HomeMy WebLinkAbout2011/02/22 Item 4CITY COUNCIL
AGENDA STATEMENT
~~~ CIN OF
CHULAVISTA
2/22/2011, Item ~~
ITEM TITLE: QUARTERLY FINANCIAL REPORT FOR THE QUARTER
ENDED DECEMBER 31, 2010
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AMENDING FISCAL YEAR 2010/2011
BUDGET IN ACCORDANCE WITH THE COUNCIL POLICY
ON FINANCIAL REPORTING AND TRANSFER
AUTHORITY AND APPROPRIATING FUNDS THEREFOR
SUBMITTED BY: DIRECTOR OF FINANCE/TREASURERI~
CITY MANAGER `ice
REVIEWED BY: ASSISTANT CITY MANAGER S~
4/STHS VOTE: YES ~X NO
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 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. Council Policy 220-02 "Financial Reporting and Transfer Authority"
was established in January of 1996 and allows for budget transfers to be completed.
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 quarterly
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
That Council accepts the report and approves the resolution.
4-1
February 22, 2011, Item
Page 2 of 6
BOARDS/COMMISSION RECOMMENDATION
Not Applicable
DISCUSSION
Attached for your consideration is the financial report for the second quarter of fiscal year
2010/11. The detailed financial report for the quarter ending December 31, 2010 (Attachment I)
discusses the financial outlook for the City's General Fund for the remainder of fiscal year
2010/ll.
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. For fiscal year 2010/11, the
worst recession since the Great Depression appears to have bottomed-out but the effects are still
being experienced in the City because of unemployment and reduced housing prices.
As noted in previous reports to Council, the Five Year Forecast projected a deficit of $12.5
million for fiscal year 2011/12. This projected deficit grew by approximately $5.6 million to
$18.1 million with the reduction in the utility user tax revenue. The reduction in utility user tax
revenue is also impacting the current year's budget; this loss of revenue is now reflected in the
second quarter financial projections. In total, discretionary revenues have been adjusted
downward by $1.6 million. This reflects a reduction in utility users taxes partially offset by
increases in other discretionary revenues including property tax revenue and sales tax revenues.
The savings in fiscal year 2011/12 from the implementation of the budget reduction plan are
estimated at $3.5 million. These savings will allow the following:
• Mitigate the remaining shortfall in the current year resulting from the reduction in utility
tax revenue; and
• Transfer $2.2 million to the Economic Contingency Reserve, which will then be used to
balance the General Fund in fiscal year 2011/12.
The second quarter financial projections also reflect a downward adjustment in programmatic
revenues of $1.0 million but corresponding departmental expenditure savings offsets that
revenue shortfall.
4-2
February 22, 2011, Item ~'
Page 3 of 6
The following chart summarizes the projections for the second quarter.
..
General Fund Reserve Amended
Budget Projected
(millions)
Reserves -July 1, 2010 (audited)
Revenues & Transfers In
Ex enditures & Transfers Out $ 10.2
133.
133. $ 10.2
131.
132.
Projected Deficit 0.0 -1.
Im lementation of Bud et Reduction Plan 3.5
ransfer to Economic Contin enc Reserve -2.2
Projected im act to Fund Balance 0.0 0.0
Projected Fund Balance -June 30, 2011 $ 10.2 $ 10.2
Percentage of Operating Budget 7.3% 7.3%
Fiscal Year 2010-11 BudEet Transfer and Appropriation Requests
For government entities, a budget creates a legal framework for spending during the fiscal year.
After the budget is approved there are circumstances that arise requiring 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 2010/11, budget transfers are requested for the Public Works and Recreation
Departments. Appropriations are required for the Development Services Fund, Other
Transportation Fund, CEC Loan Repayment Fund and Worker's Compensation Fund.
