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HomeMy WebLinkAbout8.2 Fiscal Year 2024-25 2nd Quarter Financial Reviewr DUBLIN CALIFORNIA STAFF REPORT CITY COUNCIL Agenda Item 8.2 DATE: February 18, 2025 TO: Honorable Mayor and City Councilmembers FROM: Colleen Tribby, City Manager SU B.ECT: Fiscal Year 2024-25 2nd Quarter Financial Review Prepared by:: Jay Baksa, Director of Finance EXECUTIVE SUMMARY: The City Council will receive a financial report through the second quarter of Fiscal Year 2024-25 and consider amendments via a budget change. STAFF RECOMMENDATION: Receive the report and approve the budget change. FINANCIAL IMPACT: Approval of the budget change will result in a net increase to the General Fund revenue budget of $4,000,000 and an increase in the General Fund expenditure budget of $378,627, including a $233,800 transfer out to the Capital Improvement Program. The City is projected to be in an operating surplus position of $22,663,056 in Fiscal Year 2024-25. Total General Fund reserves are projected at $258,532,794 by June 30, 2025, a decrease of $31,900,158 from the prior year. This report also contains various budget changes in other funds requiring City Council approval. DESCRIPTION: The purpose of this report is to update the City Council on the status of the Fiscal Year 2024-25 General Fund Amended Budget and projected reserves. As a reminder, the Amended Budget includes budget changes approved since July 1, as well as carryover budgets from the prior year. The budget change (Attachment 4) lists all new amendments needing approval in the General Fund and in other funds. General Fund Summary (Attachment 1) General Fund revenues are projected to come in $4,000,000 higher than the Amended Budget, accounting for higher interest earnings. On the expenditure side, Staff is recommending an increase of $144,827 in operating expenditures and $233,800 in transfers out to the CIP. Table 1 Page 1 of 4 1 summarizes the proposed changes, followed by a discussion of the changes. Table 1: Revenue and Expenditure Changes Category Amount Revenues Interest Earnings $4,000,000 Total Revenues $ 4,000,000 Expenditures Salaries and Wages Services and Supplies Contracted Services Transfers Out ($33,373) 48,200 130,000 233,800 Total Expenditures $ 378,627 General Fund Impact $3,621,373 Revenues: Interest - increase of $4,000,000 The projected increase in interest earnings is due primarily to the timing of General Fund capital project payments, resulting in a higher -than -projected cash balance in the General Fund, in addition to the high -interest -rate environment. Expenditures: Salaries and Wages - decrease of$33,373 Salaries and Wages are decreasing based on the following: • Salaries Fulltime - Decrease of $50,000 from the Public Works Capital Improvement Projects (Engineering) budget. These savings will be transferred to the Iron Horse Trail Bridge project (st0118). Funding for the transfer is available due to an ongoing vacancy in the department, which has resulted in additional work being performed by consultants. There is no new cost to the City. • Seasonal Staff - Increase of $16,627 in the Seasonal Staff budget in the Parks and Community Services Department. The funds will be used for an additional Park Monitor at Fallon Sports Park, to address ongoing concerns regarding the unpermitted use of the City's artificial turf and to ensure compliance with facility reservations. Services and Supplies - increase of$48,200 Services and Supplies are increasing based on the following: • Operating