HomeMy WebLinkAbout2010/03/02 Item 3
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CITY COUNCIL
AGENDA STATEMENT
.:;~\'&.. CITY OF
"". .,...... CHULA VISTA
ITEM TITLE:
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SUBMITTED BY:
REVIEWED BY:
MARCH 2, 2010, Item~
QUARTERLY FINANCIAL REPORT FOR THE QUARTER
ENDED DECEMBER 31,2009
RESOLUTION. OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AMENDING FISCAL YEAR 2009/2010
BUDGET IN ACCORDANCE WITH THE COUNCIL POLICY
ON FINANCIAL REPORTING AND TRANSFER
AUTHORITY AND APPROPRIATING FUNDS THEREOF
(GENERAL FUND, WASTE MANAGEMENT AND
RECYCLING FUND, AND PROP 42 FUND) (4/STHS VOTE
REQUIRED)
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AMENDING FISCAL YEAR 2009/2010
BUDGET IN ACCORDANCE WITH THE COUNCIL POLICY
ON FINANCIAL REPORTING AND TRANSFER
AUTHORITY (pARKING METER FUND)
DIRECTOR OF F~E(fRFASURE~
CITY MANAGER ___
ASSISTANT CITY 1 AGER "? J
4/STHS VOTE: YES 0 NO D
SUMMARY
Section 504 (f) of the City Charter requires quarterly financial reports to be filed by the Director
of Finance through the City Manager.
For govemment entities, a budget creates a legal framework for spending during the fiscal year.
After the budget is approved there are circumstances that arise that could require adjustments to
the approved budget. Council Policy 220-02 "Financial Reporting and Transfer Authority" was
established in January of 1996 and allows for budget transfers to be completed.
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ENVIRONMENTAL REVIEW
The Environmental Review Coordinator has reviewed the proposed activity for compliance with the
Califomia Environmental Quality Act (CEQA) and has determined that filing of the quarterly
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March 2, 2010, Item~
Page 2 of 5
financial 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 environment; therefore, pursuant to
Section 15060(c)(3) of the State CEQA Guidelines the actions proposed are not subject to CEQA
RECOMMENDATION
I. Council accepts the report.
2. Council approve the resolutions.
BOARDS/COMMISSION RECOMMENDATION
Not Applicable
DISCUSSION
Attached for your consideration is the financial report for the second quarter of fiscal year
2009/1 O. The detailed financial report for the quarter ending December 31, 2009 (Attachment I)
discusses the financial outlook for the City's General Fund for the remainder of fiscal year
2009/10.
The City's General Fund ended the fiscal year 2008/09 with an available balance of $9:3 million
or 6.7 percent of the fiscal year 2009/10 operating budget. For fiscal year 2009/10, the worst
economic downturn since the Great Depression appears to have bottomed-out but the effects are
.still being experienced in the City as housing prices remain at depressed levels and
unemployment continues to cause reduced consumer spending in the City.
The preliminary outlook for General Fund revenues is that downward adjustments of $4.6
million will have to be made to several revenue sources. Projected expenditure savings of $3.2
million partially offset the revenue shortfall leaving a deficit of $1.4 million. To mitigate this
deficit, we anticipate a loan repayment from the Redevelopment Agency to the General Fund of
$1.4 million. In addition, the City Manager has authorized a hiring/promotional freeze and
administrative freeze on all non-essential services that are anticipated to result in additional
expenditure savings. These actions will avoid impacts to reserves and continue to maintain a
balanced budget for the current fiscal year per the first quarter analysis.
Fiscal Year 2009/10 Budl!:et Transfer and Appropriation Requests
For government cntities, a budget creates a legal framework for spending during the fiscal year.
After the budget is approved there are circumstances which arise that could require adjustments
to the approved budget. Council Policy 220-02 "Financial Reporting and Transfer Authority"
was established in January of 1996 and allows for budget transfers to be completed. The City
Manager is authorized to complete budget transfer requests within departments that are $15,000
and below'. City Council approval is required for budget transfers between departments and/or
for amounts greater than $15,000.
For fiscal year 2009/10, budget transfers are requested for the Parking Meter fund and Waste
Management and Recycling Fund. An appropriation is requested for the General Fund and Prop
42 Fund.
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March 2, 2010, Iteml
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. Parking Meter Fnnd - The transfer of $100,000 from Services and Supplies (Other
Contractual Services) to the Other Expenses (City Staff Services) is necessary due to an
unanticipated delay in transitioning the management of the Downtown Parking District to
Ace Parking. The budget reflects the transition occurring in August but is now expected to
occur in March.
