,135) (22,618) (42,418) Total Expenditures and Transfers Out 243,715,578 158,413,550 47,208,946 3,205,816 20,710,863 7,411,633 6,764,770 Contributed Capital 8,013,381 6,163,047 1,850,334 Retained Earnings - Unreserved 2,512,769 (168,790) 2,681,559 Fund Balances: Reserved 56,393,814 22,22l,158 21,182,159 3,266 12,987,231 Unreserved: Designated 93,291,696 3,560,079 1,169,432 88,562,185 Undesignated 49,077,131 9,721,020 54,033,838 (14,677,727) Total Fund Equity June 30, 2007 $ 209,288,791 $ 35,502,257 $ 76,385,429 $ (14,674,461) $ 101,549,416 $ 5,994,257 $ 4,531,893 The Finance Department of tl.'l.e Oty of O1.ula Vista has compiled the above Statement of Revenues, Expenditures and Ol.anges in Fund Equity for the year ended June 30, 2007. Such amounts are subject to adjustment tlu-ough the annual audit process which is being performed by an independent public accounting:firm. This report excludes Trust Funds, the Redevelopment Agency, and the Public Financing Authority. Maria Kachadoorian, DireCtor of Finance 6-7 Schedule E General Fund Budget Transfers Approved by Administration Fiscal Year 2006-07 De artment From To Ceseri tion Amount ,t" ;;'~. i:,~~~,ifi:$::8J;~}\'i<~ No transfers this uarter .'#;;;0;;,~~~~!~1!o;~'{t')1;t::'.:;.r::t$~\~g; ;r-Qfal~Of'2ild:Qu-artEti'tBtJa -, et;Trct:nSfers;'.~, ~;t~:'c,~~::;;itl~):~~~-:d/; :;i~~2Jr.''jy(,'\':!~i:\i5:::''\:i;$lt Annual audit services Repair damage to city property $15,000 $7,500 $15,000 .,.".,- <:::>;:. ,~;':~~~;l~mAOOi '< ,c T" Fire Finance General Services Planning & Bidg Fire Public Works Public Works Nature Center Utilities Supplies & Services Personnel Services Supplies & Services Capital Supplies & Services Other Expenses Supplies & Services Personnel Services Capital Supplies & Services Capital Supplies & Services Other Expenses Personnel Services Ca ;tal Repair bay doors at station 7 Annual audit services Medical supplies for Animal Care Facility Office equipment rental costs Fire radio communication equipment Laptop for field crew Repair damage to city property To cover cost of resale items TClf3f!'oNtIl'Quarle.,6\ld etTtllnsfers.', $15,000 $15,000 $4,700 $15,000 $15,000 $3,250 $2,000 $15,000 :;~~~.g~;;.~;\f{~";i;:f~,~i>;g;;i\\:;~2;j; l,Fg'f~>;;:{}:;',,' :;/ 'e,c". ~,0::;,~( Year to Datel $122,450 I 6-8