Supplies - Increase of $82,000, for the purchase of three -stream waste containers to replace old, rusting waste containers at City parks. • Repairs and Maintenance - Decrease of $33,800 from the Public Works Maintenance budget. These savings will be transferred to the Iron Horse Park and Open Space project (pk0422) for the purchase of benches and picnic tables. Contract Services - increase of$130,000 Page 2 of 4 2 Contract Services costs are increasing based on the following: • Increase of $110,000 to fund work currently being performed by HF&H consultants ($80,000) and Cascadia ($30,000), regarding the implementation of Senate Bill 1383 requirements around organics recycling. • Increase of $20,000 due to TV30 adopting their final budget after the City had finalized the FY 2024-25 Budget. The resultant cost increase in TV30 costs were slightly higher than anticipated requiring an additional $20,000 to fund the ongoing cost of televising City Meetings. General Fund Reserves and Transfers Out The budget adjustment includes three transfers out to CIP, two that will be funded with savings from the Public Works Operating budget, resulting in no new net costs and one funded with the City's General Fund Non -Streets CIP Commitments reserve. • Transfer $33,800 from the Public Works maintenance budget to CIP pk0422 - Iron Horse Nature Park and Open Space, to purchase benches and picnic tables. • Transfer $50,000 from the Public Works Engineering budget to CIP st0118 -Iron Horse Trail Bridge, to cover increased costs for contract services due to a vacancy in the Public Works staffing. • Transfer $150,000 from the General Fund Non -Streets CIP Commitments reserve to the newly created Fallon Sports Park Field G Improvements project. The funds will be used to install a flagpole and start work on additional projects identified at the City Council meeting of February 4, 2025. Additional funding for this project will be brought back to the City Council to be included as part of the budget update. After incorporating all adjustments, Staff is projecting an operating surplus of $22.6 million for Fiscal Year 2024-25. Transfers out total $54.5 million, $32.0 million of which is funded by Committed/Assigned reserves. In addition, $2.0 million is budgeted as a contribution to the Internal Service Funds. After accounting for the use of reserves on capital projects, total reserves are projected to decrease by $31.9 million from the prior year, as illustrated in Table 2 below. A list of changes to specific reserves is provided as Attachment 2 (General Fund Reserves Summary). A detailed list of transfers out of the General Fund is provided as Attachment 3 (General Fund Transfers Out). Page 3 of 4 3 Table 2: General Fund Summary FY 2023-24 FY 2024-25 New FY 2024-25 Actual Adopted Amended Total Reserves, Beginning of Year $249,736,608 $290,432,952 $290,432,952 Revenues 134,468,374 128,267,303 $132,445,887 Expenditures (94,698,737) (109,459,420) (109,782,831) Net Operating Budget Impact $39,769,637 $18,807,883 $22,663,056 Transfers In 227,051 Unrealized Gains/Losses 7,022,273 Transfers Out/Contributions to Other Funds (6,322,616) (7,097,023) (54,563,214) Total Reserves, End of Year $290,432,952 $302,143,812 $258,532,794 Change from Prior Year ($31,900,158) Other Funds Staff requests the City Council's approval to amend the budget for the following: • Street Light Assessment District (1983-1) Fund - Appropriate $75,000 for a pilot project to purchase and install four solar streetlights. • Stagecoach Landscape Assessment