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Home My WebLink About1996/1997 Quarterly City Budget Report -3/o-ao [OLD�a City of Huntington Beach COUNCIL - ADMINISTRATOR COMMUNICATION HUNTINGTON BEACH s TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: MICHAEL T. UBERUAGA, City Administrator ^� SUBJECT: QUARTERLY BUDGET REPORT: 1996/97 a c_ x 4 DATE: JANUARY 20, 1997 ti !7 rn rn w c7�'zio � x s Attached is a copy of the Quarterly General Fund Budget Report of revenue an4Axpense data for 1996/97. Except for the potential impact of Proposition 218, revein aes are projected to be $1.3 million higher than originally projected in the Budget. Expenses are currently projected to exceed appropriations by $80,309. Corrective action will be taken to ensure no over-expenditure occurs. In addition, one time revenues of $1.1 million are expected from the Retirement System (PERS). The one time revenues are partially offset by one time costs (Budget amendments) of$712,242 during the first quarter of fiscal year 1996/97. The net result of these operating results will be a higher than anticipated General Fund reserve, pending the analysis of Proposition 218. If you have any questions about the Quarterly Report, please let me know. MTU:RJF:skd 0022439.01 11/19/96 10:16 AM First QuarterBudget Report �u�.a: ,�cr->, :.•=.caxaar, :n':xzs:+�a--'tim:'yarrcerx :�:�.•.-�• � W. .; av'ai:,�e.•.� -•.•-.•.r�aa3c�xccsrsu�: •t�:ss �st. ;*r a :f - `r' x F �'% 't•U" 'i"p( tS1' �,� ? ta'„�j '_-�,,,-:�� x�,`4�,�� Y�-�.x, Prepared�i�y:�RoberE J:Franz, Deputy_Cigr Adminlstrato�-�� . ::�Y#.J.i.-.iw'_ t...z.._. � c- s.s. �'-� .w rya .c✓�r�.s.a;rs-. .r+:�Y"_. a• ;s'- -••r,?'.`r !" - Y�2.G'!43 l:: January 21, 1997-- This is the First Quarterly Report The net change to the General Fund reserve (Fund for 1996/97, Balance) from the above changes is an estimated • proposition 218 was adopted in November, increase from $6.7 million to $8.4 million at the end 1996. General Fund revenues could be of the year. reduced by $1 million in 1996/97 and $3.3 The following chart summarizes the General Fund million next fiscal year due to the impact of reserve (Fund Balance): this measure. The potential reduction is not reflected in our revised revenue estimates. � ; '�, ' .' '� 4 ' Ysanral,fund Rasi[Ve. w_4._ Prlot fgtlmib + .EWm • General Fund revenues for 1996/97 are Beginning Fund Balance(Unaudited) S 6,787,717 $6,699,000 projected to be higher than Budget estimates Budget Surplus 590 1,267,831 by about$1.35 million. Less One Time Expenses (712.242) Plus: One Time Revenue 1,140,000 • General Fund costs for 1996/97 are estimated Estimated Ending Fund Balance S 6,788,307 1 S 8,394,589 to exceed appropriations by$80,309. Revenue Summary -- Attachment 2 is a summary of the 1996/97 revenues for the General Fund. • The Public Employees Retirement System Following is an Explanation of Significant Changes in (PERS) has notified the City of a $1.1 million General Fund Revenue estimates: refund to the City during 1996/97. • Property Tax -- A $182,000 increase in this • Approved budget amendments during the First revenue estimate (compared to the budget Quarter of Fiscal Year 1996/97 total estimate) is due to refunds by the County to $712,242. A listing of those amendments is