HomeMy Public PortalAbout07. Quarterly Financial Update - September 30, 2023Claremont City Council
Agenda Report
File #:4896 Item No:7.
TO:CITY COUNCIL
FROM:ADAM PIRRIE, CITY MANAGER
DATE:NOVEMBER 14, 2023
Reviewed by:
City Manager:AP
SUBJECT:
QUARTERLY FINANCIAL UPDATE - SEPTEMBER 30, 2023
SUMMARY
Staff provides the City Council with quarterly updates to apprise them and the community of the
status of the current fiscal year’s budget.
This update focuses on financial results through September 30,2023,the end of the first quarter of
the 2023-24 fiscal year.
The next quarterly report will be provided for the quarter ending December 31, 2023.
RECOMMENDATION
Staff recommends that the City Council receive and file the Quarterly Financial Update dated
September 30, 2023.
ALTERNATIVE TO RECOMMENDATION
In addition to the staff recommendation, there is the following alternative:
·Request additional information.
FINANCIAL REVIEW
While first quarter financial information may not be a statistically significant indicator of annual
financial performance,preliminary financial data through September 30,2023 suggests that for the
full-year,revenues are likely to meet or exceed budgetary estimates,and that expenditures are
expected to remain within the constraints of the budget.Any significant variances from the budget will
be reviewed at mid-year for budget amendments where applicable.
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The staff cost to prepare this report and administer this project is estimated at $1,500 and is included
in the operating budget of the Financial Services Department.
ANALYSIS
In June 2022,the City Council adopted an operating and capital improvement budget for 2023-24
that included $59,989,747 in revenues and transfers in from other funds.The amended revenue
budget of $60,264,833 includes transfers between funds for various technology projects,as well as
the safety and seismic study of the police facility.
The total revenue budget is spread across several fund categories,representing more than thirty
distinct funds that are used to account for a wide variety of programs and activities.Total City
revenues by fund category are shown in the figure below.
Revenues/Transfers In
2023-24
Adopted
Budget
2023-24
Adjusted
Budget
2023-24
Actual
Through
September
2023-24
% Through
September
General Fund 31,630,963 31,656,568 3,144,728 9.93%
Special Revenue Funds 11,464,285 11,464,285 1,475,733 12.87%
Capital Projects Funds 621,650 715,742 4,367 0.61%
Enterprise Funds 10,609,036 10,609,036 2,226,737 20.99%
Internal Service Funds 2,296,445 2,451,834 541,044 22.07%
Successor Agency/Debt Service Funds 3,367,368 3,367,368 123,078 3.66%
Total 59,989,747 60,264,833 7,515,687 12.47%
Through September 30,2023,$7,515,687 in total revenues and transfers in had been received,
representing 12.47%of the full-year budget.This is typical for this point in the fiscal year as much of
the City’s revenue is received towards the end of the fiscal year.
Total expenditures and transfers out to other funds reflected in the original adopted budget amounted
to $62,947,924.The amended budget of $65,219,788 includes appropriations for the ARPA-funded
rental assistance,pre-approved Accessory Dwelling Unit (ADU)design,and technology upgrades,as
well as those for street signage and striping improvements and urban forest professional services.
Expenditures through September 30,2023 totaled $14,450,727 or 22.16%of the full-year budget.
Given the status of expenditures,it is expected that the City will remain within the constraints of the
current budget.
The figure below shows total expenditures and transfers out to other funds as of September 30,
2023.