A. General Fund Budget Amendment Requests
Public Works/Becreation Departments
[n May 2009, City Council approved the acceptance of SDG&E's On-Bill Financing Loan
Program for energy efficiency retrofits. Two projects; Transit HVAC and the Parkway Boiler,
have been completed. Savings from these retrofits are already being realized and will be used
for the debt payment on the projects. Budget adjustments are needed to reduce the utility
budgets in the Public Works Department by $32,110 and the Recreation Department by $9,067
for a total amount of $41,177 moved to the Transfers Out category of the Non Departmental
budget. The total utility savings amount of $41, ] 77 will be transferred from the General Fund to
the CEC Loan Repayment Fund to cover the cost of the debt service payments. There is no net
impact to the General Fund resulting from this change.
4-3
February 22, 2011, Item
Page 4 of 6
B Other Funds Budget Amendment/Appropriation Reauests
1. Development Services Fund
The Development Services Fund receives revenue for the California Building Standards Code
Program and the Strong Motion Instrumentation Program for pass through fees to the State. An
appropriation of $11,200 is needed in the Other Expenses category with revenues in Licenses
and Permits of $3,200 and the Charges for Services category for $8,000. This action will have
no net fiscal impact on the Development Services Fund.
2. Other Transportation Programs Fund
Periodically, appropriations and/or transfers are required for capital projects to reflect changes
occurring during the life of the project. Capital expenditure budgets were previously reduced in
two capital projects in the Other Transportation Programs Fund to reflect reductions in
construction cost estimates. Subsequent to these reductions, additional expenditures were
approved. Appropriations are requested to reflect the additional costs that were incurred.
An appropriation of $4,579 is required in the CIP Project Expenditures category for Palomar
Gateway (STL280) in the Other Transportation Programs Fund due to incurring of expenditures
over budget. These expenditures are revenue offset resulting in no net impact to the Other
Transportation Programs Fund.
Appropriations for the additional expenditures for capital project School Crosswalk
Enhancement - Harborside Elementary (TF347) were incurred in the prior fiscal year; therefore,
in order to reimburse the funding source that was originally charged for the expenditures an
appropriation of $4,213 is requested in the Transfers Out category of the Other Transportation
Programs Fund with a matching appropriation in the Transfer In category in the Traffic Signal
Fund.
3. CEC Loan Repayment Fund
This is a companion item to the above discussion in General Fund Budget Amendment Requests
for the Public Works and Recreation Departments. The total utility savings of $41,177 will be
transferred-out from the General Fund and transferred-in to the CEC Loan Repayment Fund to
cover the cost of the debt service payments made from the CDC Loan Repayment Fund. This is
a zero interest loan and all energy savings will be used to reduce the principal amount on the
loans. The appropriation of the debt service costs will be fully offset by the revenue from the
General Fund, resulting in no net impact to the CEC Loan Repayment Fund.
4. Worker's Compensation Fund
An additional appropriation is requested in the Supplies and Services category of the Workers
Compensation Fund. During the current fiscal year, the billing for the City's certificate to self-
insure was changed from a quarterly billing to a year in advance billing. This resulted in one
billing quarter from prior year as well as a full year of expenditures to be posted to the current
4-4
February 22, 2011, Item
Page 5 of 6
fiscal year Worker's Compensation Fund budget. As a result, expenditures in the supplies and
services category are over budget. An appropriation of $22,000 is necessary to cover this
overage. This appropriation will be made from the Worker's Compensation Fund's available
fund balance.
DECISION MAKER CONFLICT
Staff has reviewed the Council member property holdings and the decisions contemplated by this
item and has determined that one of the following applies to each budget transfer or
appropriation request: (i) the contemplated action is not site specific and, consequently, the 500-
foot rule found in California Code of Regulations section 18704.2(a) is not applicable (items
B. L, B.3. and B.4.); or (ii) the Council members have no property holdings within 500 feet of the
boundaries of the property which is the subject of the action (item B.2.); or (iii) the
contemplated action is an implementation decision which will not materially effect the
underlying projects and will have no financial effect on a Council member's property (item A.).
