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Home My WebLink About2010/10/26 Item 3CITY COUNCIL AGENDA STATEMENT ~~~ CITY OF ----- CHULAVISTA 10/26/2010, Item .3 ITEM TITLE: FISCAL YEAR 2009/2010 ANNUAL FINANCIAL STATUS REPORT 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 SUBMITTED BY: DIRECTOR OF FINANCE/TREASURI~RI~ ASSISTANT CITY AGER REVIEWED BY: CITY MANAGE 4/STHS VOTE: YES ~X NO SUMMARY 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 (Schedule D) in the local newspaper within 120 days of the close of the fiscal year. The statement is scheduled for publication in the October 22nd issue of The Star News, which is the City's adjudicated newspaper of general circulation. The Council Policy on Financial Reporting and Transfer Authority indicates that all departments complete the fiscal year with a positive balance in each budget summary category (Personnel Services, Supplies and Services, Other Expenses and Capital). In order to comply with the intent of this policy, the transfers discussed below are recommended for approval. All recommended General Fund transfers could,be done using existing appropriations. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that filing of the fiscal year 3-1 OCTOBER 26, 2010, Item 3 Page 2 of 5 2009/10 annual financial status report and complying with the Council Policy on Financial Reporting and Budget Transfer Authority 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 Council accepts the report and adopts the Resolution. 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 22°d issue of The Star News, which is the City's adjudicated newspaper of general circulation. We will provide the Council with a complete report of fiscal year 2009/10 financial data upon presentation of the City's audited Comprehensive Annual Financial Report. The General Fund began fiscal year 2009/10 with an available fund balance or reserve of $9.3 million. We are projecting that the ending available fund sus balance for fiscal yeaz 2009/10 to ~ i; increase to approximately $10.2 million ~ $~a due to one time revenues. Available giz fund balance or reserve is generally defined as the balance of resources $10 currently available for appropriation and ga therefore, does not include legally required reserves, designations for ss capital improvement projects or reserves ~ for encumbrances or advances. sz General Fund Reserve (June 301 ~o% s% 8°~ ~% s^ro e d 5% u N 4% ~ 3% z% i ^ro Actual Expenditures and Transfers-Out $o l I I I 11~ o% for the year amounted to $131.2 million, osio~ o~ioa oaios osno Boni supported by Actual Revenues and Fiscal Year Transfers-In of $130.8 million, a net effect (decrease) to available fund balance of -$0.5 million. However, due to the Agency loan repayments to the General Fund, a portion of fund balance that is "Reserved for Advances" to other funds will be reclassified in an amount equal to the principal portion of the loan repayment 3-2 OCTOBER 26, 2010, Item 3 Page 3 of 5 to "Unreserved and Undesignated" fund balance which means the amount is now available for appropriation. Therefore the General Fund has increased its reserve by approximately $0.9 million for the fiscal year. Schedules A and B are summary statements of actual revenues and expenditures for fiscal year 2009/10. The graph displays the fiscal year beginning reserve balance compared to prior years. The ending available fund balance has increased to 7.3 percent of the combined General Fund and Development Services Fund FY 2010/11 budget, which is below the Council Policy reserve level of 8 percent as established in 1996. On November 5, 2009, the City Council approved a revised General Fund operating reserve policy setting along-term goal of building the reserves to 15%. In addition, the Council approved the establishment of two additional reserves, the Economic Contingency Reserve and Catastrophic Event Reserves at 5% and 3% respectively. The additional reserve categories were established to provide for greater distinction, increased security and accountability in the use of reserves. The fiscal year 2009/10 Council Adopted General Fund budget totaled $133.0 million. The mid- year appropriations of approximately $982,290 with offsetting revenues of $688,608 for a net cost to the General Fund of $293,682 were approved during the fiscal year. The General Fund net cost appropriations were for the cost of services provided by the County of San Diego Registrar of Voters ($114,000), a reduction in City Overhead for certain funds ($130,031) and an appropriation of $59,740 from the General Fund to the Waste Management and Recycling Fund for the transfer of grant revenue that was incorrectly posted to the General Fund in fiscal year 2008-09. Schedule C provides a complete listing of all budget amendments approved for the 2009/10 fiscal year. Schedule D 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 fiscal year ended June 30, 2010. 