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HomeMy WebLinkAbout8.1 Fiscal Year 2020-21 4th Quarter Financial Review and Additional Special Designation of General Fund ReservesSTAFF REPORT CITY COUNCIL Page 1 of 7 Agenda Item 8.1 DATE:October 19, 2021 TO:Honorable Mayor and City Councilmembers FROM:Linda Smith, City Manager SUBJECT:Fiscal Year 2020-21 4th Quarter Financial Review and Additional Special Designation of General Fund ReservesPrepared by:Lisa Hisatomi, Director of Administrative Services EXECUTIVE SUMMARY:The City Council will receive a financial report on the fourth quarter of Fiscal Year 2020-21 and consider amendments to General Fund reserve designations. STAFF RECOMMENDATION:Adopt the Resolution Authorizing Additional Special Designations of General Fund Reserves for Fiscal Year 2020-21 and confirm additional General Fund reserve designations as of June 30, 2021. FINANCIAL IMPACT:City Council confirmation of General Fund reserve designations will not alter amounts received or spent but will allow Staff to close the Fiscal Year 2020-21 financial books.Total General Fund reserves are projected at $207.7 million as of June 30, 2021, with $63.3 million in the unassigned cash flow reserve, representing 8.8 months of the Fiscal Year 2021-22 Adopted General Fund Budget. All other funds comply with policies governing fund balance. DESCRIPTION:This report transmits the preliminary financial results of the Fiscal Year 2020-21 year-end, focusing on the General Fund. At this time, the numbers are essentially final, and though adjustments may happen as the audit is finalized, Staff does not expect substantial changes from the numbers in this report. The Comprehensive Annual Financial Report, which will be presented to the City Council at the second meeting in December 2021, will contain the final audited results.General Fund Overview (Attachment 2)General Fund operating revenues totaled $103.1 million in Fiscal Year 2020-21, an increase of $6.7 million over the prior year. Total revenues, including an accounting adjustment of unrealized 116 Page 2 of 7 gains and transfers in, were $99.4 million, a decrease of $3.5 million from the prior year. General Fund operating expenditures totaled $74.1 million, a decrease of $130,105 from the prior year. Total expenditures, including contributions to other funds and transfers out, were $82.2 million, a decrease of $1.1 million from the prior year. Contributions to capital projects and other funds totaled $8.3 million, a decrease of $933,584 from the prior year. The resulting impact on total General Fund Reserves was an increase of $17.0 million, as shown in Table 1.Table 1: General Fund SummaryFY 2019-20 FY 2020-21Total Reserves, Beginning of Year $171,225,773 $190,649,224 Revenues $96,389,272 $103,086,306 Expenditures (74,251,883)(74,121,779)Net Operating Budget Impact $22,137,389 $28,964,528 Transfers In/87,098 273,623 Unrealized Gain/Loss 6,433,261 (3,936,480)Transfers Out/Contribution to Other (9,234,298)(8,300,714)Total Reserves, End of Year $190,649,224 $207,650,181 Change from Prior Year $17,000,957 The primary drivers of the increase in revenues were a continued increase in Property Taxes and recovery of Sales Tax from the impacts of COVID-19 last fiscal year. Specific revenue and expenditure changes (+/-$250,000 compared to Fiscal Year 2019-20 actuals and to the Fiscal Year 2020-21 budget) are discussed below. The General Fund Summary (Attachment 2) presents this data by major category.RevenuesProperty Tax (+$3,920,750 vs. prior year / +$2,611,086 vs. budget)Property Tax revenue in Fiscal Year 2020-21 increased along with a gain in net assessed valuation by $1.3 billion (7.5%) over the