Consequently, this item does not present a conflict under the Political Reform Act (Cal. Gov't
Code § 87100, et seq.).
Staff Member Conflicts Verification
By: Phillip Davis
Date:02/10/2011
CURRENT YEAR FISCAL IMPACT
There is no fiscal impact resulting from accepting the Quarterly Financial Report. As stated
above, a deficit of $1.3 million is currently projected for the General Fund but it is anticipated
that savings resulting from the implementation of the budget reduction plan will mitigate the
projected shortfall.
The following chart summarizes the projections for the second quarter.
General Fund Reserve Amended
Budget Projected
(millions)
Reserves -July 1, 2010 (audited)
Revenues & Transfers In
Ex enditures & Transfers Out $ 10.2
133.8
133.8 $ 10.2
131.3
132.6
Projected Deficit 0. -1.
Im lementation of Bud et Reduction Plan 3.5
ransfer to Economic Contin enc Reserve -2.2
Pro ected im act to Fund Balance 0.0 0.0
Projected Fund Balance -June 30, 2011 $ 10.2 $ 10.2
Percentage of Operating Budget 7.3°/ 7.3%
4-5
February 22, 2011, Item ~"
Page 6 of 6
The approval of the resolution amending the fiscal year 2010/11 budget will result in the
following transfers and appropriations:
Department Descriptioq Revenues Expenditures Net Impact
Public Works Utility savings from energy retrofits $ - $ (32,110) $ (32,110)
Recreation Utility savings from energy retrofits $ - $ (9,067) $ (9,067)
Non Departmental Transfer out for energy retofits loan $ - $ 41,177 $ 41,177
SUBTOTAL GENERAL FUND ADJUSTMENTS $ - $ - $ -
.Fund Description
Development Services Pass through revenue adjustments
Other Transporation Programs Adjustment for CIP STL 280
Other Transporation Programs Adjustment for CIP TF 347
Traffic Signal Fund Adjustment for CIP TF 347
CEC Loan Repayment Debt service payment
\A/nrkarc (~mm~ Anoronriation in Suoolies & Services
.Revenues Expenditures Net Impact
$ 11,200 $ 11,200 $ -
$ 4,579 $ 4,579 $ -
$ - $ 4,213 $ 4,213
$ 4,213 $ - $ (4,213)
$ 41,177 $ 41,177 $ -
R - A 22.000 ~ 22.000
TOTAL ADJUSTMENTS -'ALL FUNDS $ 61,169 $ 83,169 $ 22,000
ON GOING FISCAL IMPACT
There is no on going fiscal impact as a result of the above actions.
ATTACHMENTS
Attachment t -Quarterly Financial Report
Prepared by: Phillip Davis, Assistant Director of Finance, Finance Department
4-6
~~ir,
~r
cm of
CHUtA VISTA
OVERVIEW
This financial report summarizes the City's General
Fund financial position for the fiscal year through
December 31, 2010 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 2010, the UCLA
Anderson Forecast calls for "modest growth and
distressingly high unemployment" for most of 2011,
with an acceleration of growth late next year that will
gradually lower the unemployment rate. The California
forecast reads similarly, with slow growth expected
until the end of next year.
In a report titled, "Risky Business," UCLA Anderson
Forecast Senior Economist David Shulman lays out the
Federal Reserve's plan to "expand its balance sheet"
by $600 billion over the next eight months through the
purchase of intermediate-term bonds in an effort to
lower long-term interest rates and thereby stimulate
consumption and investment. Shulman believes that
this policy will be "modestly helpful," noting that recent
economic data have been encouraging. As a result, the
Forecast has revised upward both its real Gross
Domestic Product (GDP) and inflation forecasts. But,
there is a "but." "Unfortunately, even with the jobs gains
averaging 150,000 per a month in 2011 and 200,000 a
month in 2012," Shulman writes, "unemployment will
remain above 9% through the third quarter of 2012."