Waste Management and Recycling Fund - The appropriation of$59,740 from the General
Fund to the Waste Management and Recycling Fund is necessary to transfer grant revenue
that was incorrectly posted to the General Fund in fiscal year 2008-09.
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Prop 42 - The appropriation of $2.0 million of Prop 42 funds reflects the reimbursement of
staff time related to street maintenance costs from Prop 42 to the General Fund. Prop 42
monies will be used to reimburse the General Fund for eligible fiscal year 2008-09
expenditures and fiscal year 2009-10 expenditures. The reimbursement from Prop 42 will
help offset anticipated shortfalls in property tax revenue.
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General Fund - An appropriation of $243,704 is requested for the Fire Department to
account for reimbursements received for Strike Team overtime.
In order to avoid overstating budgeted revenues from the Prop 42 Fund transfer to the
General Fund; budget amendments increasing Transfers-In of $2.0 million with a
corresponding decrease in Property Tax ($1.9 million) and Sales Tax ($0.1 million) revenues
are required. .'
DECISION MAKER CONFLICT
Staff has reviewed the property holdings of the City Council and has found a conflict exists, in
that Council Member Castaneda has property holdings within 500 feet of the boundaries of the
property which is the subject of this action.
CURRENT YEAR FISCAL IMPACT
The preliminary outlook for General Fund revenues continues to require downward adjustments
in several revenue categories.
General Fund Revenue Projections
FY 2009-10
:;tJ.1t:~~~'FY~2009/.10;lZ~:1~{5fW~
~;!tf.!B'ud"et:t3::'lPio eCted: l~.De~%
Property Tax
Sales Tax
Sales Tax In Lieu (1/4%)
Motor Vehicle License Fee
Franchise Fees
Utility Users Tax
Transient Occupancy Tax
Business License Tax
Real Property Transfer Tax
Licenses and Permits
Fine, Forfeitures & Penalties
Use of Money and Property
Other Agency Revenue
Charges for Services
Other Revenues
Transfers From Other Funds
Total
27,199
18,707
6,838
18.287
10,033
8,169
2,603
1.190
841
880
2.380
1,813
2,779
7,642
11,900
,340
1 3.601
25,311
17,589
5.655
17,717
8,447
9,401
1.941
1,190
841
880
2,252
1,827
2.991
6,628
12,202
14.126
$ 128.998
(1,888)
(1,118)
(1,183)
(570)
(1,586)
1.232
(662)
o
o
o
/128)
14
212
(1,014)
302
1,786
$ {4.6031
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March 2, 2010, Item~
Page 4 of5
Projected expenditure savings of $3.2 million partially offsets the revenue shortfall leaving a
deficit of $1.4 million. To mitigate this deficit, we anticipate a loan repayment from the
Redevelopment Agency to the General Fund of $1.4 million. In addition, the City Manager has
authorized an immediate hiring/promotional freeze and administrative freeze on all non-essential
services that are anticipated to result in additional expenditure savings. These actions will avoid
impacts to reserves and continue to maintain a balanced budget for the current fiscal year per the
second quarter analysis.
General Fund Projection
as of December 31,2009
~.:ki~3'
;1l'JJl:2,;mf,
Gertera n
Reserves - July 1, 2009 $
Projected Revenues & Transfers In
Expenditures & Transfers Out
Mid ear A ro riation - Contractin Initiative
Pro' ected Deficit $
Mitigating Actions
RDA Loan Re a ment
Subtotal
Projected Fund Balance - June 30,2010 $
Percentage of Operating Budget
-1.4
1 4
0.0
9.2 $ 9.3
6.6% 6.7%
Development Services Fund
Despite cuts made to the Development Services Fund over the past year, there is a projected
deficit of approximately $700,000 in the current fiscal year. The shortfall is a result of a
reduction in the fully burdened hourly rate due to reductions in administrative staffing levels and
a reduction in billable hours to funded projects - combined these two changes result in a
projected revenue shortfall of approximately $800,000. This shortfall is partially mitigated by
$100,000 in expenditures savings.