District Fund - Appropriate $40,000 to address extensive tree maintenance required to meet the five-year pruning cycle and to sustain the enhanced landscaping and upkeep resulting from the Stagecoach Assessment District beautification efforts. STRATEGIC PLAN INITIATIVE: None. NOTICING REQUIREMENTS/PUBLIC OUTREACH: The City Council Agenda was posted. ATTACHMENTS: 1) General Fund Summary Q2 FY 2024-25 2) General Fund Reserves Summary Q2 FY 2024-25 3) General Fund Transfers Out Q2 FY 2024-25 4) Budget Change Q2 FY 2024-25 Page 4 of 4 4 Attachment 1 GENERAL FUND SUMMARY - Q2 FY 24-25 Actual Adopted Amended New Amended 2023-24 2024-25 2024-25 Q2 Adjustment 2024-25 Revenues ' Property Tax Sales Tax Sales Tax Reimbursements Development Revenue Transient Occupancy Tax Other Taxes Licenses & Permits Fines & Penalties Interest Earnings Rentals and Leases Intergovernmental Charges for Services Other Revenue Subtotal Revenues - Operating Transfers In Unrealized Gains/Losses/Adjustments Total Revenues Expenditures Salaries & Wages Benefits Services & Supplies Internal Service Fund Charges Utilities Contracted Services Capital Outlay Debt Service Payment Contingency & Miscellaneous Subtotal Expenditures - Operating Operating Impact (REV-EXP) Transfer Outs & Contributions to Other Funds Transfers Out (CIPs) - Com./Assig. Reserve Transfers Out (CIPs) - Undesignated Contribution to OPEB/PERS Contribution to ISF & Other Subtotal - Transfers Out & Contributions $61,967,658 63,225,641 31,293,707 30,536,365 (390,267) (375,000) 6,857,011 7,803,163 1,481,868 1,550,000 7,647,501 7,145,000 230,552 239,300 98,693 67,400 8,499,829 5,622,800 2,172,046 2,223,573 441,518 300,000 9,678,380 7,372,703 4,489,879 2,556,358 $134,468,374 $128,267,303 $227,051 7,022,273 $141,717,698 $128,267,303 $13,508,508 4,500,714 5,831,603 5,443,999 2,602,582 61,003,255 462,908 1,331,850 13,318 $94,698,737 $39,769,637 3,720,645 601,971 2,000,000 $6,322,616 $15,706,648 6,373,779 8,047,629 5,475,186 3,852,949 67,575,579 869,000 1,334,650 224,000 $109,459,420 $18,807,883 63,225,641 30,536,365 (375,000) 7,803,163 1,550,000 7,145,000 239,300 67,400 5,622,800 4,000,000 2,223,573 300,000 7,372,703 2,734,942 $128,445,887 NW $4,000,000 $128,445,887 1 $15,706,648 6,373,779 8,226,213 5,475,186 3,852,949 67,575,579 869,000 1,334,650 224,000 $109,638,004 = $18,807,883 1,695,229 31,906,947 3,401,794 20,422,467 2,000,000 2,000,000 $7,097,023 $54,329,414 $4,000,000 ($33,373) 48,200 63,225,641 30,536,365 (375,000) 7,803,163 1,550,000 7,145,000 239,300 67,400 9,622,800 2,223,573 300,000 7,372,703 2,734,942 $132,445,887 $0 $132,445,887 $15,673,275 6,373,779 8,274,413 5,475,186 3,852,949 130,000 67,705,579 869,000 1,334,650 224,000 $144,827 $109,782,831 $3,855,173 $22,663,056 150,000 83,800 $233,800 32,056,947 20,506,267 2,000,000 $54,563,214 grota1 Expenditures GF Impact (Include CIP & Transfers) $101,021,353 $116,556,443 $163,967,418 $378,627 $164,346,045 $40,696,344 $11,710,860 ($35,521,531) $3,621,373 ($31,900,158) TOTAL GENERAL FUND BALANCE $290,432,952 $302,143,812 $254,911,421 $258,532,794 Contracted Services Detail Police Services Fire Services Maintenance Services (MCE) Development (CDD and PW) Other Contracted Services Total Contracted Services Actual 2023-24 $25,092,500 16,226,491 7,878,305 3,050,460 8,755,499 Adopted 2024-25 $25,800,327 17,884,678 8,932,859 3,606,004 11,351,711 Amended 2024-25 $25,800,327 17,884,678 8,932,859 3,606,004 11,351,711 New Amended Q2 Adjustment 2024-25 $25,800,327 17,884,678 8,932,859 3,606,004 130,000 11,481,711 $61,003,255 $67,575,579 $67,575,579 $130,000 $67,705,579 5 Attachment 2 FISCAL YEAR 2024-25 GENERAL FUND RESERVES RESERVE DESCRIPTION Actual 2023-24 Increase 2024-25 Decrease 2024-25 Net Change 2024-25 Projected 2024-25 Non -Spendable $54,709 $54,709 Prepaid Expenses 54,709 54,709 Restricted $9,351,801 $6,704,350 $0 $6,704,350 $16,056,151 Cemetery Endowment 60,000 60,000 Developer Contribution - Downtown 1,490,000 1,490,000 Developer Contr - Heritage Park 19,000 19,000 Developer Contr - Nature Park 60,000 60,000 Section 115 Trust - Pension 2,071,235 2,071,235 Public Facilities Advance 4,901,566 6,704,350 6,704,350 11,605,916 Heritage Park Maintenance Committed Advance to Public Facility Fee 750,000 $84,215,443 6,704,350 $1,000,000 ($13,544,158) (6,704,350) ($12,544,158) (6,704,350) 750,000 $71,671,286 Downtown Public Improvement 36,118,491 (363,279) (363,279) 35,755,212 Economic Stability 8,000,000 8,000,000 Emergency Communications 532,113 532,113 Fire Svcs Pension/OPEB 2,211,094 2,211,094 Innovations & New Opportunity 894,498 894,498 One -Time Initiative - Capital 1,917,848 (1,418,339) (1,418,339) 499,509 One -Time Initiative - Operating 503,860 503,860 Public Safety Reserve 4,600,000 4,600,000 Specific Committed Reserves Contribution to Public Facility Fee 6,000,000 6,000,000 Cultural Arts Center (CIP) 4,402,990 (4,227,990) (4,227,990) 175,000 Don Biddle Park (CIP) 675,193 (675,193) (675,193) Fallon Sports Park III Contingency 100,000 (100,000) (100,000) Lease Revenue Bond Payoff 8,000,000 1,000,000 1,000,000 9,000,000 Maintenance Facility (CIP) 55,008 (55,007) (55,007) Utility Undergrounding (CIP) 3,500,000 3,500,000 Assigned $153,402,584 $3,563,913 ($44,427,462) ($40,863,549) $112,539,035 Accrued Leave 1,518,423 1,518,423 Catastrophic Loss 17,714,064 17,714,064 CIP Carryovers 16,670,673 (16,670,673) (16,670,673) Municipal Regional Permit 1,809,022 (1,809,022) (1,809,022) Non -Streets CIP Commitments 3,253,486 (590,976) (590,976) 2,662,510 Operating Carryovers 963,754 (2,014,571) (2,014,571) Parks and Streets Contingency 201,270 201,270 Pension & OPEB 18,000,000 18,000,000 Relocate Parks Dept 500,000 500,000 Service Continuity 3,150,000 3,150,000 Dublin Blvd Extension Advance 59,500,000 3,563,913 (20,000,000) (16,436,087) 43,063,913 Specific Assigned Reserves ARPA Revenue Replacement 990,187 990,187 Climate Action Plan 2,669,424 (840,334) (840,334) 1,829,090 Facade Improvement Grants 429,972 429,972 Library Tenant Improvement 1,000,000 1,000,000 HVAC Replace. & Civic Ctr Improv. (CIP) 2,288,697 (1,208,273) (1,208,273) 1,080,424 Pavement Management 2,000,000 2,000,000 Village Pkwy Pavement Reconstruction 20,743,613 (1,293,613) (1,293,613) 19,450,000 Unassigned $43,408,415 $57,971,620 ($43,168,421) $14,803,199 $58,211,614 Unassigned -Unrealized Gains (7,039,428) (7,039,428) Unassigned (Available) 50,447,843 65,251,042 TOTAL RESERVES $290,432,952 $69,239,882 ($101,140,040) ($31,900,158) $258,532,794 6 Attachment 3 GENERAL FUND TRANSFERS OUT - Q2 FY 2024-25 Project Description Adopted 2024-25 Amended 2024-25 Q2 Adjustment New Amended 2024-25 Committed/Assigned IT Infrastructure Improvement Cultural Arts Center Civic Center Rehabilitation EV Charging Stations Maintenance Yard Facility Don Biddle Community Park Fallon Sports Park Phase 3 Green Stormwater lnfrastructure Dublin Blvd Extension City Entrance Monument Signs Village Parkway Reconstruction Citywide Signal Com. Upgrade (New) Fallon Sports Park Field G Improvements Dublin Irrigation System Upgrades Subtotal - Committed/Assigned Undesignated Citywide Energy