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. 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. As required by Charter Section 504 (f), this statement will be published in the local newspaper as discussed above. 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 City 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 2009/10. 3-3 OCTOBER 26, 2010, Item 3 Page 4 of 5 Fiscal Year 2009/10 Request for Budget Transfers For government entities,. 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. At the close of each fiscal year, the Finance Department reviews all departmental and fund budgets to ensure that the fund budget and the departmental summary budget categories (Personnel Services, Supplies and Services, Other Expenses and Capital) have not been exceeded. As reported in the Third Quarter Financial Report for fiscal year 2009/10, budget adjustments are required for the Fire Department due to exceeding the Department's budget by $690,356 due primarily to exceeding budgets for overtime. The Council Policy on Financial Reporting and Transfer Authority indicates that all departments complete the fiscal year with a positive balance in each budget summary category (Personnel Services, Supplies and Services, Other Expenses and Capital). Council Policy 220-02 "Financial Reporting and Transfer Authority" was established in January of 1996 and indicates that no department shall end the fiscal year with a negative balance in any budget summary category. In order to comply with the intent of this policy, the transfers discussed below are recommended for approval. All recommended General Fund transfers could be done using existing appropriations: Council has approved similar requests in the past after the close of the fiscal yeaz. When considering this request for budgetary transfers it is important to note the following: • The transfer requests are for fiscal year 2009/10 and do not affect the current fiscal year 2010/11 budget. • All recommended departmental transfers for the General Fund can be accomplished with existing appropriations and no additional General Fund appropriations are being requested. There is one transfer request for this staff report. Overall, the Fire Department was over budget by $690,535. However, Fire exceeded their category budgets for Personnel Services ($752,725) and Other Expenses ($12,970). The category overages can be partially mitigated by budgetary savings in Fire's Services & Supplies ($28,000) and Utilities ($46,000) categories. The remaining overage can be mitigated by budgetary savings in the Police ($246,000) and Public Works ($445,695) Departments. ~-~. -.. - General Fund Fire $ 752,725 Personnel Services Dept is over budget Fire $ 12,970 Other Expenses Fire _ $ (28,000) Supplies & Services Fire $ (46,000) Utilities Police $ (246,000) Personnel Services Public Works $ 445,695 Personnel Services Net Im act 0 3-4 OCTOBER 26, 2010, Item 3 Page 5 of 5 As a result of the overage overtime the fiscal year 2010/11 budget was increased by $570,000. The transfers are housekeeping items for the fiscal year 2009/10 budget year. DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently the 500 foot rule found in California Code of Regulations section 18704.2(a)(1) is not applicable to this decision. CURRENT YEAR FISCAL IMPACT Acceptance of this report and adoption of the resolution will have no effect on the General Fund reserves. ON GOING FISCAL IMPACT There is no fiscal impact in future years. ATTACHMENTS Schedule A -General Fund Revenues by Department 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 3-5 SCHEDULE A GENERAL FUND Revenues Status By Department as of June 30, 2010 # ~, ; r-~; Amentle Actual ' °t Realized" epa ment * B'dge ~4Datee, Yeas o.