Additional review of the DSF fund is currently taking place with the goal of identifying
balancing options either through cost reductions or potential one-time revenues to mitigate the
deficit by the end of the fiscal year. If options are not identified the projected deficit could result
in an impact to the General Fund reserves.
P&B Administration
Planning
Building
En ineerin
DSF TOTAL
''iHl~i'Pj~tealff;!i;:),\j'?F,lfojEictetlRl; '.'~rojected~
~:~R;f~~fi\)~~~ f~'&.0<'rillitm:~1 ~~tfftn;?_~a,;
$ 270,069 $ (270,069)
2,026,932 (190,574)
1,799,129 123,140
1,476,016 355,764
$ 5,572,146 $ 693,267)
$
1,836,358
1,922,269
1,120,252
4,878,879
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ON GOING FISCAL IMP ACT
There is no on going fiscal impact associated with this item.
ATTACHMENTS
Attachment 1 - Quarterly Financial Report
Prepared by: Phillip Davis, Assistant Director of Finance, Finance Department
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March 2, 2010, Item~
Page 5 of5
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CllY OF
CHUlA VISTA
OVERVIEW
This financial report summarizes the City's General
Fund financial position for the fiscal year through
December 31, 2009 and projecting out to June 30,
2010. 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.
ECONOMIC UPDATE
In its fourth quarterly report of 2009, the UCLA
Anderson Forecast concludes that the national
economy is on a "modest growth path that will be
accompanied by extraordinarily high rates of
unemployment." This slow growth outlook reflects the
lagging effects of the implosion on consumer balance
sheets and, according to the Forecasts, is a result of
the economy in transition from being an import-
~ oriented/low-saving rate one to a more export and
~higher-SaVingS oriented one. Fueling this transition is
. the administration's "weak dollar policy" which
encourages exports and discourages the consumption
of imports and the combined effect will. cause real
consumer spending to grow at a modest 2% rate- far
below the historical 3-3.5% rate.
In California, the UCLA Anderson Forecast suggests
that the recession is playing out much as was
predicted. The state's unemployment rate continues to
increase and local government employment continues
to decline. Larger than expected reductions in
government spending lowers the California forecast
slightly more than previously reported.
UCLA Anderson Senior Economist Jerry Nickelsburg
prognosticates that the outlook for the rest of the year
is little or no growth for the State. He writes, "The
economy will begin to pick up slightly in the beginning
of 2011, and by the middle of 2011, will begin to grow
at more normal levels." Nickelsburg believes that the
keys to the California recovery are exports of
manufactured and agricultural goods; Increased public
works construction and increased investment in
business equipment and software I
~ 1 UCLA Anderson Forecast Press Release December 9,
2009.
3-6
Quarterly Financial Report
Second Quarter Ending December 31, 2009
March 2, 2010
The University of San Diego's Index of Leading
Economic Indicators for San Diego County rose 0.7
percent in December. For the first time since April 2004,
all six of the components in the USD Index were up in
the month. The advance was led by a sharp increase in
the outlook for the national economy. Four components -
- building permits, initial claims for unemployment
insurance, local stock prices, and help wanted
advertising - - were up moderately, while local consumer
confidence was up but virtually unchanged. The USD
Index of Leading Economic Indicators has now risen for
nine consecutive months.
With December's advance in the USD Index, the outlook
continues to be positive for the local' economy. There
are signs of recovery in some sectors of the economy,
such as housing, where prices are up more than eight
percent from the low and where there has been a pickup
in sales. Continued strength is' expected in the housing
market due to low interest rates, federal 'incentives for
first-time and even move-up buyers, and the rebounding
economy. On the downside, there is likely to be another
wave of foreclosures as adjustable rate mortgages
readjust and job losses take their toll. Still, a gain in the
single digit percentage range is expected for 2010.2
San Diego Index of Leading Economic Indicators
150.0
145.0
140.0
135.0
130.0
125.0
120.0
115.0
1100
105.0
100.0
95.0
Jan-0S
Jan-Ge
Jan-07
Jan-Oa
Jan-09
2 University of San Diego School (1 Business Administration, USD
lnder: of Leading EcorzomLc Indicators. September 24, 1009.
.
GENERAL FUND SUMMARY
QUARTERLY FINANCIAL REPORT
SECOND QUARTER OF 2009-10
Page 2 of 5
City Council Policy No 220-03 recommends the City
maintain at least an 8 percent reserve level. As of
June 30, 2009, the General Fund reserve level was at
6.7 percent (audited).