prior year, which was slightly more than theincrease experienced countywide at 6.8%. This change is attributed to a 2% Proposition 13 inflation adjustment and growth in home sales in the City. In addition, sales prices for the calendar year 2020 increased over the prior year, driven by fewer properties being offered for sale and the lower interest rate environment. Sales Tax (+$3,420,583 vs. prior year / +$3,265,419 vs. budget) Overall Sales Tax came in $3.4 million (16%) higher than Fiscal Year 2019-20, primarily attributable to higher revenues generated by the Auto and Transportation and State and County Pools categories, with an increase of 26.2% and 25.5% respectively. One third of the increase was due to deferred payments for Fiscal Year 2019-20 that were included in Fiscal Year 2020-21 allocation. 117 Page 3 of 7 Development Revenue (+$675,870 vs. prior year / -$28,641 vs. budget) This category includes revenues associated with permits for new development (primarily building permits) as well as tenant improvements on current structures. It also includes fees for City services provided, most typically zoning and plan checking services. The increase was the net result of higher building permit activity and lower development services (plan checking)revenues. This revenue category is based on development project timelines.Transient Occupancy Tax (TOT) (-$824,025 vs. prior year / +$93,962 vs. budget)The Fiscal Year 2020-21 budget projected losses in TOT, or hotel tax, resulting from the extended and more restrictive Shelter-in-Place Order as COVID-19 numbers worsened during 2020. Other Taxes (+$729,020 vs. prior year / +$764,970 vs. budget)In Fiscal Year 2020-21, the net increase in Other Taxes over the prior year was related to an increase in Property Transfer Tax, which fluctuates with the real estate market, and Garbage Franchise Tax, due to the incorporation of updated garbage collection rates.Interest (-$957,088 vs. prior year / +$1,095,357 vs. budget) The Fiscal Year 2020-21 budget for interest was relatively conservative as Staff anticipated a low interest rate environment. Charges for Services (-$849,527 vs. prior year / +$633,792 vs. budget)The net decrease in Fiscal Year 2020-21 comparing to the prior fiscal year is due almost entirely to a significant decrease in Parks and Recreation program revenues, as many recreation programs were cancelled during the COVID-19-related shutdowns. This revenue loss was partially offset by reimbursements from Alameda County for an increased number of service calls at Santa Rita Jail, which is the primary reason for the increase over the Fiscal Year 2020-21 Budget.ExpendituresSalaries and Wages (-$311,363 vs. prior year / -$562,787 vs. budget) Staff costs came in lower than the prior year and lower than budgeted, as a number of vacant positions remained unfilled during the year. In addition, seasonal salaries came in lower due to the cancellation of recreation programs impacted by COVID-19.Benefits (-$136,348 vs. prior year / -$392,261 vs. budget) This variance is primarily attributed to vacant positions and a lower retiree health contributiondue to the City’s current super-funded status.Services and Supplies (-$145,875 vs. prior year / -$1,155,001 vs. budget)Expenditures for supplies and services in Fiscal Year 2020-21 were under budget due to the impact of COVID-19, such as the resulting closure of City facilities, cancellation of special events, teleworking during the Shelter-in-Place, and the shift from in-person travel to remote meetings and conferences. In addition, insurance premiums and claims paid were lower than budgeted.Utilities (-$28,222 vs. prior year / -$505,063 vs. budget) This variance is attributed to the closure of City facilities. 