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Home My Public Portal About11) 7I First Quarter Financial Status Report and Budget AmendmentsDATE: TO: FROM: ADMINISTRATIVE SERVICES D EPARTMENT MEMORANDUM November 6 , 2018 The Honorable City Council Bryan Cook, City Manager Via: Susan Paragas, Administrative Services Director By: Lee Ma, Accountant AGENDA ITEM 7.1. SUBJECT: FISCAL YEAR (FY) 2018 -19 FIRST QUARTER FINANCIAL STATUS REPORTANDBUDG ETAMENDMENTS RECOMMENDATION: It is recommended the City Council receive and file the First Quarter FY 2018-19 (i.e., July -September 2018) Financial Status Report and approve the budget amendments. BACKGROUND: 1. On June 19, 2018, the City Council approved the Fiscal Year 2018-19 (FY 2019) Operating Budget for all funding source in the amount of $20 ,505,665. 2 . On June 19, 2018, the City Council adopted Resolution No. 18-5333 adopting the FY 2019 Statement of Investment Policy. ANALYSIS: In order to keep the City Council updated on the status of the City's financial activities on a quarterly basis , these preliminary reports are presented. The First Quarter FY 2019 Financial Status Report includes the following four sub- reports: 1) City Treasurer's Report; 2) Preliminary Summary Report; 3) Expenditure Summary Expenditure Report; and 4) Capital Improvement Financial Status Report. City Council November 6, 2018 Page 2 of 5 1. Citv Treasurer's Report The attached Treasurer's Report (Attachment A), which is completed and submitted to the City Council on a monthly and quarterly basis, reflects the market value balances and investments of $27,947,814 as of September 30, 2018. However, $1 ,496,596 of this amount is restricted for use towards Other Post-Employment Benefits. 2. Revenue Summarv Report This report (Attachment B) is a summary of revenues by fund and category for the period of July 1, 2018 through September 30, 2018. The City has received and recorded $1.13 million (7.6% of estimated revenues) in the General Fund to date. This represents an increase of $37,400 or 3.4% of revenues for the same period last fiscal year. The City's General Fund revenues are summarized into seven categories: • Taxes include revenues from property tax, sales tax, real estate transfer tax and franchise fees. Primary revenue sources in this category are property tax and sales tax. The first major installment of property tax will not be received until December 2018. This entire category is $63,300 (-21.6%) lower than the same period last year primarily due to the under remittance of the City's sales tax revenues by State of California's Department of Tax and Fee Administration (CDTFA). Issues with CDTFA's new reporting system prevented some businesses to report their collection of sales taxes. • Licenses and Permits include building permits, business license fees, animal license fees, parking permits, impound fees, temporary parking permits, code enforcement fees, in-lieu parking fees and encroachment permit fees. Actual receipts for this quarter have exceeded prior year's collections by $28,285 (+8.06%) due to more activity in building permits. • Intergovernmental is primarily Motor Vehicle In-Lieu. There are no revenues collected for the 1st Quarter as the two major payments from the State of California are received in January and May each year. • Charges for Services are from recreation fees, facility rental fees, zoning fees, plan check fees and public works and engineering fees. These