Expenditures/Transfers Out
2023-24
Adopted
Budget
2023-24
Adjusted
Budget
2023-24
Actual
Through
September
2023-24
% Through
September
General Fund 31,125,732 31,649,818 9,143,410 28.89%
Special Revenue Funds 15,008,186 16,461,971 1,836,329 11.15%
Capital Projects Funds 506,050 619,050 145,878 23.56%
Enterprise Funds 10,327,239 10,327,239 1,852,260 17.94%
Internal Service Funds 2,613,349 2,794,342 674,799 24.15%
Successor Agency/Debt Service Funds 3,367,368 3,367,368 798,049 23.70%
Total 62,947,924 65,219,788 14,450,727 22.16%
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Expenditures/Transfers Out
2023-24
Adopted
Budget
2023-24
Adjusted
Budget
2023-24
Actual
Through
September
2023-24
% Through
September
General Fund 31,125,732 31,649,818 9,143,410 28.89%
Special Revenue Funds 15,008,186 16,461,971 1,836,329 11.15%
Capital Projects Funds 506,050 619,050 145,878 23.56%
Enterprise Funds 10,327,239 10,327,239 1,852,260 17.94%
Internal Service Funds 2,613,349 2,794,342 674,799 24.15%
Successor Agency/Debt Service Funds 3,367,368 3,367,368 798,049 23.70%
Total 62,947,924 65,219,788 14,450,727 22.16%
General Fund
General Fund revenues and transfers in for 2023-24 were originally budgeted at $31,630,963.
As of September 30,2023,$3,144,728 of budgeted revenues had been received,representing
9.93%of adjusted budget for the year.This is typical for General Fund revenues,as most of the
major sources of revenue are received in the latter part of the fiscal year.
The figure below shows 2023-24 General Fund revenues and transfers in as of September 30, 2023.
Revenues/Transfers In
2023-24
Adopted
Budget
2023-24
Adjusted
Budget
2023-24
Actual
Through
September
2023-24
% Through
September
Property Tax 11,992,000 11,992,000 - 0.00%
Sales Tax 7,569,000 7,569,000 620,670 8.20%
Transient Occupancy Tax 1,425,000 1,425,000 161,431 11.33%
Business License Tax 930,000 930,000 193,487 20.81%
Utility User Tax 4,594,000 4,594,000 853,776 18.58%
Other Taxes 955,000 955,000 48,822 5.11%
Licenses & Permits 945,500 945,500 361,667 38.25%
Fines & Forfeitures 560,000 560,000 95,815 17.11%
Use of Money & Property 591,400 591,400 167,670 28.35%
Charges for Services 1,296,950 1,296,950 310,652 23.95%
Miscellaneous Revenues 772,113 797,718 330,739 41.46%
Total 31,630,963 31,656,568 3,144,728 9.93%
The major General Fund revenues,and their budgetary highlights as of September 30,2023,are as
follows:
1.Property Tax -Property taxes received during the first quarter of the fiscal year relate to the
prior year and were accrued to June 30 of 2022-23;therefore,no property tax revenues are
recognized for the current fiscal year in the first quarter.The bulk of property tax revenues are
received during the second and fourth quarters of the fiscal year.
2.Utility User Tax (UUT)-At September 30,2023,UUT revenues totaled $853,776.Through the
first quarter of the prior fiscal year,these revenues totaled $855,498.Revenues reflect a slight
decrease of approximately 0.20% over the same period in the prior year.
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3.Sales Tax -Sales tax revenues received during the first quarter of the fiscal year amounted to
$620,670.During the same quarter in the prior fiscal year,$627,118 sales revenues were
received.Year-to-date revenues reflect a slight decrease of approximately 1.03%over the prior
year.
4.Charges for Services -Revenues through the end of the first quarter totaled $310,652,
compared with prior year revenues for the same period of $340,450.These revenues represent a
decrease of 8.75%over the prior year.This decrease is attributed to higher plan check fees
collected in the prior year compared with the same period in the current fiscal year.
5.Transient Occupancy Tax (TOT)-TOT revenues through September 30,2023 were $161,431
compared with $292,675 through the first quarter of 2022-23.This represents a decrease of
44.84%over the prior year,however large remittances from two hotel operators that were due in
September were not received until October.The first quarter TOT revenue only include revenues
for the first two months of the fiscal year due to a one month lag in collections.Despite the
apparent decrease in revenues compared with the prior year,staff is confident that full-year
revenues will meet or exceed budgetary projections.