118 Page 4 of 7 Contracted Services (+$2,968,732 vs. prior year / -$6,920,614 vs. budget)Contract expenditures came in higher than the prior year mainly due to planned increases in the police services, fire services, and maintenance contract costs. In addition, community grants were expanded to COVID-19 services providers, and expenditures were incurred for the 2020 election.The police services contract came in under budget by $712,320; of that, $600,000 will be added to the Public Safety Reserve and the remaining budget will be carried over to Fiscal Year 2021-22. Budget savings in the Fire services contract amounted to $444,771; after budget carryovers, Staff will shift $346,869 to the Fire Services Pension/OPEB Reserve.Development services contracts finished the year with $2.0 million in remaining budget due to a slowdown in activity (building inspection and plan checking) that began before and continued through the Shelter-in-Place Order. In addition, a few large development projects did not move at the pace previously anticipated. The maintenance contract with MCE was under budget by $411,539, and all other general City contracts were under budget by $3,365,323. Of that amount, approximately $924,000 will be carried over to Fiscal Year 2021-22 to continue projects underway. Additionally, the animal services, library services, City Attorney, and investment consulting services contracts were roughly $1.0 million under budget, and the COVID-19 Small Business Recovery Grant budget was not fully utilized in Fiscal Year 2020-21. Finally, recreation contract costs were under budget by $345,675.Capital Outlay (-$3,320,576 vs. prior year / -$607,612 vs. budget)Capital Outlay expenditures were lower than in Fiscal Year 2019-20 due to the City’s participationin the Amador Plaza land acquisition as part of the Downtown Preferred Vision project in the prior year. The variance to budget is due to unspent funds for the purchase of situational awareness cameras, furniture for the Public Works workspace reconfiguration, and replacement fixtures for the Senior Center. These budgets will be carried into Fiscal Year 2021-22.Transfers Out for Capital Improvement Program (CIP) ProjectsThe General Fund transferred out $5.3 million in Fiscal Year 2020-21 for capital project expenditures; of that amount, $4.4 Million was covered by Committed/Assigned Reserves. $12.5 million of the unspent capital project budget will be carried over to Fiscal Year 2021-22. Table 2 summarizes the CIP projects funded by the General Fund.Table 2: General Fund CIPsProject AmountCommitted/AssignedCivic Center HVAC and Roof Replacement $2,365,032 Dublin Heritage Park Cemetery Improvements 370,215 Electric Vehicle (EV) Charging Stations 4,821 Imagine Playground at Dublin Sports Grounds 1,502,671 Maintenance Yard Facility Improvements 2,907 Public Safety Complex -Police Services Building 106,562 Subtotal -Committed/Assigned $4,352,208Undesignated 119 Page 5 of 7 Annual Street Resurfacing $400,043 Audio Visual System Upgrade 257 Citywide Bicycle and Pedestrian Improvements 170,124 Downtown Dublin Street Grid Network 2,500 Financial System Replacement 365,169 Resiliency and Disaster Preparedness Improvements 2,189 San Ramon Road Trail Lighting 8,222 Subtotal -Undesignated $948,506 Total -General Fund Transfers Out to CIPs $5,300,714 Reserves (Attachment 3)In June 2021, based on estimated revenues and expenditures at that time, the City Council approved allocations to specific Committed Reserves and Assigned Reserves, shown in Table 3 below. With the close of the financial books, Staff is recommending additional allocations as described