revenues are reflected when services, classes or events are provided. City Council November 6, 2018 Page 3 of 5 Actual receipts are lower than the same period last year by $8,300 (- 2.5%) This was primarily from a decrease in Recreation Fees caused by lower class offerings as a result of a loss in the use of a facility. • Fines and Forfeitures reflect revenues received from court fines on a monthly basis and parking citations issued by the Los Angeles County Sheriff's Department and the City's three Parking Control Officers. Actual collections were $34,700 (+50.9%) higher than the same quarter last year primarily due to the August 2017 receipts being recorded in the second quarter. • Use of Money and Property category is interest earned on City investments from LAIF, Certificates of Deposit (CD), and bond investments. Local Agency Investment Fund interest is received on a quarterly basis and Morgan Stanley Smith Barney and other investment interests from COs, Government Securities and Corporate Bonds are received monthly, semi-annually or when the account matures. Overall, actual receipts are $26,700 (+123.3%) higher in comparison to the same quarter of last year mainly as a result of higher interest rates earned from the City's investments in securities and certificate of deposits (CD). • Other Revenue category reflects revenues received on a monthly basis from reimbursement for recyclable revenue, rental income, reimbursement of administrative charge from the Lighting/Landscape District and other miscellaneous sources. Collections are $19,300 (+ 76.5%) higher than the same period in the prior FY due to a transaction not corrected in the first quarter FY 2018. Additionally, the City collected more reimbursements for various activities. Non-General funding sources (i.e., Special Revenue Funds) are received from various funds such as Traffic Safety, Gas Tax, Proposition A, Proposition C, Measure R, Lighting/Landscape District and Community Development Block Grant. Some revenues are received on a monthly basis while others are received when reimbursement requests are submitted to the other governmental agencies (i.e., or State of California or Los Angeles County). Actual revenues received is currently $227,400 (+34.3%) higher than the same period last year primarily due higher collections from SB821 (Local Transport), road and maintenance repairs and Measure M. City Council November 6, 2018 Page 4 of 5 For the First Quarter of FY 2019, a revenue budget amendment increase is requested for: • $ 8,287-Community Development Block Grant (CDBG) Fund Purpose: Additional Loan Repayment 3. Expenditure Summarv Report This report (Attachment C) is a summary of expenditures for the period of July 1, 2018 through September 30, 2018. By the end of the first quarter, the percent expended is generally 25%. However, some payments are made in July that are applied to the annual expense of the program (i.e. memberships, insurance premiums and CaiPERS' lump- sum contribution) which skew the reported expenditure percentage. Conversely, programs with lower percentages spent is attributable to the timing of the invoices submitted to the City. (i.e. invoicing for contracts with Los Angeles County that typically have a lag time of one or two months). The Administrative Services Department was the only area that was significantly over the 25% measurement mark for the first quarter which was at 47% of its budgeted expenditures. As discussed