>.L~"'~'!-~Jlli.""~~I#"'Jr.~~ IAiiiiihded; "ProJectoo
,~....<';i.:, . ~..,.~~ ;;'~7c.: j~";j:' ef~:f' 'J_ ,.,'; ~Bt~ri;~ ifrffi'iiifO~'{
Geiieral'F.un(t:Res'erveu,~_- eX< ~Jt~" ';",~~
Reserves - July 1, 2009 $ 9.3 $ 9.3
Projected Revenues & Transfers In 133.4 129.0
Expenditures & Transfers Out 133.5 130.4
Midvear Aoorooriation ~ Contractina Initiative -0.1
Proiected Deficit $ 10.1 -1.4
Mitigating Actions
RDA Loan ReDavment 1.4
Subtotal 0.0
Projected Fund Balance - June 30. 2010 $ 9.2 $ 9.3
PercentaQe of Operating Budget 6.6% 6.7%
On November 5, 2009, the City Council approved a
revised General Fund operating reserve policy setting
a long-term goal of building the reserves to 15%. In
addition, the Council approved the establishment of
two.;additional reserves; the Economic Contingency
Reserve and Catastroph ic Event Reserves at 5% and
a3% respectively. The additional reserve categories
.were established to provide for greater distinction,
increased security and accountability in the use of
reserves.
Based on the overall projected revenues and
expenditures the City projects ending the current fiscal
year with a balanced budget and with no impact to
reserves. Although there are signs of moderate
economic recovery, as discussed in the economic
overview section, the City continues to experience
downward adjustments to its major revenues primarily
due to.the continued impacts of the economic downturn
in the housing market and retail market.
Total expenditures are projected at $1304 million
offset by projected revenues of $129.0 million and a
loan repayment from the Redevelopment Agency to the
General Fund of $1.4 million. The projected
expenditures take into account the City Managers
hiring/promotional freeze and administrative freeze on
all non-essential services. The City projects that these
actions will avoid impacts to reserves and continue to
maintain a balanced budget for the current fiscal year
based on the second quarter analysis.
The Fire Department is projecting going over its
e. allocated budget by approximately $717,000.
Approximately $473,000 is related to expenditure
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overages primarily due to overtime for constant
minimum staffing ($340,000) and regular overtime
($40,000). In addition, the department is projecting a
shortfall of reimbursable revenues of $250,000. This
shortfall is being mitigated as discussed in this report.
Revenues
j"~"~'''_~\fJr &;W;illl.iP.{;2009/,10Hi.f;:i>,"i; JB!t~
iQ"'~'~ ,iIi,j ~'t\11i.: " ',_ ~_;~ 11 ~!;[&, "~
. .~ ,-.. t; . " ~Buaiief~ iPfolEiCted
Revenues'.~J\?~, . ~1~~;. ?J!Oel!ait
Property Tax 27,199 25,311 (1,888)
Sales Tax 18,707 17,589 (1,118)
Sales Tax In Lieu (1/4%) 6,638 5,655 (1,183)
Motor Vehicle License Fee 18,287 17,717 (570)
Franchise Fees 10,033 8,447 (1,585)
Utility Users Tax 8,169 9,401 1,232
Transient Occupancy Tax .2,603 1,941 (662)
Business License Tax 1,190 1,190 0
Real Property Transfer Tax 841 841 0
Licenses and Permits 880 880 0
Fine, Forfeitures & Penalties 2.380 2,252 (128)
Use of Money and Property 1,813 1,827 14
Other Agency Revenue 2,779 2,991 212
Charges for Services 7,642 6,628 ('1,014)
Other Revenues 11,900 12,2021 302
Transfers From Other Funds 12.340 14.126 ~J86
Total $ 133,601 $128,998 I $.14,803)
Reflected in the chart are discretionary and
departmental programmatic revenue adjustments.
These' adjustments are necessary due to rec'ent
information received from the County Assessors office,
the City's sales tax consultant as well as data received
from the San Diego Convention and Visitors Bureau
Quarterly Travel Forecast.
Property Taxes. The City of Chula Vista receives
property tax revenue based upon a 1 0 percent levy on
the assessed value of all real property.
Property tax is the City's. largest revenue source,
representing 20.4 percent of General Fund budgeted
revenue in fiscal year 2009/1 O.