Improvements Dublin Standard Plans Update Marquee Signs Resiliency and Disaster Preparednes Condition Assessment of Water Features Financial System Replacement Municipal Fiber Facilities Parking Lot Resurfacing Audio Visual System Upgrade Waste Enclosures Upgrade Library Tenant Improvements Situational Awareness Camera Alamo Creek & Asmnt Dist Fence Replacement Parks Playground Replacement Sunday School Barn Improvements Downtown Dublin Town Square Park Kolb Park Renovation Restrooms Replacement Jordan Ranch Neighborhood Square Iron Horse Nature Park & Open Space Iron Horse Trail Bridge Imagine Playground at Dublin Sports Annual Street Resurfacing Citywide Storm Drain Improvements Dublin Blvd Extension San Ramon Road Landscape Renovation Downtown Dublin Street Grid Network City Entrance Monument Signs San Ramon Road Trail Improvements Citywide Bicycle & Pedestrian Impro Subtotal - Undesignated Subtotal Transfers Out to CIPs Other Contributions/Transfers Out Transfer Out to ISF/Other Subtotal - Other Contributions/Transfer Out to C 2,976 4,227,990 205,000 1,208,273 70,229 82,257 55,007 675,193 100,000 420,000 2,205,298 20,000,000 200,000 1,000,000 1,293,613 1,418,339 0 150,000 438,000 $ 1,695,229 $ 31,906,947 $ 150,000 $ $ 600,000 $ 1,305,777 $ 30,890 350,000 844,763 277,000 1,040,272 50,000 50,000 797,930 139,754 500,000 500,000 444,887 131,124 131,124 1,000,000 584,250 436,120 1,109,478 125,000 125,000 4,680 111,443 449,507 993,279 350,000 53,000 33,800 0 50,000 42,687 1,250,000 1,250,000 30,000 7,290,382 237,446 8,990 214,070 285,000 7,996 105,000 567,412 $ 3,401,794 $ 20,422,467 $ 83,800 $ $ 5,097,023 $ 52,329,414 $ 233,800 $ 2,000,000 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,976 4,227,990 1,208,273 82,257 55,007 675,193 100,000 2,205,298 20,000,000 200,000 1,293,613 1,418,339 150,000 438,000 32,056,947 1,305,777 30,890 844,763 1,040,272 50,000 797,930 139,754 500,000 444,887 131,124 1,000,000 584,250 436,120 1,109,478 125,000 111,443 449,507 993,279 350,000 86,800 50,000 42,687 1,250,000 30,000 7,290,382 237,446 214,070 285,000 7,996 567,412 20,506,267 52,563,214 2,000,000 $ 2,000,000 Total - General Fund Transfers Out $ 7,097,023 $ 54,329,414 $ 233,800 $ 54,563,214 the amount *CIPs identified to be funded by Undesignated reserves include $16.7 million in budget carryovers from FY 23-24, is identified as Assigned Reserve - CIP Carryover (Attachment 2) 7 CITY OF DUBLIN FISCAL YEAR 2024-25 BUDGET CHANGE FORM Attachment 4 Budget Change Reference #: City Council's Approval Required From Un-Appropriated Reserves X Budget Transfer Between Funds From Designated Reserves X Other REVENUES 41 General Fund 10010000.46101 (Interest) $4,000,000 Increase due to the continuation of higher than anticipated interest rate and larger than anticipated cash balance, due to timing of CIP expenditures. OPERATING EXPENDITURES General Fund 10017515.51202 (Seasonal Staffing) $16,627 10016230.64001 (Contract Services General) $110,000 10016300.61104 (Operating Supplies) $82,000 10011830.64001 (Contract Services General) $20,000 10016300.61301 (Repairs and Maintenance) ($33,800) 10016120.51101 (Salaries and Benefits) ($50,000) 850 Temp Hours for Additional Park Monitor at Fallon. Additional costs in the Public Works Environmental Services Division To replace both old/rusting waste containers and add additional three -stream cans at City playgrounds and parks. Additional costs related to the TV30 agreement and the cost of televising City meetings. Transferring savings from the Public Works Maintenance