above, the primary cause was due to the lump-sum annual payments for general liability insurance premiums and contributions. However, the First Quarter total expenditures for all funds is only 20% of the annual budget. For this First Quarter of FY 2019, two expenditure budget amendment increases are requested: • $ 8,287-CDBG Fund Purpose: Remittance to CDBG of loan repayment • $20,000-General Fund-Management Services Purpose: Increase for Waste Hauling Consultant Contract 4. Capita/Improvement Financial Status Report The First Quarter Capital Improvement Program (CIP) Projects· expenditures only reflect costs for one Citywide Capital Improvement Projects: Primrose Properties Demolition of $9,719 from a total FY 2019 City Council November 6, 2018 Page 5 of 5 CIP budget of $2,840,000. Please see Attachment D. CITY STRATEGIC GOALS: The City Council is requested to receive and file the First Quarter FY 2019 Preliminary Financial Status Report to further City's Strategic Goal to promote Good Governance. FISCAL IMPACT: This item will have an impact on the FY 2019 Budget. Staff is requesting three (3) budget amendments for this First Quarter of FY 2019 Budget: 1. A revenue budget amendment increase of $8,287 for the CDBG Fund; and 2. Two expenditure budget amendment increases of $8,287 CDBG Fund and $20,000 for the General Fund. ATTACHMENTS: A. City ofTemple City Treasurer's Report-1st Qtr FY 2019 B. City of Temple City Revenue Summary Report-1St Qtr FY 2019 C. City ofTemple City Expenditure Summary Report-1st Qtr FY 2019 D. City of Temple City Capital Improvement Financial Status Report-1st Qtr FY 2019 CITY OF TEMPLE CITY TREASURER'S REPORT September 30, 2018 Cash In Bank Wells Fargo Bank-Checking US Bank -Checking Camellia Fund Payroll Merchant Card East West Bank-Monthly Market Account Wells Fargo Bank-Checking Petty Cash LA IF Effective Quarter to Date Yield 9/30/18 2.000% Morgan Stanley Smith Barney Certificates of Deposit . Weighted Average to Date Yield 9/30/18 1.989% Government Securities Weighted Average to Date Yield 9/30/18 1.052% Corporate Fixed Income Weighted Average to Date Yield 9/30/18 2.372% Money Market Mutual Securities Government Securities Weighted Average to Date Yield 9/30/18 1.383% Money Market US Bank Certificates of Deposit Weighted Average to Date Yield 9/30/18 1.806% Government Securities Weighted Average to Date Yield 9/30/18 1.584% Los Angeles County Pool Investment Fund As of 9/30/18 1 .890% SUB TOTAL OPEB Investment-Restricted As of 9/30/18 TOTAL PRIOR MONTH STATUS Total $ $ $ COST VALUE 1 ,854, 742.08 10,198.73 24,080.48 168,173.32 160,000.00 11 '149.94 2,100.00 1,315,313.13 3,280,000.00 1,200,000.00 1,988,774.40 3,861.27 6,500,000.00 0.79 3,230,000.00 2,196,393.03 4,742,188.65 26,686,975.82 1,100,000.00 27,786,976.82 27,560,076.7 4 $ $ $ ATTACHMENT A MARKET VALUE 1,854,742.08 10,198.73 24,080.48 168,173.32 160,000.00 11,149.94 2,100.00 1,312,461.53 3,235,338.65 1 '176,594.50 1 ,968,896.15 3,861.27 6,358,960.00 0.79 3,230,000.00 2,187,612.12 4,747,048.02 26,451,217.58 1,496,595.95 27,947,813.53 27,733,785.19 All Investments are placed In accordance with the Clly of Temple Clty's Investment Polley. The abo~e summary provides sufficient cash flow liquld~slx month's :ated expenditures. This report is In accordance with Government Code Section 53646. SUSAN PARAGAS CITY TREASURER ATIACHMENTB CITY OF TEMPLE CITY REVENUE SUMMARY REPORT-ALL FUNDS QUARTER ENDING -SEPTEMBER 30, 2018 2017-18 2017-18 