taxpayers being lower in the first quarter than included in Attachment 1. estimated. • Sales Tax • As previously reported, sales tax • A comparison of ongoing revenues and revenue for last year was $703,770 higher than expenses (General Fund) is indicated in the estimated. Revenue for the First Quarter of this following chart: year was 7.9% higher than the prior year. We have increased our current year revenue estimate ' • "` ,ti. ^ram *-'�`- "tilt by$650,000. w rc�x < t Revenues �N S 97,279,505 S 98,627,055 $1,347,550 • Building Permits --The budget estimate has been reduced $225,000 due to an error in recording Expenses 97,278,915 97.359,224 80,309 historical totals for this category. The error Surplus/Shortfall S 590 S 1,267,831 resulted in an over-estimate of this year's revenue. �XaJ4&1•t�: W?GL1rrYid, z ar ' +u^ '� t•rz Mi—Im, MWA �1 � ` " i _, z 'A•G-`Y'�� First Quarteriv19 q Budget Report 1.�91i.-�..":r'..wf+4'L.4c7.[� >ItR"` T3'1w+aSwif.rY-.G`[i�+:lhlC�4 � l.M:.i'+...+. .. -.:_t:.-aiu:..•£J:`�>;.-..:.1.:'2ti-H�'r'�.v�:. ..�.. [..,:.t`.SCn'r�4:?-. • Parking Revenue -- The preferred parking plan Non Salary Costs -- No savings are projected revenue of$100,000 has been eliminated due after one quarter due to the small data sample to the Pier Plaza construction delay. available upon which to make full year projections. • Revenue from Other Agencies -- We have increased the Property Transfer Tax revenue Summary -- Ongoing revenues and expenses in the estimate by $100,000 and the Cable TV General Fund are estimated to result in a surplus of franchise revenue by $50,000 based on a $1,267,831 for Fiscal Year 1996/97. The General review of last year's actual revenues and this Fund reserve is estimated to increase from $6.7. year's first quarter actual receipts. million as of the beginning of the fiscal year to about $8.4 million due to the PERS refund and the Budget • Engineering Fees -- Our estimates have been Surplus. The negative impact of Proposition 218 has increased $470,000 due to the large number not yet been estimated. of subdivision permit applications. City of Huntington Beach ,C of"Un,000,Beach 17�ni� ; 1 K .y 'ecfu a wiiii% .w[are[ a4s,w6�� e. Expenditure Summary -- Ongoing General Fund expenses are projected to exceed appropriations by $80,309. • Salary/Benefit Costs -- After one quarter, a . $900,000 over-expenditure in overtime costs is estimated. Most of this projected t overexpenditure will be offset by savings in permanent salaries/benefits due to vacancies. ayrt?4e: zB udget ep- t�Ftscal ' .- ""U R y `a-• { - F.a"`y"1[sw. '�L 3e..i''t'h 'Pa. a:.nr.. •: -:F� QTRSUM97.XLS ATTACHMENT 1 1/17/97 12:40 PM QUARTERLY EXPENDITURE SUMMARY GENERAL FUND FISCAL YEAR 1996/97 Quarter Ending 12/30/96 1996/97 1996/97 % 1995196 1996/97 EXPENDITURES REVISED 3 MONTHS EXPENDED 3 MONTHS REVISED EST. BUDGET EXPENDED (LAST YEAR) EXPENDITURE Salaries/Benefits 62,801,865 12,850,273 20.5% 13,303,313 61,924,144 Overtime 4,138,878 904,272 21.8% 944,648 5,145,183 Temporary Salaries 2,718,097 402,179 14.8% 412,938 2,669,822 Operating Expenses 24,479,838 12,909,005 52.7% 12,168,208 24,479,838 Transfers/Interest 3,485,822 938,985 26.9% 22,891 3,485,822 Capital Outlay 366,657 32,697 8.9% 64,421 366,657 TOTAL 97,991,157 28,037,411 28.6% 26,916,419 