In his conclusion, Shulman writes that the economy is
healing -slowly -and the Forecast calls for more rapid
growth late next year. The Forecast report says that
inflation will rise faster than the Fed expects, leading to
a tightening of monetary policy in early 2012. The
Forecast calls for real GDP to grow at a 2% plus
annual rate through the third quarter of 2011, then
ramp up to a 3% or so growth rate. As for inflation, the
Forecast says that it should be "at or above' the Fed's
informal 2% target by late next year.l
1 UCLA Anderson Forecast Press Release December 7
2010.
Quarterly
Second Quarter Ending
Financial Report
December 31, 2010
February 22, 2011
The USD's Index of Leading Economic Indicators for
San Diego County rose 0.4 percent in December. Sharp
increases in local stock prices and the outlook for the
national economy pushed the USD Index to a second
consecutive gain after having been unchanged for three
months in a row. On the downside, building permits
remain weak as construction activity continues to lag.
Local consumer confidence, initial claims for
unemployment insurance, and help wanted advertising
were virtually unchanged, with the former slightly
positive and the latter two slightly negative.
With December's gain, the USD Index has now risen or
been unchanged for 21 straight months. As mentioned
last month, the forecast is for the local economy to add
between 10,000 and 15,000 jobs in 2011, compared to
6,300 gained in 2010. The gain is based on expected
solid growth in the national economy, and a rebound in
tourism and construction locally. Potential problems that
could slow the rebound are a continued high level of
foreclosures and the impact of high unemployment,
which has topped 10 percent locally for 19 consecutive
months. Also, budget deficits at every level of
government could lead to tax increases and/or big
cutbacks in spending and employment, both of which
would slow the economic recovery. A last potential
problem is the recent spike in gas prices, which if it lasts
would reduce consumer buying power and increase
prices of goods shipped into the region.z.
San Diego Index of Leading Economic Indicators
1so.o
1as.o
1ao.o
735.0
130.0
125.0
1zo.a
11so
Imo
105.0
mo.a
sso `....
Jan-07 J~n-08 Jan-09 Jan-10
2 University of San Diego Schoo[ oJBwsiness Administration, USD
Index of Leading Economic /ndicntors, January 28, 2071.
4-7
QUARTERLY FINANCIAL REPORT
SECOND QUARTER OF 2010/11
Page 2 of 5
GENERAL FUND SUMMARY
City Council Policy No 220-03 recommends the City
maintain at least an 8 percent reserve level with a long-
term goal of 15 percent. As of June 30, 2010, the
General Fund reserve level was at 7.3 percent
(audited).
'.
General Fund Reserve Amendetl
Bud et Projected
(millions
Reserves -July 1, 2010 (audited)
Revenues & Transfers In
Ex enditures & Transfers Out 8 10.2
133.8
133.8 $ 10.2
131.
132.6
Pro ected Defcit 0. -1.3
Im lementation of Bud et Reduction Plan 3.
Transfer to Economic Contin enc Reserve -2.
Projecled im act to Fund Balance 0. 0.0
Projected Fund Balance -June 30, 2011 $ 10.2 $ 10.2
Percents eof0 eratin Bud et 7.3% 7.3%
As noted in previous reports to Council, the Five Year
Forecast projected a deficit of $12.5 million for fiscal
year 2011/12. This projected deficit grew by
approximately $5.6 million to $18.1 million with the loss
in the Utility User Tax (UUT) revenue. The reduction in
UUT revenue is also impacting the current year's
budget; this loss of revenue is now reflected in the
second quarter financial projections. In total,
discretionary revenues have been adjusted downward
by $1.6 million. This reflects a reduction in UUT
partially offset by increases in other discretionary
revenues including property tax revenue and sales tax
revenues. The savings in fiscal year 2011/12 from the
implementation of the budget reduction plan are
estimated at $3.5 million. These savings will allow the
following:
• Mitigate the remaining shortfall in the current year
resulting from the reduction in UUT revenue; and
Transfer $2.2 million to the Economic Contingency
Reserve, which will then be used to balance the
General Fund in fiscal year 2011/12.