The fiscal year 2009/10 Property Tax budget anticipated
an 8.4 percent decrease. However since adoption of the
budget the County Assessor has advised the City that
there has been a further decline of 2 percent in
assessed values from the decline initially reported to the
City resulting in a downward adjustment of $600,000 in
the 1" quarter.
Based on the actual property tax revenues collected
year to date, continued decline in supplemental taxes
and refunds processed by the County, a downward
0adjUstment of $1.3 million is necessary at this time.
These additional adjustments were provided by the
County San Diego Auditor & Controller in the January
2010 report to the City.
QUARTERL Y FINANCIAL REPORT
SECOND QUARTER OF 2009-10
Page 3 of 5
The chart below compares the City's assessed values
with the assessed values of all San Diego County.
25%
20%
15%
10%
5%
0%
-5%
-10%
-15%
F Chula Vista - County Overall I
Sales Tax. Sales tax is, the City's second largest
revenue source, representing 19.2 percent of fiscal
~year 2009/10 budgeted revenues.
"~r' City staff met with the City's sales tax consultant,
MuniServices, to review the most recent sales tax
revenues. They report that the change in sales tax
receipts between third quarter calendar year 2009 and
the third quarter calendar year 2008 decreased by 14.8
percent Statewide, by 15.5 percent in Southern
California and 13,0 percent in .Chula Vista. As a result
of the continuing decline in sales tax revenues through
September 2009, additional adjustments are
necessary. The sales tax revenues reflecting the
holiday sales is not yet available and will be discussed
in the third quarter report
$300
$250
$200
$150
$100
$50
$0
Delllllar Carlsbad National B Cajon Escondldo La Mesa San o,eqo Chula
$264 $705 Oty$195 $170 $148 $158 $1:J1 Vista $98
o General Retail
GFood Products DTransportation
. Business to Business fil Mscellaneous
II Construction
a
vg
Motor Vehicle License Fee (VLF). With the State
Budget Act of 2004, the allocation of VLF revenues to
cities and counties was substantially changed. For FY
2005/06 and beyond, the majority of VLF revenues for
each city will grow essentially in proportion to the growth
in the change in gross assessed valuation. Due to the
new formula that relies on assessed valuations, the
continued decline in automotive sales, and the County
Assessors additional adjustment of -2 percent in
assessed values, this revenue source was adjusted
downward in the first quarter by approximately $0,6
million.
Franchise Fees. 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 35% of the total franchise
revenues. 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. Revenue growth' is projected based on
population and inflation factors with the exception of the
South Bay Power Plant, which is impacted by the cost of
natural gas and the actual usage of the plant itself.
The Franchise Fee revenue projection was revised
downward by $1.6 million based on two factors, Based
on the most recent information on the price of natural
gas, the price per unit has dropped by 51.2 percent
($7.69 Sept 08 vs. $3,75 Sept 09). In addition, the
Public Utilities Commission recently ruled that only two
of the power plant's four generators now have Reliability
Must Run status which is also impacting projected
revenues for the current fiscal year and on an on-going
basis,
. $12.0
c
~ $10.0
" ,,~:
$8.0 ;2:1
<;t,'
;'<::'"":
$6.0
$4.0
$2.0
--~
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
3-8
10 Trash/Cable 7~ Energy ~ Consumer::; Energy - Power PI;Jnt i
QUARTERLY FINANCIAL REPORT
SECOND QUARTER OF 2009-10
Page 4 of 5
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Transient Occupancy Tax (TOT), The first quarter
report reflected a downward adjustment to TOT
revenues based on actual revenues from the prior
year. The downward trend has continued through the
second quarter of the current fiscal year by
approximately 17.8%. This is on top of the 14.6%
decline experienced in the prior year.
Based on the Quarterly Travel Forecast prepared for
the San Diego Convention and Visitors Bureau dated
December 2009, "Average daily rates in San Diego fell
more sharply than in some other areas early in the
downturn improving San Diego's competitive position.
The Average Daily Rate is expected to grow again next
year as occupancy improves." Due to the decline in
rates in San Diego and low occupancy rates local
motel/hotels have reduced their daily rates in order to
stay competitive. Accounting for the reduced rates
(ranging from 10% to 40%), the weak economy, less
travels to/from Mexico and less overflow from hotels in
downtown San Diego, the. City's TOT revenues are
projected at approximately $1.9 million which brings
the TOT revenues back to. fiscal year 2000 levels.
