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Home My WebLink About2008/10/21 Item 5 CITY COUNCIL AGENDA STATEMENT ._",..~, ~\'?::.. CITY OF ~CHULA VISTA 10/21/2008, Item~ ITEM TITLE: FISCAL YEAR 2007/2008 ANNUAL FINANCL<\L STATUS REPORT SUBMITTED BY: DIRECTOR OF FINANCE/TREASURER ...,yt REVIEWED BY: INTERIM CITY MANAGER "7r 4/5THS VOTE: YES D NO 0 SUMMARY This report is provided in order to meet the City Chmier 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 24th issue of The Star News, which is the City's adjudicated newspaper of general circulation. ENVIRONMENTAL REvlEW The Envirorunental Review Coordinator has reviewed the proposed activity for compliance with the California Envirorunental Quality Act (CEQA) and has determined that filing of the fiscal year 2007/08 annual fmancial status report is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change to the envirorunent; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the actions proposed are not subject to CEQA. RECOMMENDATION That Council accepts the repOli. BOARDS/COMMISSION RECOMMENDATION Not Applicable DISCUSSION 5-1 October 21, 2008, Item 5 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 24th issue of The Star News, which is the City's adjudicated newspaper of general circulation. We will provide the Council \v1th a complete report of fiscal year 2007/08 financial data upon presentation of the City's audited Comprehensive l\nnual Financial Repon. The General Fund began fiscal year 2007/08 with an available fund balance or reserve of $10.4 million. We are projecting that the ending available timd balance for fiscal year 2007/08 to be approximately $9.3 million, which is a $1.1 million reduction. 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 $154.3 million, supponed by Actual Revenues and Transfers-In of $153.2 million, a net effect (decrease) to available fund balance of $1.1 million. Schedules A and B are summary statements of actual revenues and expenditures for fiscal year 2007/08. The graph displays the fiscal year beginning reserve balance compared to prior years. The available fund balance has decreased trom 6.3% to 6.1 % of the General Fund budget, which is below the Council Policy reserve level of 8 percent. The fiscal year 2007/08 Council Adopted General Fund Reserve General Fund budget totaled $164.9 million. $25 16% '" The mid-year approp11ations of 0 14.8% ~ approximately $1.6 million with offsetting ::E 14% revenues of $0.7 million for a net cost to the $20 12% General Fund of $0.9 million were approved 8.8% during the fiscal year. The General Fund net $15 - 10% ~I cost appropriations were for greater than 8% anticipated expenditures for public liability 6.3% ~ 6.1% '" ~ ($335,000), approval of the Sumoad owner $10 - 0: 6% panicipation agreement ($548,334) and the $20.6 $16.7 $14.9 $1Q.4 $9.3 costs for signature veritication of petitions to 4% place a charter amendment on the November $5 2008 elections ballot ($86,000). Schedule C 2% provides a complete listing of all budget $0 0% amendments approved for the 2007/08 fiscal 04/05 OSf06 06/07 07/08 08/09 year. Fiscal Year Attachment 0 is an unaudited Summary Report of Revenue, Expenditures, and Changes in Fund Equity (excluding the Redevelopment Agency, Trust Funds and the Public Financing Authority) for the tiscal year ended June 30, 2008. Please note that the column titled "General Funds" 5-2 October 21, 2008, Item 5 includes not only the General Fund, but also other Funds such as self-insurance reserves, which are combined with the General Fund for tinancial reporting purposes. As required by Charter. Section 504 (t), 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, increased by $137.1 million or 65.5% during fiscal year 2007/08 to $346.4 million. The large increase is due to a change in accounting method for the Sewer Funds. The Sewer Funds are now classified as an Enterprise Fund (from Special Revenue in prior years). This change in accounting method requires that all fixed assets of the Enterprise Fund be included on the financial statement, which is not an accounting requirement for Special Revenue Funds. Had the Sewer Funds not been reclassified then there would have been a decrease of $8.0 million or 3.8% in Total Fund Balance tor all Funds. 