The second quarter financial projections also reflect a
downward adjustment in programmatic revenues of
$1.0 million but corresponding departmental
expenditure savings offsets that revenue shortfall.
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.
Total expenditures are projected at $132.6 million offset
by projected revenues of $131.3 million prior to
implementation of the budget reduction plan that was
largely implemented in January 2011.
Revenues
Reflected in the table are discretionary and departmental
programmatic revenues. The projection for discretionary
revenues indicates that downward adjustments of $1.6
million are required at this time. Projections for
Departmental programmatic revenues have been
adjusted downwards by $1.0 and are mostly related to
staff time reimbursements, fines forfeitures and penalties
and other revenues.
- FY 2010111
Revenues- Bud et. Pro ected belts
Property Tax 24,073 24,718 645
Sales Tax 17,589 18,150 561
Sales Tax In Lieu (1/4%) 6,044 6,686 642
Motor Vehicle License Fee 16,934 16,951 17
Franchise Fees 7,652 7,152 (500)
Utility Users Tax 8,756 5,577 (3,179)
Transient Occupancy Tax 1,941 1,941 0
Business License Tax 1,190 1,190 0
Real Property Transfer Tax 841 850 9
Licenses and Permits 849 925 77
Fine, Forfeitures 8 Penalties 2,085 1,825 (260)
Use of Money and Property 6,512 6,851 339
Other Agency Revenue 2,712 2,657 (55)
Charges for Services 7,066 6,628 (438)
Other Revenues 11,168 10,918 (249)
Transfers From Other Funds 18,405 18,255 150
Total $133,817 $131,275 $(2,542)
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 18 percent of General Fund budgeted
revenue in fiscal year 2010/11.
The fiscal year 2010/11 Property Tax budget anticipated
a 4.9 percent decrease because of the reduction in the
City's base assessed values from 2010 to 2011. Based
on the collections for the first half of the fiscal year
property tax revenues appear to be trending upwards by
$645,000. The dollar value of the SR125 property tax
appeal and its effect on current year revenues is still
unknown at the time of this report.
a-a
QUARTERLY FINANCIAL REPORT
SECOND QUARTER OF 2010/11
Page 3 of 5
The chart below compares the City's assessed values
with the assessed values of San Diego County overall.
zs i
za°o
1sr
10%
sr
of
-s i
-1()
-15
t Chula Vista ~ County Overall
The next chart compares the change in assessed
values of the City for fiscal year 2010/11 as compared
to other Cities in the County.
z oo%
iw%
o.ao%
a aa.
aa%
-500% R p {. W
S i ~ P' ;5'0" 4 .i 4n ~ A mT~ ~ ~' P 6p 1~
°° ~° sP~ Q° xw~ cy .,`3 o c s `3 0° `e ~a e~ d .f`~dl
y` ~ 2'• e~n '3° ~ ~ID
Sales Tax. Sales tax is the City's second largest
revenue source, representing 17.7 percent of fiscal
year 2010/11 budgeted revenues. The sales tax
budget for fiscal year 2010/11 anticipated a 1.7%
increase over the prior year projection.
City staff has received sales tax data from the City's
sales tax consultant, HdL Companies. They report that
the change in sales tax receipts between third quarter
calendar year 2010 and third quarter calendar year
2009 increased by 4.7 percent Statewide, by 4.0
percent in Southern California and 4.1 percent in Chula
Vista.
The results of the 3rd quarter report shows that the
most significant gains came from the General
Consumer Goods sector, which was up 3.7% primarily
due to Walmart +5.0%, Costco +27.8% and Fuller Ford
+12.3%. The jump in fuel prices increased the results
for the Fuel and Service Stations sector up 8.3%
adjusted.