-Date Legislative and Administrative City Council $0 $0 0.0% Boards and Commissions 0 0 0.0% City Clerk 35,718 85,656 239.8% City Attorney 210,195 176,570 84.0% Administration 403,869 389,194 96.4% Information Technology Services 103,528 52,526 50.7% Human Resources 277,968 405,951 146.0% Finance 1,205,693 1,328,411 110.2% Total Legislative and Administrative $2,236,971 $2,438,308 109.0% Non-Departmental $100,818,356 $96,318,580 95.5% Development and Maintenance Services Animal Care Facility 783,500 1,012,446 129.2% Planning and Building Services 3,186,798 2,966,154 93.1% Public Works 15,153,207 16,319,387 107.7% Total Development and Maintenance Services 19,123,505 20,297,987 106.1% Public Safety Police 7,261,266 7,418,856 102.2% Fire 1,497,380 1,485,687 99.2% Total Public Safety $8,758,646 $8,904,543 101.7% Culture and Leisure Recreation 2,355,423 2,494,680 105.9% Library 361,750 322,054 89.0% Total Culture and Leisure $2,717,173 $2,816,734 103.7% Total General Fund $133,654,651 $130,776,152 97.8% 3-6 SCHEDULE B GENERAL FUND Expenditure Status by Department as of June 30, 2010 ~- ~~,~,~ '° '~~~ { K,~Ameiided ~'=Actual`Ex"' (`~~~r:'',~~`~Department .,~r` ~ B ge .ri , „ < ear,To,Da ~r~~Available ~yC ~` Pier ec stage „x. Balance ~s_pvadable~< Legislative and Administrative CityCcuncil 1,218,463 1,111,464 106,999 8.8% Boards and Commissions 14,736 3,324 11,412 77.4% City Clerk 1,165,554 896,412 269,142 23.1% City Attorney 2,039,268 1,905,323 133,945 6.6% Administration 1,727,479 1,724,397 3,082 0.2% Information Technology Services 3,213,636 3,048,752 164,884 5.1% Human Resources 3,823,276 3,553,963 269,313 7.0% Finance 3,261,261 3,023,702 237,559 7.3% Total Legislative and Administrative $16,463,673 $15,267,337 $1,196,336 7.3% Non-Departmental $9,477,702 $9,805,381 ($327,679) -3.5% Development and Maintenance Services Animal Care Facility 2,447,421 2,081,625 365,796 14.9% Planning and Building Services 4,138,039 3,849,847 288,192 7.0% Public Works 26,395,596 24,624,586 1,771,010 6.7% Total Development and Maintenance Services $32,981,056 $30,558,058 $2,424,998 7.4% Public Safety Police 44,052,664 43,700,461 352,203 0.8% Fire 21,467,309 22,093,020 ($625,711) -2.9% Total Public Safety $65,519,973 $85,793,481 ($273,508) -0.4% Culture and Leisure Recreation 5,367,426 5,255,811 111,615 2.1% Library 5,174,425 4,563,849 610,576 11.8% Total Culture and Leisure $10,541,851 $9,819,660 $722,191 6.9% Total General Fund $134,984,255 $131,241,917 $3,742,338 2.8% "Includes $1,035,941 in budget carryovers for encumbrances and CIP projects. 3-7 Schedule C General Fund Budget Amendments Per Council Resolutions Fiscal Year 2009-10 as of June 30, 2010 B,_d a ,„mendmen._ ,: evgnk_ x ~endi ;; Im ac r„3': SD Police Foundation Grant $6,500 $6,500 $0 Contracting Initiative Ballot Measure $0 $93,000 ($93,000) Coun of SD 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 Grant $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 Fugitive Task Force Grant $7,000 $7,000 $0 Nature Center Transition $149,000 $149,000 $0 Reimbursement from Prop 42 Funds $2,000,000 $2,000,000 $0 Property and Sales Tax Reduction (Prop 42) ($2,000,000) ($2,000,000) $0 Fire Strike Team Reimbursement $243,704 $243,704 $0 Waste Mgmt/Recycling Budget Cleanup $0 $59,740 ($59,740) State Grant for Nature Center $5,000 $5,000 $0 Total of 3rd Quarter Bud et Amendments $404,704 $464,444 $59,740) Leap Into Reading Grant $2,000 $2,000 $0 Adjustments to City Overhead ($130,031) $0 ($130,031) Nature Center Transition $21,446 $21,446 $0 Total of 4th Quarter Bud et Amendments ($106,585) $23,446 ($130,031) Year-to-Date Bud et Amendments $688,608 $982,290 $293,682) s-a Ci[y of Chula Vista Combined Summary Statement of Revenues, Expenditures and Changes in Fund Equity Year Ended June 30, 2010 -Unaudited Total Fund Equity June 30, 2009 Revenues 2009-2010 Taxes Intergovernmental Revenues Licenses & Permits Developer Fees Charges for Current Services Fines, Forfeitures & Penalties Use of Money & Property Other Revenues Total Revenues Transfers In Total Revenues and Transfers In Expenditures 2009-2010: General Government Public Safety Public Works Parks and Recreation library Public Transit Capital Outlay Debt Service: Principal Interest and Fiscal Chagges Total Expenditures Transfers Out Total Expenditures and Transfers Out Total General Special Debt Service Capital Enterprise Internal All Funds Funds Revenue Funds Funds Project Funds Funds Service Funds $ 344,737,253 $ 33,149,521 $ 38,638,540 $ (20,701,400) $ 77,465,934 $ 213,098,141 $ 3,086,517 71,448,850 71,289,630 - 159,220 45,599,147 20,714,159 15,339,627 96,432 6,091,363 3,357,566 2,274,964 2,193,524 81,440 9,700,992 7,457,802 2,243,190 55,081,996 9,928,213 1,697,820 39,725,140 3,730,823 3,124,021 2,311,527 812,494 7,312,544 3,079,142 1,004,022 1,097 1,406,686 1,785,660 35,937 39,929,978 19,903,642 