below. This Staff Report also transmits a Resolution (Attachment 1) which confirms designations only of additional Committed Reserves for Fiscal Year 2020-21, as City Council approval of Assigned Reserves is not necessary by resolution.Committed Reservesa. Downtown Public Improvement Reserve -Increase $3,000,000In accordance with the City Council’s Strategy #1: Implement the City’s Adopted Preferred Vision for Downtown Dublin, Staff recommends the addition of $3.0 million to this reserve for funding towards the Downtown Dublin Town Square Park and the Downtown Dublin Street Grid Network. With the adjustment, the reserve will total $13 million.b. Fire Services Pension/OPEB Reserve - Increase $346,869Staff recommends adding the Fiscal Year 2020-21 fire services budget savings to the reserve. With the adjustment, this reserve will total $5,671,094.c. Public Safety Reserve – Increase $600,000Staff recommends adding Fiscal Year 2020-21 police services budget savings to the reserve. With the adjustment, this reserve will total $2.6 million.d. Utility Undergrounding – Increase $2,329,810Staff recommends adding $2,329,810 to this reserve for the future utility undergrounding projects covering Scarlett Court to Scarlett Drive and Dublin Boulevard to Scarlett Drive. With the adjustment, this reserve will total $3.5 million.e. Cemetery Expansion –Shift $96,000 from the Non-Streets CIP ReserveThe adjustment to the reserve is to account for a slight increase in the project cost.f. Don Biddle Community Park - Increase $600,000The increase accounts for the $600,000 in Community Benefit Payments received from a development project for the inclusion of a specimen tree and upgraded playground equipment in the Don Biddle Community Park. With the adjustment, this reserve will total $2.1 million, which is the General Fund portion of the project cost.g. Lease Revenue Bond Payment – (New Reserve) – Increase $4,000,000In accordance with the adopted Climate Action Plan 2030 and Beyond and in response to the State law transitioning California’s transportation sector to zero emissions by 2035, the City Council has approved the Citywide Energy Improvements project and financing of the project through the issuance of tax-exempt bonds. Payment of the debt service is a liability 120 Page 6 of 7 of the General Fund. Staff recommend the creation of the new reserve with an initial set-aside of $4.0 million for debt service payments and/or early payoff.h. Donlon Way Acquisition –Reduce $9,388Staff recommends liquidating the reserve balance as the acquisition of the property is complete. This balance will return to the General Fund Undesignated Reserve.Assigned Reservesa. Village Parkway Pavement Reconstruction –Increase $3,500,000 In June 2020, the City Council approved the creation of the reserve to fund planning, design, and reconstruction of Village Parkway north of Amador Valley Boulevard to the City limit. The total estimated project cost is $10 million. In June 2021, City Council approved adding $1.5 million to the reserve. With the Fiscal Year 2020-21 surplus higher than previously estimated, Staff recommends adding $3.5 million, for a total of $10.0 million.b. HVAC Replacement & Civic Center Improvements –Increase $1,500,000Staff recommends adding $1.5 million to the reserve to provide funding for the planning, design, and construction of various rehabilitation and renovation projects at the Civic Center and reconfiguration of the Civic Center back parking lot, both of which are associated with the Cultural Arts Center. With this adjustment, this reserve will total $5,702,041. c. Relocate Parks andRecreation Department -Increase $250,000Staff recommends adding $250,000 to