Sales tax projections for the fiscal year are being
adjusted upwards by $561,000 based on recent trends
and analysis by the sales tax consultant. In addition,
Sales Tax In-Lieu is being adjusted upwards by
$642,000 based on recent reports from the State.
The chart represents sales tax per capita as compared
to other Cities in the County.
Sebs Tae per GpRa
tst°wrter 2010
Imperial BeacM1 Eta
San Olago Cpunty $37
oaansitle 8]e
colonatlo Se°
CM1UIa Visd $93
Visia E106
Santoe $112
Lerton Grove $116
San Diego $124
Encinitas $131
San Marcos $134
Escontlltlo E136
La Mesa $151
EI Galon E166
Solana BeacM1 $169
Poway El]°
National Gity 8162
DatlsDatl $191
Del Mar 5254
E®!
~~
®~
>~
p
i
8- EW 5100 8150 E2°0 825° $300
Gere2l Relal •FOOtl Pmtluds ~TnnspoM1elipn
a Cpns(mdion ~BUSiness TO BUSIness Miscellaneous
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 df 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 by the State, 97% of the City's
VLF revenues fluctuate with changes in assessed values
in the City. Due to current state of the housing market in
the City budgeted VLF revenues for the current fiscal
year have been adjusted down by 4.4% from the prior
year projections. There is no adjustment to this revenue
source being proposed at this time.
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 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.
4-9
QUARTERLY FINANCIAL REPORT
SECOND QUARTER OF 2010/11
Page 4 of 5
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. Franchise Fee revenue projections
are being adjusted downward by $0.5 million due to the
unusually mild summer and reduced usage of
electricity for coaling and because of recent decreases
in natural gas prices.
The following chart reflects the drop in revenue in the
current fiscal year due to the drop in natural gas prices
and the reduced usage of the power plant overall.
SB °
5~°
S)0
Ee.°
590
Sa°
a? o
s~ °
tWl 3W3 2°Jd 3W0 3W6 ]WB ]°W 3°I° ]°~I
Energy -Trash/Cable I
Transient Occupancy Tax (TOT). The City receives
10 percent of hotel and motel room rates for stays less
than 30 days. The current year budget contemplated
no increase from the prior projected revenues. .
Utility Users Tax (UUT). The City adopted its UUT in
1970. The City imposes a UUT on the-use of telecom at
the rate of 5% of gross receipts, which represents 63%
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.
The City's UUT ordinance (Chula Vista Municipal Code
Chapter 3.44) is outdated as it applies to
telecommunications usage and needs to be amended to
reflect recent changes in Federal tax law and to
modernize the definition of telecommunications so that it
is technology neutral. The City attempted to modernize
the ordinance by placing Proposition H on the November
2010 election but the proposition was defeated and
therefore revenue projections are being adjusted
accordingly by $3.2 million.
Expenditures
De artment Amended
Butl et Second Qtr
Actual %
Ex ended
City Council $ 1,288 $ 549 42.6%
Boards/Commissions 15 7 44.5%
City Clerk 936 455 48.7
City Attorney 2,170 827 38.1%
Administration 1,801 818 45.4%
Information Technology 3,227 1,647 51.0°
Human Resources 3,789 2,002 52.8%
Finance 3,210 1,463 45.6%
Non-Departmental 9,174 5,384 58.7%
Animal Care Facility 2.317 1,074 46.3%
Planning & Building 3,957 1,667 42.1
Police 44,175 20,643 46.7%
Fire 22,188 10,436 47.0%
Public Works 25,943 11,649 44.9%
Recreation 4,801 2,108 43.9%
Libra 4,851 2,185 45.1
Totals $ 133,843 $ 62,915 47.0%
The General Fund's Amended Budget reflects the
Council adopted budget of $133.8 million and all mid-
year appropriations ($584,184) approved by City
Council. Actual expenditures to date are reflected in the
chart above. It indicates that Departments have
expended 47 percent of the General Fund budget after
50 percent of the fiscal year has elapsed.