6.Other Taxes -Other taxes include franchise fees and property transfer taxes.Through
September 30,2023,these revenues amounted to $48,822.Much of this revenue comes from
franchise taxes paid by utility companies,which is typically received in the latter part of the fiscal
year.
7.Fines and Forfeitures -Revenues from parking,traffic,and code enforcement citations
amounted to $95,815 at September 30,2023.Current year revenues reflect an increase of
74.81%over the prior year,due primarily to the assignment of additional Police Department staff
to traffic enforcement activities.
8.Business License Tax -With first quarter revenues of $193,487,business license tax revenues
for the current year are 104.39%higher than the first quarter in the prior fiscal year.This increase
in revenues is due to the implementation of the business license tax rebate program approved as
part of the City’s allocation of funds from the American Rescue Plan Act (ARPA)program,which
rebated the $135 base business license fee for all Claremont-based businesses in 2022-23.
Rebated fees were reimbursed from monies received through ARPA at close of the prior fiscal
year.
9.Licenses and Permits -Revenues from public works,grading,and building permits totaled
$361,667 at September 30,2023,reflecting a decrease of 35.09%in revenues over the first
quarter of the prior year.Although revenues were lower,they still represent 38.25%of full-year
budgeted revenues.Accordingly,staff is confident that the full-year budget of $945,500 for license
and permits will be met or exceeded.
General Fund expenditures and transfers out for 2023-24 were originally budgeted at $31,125,732.
The figure below shows 2023-24 General Fund expenditures and transfers out as of September 30,
2023.
Expenditures/Transfers Out
2023-24
Adopted
Budget
2023-24
Adjusted
Budget
2023-24
Actual
Through
September
2023-24
% Through
September
Administrative Services 2,580,146 2,580,146 545,289 21.13%
General Services 2,726,959 2,752,564 3,368,185 122.37%
Financial Services 907,857 907,857 199,913 22.02%
Community Development 3,757,837 3,822,837 641,627 16.78%
Police 14,211,512 14,395,512 3,273,157 22.74%
Community Services 2,068,342 2,068,342 519,921 25.14%
Human Services 2,660,752 2,660,752 595,320 22.37%
Transfers Out to Other Funds 2,212,327 2,461,808 - 0.00%
Total 31,125,732 31,649,818 9,143,410 28.89%
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Expenditures/Transfers Out
2023-24
Adopted
Budget
2023-24
Adjusted
Budget
2023-24
Actual
Through
September
2023-24
% Through
September
Administrative Services 2,580,146 2,580,146 545,289 21.13%
General Services 2,726,959 2,752,564 3,368,185 122.37%
Financial Services 907,857 907,857 199,913 22.02%
Community Development 3,757,837 3,822,837 641,627 16.78%
Police 14,211,512 14,395,512 3,273,157 22.74%
Community Services 2,068,342 2,068,342 519,921 25.14%
Human Services 2,660,752 2,660,752 595,320 22.37%
Transfers Out to Other Funds 2,212,327 2,461,808 - 0.00%
Total 31,125,732 31,649,818 9,143,410 28.89%
As of September 30,2023,total General Fund expenditures and transfers out amounted to
$9,143,410 or 28.89%of the adjusted budget for the year.One would typically expect 25%of the
budget to have been expended by this point in the fiscal year.
Of the City’s operating departments,General Services,with 122.37%of its budget expended,
significantly exceeded the 25%threshold for the first quarter.This was primarily due to the payment
in July of approximately $3.6 million towards the City’s general liability,workers’compensation,and
property insurance deposits for the year.These costs are distributed throughout the year to the City’s
operating departments and it is expected that by the end of the fiscal year,General Services’
expenditures will be in line with the budget.Expenditures in Community Services were also higher
than 25%due to increased spending in utility costs and contractual services,some of which are
related to carryforward maintenance items from the prior year.
All other departments expended between 16.78%and 25.14%of their General Fund budgets through
the first quarter of 2023-24.Given these year-to-date figures,General Fund expenditures appear
likely to remain within budgeted amounts for the full year.