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 infonnation is quite voluminous, but is available at your request. The published Comprehensive i\nnual Financial Repolt (CAFR) including the opinion of the independent auditors should also be available within the next fOlty-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" dUling fiscal year 2007/08. 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 Califomia Code of Regulations section 18704.2(a)(I) is not applicable. FISCAL IMP ACT Acceptance of this report has no effect on the General Fund. A TT ACHMENTS 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 5-3 SCHEDULE A General Fund Revenues Summary by Revenue Category Fiscal Year 2007-2008 as of June 30, 2008 Amended Actual Percentage Budget To Date of Budget Property Taxes $30,250,317 $29,306,623 97% Sales and Use Taxes $35,062,406 $28,304,989 81% Franchise Fees $10,449,988 $9,662,517 92% Utility Users $6,682,703 $7,378,301 110% Transient Occupancy $2,672,344 $2,697,286 101% Other Local Taxes Business License Tax 1,222,450 1,197,369 98% Business License Tax Penalty 54,220 39,953 74% Real Property Transfer Tax 2,000,000 795,606 40% Total Other Local Taxes $3,276,670 $2,032,928 62% Development Revenue Building Permits 3,432,036 1,743,980 50% Sewer Connection Permits 65,701 83,168 127% Zoning Fees 517,530 233,282 45% Zoning Fees - Deposit Based 8,518,186 5,962,863 70% Plan Checking Fees 1,835,,642 1,429,625 78% Subdivision Traffic Sign Fees 25,353 100 0% Total Development Revenue $14,444,453 $9,453,018 65% Licenses and Permits $868,500 $870,189 100% Fines, Forfeitures & Penalties $1,771,331 $1,519,717 86% Revenue from Use of Money & Property $2,407,669 $2,910,502 121% Revenue from Other Agencies State Motor Vehicle License Fees 19,373,416 19,796,531 102% Police Grants 2,005,013 2,014,173 100% Other Agency Revenue 3,441,818 4,223,990 123% Total Revenue from Other Agencies $24,820,247 $26,034,694 105% Charges for Services $6,927,781 $6,845,200 99% Other Revenues Interfund Reimbursements 12,079,367 12,598,144 104% Other 3,155,509 3,883,211 1'23% Total Other Revenues $15,234,876 $16,481,355 108% Transfers-In $10,616,544 $9,736,092 92% ITOTAL REVENUES & TRANSFERS-IN $165,485,829 $153,233,411 93% 5-4 SCHEDULE B GENERAL FUND Expenditure Status by Department as of June 30, 2008 'Amended Actual Exp. Outstanding Available Percent Department Budget Year To Date Encumbrances Balance Available Legislative and Administrative City Council 1,394,480 1,283,807 0 110,673 7.9% Boards and Commissions 14,736 8,864 0 5,872 39.8% City Clerk 1,296,504 1,192,305 0 104,199 8.0% City Attorney 2,670,327 2,527,362 0 142,965 5.4% Administration 3,468,682 3,150,562 677 317,443 9.2% Information Technology Services 4,178,487 3,769,578 73,071 335,838 8.0% Human Resources 4,998,381 4,873,018 40,000 85,363 1.7% Finance 3,184,409 2,966,578 0 217,831 6.8% Total Legislative and Administrative $21,206,006 $19,772,074 $113,748 $1,320,184 6.2% Non-Departmental $4,583,035 $5,312,748 $65,723 ($795,436) -17.4% Development and Maintenance Services General Services 11,183,885 10,324,849 6,133 852,903 7.6% Community Development 1,931,656 1,364,036 0 567,620 29.4% Planning and Building Services 9,751,885 8,801,593 27,500 922,792 9.5% Engineering 6,698,275 5,822,708 184 875,383 13.1% Public Works 18,102,693 16,436,620 8,424 1,657,649 9.2% Total Development and Maintenance SE $47,668,394 $42,749,806 $42,241 $4,876,347 10.2% Public Safety Polic'e 50,796,852 47,768,496 13,972 3,014,384 5.9% Fire 25,018,807 23,586,421 20,210 1,412,176 5.6% Total Public Safety $75,815,659 $71,354,917 $34,182 $4,426,560 5.8% Culture and Leisure Recreation 6,704,114 5,639,968 17 1,064,129 15.9% Library 9,963,048 8,224,897 . 