Above is a chart showing the percentage change in
TOT revenues compared to prior years. It is
anticipated that no adjustments to the current year
budget are required at this time.
The following table shows the General Fund
departments' expenditure budgets and the projected
expenditures for the fscal year. The updated
department projections anticipate savings of
approximately $1.3 million.
4-10
QUARTERLY FINANCIAL REPORT
SECOND QUARTER OF 2010/11
Page 5 of 5
De artment Amentled
Bud et Projecte0
6/30/70
Delta
City Council $ 1,288 $ 1,241 $ (47)
Boards/Commissions 15 15 $ -
City Clerk 936 882 $ (54)
City Attcrney 2,170 2,098 $ (72)
Administration 1,801 1,755 $ (46)
Information Technology 3,227 3,120 $ (107)
Human Resources 3,789 3,655 $ (134)
Finance 3,210 3,030 $ (180)
Non-Departmental 9,174 10,502 $ 1,327
Animal Care Facility 2,317 2,268 $ (49)
Planning & Building 3,957 3,620 $ (337)
Police 44,175 43,640 $ (535)
Fire 22,188 22,277 $ 89
Public Works 25,943 25,268 $ (675)
Recreation 4,801 4,617 $ (184)
Budget Transfers
There were no administrative budget transfers during the
second quarter.
De t From Tc Descd lion Amount
PW
PW
HR
CC S8S
588
S8S
585 Capital
Personnel
585
S8S New MOwerBTrailer Cost
Adj To S8S Budget
Atlj To S8S Budget
Ad' To 885 Burl et 1,449
10,000
2,500
1,500
Total lst quarter BUtl et Transfers $16449
No Monsters for the Ouaner
Total2ntl quaver BUd etTrereters. '..EO
Development Services Fund
Mid-Year Budget Amendments
Mid-year appropriations through the first quarter totaled
$584,184 with offsetting revenues of $609,528 for a net
impact to the General Fund of $25,344. The following
discusses new appropriations for the second quarter.
'.Net
Butl et Amendments Revenue Ea edtllture Imact
Hourly Staff Funtletl by CAL ID Program $ 95,000 $ 95,000 $0
DR169-Bonita Canyon Repairs 150,000 150,000 -
Grant Funded Chief Service Officer 86,340 86,340 -
Lea into Readin Grant Car over 2,000 2,000
Total or lst Duarter Bud etAmantlments 47]1,340 $331,740 Eo
Funding to Close Completetl CIP Projects $ - 8 25,344 ($25,]44)
Red Cross Grant 133,333 133,333 -
Contract Amentlment with Imperial Beach 52,251 52,251 -
Collection Agency contract for Library Fines 25,000 25,000 -
Herilage Museum Photo Contest 9,600 9,600 -
Online Homework Help Program 20,000 20,000 -
Ener antl Water Conservation Services 12 660 12,660
Total of 2ntl quarter BUd e[Amendments $282,844 $ 278,188 825,344
Veer-to-Date Bud et Amendments $584,184 $609,528 $25,944
• Transfer from the General Fund to the TDA and
TEA funds to close out various capital
improvement projects
• Red Cross grant to the Fire Department for brush
management activities
• Contract with Imperial Beach for Animal Control
Services
• Library contract with Unique Management for
collection of Library fines
• County of San Diego grant for the Centennial
Exhibit and Photography contest
• CA State Library grant Out-of-School-Time-Online
Homework Help Program
• SDG&E Programs for Cool Planet and the Energy
Efficiency Business Incentive
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.
Preliminary reviews for the current year appear to
indicate a deficit for fiscal year 2010/11 of approximately
$80,000 that is due to less staff time reimbursements in
the Land Development and Development Planning
areas.