budget to the Iron Horse Park and Open Space project (pk0422) for the purchase of benches and picnic tables. Transferring savings from the Public Works Capital Improvement Projects budget to the Iron Horse Trail Bridge project (st0118) for the cost of additional contract services provided on the project. Special Revenue Funds 27016411.64001 (Contract Services General) $75,000 27026412.64101 (MCE Base Contract Services) $40,000 Adjustment fora pilot project to purchase and install 4 solar streetlights in Street Light Assessment District (1983-1). Adjustment to address tree maintenance required to meet the 5-year pruning cycle and to sustain the enhanced landscaping for the Stagecoach Assessment District. CIPs Iron Horse Trail Bridge (ST0118) ST0118.9200.9201 (Contract Services General) $50,000 ST0118.1001 (36009610.49999) - General Fund/Transfers In $50,000 10019610.89101 - General Fund- Transfers Out $50,000 Additional costs associated with contract services provided on the project. Fallon Sports Park Field G Improvements (PK0225) PK0225.9600.9604 (Capital - Furniture & Fixtures) $150,000 PK0225.1101 (35009510.49999) - General Fund Reserves $150,000 /Transfers In 11019510.89101 - General Fund Reserves Transfers Out $150,000 Newly created CIP for improvement to Fallon Sports Park Field G. The budget of $150,000 will allow City Staff to put a flag pole on site and start work on other projects. Iron Horse Nature Park & Open Space (PK0422) PK0422.9200.9201 (Operating Supplies) $33,800 PK0422.1001 (35009510.49999) - General Fund /Transfers In $33,800 10019510.89101 - General Fund Transfers Out $33,800 For the purchase of benches and picnic tables. As Presented at the City Council Meeting 2/18/2025 **********Finance Use Only********** Posted By: Date: 8 FY 2024-25 2nd Quarter Financial Review February 18,2025 DUBLIN CALIFORNIA 9 General Fund Midyear Overview • Net Increase in Reserves from Budget Adjustments _ $3.62 Million • Operating Surplus Projected at Year -End = $22.66 Million • Transfers Out/Contributions = $54.56 Million • Projected ReserveYear-End Balance = $258.53 Million Revenue Summary Revenues - Net Increase $4,000,000 • Interest: +$4,000,000 • All other revenues inline with Budget - Continue monitoring Sales Tax Expenditure Summary Expenditures - Net Increase $378,627 • Salaries &Wages:—$33,373 • Services and Supplies: +48,200 • Contract Services: + I 30,000 • Transfer Out: +233,800 VM DUBLIN CALIFORNIA 12 Transfers Out • (New) CIP — Fallon Sports Park Field G Improvement - $150,000 — Funding: Non -Streets CIP Reserve • Iron Horse Nature Park and Open Space $33,800 — Funding: Public Works Operating Budget Savings Transfers Out • Iron Horse Trail Bridge - $50,000 — Funding: Public Works Operating Budget Savings 14 Transfers Out • Total GFTransfers Out = $54,563,214 —Designated Reserves = $32,056,947 —Unassigned Reserves = $20,506,267 -Contribution to Replacement (ISF) _ $2,000,000 15 Reserves FY 2023-24 FY 2024-25 New FY 2024- Actual Adopted 25 Amended Total Reserves, Beginning of Year $249,736,608 $290,432,952 $290,432,952 Revenues 134,468,374 128,267,303 132,445,887 Expenditures (94,698,737) (109,459,420) (109,782,831) Net Operating Budget Impact $39,769,637 $18,807,883 $22,663,056 Transfers In 227,051 Unrealized Gain/Loss 7,022,273 Transfers Out/Contribution to Other (6,322,616) (7,097,023) (54,563,214) Total Reserves, End of Year $290,432,952 $302,143,812 $258,532,794 Change from Prior Year ($31,900,158) Staff Recommendations • Receive the report • Approve the budget change • Questions?