the reserve to increase funding needed to relocateParks and Recreation Department to the second floor of the Cultural Arts Center and reconfigure the space vacated. With this adjustment, this reserve will total $500,000.d. Pension and OPEB -Increase $1,000,000Staff recommends the addition of $1.0 million to this reserve to cover potential increases in the City’s unfunded pension liability, for a total of $16.0 million.e. Catastrophic Loss Reserve and Accrued Leave AdjustmentPer the Fund Balance and Reserves Policy, Staff will adjust the Catastrophic Loss Reserve to reflect 15% of the book value of City-owned building and improvements. Staff will also adjust the Accrued Leave Reserve to equate to the total accrued leave liability as of June 30, 2021.These designations, as well as reserve allocations for budget carryovers and per accounting rules and/or City policy, have been incorporated into the General Fund Reserve Balances (Attachment 3).Table 3. Committed/Specific Assigned Reserve RecommendationsReserve Category June 2021 Approval Recommendation FY 20-21 Total Adjustment Adjustment Type CommittedAdvance to Public Facility Fee $2,500,000 $2,500,000Downtown Public Improvement 1,545,375 $3,000,000 4,545,375 Add Fire Services Pension/OPEB 346,869 346,869 Add Lease Revenue Bond Payment 4,000,000 4,000,000 AddPublic Safety Reserve 600,000 600,000 Add 121 Page 7 of 7 Utility Undergrounding 2,329,810 2,329,810 Add Don Biddle Community Park 600,000 600,000 Transfer Cemetery Expansion 96,000 96,000 Transfer Specific AssignedHVAC Replace & Civic Ctr Improv.1,500,000 1,500,000 Add Pension & OPEB 1,000,000 1,000,000 Add Relocate Parks Dept 250,000 250,000 Add Village Pkwy Pavement Recons.1,500,000 3,500,000 5,000,000 Add With approval of the recommendations above, the Unassigned Cash Flow Reserve is estimated at $63.3 million (or 8.8 months of the Fiscal Year 2021-22 Adopted Budget), which is above the reserve target as provided for in the Fund Balance and Reserves Policy. STRATEGIC PLAN INITIATIVE:Strategy 2: Explore New City Revenue Streams for Long Term Financial StabilityObjective 2D: Continue to maintain strong fiscal policies. NOTICING REQUIREMENTS/PUBLIC OUTREACH:The City Council Agenda was posted. ATTACHMENTS:1) Resolution Authorizing Additional Special Designations of General Fund Reserves For Fiscal Year 2020-212) General Fund Summary Q4 FY 2020-213) General Fund Reserves Summary Q4 FY 2020-21 122 Attachment 1 RESOLUTION NO. XX – 21 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN AUTHORIZING ADDITIONAL SPECIAL DESIGNATIONS OF GENERAL FUND RESERVES FOR FISCAL YEAR 2020-21 WHEREAS,the City's Fund Balance and Reserves Policy requires special fund balance allocations to be adopted by the City Council, and allows the City Council to take action prior to the end of the fiscal year to direct a specific assignment of the fund balance; and WHEREAS,Staff reviewed updated information regarding fund balance and estimated one-time revenues during the preparation of the Fiscal Year 2021-22 Budget; and WHEREAS,the City Council approved allocations to specific Committed Reserves and Assigned Reserves on June 15, 2021, based on estimated revenues and expenditures at that time. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby make additional special allocation of the Fiscal Year 2020-21 year-end balance to the Committed fund balance as follows: Create a new reserve for Lease Revenue Bond Payment and add $4,000,000 Increase the reserve for Downtown Public Improvement by $3,000,000 Increase the reserve for Fire Services Pension/OPEB by $346,869 Increase the reserve for Public Safety by $600,000 Increase the reserve for Utility Undergrounding by $2,329,810 Increase the reserve for Don Biddle Community Park by $600,000 Increase the reserve for Cemetery Expansion by $96,000 BE IT FURTHER RESOLVED that, any net resources remaining after special designations, and after meeting the Fund Balance and Reserves Policy requirements, will be left in the Unassigned (Available) Reserve. PASSED, APPROVED AND ADOPTED this 19th day of October 2021 by the following vote: AYES: NOES: ABSENT: 123 Attachment 1 ABSTAIN: ______________________________ Mayor ATTEST: _________________________________ City Clerk 124 Attachment 2GENERAL FUND SUMMARY - Q4 FY 2020-21 Actual 2019-20 Adopted Budget 2020-21 Amended Budget 2020-21 Actual 2020-21 Change (Act vs Prior Yr) Change (Act vs Amend) Revenues Property Tax $49,086,335 $48,896,000 $50,396,000 $53,007,086 $3,920,750 $2,611,086 Sales Tax 21,439,886 19,595,050 21,595,050 24,860,469 $3,420,583 3,265,419 Sales Tax Reimbursements (407,431)(610,000)(610,000)(219,445)$187,986 390,555 Development Revenue 6,716,056 6,951,077 7,420,567 7,391,926 $675,870 (28,641) Transient Occupancy Tax 1,567,987 1,000,000 650,000 743,962 ($824,025)93,962 Other Taxes 5,712,336 5,676,387 5,676,387 6,441,357 $729,020 764,970 Licenses & Permits 236,972 238,506 340,506 334,852 $97,880 (5,654) Fines & Penalties 85,128 107,432 62,432 75,394 ($9,734)12,962 Interest Earnings 3,652,445 1,600,000 1,600,000 2,695,357 ($957,088)1,095,357 Rentals and Leases 974,392 1,329,966 806,887 822,841 ($151,551)15,954 Intergovernmental 306,425 250,000 250,000 300,618 ($5,807)50,618 Charges for Services 5,644,465 6,222,359 4,161,146 4,794,938 ($849,527)633,792 Other Revenue 1,374,275 1,077,242 1,804,064 1,836,951 $462,676 32,887 Subtotal Revenues - Operating $96,389,272 $92,334,019 $94,153,039 $103,086,306 $6,697,034 $8,933,267 Transfers In $87,098 $56,600 $56,600 $273,623 186,525 $217,023 Unrealized Gains/Losses 6,433,261 (3,936,480) (10,369,741) (3,936,480) Total Revenues $102,909,631 $92,390,619 $94,209,639 $99,423,449 ($3,486,182)$5,213,810 Expenditures Salaries & Wages $10,978,176 $11,886,262 $11,229,600 $10,666,813 ($311,363)($562,787) Benefits 4,890,980 5,016,611 5,146,893 4,754,632 ($136,348)(392,261) Services & Supplies 2,928,191 3,892,942 3,937,317 2,782,316 ($145,875)(1,155,001) Internal Service Fund Charges 2,977,333 3,685,246 3,685,246 3,685,246 $707,913 (0) Utilities 2,427,310 2,925,055 2,904,151 2,399,088 ($28,222)(505,063) Contracted Services 46,071,154 53,053,169 55,960,499 49,039,885 $2,968,732 (6,920,614) Capital Outlay 3,959,753 397,883 1,246,788 639,176 ($3,320,576)(607,612) Contingency & Miscellaneous 18,987 222,605 283,605 154,622 $135,635 (128,983) Subtotal Expenditures - Operating $74,251,883 $81,079,773 $84,394,099 $74,121,779 ($130,105)($10,272,320) Operating Impact (REV-EXP)$22,137,389 $11,254,246 $9,758,940 $28,964,528 $6,827,139 $19,205,587 Transfer Outs & Contributions to Other Funds Transfers Out (CIPs) - Undesignated (1)$336,309 $1,159,855 $3,777,101 $948,506 $612,197 ($2,828,596) Transfers Out (CIPs) - Com./Assig. Res 7,668,923 71,715 14,134,447 4,352,208 (3,316,715) (9,782,239) Contribution to OPEB/PERS 1,000,000 3,000,000 2,000,000 2,000,000 (1,000,000) Contribution to ISF 1,229,066 1,000,000 1,000,000 1,000,000 (229,066) - Subtotal - Transfers Out & Contributi 9,234,298 3,231,570 21,911,548 8,300,714 (933,584) (13,610,834) Total Expenditures $83,486,181 $84,311,343 $106,305,647 $82,422,492 ($1,063,689)($23,883,154) GF Impact (Include CIP & Transfers)$19,423,450 $8,079,276 ($12,096,007)$17,000,957 TOTAL GENERAL FUND BALANCE $190,649,224 $198,728,500 $178,553,216 $207,650,181 Contracted Services Detail Actual 2019-20 Adopted Budget 2020-21 Amended Budget 2020-21 Actual 2020-21 Change (Act vs Prior Yr) Change (Act vs Amend) Police Services (2)$19,619,858 $21,298,390 $21,443,621 $20,731,301 $1,111,443 $712,320 Fire Services (2)13,325,437 14,290,787 14,290,787 13,846,016 $520,579 444,771 Maintenance Services (MCE)4,860,718 5,736,382 5,756,382 5,344,843 $484,125 411,539 Development (CDD and PW)3,142,265 4,616,073 5,046,237 3,059,578 ($82,687)1,986,660 Other Contracted Services (3)5,122,876 7,111,537 9,423,472 6,058,148 $935,272 3,365,323 Total Contracted Services $46,071,154 $53,053,169 $55,960,499 $49,039,885 $2,968,732 $6,920,614 (1)Transfers Out to CIP Amended Budget includes $10,832,147 carried over from FY 19-20 (2)Police and Fire liability insurance amounts are not included above, they are included in Services & Supplies. (3)Other Contracted Services Amended Budget includes $1.3M carryover from FY 19-20; $1.0M for small business recovery loans, $377K for Camp Parks waste inter-governmental contract with offset revenue, and $228K for housing element update 125 Attachment 3GENERAL FUND RESERVES SUMMARY- Q4 FY 2020-21 RESERVE DESCRIPTION Actual 2019-20 Increase 2020-21 Decrease 2020-21 Net Change Projected 2020-21 Non-Spendable $13,061 $205 $205 $13,266 Prepaid Expenses 13,061 205 205 13,266 Restricted $1,938,000 $441,000 $441,000 $2,379,000 Cemetery Endowment 60,000 60,000 Developer Contr - Downtown 1,049,000 441,000 441,000 1,490,000 Developer Contr - Heritage Pk 19,000 19,000 Developer Contr - Nature Pk 60,000 60,000 Heritage Park Maintenance 750,000 750,000 Committed $57,828,474 $15,428,054 ($2,552,599)$12,875,455 $70,703,930 Advance to Public Facility Fee 7,500,000 2,500,000 (142,361)2,357,639 9,857,639 Downtown Public Impr 8,454,625 4,545,375 4,545,375 13,000,000 Economic Development 126,359 (73,041)(73,041)53,319 Economic Stability 8,000,000 8,000,000 Emergency Communications 532,113 532,113 Fire Svcs Pension/OPEB 5,324,225 346,869 346,869 5,671,094 Innovations & New Opport 1,065,471 (33,752)(33,752)1,031,719 One-Time Initiative - Capital 4,993,150 (27,039)(27,039)4,966,110 One-Time Initiative - Operating 503,860 503,860 Public Safety Reserve 2,000,000 600,000 600,000 2,600,000 Specific Committed Reserves Cemetery Expansion (CIP)1,447,764 96,000 (370,215)(274,215)1,173,549 Contribution to Public Facility Fee 6,000,000 6,000,000 Cultural Arts Center 4,539,197 4,539,197 Donlon Way Acquisition 410,000 (400,613)9,388 9,388 Don Biddle Park (CIP)1,500,000 600,000 600,000 2,100,000 Dublin Sports Ground (CIP)1,502,671 (1,502,671)(1,502,671) Fallon Sports Park III Contingency 3,110,500 3,110,500 Lease Revenue Bond Payment 4,000,000 4,000,000 4,000,000 Maintenance Facility (CIP)58,350 (2,907)(2,907)55,443 Utility Undergrounding (CIP)1,170,190 2,329,810 2,329,810 3,500,000 Assigned $64,004,659 $8,079,787 ($5,340,926)$2,738,861 $66,743,520 Accrued Leave 1,044,730 251,784 251,784 1,296,514 Catastrophic Loss 17,702,316 8,003 8,003 17,710,320 CIP Carryovers 3,502,246 (767,136)(767,136)2,735,111 Fiscally Responsible Adj 325,000 325,000 Municipal Regional Permit 2,282,905 (69,974)(69,974)2,212,931 Non-Streets CIP Commitments 2,462,100 (96,000)(96,000)2,366,100 Operating Carryovers 1,724,011 158,734 158,734 1,882,745 Parks and Streets Contingency 226,227 (24,957)(24,957)201,270 Pension & OPEB 15,000,000 1,000,000 1,000,000 16,000,000 Pension Rate Stabilization Plan 2,000,000 (2,000,000)(2,000,000) Relocate Parks Dept 250,000 250,000 250,000 500,000 Service Continuity 3,150,000 3,150,000 Specific Assigned Reserves Climate Action Plan 3,000,000 3,000,000 Contribution to ISF 1,500,000 1,500,000 Façade Improvement Grants 374,157 70,000 (70,000)374,157 HVAC Replace. & Civic Ctr Improv. (CIP)4,202,041 1,500,000 (2,365,032)(865,032)3,337,009 