Below is a chart showing the percentage change in
. TOT revenues compared to prior year.
~
~ TOT Revenues
20.0% .
15.0%
10.0%
5.0%
0.0%
-5.0%
~10.0%
-15.0% j
-20.0%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Utility Users Tax (UUT). Revenues are budgeted at
$8.2 million for fiscal year 2009/10. This revenue is
projected to come in $1.2 million higher as a result of
new UUT vendor collections.
~.t
"', ,
'-<
Expenditures
~~lJl!~\~1fu~~ -;f".'i\Ahlend(ili',-;; ~2riaiQuaft9rs ~~ii.~~1}'~~~p
Deii.'1tlil "f'\';l"""~li;i1l. ~\~",^'''''"~ii~'''''''.t'''' ~~rActl1~l4f~~~. ~,'Ei6~hd';dS
e a ent.?Q..'i;,;6 j}j ~L<r'fBlla "etft~~
City Council $ 1,218 $ 455 37.4%
Boards/Commissions 15 2 12.8%
City Clerk 1,166 370 31.7%
City Attorney 1,971 912 46.3%
Administration 1,727 766 44.4%
Information Technology 3,146 1,549 49.2%
Human Resources 3,823 2,148 56.2%
Finance 3,251 1,432 44.0%
Non-Departmental 8,676 5,290 61.0%
Animal Care Facility 2,404 901 37,5%
Planning & Building 4,108 1,782 43.4%
Police 44,045 20,834 47.3%
Fire 21,419 10,500 49.0%
Public Works 26,396 11,753 44.5%
Recreation 5,197 2,530 48.7%
Library 5,142 2,410 46.9%
Totals $ 133,704 $ 63,633 47.6%
The General fund's Amended Budget reflects the
Council adopted budget of $133.0 million and all mid-
year appropriations ($494,400) approved by City Council
(the amended budget in the charts refiect the Fire Dept
appropriation request of $243,704 as a part of this staff
report). Actual expenditures to date are reflected in the
chart above. It indicates that Departments have
expended 47.6 percent of the General Fund budget after
50 percent of the fiscal year has elapsed.
The table below shows the General Fund departments
with their amended budgets and the projected
expenditures for the fiscal year. The projected
expenditures anticipate savings of approximately $3.0
million.
Mid-Year Budget Amendments
1;;!"ir~~ti"II'l'!'~"~lImended~. is'erojecte'd:ii- ~I
i5~~~nf~ .. ~~;i' B~llff';rtj(:!1 -i~t""..rf~""'!.#.'
e a", "")1$,",, .'" "",,.,,t.,,,, ,"' U '\C'" ,';61301,10m . pella.'
City Council $ 1,218 $ 1,158 $ 61
Boards/Commissions 15 15 -
City Clerk 1,166 1,147 19
City Attorney 1,971 1,868 103
Administration 1,727 1,621 106
Information Technology 3,146 2,989 156
Human Resources 3,823 3,783 40
Finance 3,251 3,067 185
Non-Departmental 8,676 7,859 817
Animal Care Facility 2,404 2,120 283
Planning & Building 4,108 4,034 74
Police 44,045 43,906 139
Fire 21,419 21,892 (473)
Public Works 26,396 25,110 1,286
Recreation 5,197 5,082 115
Library 5,142 4,748 395
Totals $ 133,704 $ 130,398 $ 3,306
3-9
QUARTERLY FINANCIAL REPORT
SECOND QUARTER OF 2009-10
Page 5 of 5
e
Mid-year appropriations through the second quarter
totaled $494,400 with offsetting revenues of $390,489
for a net impact of $103,911, which have been
mitigated through savings in the general fund. The
following discusses new appropriations for the second
quarter.
. The Police Department received a donated
Fugitive Task Force Vehicle from the U.S.
Marshal's Service and needs $6,000 for fuel and
maintenance costs.
. The Police Department will receive a 3%
administration fee by acting as the fiduciary for the
Organized Drug Crime Enforcement Task Force
($10,089).
. The Library received a one-time grant of $6,000
from the County of San Diego for a Heritage
Museum exhibit.