Special Revenue Funds
Special Revenue Funds include those funds whose revenues are committed to specific purposes or
projects.The City has nineteen active Special Revenue Funds that provide funding for a variety of
activities,including supplemental public safety services,street repairs and upgrades,transportation
programs,landscaping and streetlight maintenance,senior meal program,housing rehabilitation,the
operation of the City’s impound lot, and economic development.
Revenues for the City’s Special Revenue Funds totaled $1,475,733 compared with a full-year budget
of $11,464,285.Receipts through September 30,2023 represent 12.87%of the budget for the full
year.
Expenditures for the Special Revenue Funds total $1,836,329 against a full-year budget of
$16,461,971.These figures represent 11.15%of the 2023-24 budget expended through September
30,2023.All Special Revenue Funds’expenditures through September 30 indicate that they will not
exceed budgetary constraints by the end of the year.
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Capital Projects Funds
Capital Projects Funds,as their name suggests,are restricted in use to the funding of capital
projects. The City has four active capital projects funds.
Capital Projects Funds received $4,367 in revenues as of September 30,2023,against a full-year
budget of $715,742.Expenditures in the first quarter of this fiscal year amounted to $145,878,
compared with a full-year budget of $619,050.
Enterprise Funds
The City operates four Enterprise Funds to provide transportation,sewer,sanitation,and cemetery
services.The activities of these funds are intended to be supported solely by revenues from fees
charged for services provided.
As of September 30,2023,the City’s Enterprise Funds had generated revenues of $2,226,737
versus an estimated revenues for 2023-24 of $10,609,036.These revenues represent 20.99%of full-
year budgeted revenues.All of the City’s Enterprise Funds are on track to meet budgetary revenue
estimates by the end of the fiscal year.
Expenditures in the Enterprise Funds stand at $1,852,260 as of September 30,2023.This figure
represents 17.94%of the full-year budget of $10,327,239.Given year-to-date expenditures,it is
anticipated that the Enterprise Fund expenditures will end the year within the constraints of the
current budget.
Internal Service Funds
The City’s Internal Service Funds provide motor fleet and technology services to support each of the
City’s operating departments.Revenues for Internal Service Funds come from fees charged
internally to each department for services provided.
As of September 30,2023,Internal Service Fund revenues totaled $541,044 out of a total revenue
budget of $2,451,834. This amounted to 22.07% of the full-year budget.
Expenditures through the end of the first quarter of the fiscal year totaled $674,799,representing
24.15%of the full-year budget of $2,794,342.Internal Service Fund expenditures are expected to
remain within budgeted amounts for the full year.
Successor Agency/Debt Service Funds
In addition to the funds already discussed,the City also operates a Debt Service Fund and a
Successor Agency Fund.The Debt Service Fund,as its name suggests,is used to account for the
expenditure of funds to make payments on outstanding debt obligations of the City.The Successor
Agency Fund was established in the wake of the dissolution of redevelopment agencies in California
to begin the wind down of the affairs of the former Claremont Redevelopment Agency.
Revenues in the Successor Agency/Debt Service Funds amounted to $123,078 as of September 30,
2023,representing 3.66%of the full-year budget of $3,367,368.The bulk of the revenues in the
Successor Agency/Debt Service Funds come from property tax remittances received in January and
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June of each fiscal year, and transfers in processed at the end of the fiscal year.
Expenditures totaled $798,049 of a budgeted $3,367,368 representing 23.70%of the full-year
budget.
RELATIONSHIP TO CITY PLANNING DOCUMENTS
Staff has evaluated the agenda item in relationship to the City’s strategic and visioning documents
and finds the item is consistent with Council Priorities, the General Plan, and the 2022-24 Budget.
CEQA REVIEW
This item is not subject to environmental review under the California Environmental Quality Act
(CEQA).
PUBLIC NOTICE PROCESS
The agenda and staff report for this item have been posted on the City website and distributed to
interested parties. If you desire a copy, please contact the City Clerk’s Office.
Submitted by:
Adam Pirrie
City Manager
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