Public Safety Complex (CIP)258,925 (106,562)(106,562)152,363 Village Pkwy Pavemt Recon 5,000,000 5,000,000 5,000,000 10,000,000 Unassigned $66,865,029 $7,893,525 ($6,948,089)$945,436 $67,810,464 Unassigned-Unrealized Gains 8,453,240 (3,936,479)(3,936,479)4,516,760 Unassigned (Available)58,411,789 (1,010,000)63,293,704 TOTAL RESERVES $190,649,224 $31,842,571 ($14,841,614)$17,000,957 $207,650,181 126 FY 2020-21 4th Quarter Financial Review October 19, 2021 ITEM 8.1 Summary Revenues $103,086,306 •Property Tax $53,007,086 o Growth in assessed valuation o Prop 13 inflation adjustment •Sales Tax $24,860,469 o Auto & Transportation o Online sales growth o Deferred payments for FY 19-20 Summary •Development Revenue $7,391,926 o Development project timelines •TOT $743,962 o Impact of COVID-19 o Significantly lower than FY 19-20 •Other Taxes $6,441,357 o Increase in Property Transfer Tax o Increase in Garbage Franchise Tax Summary •Charge for Services $4,794,938 o Parks & Recreation programs revenue decrease offset by decrease in expenditures o Increase in reimbursement from the Alameda County for fire service calls •Interest $2,695,357 o Conservative estimate Summary Expenditures $74,121,779 •Salaries & Benefits $15,421,444 o Unfilled vacant positions o Lower seasonal salaries o Lower retiree health contribution •Services & Supplies $2,782,316 o Impact of COVID-19 •Utilities $2,399,088 o Impact of COVID-19 Summary •Contract Services $49,039,885 o Police and fire services contract budget savings o Development contract services under budget o Maintenance services under budget o Recreation contracts under budget o Other Contracts under budget •Capital Outlay $639,176 Transfers Out Transfers Out to CIPs $5,300,714 Project Amount Committed/Assigned Civic Center HVAC and Roof Replacement $2,365,032 Dublin Heritage Park Cemetery Improvements 370,215 Electric Vehicle (EV) Charging Stations 4,821 Imagine Playground at Dublin Sports Grounds 1,502,671 Maintenance Yard Facility Improvements 2,907 Public Safety Complex - Police Services Building 106,562 Subtotal - Committed/Assigned $4,352,208 Undesignated Annual Street Resurfacing $400,043 Audio Visual System Upgrade 257 Citywide Bicycle and Pedestrian Improvements 170,124 Downtown Dublin Street Grid Network 2,500 Financial System Replacement 365,169 Resiliency and Disaster Preparedness Improvements 2,189 San Ramon Road Trail Lighting 8,222 Subtotal - Undesignated $948,506 Total - General Fund Transfers Out to CIPs $5,300,714 Reserves FY 2019-20 FY 2020-21 Total Reserves, Beginning of Year $171,225,773 $190,649,224 Revenues $96,389,272 $103,086,306 Expenditures (74,251,883) (74,121,779) Net Operating Budget Impact $22,137,389 $28,964,528 Transfers In/ 87,098 273,623 Unrealized Gain/Loss 6,433,261 (3,936,480) Transfers Out/Contribution to Other (9,234,298) (8,300,714) Total Reserves, End of Year $190,649,224 $207,650,181 Change from Prior Year $17,000,957 •FY 20-21 is closed in a surplus position •Reserve increase $17 million Reserves •Additional Reserve Designations Reserve Category Recommendation Adjustment Type Committed Downtown Public Improvement $3,000,000 Add Energy Revenue Bond Lease Payment 4,000,000 Add Fire Svcs Pension/OPEB 346,869 Add Public Safety Reserve 600,000 Add Utility Undergrounding 2,329,810 Add Don Biddle Community Park 600,000 Transfer Cemetery Expansion 96,000 Transfer Specific Assigned HVAC Replacement & Civic Ctr Improv.$1,500,000 Add Pension & OPEB 1,000,000 Add Relocate Parks Dept 250,000 Add Village Pkwy Pavement Reconstruction 3,500,000 Add Staff Recommendation Adopt the Resolution Authorizing Additional Special Designations of General Fund Reserves for Fiscal Year 2020-21 Questions?