10,402,687 180,773 9,328,597 114,279 234,472,492 129,419,837 36,795,892 97,529 10,081,232 54,196,963 3,881,039 23,717,786 13,522,234 158,260 3,250,572 6,703,429 83,291 - 258,190,278 142,942,071 36,954,152 3,348,101 16,784,661 54,280,254 3,881,039 38,845,314 30,663,963 2,725,661 2,475 1,293,019 4,160,196 71,008,483 65,793,509 5,214,974 - - 76,413,936 26,706,211 20,056,269 234,823 29,416,633 5,255,811 5,255,811 - 4,563,849 4,563,849 - 7,571,898 7,571,598 26,O15,S74 454,786 13,054,107 12,506,981 2,277,832 - 2,277,832 - 1,470,044 - 1,407,116 - 62,928 233,423,041 133,438,129 41,051,011 3,687,423 14,034,823 37,051,459 4,160,196 33,195,426 9,471,663 5,710,896 5,300,000 9,148,620 3,556,865 7,382 266,618,467 142,909,792 46,761,907 8,987,423 23,183,443 40,608,324 4,167,578 Contributed Capital 153,756,083 Retained Eaznings-Unreserved 75,813,966 Fund Balances: 152,384,420 1,371,663 74,385,651 1,428,315 Reserved 49,951,472 19,483,055 12,902,429 97,713 17,468,275 Unreserved: Designated 57,692,185 3,269,899 823,409 53,598,877 Undesignated (904,642) 10,428,846 15,104,947 (26,438,435) Total Fund Equity June 30, 2010 $ 336,309,064 $ 33,181,800 $ 28,830,785 $ (26,340,722) $ 71,067,152 $226,770,071 $ 2,799,978 The Finance Depaztment of the City of Chula Vista has compiled the above Statement of Revenues, Expenditures and Changes in Fund Equity for the yeaz ended June 30, 2010. Such amounts are subject to adjustment through the azmual 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, Duector of Fhiance 3-9 Schedule E General Fund Budget Transfers Approved by Administration Fiscal Year 2009-10 ~De aitment~ ~ S:F'r°om To: d~~sc~""tlon~` ~ ~„ ~ .'Amount'.` Fire Dept Personnel S&S Adjustments to S&S Budget 7,314 City Council Utilities S&S Adjustments to S&S Budget 154 Cit Council Personnel S&S Communication Services 1,728 ' #:~ ~;'a~f~s~Q atr;Butl""e~-,Transfers~~<"~.~ ~~t$9y196'` Public Works Utilities Utilities Transfers for Phone Service 1,154 Public Works Personnel Personnel Transfer for Hourly Wages 15,000 HR Dept S& S S&S Recruitment Expense 1,000 HR Dept S& S S&S Safety Training Funds 10,000 Ci Council Personnel S&S Miscellaneous Su lies and Services 15,000 ' ?` " ; zTo~L?'o~2nd,';Quarter~Bud ef•T'r`arisfers ;%f x$42;1,54'. Planning Personnel Capital Transfers for Wireless Access Charges 9,578 Recreation Personnel Personnel Bunker Rack for Ball Fields 11,993 Y ,dotal of~3~d,°;~?~r~Bud` ef~7;ransfe" • $21;521:' Police Revenue Revenue Transfer RCFL grant to ICE grant $ 15,000 City Council S& S S&S To align with actuals $ 1,000 Recreation Utilities S&S Transfer salaries, septic & air/gas $ 10,627 Recreation Utilities Personnel Transfer salaries, septic & air/gas $ 4,373 Finance Personnel S&S Annual audit cost $ 15,000 City Council Personnel S&S Centennial related expenses $ 15,000 Ci Council Personnel S&S Centennial mana er expenses $ 15,000 t'oy' ~of;4th'„Qu~'"tast~r'B'~' e>~Tra~Sfers~. ,57~8000`~ Total Fiscal Year Transfers $148,921 3-10 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 WHEREAS, the City's General Fund ended the fiscal year 2009/10 with an available balance of $10.2 million or 7.3 percent of the fiscal year 2010/11 operating budget; and WHEREAS, all General Fund departments with the exception of Fire will come in at or below budget; and WHEREAS, the Fire Department is over budget by a total of $690,356; and WHEREAS, the Fire Department overage will be covered by a combination of expenditure savings within the department's budget and transfers from the Police and Public Works departments; and WHEREAS, for government entities, a budget creates a legal framework for spending during the fiscal year; and WHEREAS, after the budget is approved there are circumstances which arise that could require adjustments to the approved budget; and 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 departments and/or for amounts greater than $15,000; and WHEREAS, the recommended General Fund transfers can be done using existing appropriations. 3-11 Resolution No. 2010- Page 2 NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby amend Fiscal Year 2009-2010 Budget in accordance with the Council Policy on Financial Reporting and Transfer Authority by authorizing the transfer of $445,695 from Public Works Personnel Services, $246,000 from Police Personnel Services, $46,000 from Fire Utilities, and $28,000 from Fire Supplies and Services to Fire Personnel Services ($752,725) and Fire Other Expenses ($12,970). Presented by Maria Kachadoorian Director of Finance 3-12