82,418 1,655,733 16.6% Nature Center 1,260,105 1,203,102 0 57,003 4.5% Total Culture and Leisure $17,927,267 $15,067,967 $82,435 $2,776,865 15.5% Total General Fund $167,200,361 $154,257,512 $338,329 $12,604,520 7.5% 'Includes $881,000 in budget carryovers for encumbrances and CIP projects. 5-5 Reso 2007-172 2007-195 2007-201 2007-206 2007-219 2007-233 2007-242 Fiscal Year 2007-08 as of June 30,2008 General Fund Budget Amendments Per Council Resolutions Description Animal Care Facility microchipping program Appropriation of CFD 12-M funds for landscape maintenance Donation to Animal Care Facility from Third Avenue Village Association Scripps Health Community Benefit grant for senior wellness Stephen & Mary Birch Foundation donation to Fire Department California Division of Recycling grant Office of Traffic Safety DUI Enforcement grant ;-rotaj':o(1"si'Quarter.'E:fuc:!g^etiAmendrr{ents Tiyf':i:'{!'.;Aj;;t(;[~:t:"t!f::;):~I.r;;;f~.v::':;;':~',:M:\;:~i:LJ<:::'8{;r;,~~:;i ;:h~::f&[~~:~ Est. Add" Revenues Add" Approp SCHEDULE C General Fund Net Impact $10,000 $10,000 $0 563,495 $0 $63.495 $2,522 $2,522 $0 $39,800 $39,800 $0 $28,515 $28,515 $0 $5,000 $0 $5,000 $160,600 $160,600 $0 J,'J1f$30!i;932' ';'(($241';437, ;;?:i::i:)C::$68;495 2007.252 Grant fram Kaiser Foundation Hospitals for Kids Health Promotion Program $19,115 $19,115 $0 2007-273 Emergency slope repair along the SR-125 (PR304) $0 $76,645 (576,645) 2007-277 Grant from the Office of Traffic Safety for the Sobriety Checkpoint Program $120,362 $120,362 $0 }otaT!or_2nd~Q'u~"rter'8uBge't"Am'enarrie'iits:'2~~4~rylf:~~t).~,~:0=r:ri'~~~i\%\~!~~,j\Fi~';~~:~.~if~-(!",~j1~~ !.~~:'$1~39:4n; f~)'2f6T122'; ~fF~it~,:~;($i6;645) 2008.017 Signature verification for placement of charter amendment on November ballot 2008-024 Signature verification by County Registrar of Voters for Initiative petition 2008-026 Cost for placement of Initiative Measure on November ballot 2008-027 Energy Conservation grant for programs and staffing 2008~037 Overtime reimbursement from state and donation from credit union 2008-051 Donation From Heart to the Animal Care.Facility 2003-075 MOU between City and Hilltop Middle School for e'xtended after school program 2008-076 MOU between City and Castle Park Middle School for extended after school program 2008-077 MOU between City and Chula Vista Middle School for extended after school program 2008-078 Anticipated costs for Public liability Claims '~~,'?;i(ip;'t.i':'W: if otaf~ot3 Hj :QU'a"'t'e'~~8'lidgefiA~mejn'dmei1'tS ',;-t}:}\':~/::;?;'~A:[(':,:?~ '~t':," ',;"'" ~ft,-';';:' ';:" \V) '<~/~N';.: ":~\~?_;i.:' . 2008-101 2008-116 2008-127 Owner Participation Agreement with Sunroad Chula Vista Donation to Police Department from WalMart CA Bike Racing event for Police Overtime Reimbursement .'Totaj'/of~4fh':,-Quarter;'~BuCigei\ii;m'e-ndITre'nts':~Jl;~:,'1~'~;;:yY-i~::/Xt:;.~~ ",,'~,Y:\;>!:"-:lti'~' $0 $0 $0 $78,502 $87,227 $11,600 $6,600 $4,600 $14,200 $0 0:,:~$:262;i29: $0 $1,000 $2,095 "';i: ."> ~r':.':';T::Y~i-;-~~~:.:p;,t-.'i- ~ -:,:y~t,~'i;%rS3';-(i9fr Year to Date $655,233 5-6 $20,000 $12,000 $54,000 $49,321 $87,227 $11,600 $6,600 $4,600 $14,200 $335,000 :!