Staff will continue tD monitor the Development Services
Fund.
Projected Projected Projected
Division Revenues Expenditures Net Impact
Planning 1,963 2,046 (83)
Building 2,218 2,018 200
En ineerin 1,502 1,699 197
DSF TOTAL $ 5,683 $ 6,763 $ 80
4-11
RESOLUTION NO. 2011-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AMENDING FISCAL YEAR 2010/2011
BUDGET IN ACCORDANCE WITH THE COUNCIL POLICY
ON FINANCIAL REPORTING AND TRANSFER AUTHORITY
AND APPROPRIATING FUNDS THEREFOR
WHEREAS, Council Policy 220-02 "Financial Reporting and Transfer Authority",
requires that the City Council approve budget transfers between departments and/or amounts
greater than $15,000; and
WHEREAS, the recommended General Fund transfers can be done using existing
appropriations and are needed to transfer utility savings from the Public Works Department in the
amount of $32,110 and the Recreation Department in the amount of $9,067 to the Non
Departmental budget to transfer a total of $41,117 to the CEC Loan Repayment Fund for debt
service payments; and
WHEREAS, the recommended General Fund transfers will result in no net impact to the
General Fund; and
WHEREAS, a budget appropriation of $11,200 is recommended in the Development
Services Fund based onpass-through revenue to the State; and
WHEREAS, the appropriation of $11,200 in the Development Services .Fund is fully
revenue offset resulting in no net impact to the Development Services Fund; and
WHEREAS, a budget appropriation of $4,579 is recommended in the Other
Transportation Programs Fund in order to account for additional costs incurred in capital
improvement project STL 280; and
WHEREAS, the budget appropriation of $4,579 in the Other Transportation Programs
Fund is fully revenue offset resulting in no net impact to the Other Transportation Programs
Fund; and
WHEREAS, a budget appropriation of $4,213 is recommended in the Other
Transportation Programs Fund in order to reimburse the Traffic Signal Fund for costs related to
capital improvement project TF 347; and
WHEREAS, there is sufficient fund balance in the Other Transportation Programs Fund
for this appropriation and the transfer in to the Traffic Signal Fund will offset expenditures
incurred in the prior year of $4,213; and
WHEREAS, a budget appropriation of $41,177 is recommended in the CEC Loan
Repayment Fund for debt service payments for loans used for energy retrofit projects; and
4-12
Resolution No.
Page 2
WHEREAS, the transfer in from the General Fund will offset the appropriation of $41,177
in the CEC Loan Repayment Fund; and
WHEREAS, a budget appropriation of $22,000 is recommended in the Workers
Compensation Fund to account for additional costs related to the City's certificate to self-insure;
and
WHEREAS, there is sufficient fund balance in the Workers Compensation Fund for the
budget appropriation of $22,000.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista
does hereby approve the following budget transfers and appropriations:
• A transfer from the Utilities expense category of the Public Works Department in
the amount of $32,110 and the Recreation Department in the amount of $9,067 to
the Transfer Out expense category of the Non Departmental Budget,
• A revenue offset appropriation of $11,200 to the Other Expenses category of the
Development Services Fund,
• A revenue offset appropriation of $4,579 to the CIP Project expenditures category
of the Other Transportation Programs Fund,
• An appropriation of $4,213 from the available fund balance of the Other
Transportation Programs Fund to the Transfers Out expense category,
• An appropriation of $4,213 to the Transfers In revenue category of the Traffic
Signal Fund,
• A revenue offset appropriation of $41,177 to the Other Expense category of the
CEC Loan Repayment Fund,
• An appropriation of $22,000 from the available fund balance of the Workers
Compensation Fund to the Services and Supplies expense category.
Presented by
Maria Kachadoorian
Director ofFinance/Treasurer ~^
4-13
Approved as to form by