. The Nature Center appropriated $361,900 from
donations to assist in the transition to a non-profit
organization.
ii~;;~~~~~:~~, .~~t:1S:~~5:iWJ~~\f/~ r.~[~~~_~ :A)jlk~C1fhi;iH1i ~,\m,."'1tt':il;~;
Bud et~endmel1t$,'. ~~I;:~..:,..;t:i.1[~",{;' t;.Revenue;:o, ,Ex 1b..frU ~-;Jm ctdZ,
so Police J-oundation Gran! $6,500 $6,500 $0
ontracting Inrtialive Ballot Measure $0 $93,000 ($93,000)
Qunt of SO Re istrar of Voters $0 $21,000 ($21.000)
Total of 1st Quarter Bud et Amendments $6,500 $120,500 ($114.000
Fugitive Task Force Vehicle $6,000 $6,000 $0
OCDETF Regional Operations Support $10,089 $0 $10,089
Nature Center Transition $163,400 $163,400 $0
Heritage Museum Gran! $6,000 $6,000 $0
Nature Center Transition $198.500 $198,500 $0
Total of 2nd Quarter Bud et Amendments $383,989 $373,900 $10,089
Year.to-Date Bud et Amendments $390,489 $494,400 $103.911
Budget Transfers
There were five administrative budget transfers during
the second quarter that totaled $42,154.
rttne' ., ;4f:F.rotn':l'- :'!:;J:J;To-1~,~ ~~,":j}d_<:ii:o-}i;,'i,P;Det:cri on;:;jjti:'"'fl'{g,['H';~"'P;, ',Ari'joimt'
Fire Dept Personnel S&S Adjustments 10 S&S Budget 7,314
~:~~ouncil Utilities S&S Adjustments to S&S Budget 154
Ci Council Personnel S&S Communication Services 1,728
,i~i~("-t~:!'~hr,,;;l?:!; 'f,,',---:'::;!~) ~1~Wf;,tJI::~ TOiaLo-f1:rt OiiartetBiid et:rransfen:J't,:,K:i, (1') 19tn
Public Works Utilities Utilities Transfers for Phone Service 1,154
Public Works Personnel Personnel fransferforHourtyWages 15,000
HR Dept S&S S&S Recruitment Expense 1,000
HR Dept S& S S&S Safety Training Funds 10,000
Ci~-Councll Personnel S&S Miscellaneous Supplies and Services 15,000
':,&::;<;:;;5'i:;;t-;IT,'='d; tf:F,,"':'!"'':'''''' ;':{'1',,~'2#,80 T01al'o-f,2itd:Quarter Bud e-tTI'llIn-61en;.~;J.':,';!.": 154
~."."
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Development Services Fund
With the approval of the fiscal year 2008/2009 budget,
the City Council authorized the creation of the
Development Services Fund (DSF) comprised of staff
from the Departments of Planning & Building, Public
Works and Engineering that are responsible for the
planning, permitting, plan review, and inspection of
development applications.
'"ilil1l'1!':iir''''il\l''''''"-'' '$'O'PioJ...t:t"d,,,,,,7.DtoJ'ected\l\\~pm"'cto>d.'
i;" ''''l~.D~",~i~'''1t' ~4l;'~ i~R'..;:;'f:B;;4WA'Wt.'';;:i ~'~Jb';:"';-d";"""'t;~J~i},\C, ;N%;*-"t';'/I."''!~r.\>:,;':::~r
, '~~'I"lSIO>,,J~;'; "rh eveliueS1--;f! 1~ ell I Utes,,'. e '; m a"L
P&B Administration $ 270,069 $ (270,069)
Planning 1,836,358 2,026,932 (190,574)
Building 1,922,269 1,799,129 123,140
En ineerin 1,120,252 1,476,016 (355,764
DSF TOTAL $ 4,878,879 $ 5,572,146 $ (693,267)
Despite cuts made to the Development Services Fund
over the past year, there is a projected deficit of
approximately $700,000 in the current fiscal year. The
shortfall is a result of a reduction in the fully burdened
hourly rate due to reductions in administrative staffing
levels and reduction in billable hours to funded projects
- combined these two changes result in a projected
revenue shortfall of approxim'alely $800,000. This
shortfall is partially mitigated by $100,000 in
expenditures savings.
Additional review of the DSF fund is currently taking
place with the goal of identifying balancing options either
through cost reductions or potential one-time revenues
to mitigate the deficit by the end of the fiscal year. If
options are not identified the projected deficit could
result in an impact to the General Fund reserves.