(9$5!i4;'54sr $548,334 $1,000 S2,095 ''-';;:$55114:29(,,; $1,603,536 ($20,000) ($12,000) ($54,000) $29,161 $0 SO $0 $0 SO (S335,000) "'(i#i{Y($391,s-i9) ($548,334 ) $0 $0 ::;',;;[($548;334) (S948,303) City of Ollila Vista Combined Sununary Statement of Revenues, Expenditures and Changes in Fund Equity Year Ended June 30, 2008 - Unaudited Total General Special Debt Service Capital Enterprise Intemal .All Funds FUl1ds Revenue Funds Funds Project F1U1ds Funds Service FlU1ds Total Fund Equity June 30, 2007 5 359,651,34-1 5 35,502,257 5 39,098,023 5 (14,67U61) 5 89,078,163 $ 205,732,493 5 4,894,869 Revenues 2007-2008 Taxes 89,750,405 80,428,080 9,171,000 131,325 lntergovemrnental Revenues 41,479,732 24,989,257 14,678,268 2,116,660 (304,433) Licen.ses & Permits 2,767,850 2,697,338 70,512 Developer Fees 5,073,252 5,073,252 Charges for Current Services 63,982,436 14,471,074 13,31U11 31,508,921 4,688,050 Fines, Forfeitures & Penalties 2,671,545 1,519,716 1,131,829 Use of Money & Property 12,312,882 2,913,910 2,246,021 8 3,957,682 3,107,164 86,097 Other Revenues 37,497,132 19,9?5,104 17,084,817 31,643 304,898 150,670 Total Revenues 255,335,275 146,946,479 57,716,859 8 11,330,362 34,616,530 4,924,817 Transfers In 14,707,241 9,730,092 13,672 3,835,.348 1,102,129 - Total Revenues and Transfers [n "70,24",516 156,682,571 57,730,331 3,855,336 12.43" ,691 34,616,350 4,924,817 Expendihues 2007.2008: General Goverrunent .42,405,628 32,880,356 2,519,388 2,475 1,234,310 5,769,099 Public Safety 74,801,506 71,354,896 3,412,762 - 33,848 Public Works 57,784,388 32,584,177 21,491,627 3,708,584 Parks and Recreation 26,020 2,100 23,920 Library - - Public Transit 33,193,763 33,193,763 Capital Outlay 27,183,539 136,473 12,398,591 14,628,473 Debt Service: Principal 1,821,857 1,821,857 - [nterest and FiscaL Charges 1,3??,320 1,522,520 - Total Expenditures 238,739,222 136,973,904 39,824,467 3,346,852 19,629,135 33,193,765 5,769,099 Transfers Out ("",620,139) (6,009,889) (4,843,732) (3,888,376) (3,768,794) (109,348) Total Expenditures and Transfer~ Out "16,119,083 130,966,015 34,980,735 3,346,852 13,740,739 27,424,971 5,659,751 ContJ..ibuted Capital 152,390,319 150,004,168 2,586,131 Retau'\ed Earnings - Unreserved 32,877,786 51,576,574 1,301,212 Fund Balances: Reserved 30,770,300 22,223,439 4,146,535 511,770 3,888,736 Unresel'ied: Designated 75,911,264 2,982,950 823,409 72,104,905 Undesignated 34,241,908 8,929,293 39,990,342 (14,677,727) Total Fund Equity Jlme 30, 2008 5 346,391,778 5 34,135,682 $ 44,960,"86 5 (14,163,957) $ 73,993,661 5 201,580,742 5 3,387,363 The Finance Department of the City of Chula Vista has compiled the above Statement of Revenues, Expenditures and Changes in Fund Equity for the year ended Ju...'1.e 30,2008. Such amounts are subject to adjustment through the annual audit process which is being performed by an independent public accoul'"tting fiTU1. TIUs report excludes Trust Funds, the Redevelopment Agency, and tile Public Financing Authority. rvfaria Kachadoorian, Director of Finance Schedule D 5-7 Department SCHEDULE E General Fund Budget Transfers Approved by Administration Fiscal Year 2007-08 as of June 30,2008 From !'~;&$'~~fiS~II~t~ City Clerk Supplies & Services Capital Comm Dev Supplies & Services Utilities City Council Finance Personnel Services Personnel Services To Descri tion Amount Equipment purchase for passport services $2,193 Tota 1(61,;15fQ uaffej-)Buaget'iFfaiisfe'i'S;t:'i'(i;W,~l}$2\t93i Allocation from cell phones to land lines $1,500 Ti:itarrof,2ii'd\Quaite';;,Buaget'TfansfefS'~1:;i;'" ,,7$1\5,00' Allocation from cell phones to land lines $1,500 T otal!<if:kdiQuartElf;B ua'ehTfari'sfefS;~@"~;'~';"~$t;500:; Supplies & Services Supplies & Services $3,082 $10,000 $13,082'; Reallocation for additional supplies/services Reallocation for audit services TOtaFof4th,'Quartef;Biidget'Transfers,:",,:;!,;;;, Year to Datel $18,2751 5-8