2018-19 2018-19 PERCENT BUDGET YEAR TO DATE BUDGET YEAR TO DATE RECEIVED JUL-SEP JUL-SEP Taxes $6,060,000 $292,509 $6,329,700 $229,233 4% Licenses and Permits 1,535,000 351,027 1,661,000 379,312 23% I ntergovemmental 4,300,000 0 4,632,600 0 0% Charges for Services 1,474,260 333,681 1,398,650 325,362 23% Fines, Forfeitures, & Penalities 475,000 68,242 475,000 102,980 22% Use of Money and Property 200,000 21,641 240,000 48,319 20% Other Revenue 220,000 25,207 213,000 44,490 21% Total General Fund Revenue $14,264,260 $1,092,307 $14,949,950 $1,129,696 8% Total Special Revenue Funds $4,973,620 $663,289 $5,874,150 $890,699 15% -- TOTAL REVENUE $19,237,880 $1,755,596 $20,824,100 $2,020,395 10% ATTACHMENT C CITY OF TEMPLE CITY EXPENDITURE SUMMARY REPORT -ALL FUNDS QUARTER ENDING-SEPTEMBER 30, 2018 2017-18 2017-18 2018-19 2018-19 PERCENT BUDGET YEAR TO DATE BUDGET YEAR TO DATE EXPENDED JUL-SEP JUL-SEP MANAGEMENT SERVICES DEPARTMENT City Council $179,790 $46,374 $180,870 $29,152 16% City Manager 949,935 261,826 985,045 287,474 29% City Manager (library Project) 1,500,000 0 0 0 0% City Attorney 362,000 46,779 320,000 55,341 17% Elections 0 0 0 0 0% City Clerk 327,560 93,312 333,552 105,175 32% Management Services Dept Total $3,319,285 $448,291 $1,819,467 $477,142 26% PUBLIC SAFETY DIVISION Law Enforcement $4,445,020 $711,427 $4,611,600 $713,200 15% Traffic Engineering 37,310 2,645 37,763 4,179 11% Emergency Services 153,540 39,486 160,010 58,402 36% Parking Administration 319,985 72,680 341,557 77,688 23% Public Safety Division Total $4,955,855 $826,238 $5,150,930 $853,469 17% ADMINISTRATIVE SERVICES DEPARTMENT Support Services $137,180 $57,375 $153,405 $32,869 21% Insurance/Benefits 974,230 658,647 1,081,043 662,031 61% Accounting 624,580 170,860 617,013 176,123 29% Purchasing 295,450 118,014 316,690 140,438 44% Administrative Services Dept Total $2,031,440 $1,004,896 $2,168,151 $1,011,461 47% PARKS & RECREATION DEPARTMENT Recreation/Human Services $1,310,860 $303,765 $1,292,495 $310,693 24% Public Transportation 758,970 156,450 778,482 130,497 17% Parks-Mince/Facilities 1,093,410 287,808 1,183,835 290,896 25% Trees & Parkways 664,390 144,377 690,885 136,725 20% Parks & Recreation Dept Total $3,827,630 $892,400 $3,945,697 $868,811 22% Page 1 of 2 ATTACHMENT C CITY OF TEMPLE CITY EXPENDITURE SUMMARY REPORT-ALL FUNDS QUARTER ENDING-SEPTEMBER 30, 2018 2017-18 2017-18 2018-19 2018-19 PERCENT BUDGET YEAR TO DATE BUDGET YEAR TO DATE EXPENDED JUL-SEP JUL-SEP COMMUNITY DEVELOPMENT DEPARTMENT COMMUNITY ENHANCEMENT DIVISION Planning $918,730 $201,574 $828,375 $221 '142 27% Building 715,790 110,550 727,898 139,211 19% Housing 233,870 11,676 211,695 31,950 15% Community Preservation 532,500 148,171 541,180 139,296 26% Community Enhancement Division Total $2,400,890 $471,971 $2,309,148 $531,599 23% INFRASTRUCTURE & MAINTENANCE DIVISION Administration & Engineering $690,420 $160,586 $707,291 $145,343 21% Traffic Signal Maintenance 156,500 4,278 156,500 4,036 3% Traffic Signs & Strip Main!. 117,460 38,654 105,430 30,775 29% Street and Sidewalk Maintenance 379,800 49,395 378,200 40,476 11% Solid Waste Management 10,110 1,520 9,000 0 0% Street Lighting 359,930 55,656 375,216 44,336 12% General Government Buildings 269,900 84,022 291,088 74,522 26% Parking Facilities 100,630 25,987 103,550 30,293 29% Infrastructure & Maintenance Division Total $2,084,750 $420,098 $2,126,275 $369,781 17% Community Development Dept Total $4,485,640 $892,069 $4,435,423 $901,380 20% SUB TOTAL PROGRAM EXPENDITURES $18,619,850 $4,063,894 $17,519,668 $4,112,263 23% CAPITAL IMPROVEMENT FUND $5,267,615 $70,105 $2,840,000 $9,719 0% EQUIPMENT REPLACEMENT $40,000 $17,804 $65,000 $0 0% CDBG LOAN REPAYMENT $0 $4,000 $0 $8,287 0% TOTAL EXPENDITURES $23,927,465 $4,155,803 $20,424,668 $4,130,269 20% Page 2 of 2 CITY OF TEMPLE CITY CAPITAL IMPROVEMENT PROJECTS FINANCIAL STATUS REPORT JUL 18-SEP 18 CAPITAL IMPROVEMENT PROGRAM PROJECT DETAIL No. Project Funding Source Budget P19-01 Live Oak Park Community Center, Phase I (R) Measure A $180,000 Improvement P19-02 Live Oak Park Irrigation System Modifications (R) Park Acquisition 21,000 P19-03 Live Oak Park and Temple City Park Lighting (R) Park Acquisition 15,000 Upgrades P19-04 Temple City Park Pavilion Roofing (E) Park Acquisition 10,000 Recap of Funding Sources Measure A $180,000 Park Acquisition $46,000 TOTAL CIP-PARKS MAINTENANCE I FACILITIES $226,000 (E) = Essential (N) = Necessary (M) = Mandated (R) = Routine ATTACHMENT D PARKS-MAINTENANCE/FACILITIES ACCT. NO. XX-980-59-601 0 Year To Date Expenditure Balance $180,000 21,000 15,000 10,000 $0 $226,000 (D) = Discretionary Page 1 of4 CITY OF TEMPLE CITY CAPITAL IMPROVEMENT PROJECTS FINANCIAL STATUS REPORT JUL 18-SEP 18 CAPITAL IMPROVEMENT PROGRAM PROJECT DETAIL No. Project Funding Source Budget P19-05 Green Street Improvements (M) General Fund $50,000 P19-06 Rio Hondo I Eaton Wash TMDL LRS Project (M) General Fund 234,000 P19-07 Pavement Management Street Resurfacing (E) General Fund 105,000 MeasureR 750,000 Road Maintenance and Repair Act 604,000 Measure M 400,000 1,859,000 P19-08 Sidewalks and Cub Ramps ADA Improvements (M) Transportation Development 86,000 Account P19-09 Las Tunas Drive Entry Monument (D) General Fund 40,000 P19-1 0 Banner Replacements (D) General Fund 75,000 Recap of Funding Sources General Fund $504,000 Transportation Development Account $86,000 MeasureR $750,000 Road Maintenance and Repair Act $604,000 Measure M $400,000 TOTAL CIP-STREET CONSTRUCTION $2,344,000 (E) = Essential (N) = Necessary (M) = Mandated (R) = Routine ATTACHMENT 0 STREET CONSTRUCTION ACCT. NO. XX-980-75-6010 Year To Date Expenditure Balance $50,000 234,000 1,859,000 86,000 40,000 75,000 $0 $2,344,000 (D) = Discretionary Page2 of4 CAPITAL IMPROVEMENT PROGRAM PROJECT DETAIL No. Project P19-11 City Hall Sewer Lateral Modification Recap of Funding Sources TOTAL CIP-GEN GOV'T BLDGS (E) = Essential (N) = Necessary CITY OF TEMPLE CITY CAPITAL IMPROVEMENT PROJECTS FINANCIAL STATUS REPORT JUL 18 -SEP 18 ATTACHMENT 0 GENERAL GOVERNMENT BUILDINGS ACCT. NO. XX-980-81--601 0 Year To Date Funding Source Budget Expenditure Balance (N) General Fund $45,000 $45,000 General Fund $45,000 $45,000 $0 $45,000 (M) = Mandated (R) = Routine (D) = Discretionary Page 3 of4 CAPITAL IMPROVEMENT PROGRAM PROJECT DETAIL No. Project P19-12 Downtown Parking Lots Study P19-13 Primrose Properties Demolition Recap of Funding Sources TOTAL CIP-GEN GOV'T BLDGS (E) = Essential (N) = Necessary CITY OF TEMPLE CITY CAPITAL IMPROVEMENT PROJECTS FINANCIAL STATUS REPORT JUL 18-SEP 18 Funding Source Budget (D) General Fund $50,000 (N) General Fund 175,000 General Fund $225,000 $225,000 (M) = Mandated (R) = Routine GRAND TOTAL-CAPITAL IMPROVEMENT PROGRAM $2,840,000 ATIACHMENTD PARKING FACILITIES ACCT. NO. XX-980-82-6010 Year To Date Expenditure Balance $50,000 9,719 165.281 $9,719 $215,281 (D) = Discretionary $9,719 $2,830,281 Page 4 of4