98,071,466 Less One-Time Expenses Operating Expenses (708,974) (708,974) (708,974) Capital Outlay (3,268), (3,268) (3,268) Transfers 0 0 0 Total One Time Costs (712,242) (712,242) (712,242) Total Ongoing Expenses 97,278,915 27,325,169 97,359,224 * Includes the following approved budget amendments: (One-Time and Ongoing Costs) ONGOING <__- --ONE TIME-------------__M>_ DESCRIPTION EXPENSES OPERATING CAPITAL TRANSFERS TOTAL Capital Outlay(Treasurer) 3,268 3,268 Specific Plan/EIR(Developer to reimburse) 157,974 157,974 Legal Costs/Oil Spill II 16,000 16,000 Arthur Anderson Consulting(Rainbow disposal) 20,000 20,000 Outside Legal costs 88,000 88,000 Permit Processing 11 350,000 350,000 Consultant: Developer Reimbursement 77,000 77,000 TOTAL Oil 708.974 --3,268 0 712,242 QTRSUM97.XLS ATTACHMENT 2 1/15/97 1:35 PM QUARTEREY REVENUE SUMMARY GENERAL FUND FISCAL YEAR 1996/97 Quarter End><ng 12/30/96 1996/97;: RECEIVED RECEIVED 1996/97: ,: ADOPTED "3 MONTHS.-:::— PERCENT 3 MONTHS :REVISED REVENUE BUDGET THIS'YEAR is RECEIVED LAST YEAR ESTIMATE Property Tax $25,024,000 $10,900,526 44% $10,542,627 $25,206,000 Sales Tax 16,600,000 3,279,903 20% 2,912,497 17,250,000 Prop. 172 Sales Tax 1,144,000 203,373 18% 273,792 1,144,000 Utility Tax 13,630,000 2,372,309 17% 2,092,268 13,650,000 Transient Occupancy 1,122,000 174,361 16% 1131537 1,122,000 Tax Other Local Taxes 5,300,000 747,697 14% 703,779 5,300,000 Licenses&Permits 4,834,830 918,782 19% 909,162 4,609,830 Fines/Forfeitures &Penalties 2,355,000 430,479 18% 353,714 2,355,000 Use of Money &Property 6,916,250 793,329 11% 754,533 6,740,750 Revenue From Other Agencies 8,536,000 942,834 11% 1,126,497 8,854,000 Charges for Current Service 9,254,725 4,130,211 45% 971,865 9,673,975 Other Revenue 522,700 379,019 73% 146,006 681,500 Transfers from Other Funds 2,390,000 2,659,935 111% 176,103 2,390,000 TOTAL $97;629,505 $27,932;758 29"/0 $21,076,370; `$98,977 055.: City Administrator's Report RECEIVED FROM AND 3 COUNCIL E A PART OF MEETINGMEET NO OF HE R�E,CO�D AT HE OFFICE OF THE CITY CLERK CONNIE BROCKWAY,CITY CLERK QuarterlyBudget Report First Quarter 1996/97 Slide 1 First Quarter Summary • Proposition 218 Adopted in November • General Fund Revenues are Projected to be $1 .3 Million Higher than Budget Projections • Overtime Expenses may Exceed Budget • PERS Refund of $1 .1 Million Expected Approved Budget Amendments = $712,242 Slide 2 February 3, 1997 a City Administrator's Report r : General Fund Revenue and Expense Estimates $in Millions $100 $98 $97.63 $96 $94 $92 ■Revenue $90 $88 ■Expense $86 $84 $82 -$80 Budget 1st Qtr Does Not Include Impact of Proposition 218 Slide 3 General Fund Reserve - Estimates $in Millions $8.4 $10 $6.7 $8 $6 $4 $2 - $0 Budget 1st Qtr Does Not Include Impact of Proposition 218 Slide 4 February 3, 1997 City Administrator's Report Proposition 218 • Staff Has Attended 2 League Workshops • City Options are Being Analyzed — $3.3 Million/Year In-Lieu Fee Transfer — $4 Million/Year Water Capital Charges • Summary by March 1 • Implement by July 1 Slide 5 Budget Report - Summary • Improving Economy has Resulted in Upward Revision to General Fund Revenue and Fund Balance Estimates for 1996/97 • Proposition 218 Implementation Required by July 1 , 1997 Slide 6 February 3, 1997