3-10
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RESOLUTION NO. 2010-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AMENDING FISCAL YEAR 2009/2010
BUDGET IN ACCORDANCE WITH THE COUNCIL POLlCY
ON FINANCIAL REPORTING AND TRi\NSFER AUTHORITY
AND APPROPRIATING FUNDS THEREOF (GENERAL
FUND, WASTE MANAGEMENT AND RECYCLING FUND,
AND PROP 42 FUND)
WHEREAS, Council Policy 220-02 "Financial Reporting and Transfer Authority" was
established in January of 1996 and allows for budget transfers to be completed; and
WHEREAS, the City Manager is authorized to complete budget transfer requests within
departments that are $15,000 and below; and
WHEREAS, City Council approval.is required for budget transfers between depm1ments
and/or for amounts greater than $15,000; and
WHEREAS, for fiscal year 2009/10, appropnatlOns are requested for the Waste
Management and Recycling Fund, Prop 42 Fund, and the General Fund, as follows:
Waste Management and Recycling Fund: an appropriation of $59,740 in the
Transfer In revenue category to reflect a correction of grant revenue that
was posted to the General Fund in fiscal year 2008-09; and
Prop 42 Fund: an appropriation of $2.0 million of Prop 42 funds reflects the
reimbursement of staff time related to street maintenance costs from Prop
42 to the General Fund; Prop 42 monies will be used to reimburse the
General Fund for' eligible fiscal year 2008-09 expenditures and fiscal year
2009-10 expenditures and will help offset anticipated shortfalls in property
tax revenue; and
General Fund:
. An appropriation of $59,740 in the Transfers-Out expenditure category to
reflect a correction of grant revenue that was posted to the General Fund
in fiscal year 2008-09
. An appropriation of $2.0 million to reflect the Transfer In from Prop 42
offset by a corresponding decrease in Property Tax ($1.9 million) and
Sales Tax ($0. I million) in order to avoid overstating budgeted revenues
. An appropriation of $243,704 is requested for the Fire Department to account for
reimbursements received for Strike Team overtime; iind
3-11
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Resolution No. 2010-
Page 2
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista amends the Fiscal Year 2009/2010 budget in accordance with Council Policy on Financial
Reporting and transfer authority and appropriates I) $59,740 in the Transfer Out expense
Category of the General Fund and $59,740 in the Transfer In revenue category of the Waste
Management and Recycling Fund, 2) $2.0 million in the Transfer Out expense category of the
Prop 42 fund offset by grant revenue, 3) $243,704 to the Personnel Services category of the Fire
Department offset by reimbursement revenue 4) $2.0 million to the Transfer In revenue category
of the General Fund to account for ProP. 42 revenues offset by a $2.0 million reduction in
Property Tax revenue ($1.9 million) and Sales Tax revenue ($0.1 million).
Presented by
Approved as to form by
!;IJ:~
Maria Kachadoorian
Director of Finance/Treasurer
3-12
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VJiI
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RESOLUTION NO. 2010-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AMENDING FISCAL YEAR 2009/2010
BUDGET IN ACCORDANCE WITH THE COUNCIL POLICY
ON FINANCIAL REPORTING AND TRANSFER AUTHORITY
(PARKING METER FUND)
WHEREAS, Council Policy 220-02 "Financial Reporting and Transfer Authority" was
established in January of 1996 and allows for budget transfers to be completed; and
WHEREAS, the City Manager is authorized to complete budget transfer requests within
departments that are $ ] 5,000 and below; and
WHEREAS, City Council approval is required for budget transfers between departments
and/or for amounts greater than $15,000; and
WHEREAS, for fiscal year 2009/10, budget transfers are requested for the Parking Meter
Fund as follows: a transfer of $100,000 from Services and Supplies (Other Contractual Services)
to the Other Expenses (City Staff Services) is necessary due to an unanticipated delay in
transitioning the management of the Downtown Parking District to Ace Parking.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista amends the Fiscal Year 2009/2010budget in accordance with Council Policy on Financial
Reporting and transfer authority by transferring $100,000 from the Services and Supplies
category to the Other Expense category of the Parking Meter Fund.
Presented by
Approved as to form by
--
/ ,,,.,/ /
(~n-Mie I
~ty t orney
Maria Kachadoorian
Director of Finance/Treasurer
3-13
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