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Home My Public Portal About09) 7E FY 2016-17 Fourth Quarter Preliminary Status ReportAGENDA ITEM 7.E. ADMINISTRATIVE SERVICES DEPARTMENT DATE: October 3, 2017 TO: The Honorable City Council MEMORANDUM FROM: Bryan Cook, City Manager Via: Tracey L. Hause, Administrative Services Director By: Lee Ma, Accountant SUBJECT: FISCAL YEAR (FY) 2016-17 FOURTH QUARTER PRELIMINARY FINANCIAL STATUS REPORT INxK016hTd:4.IBYN1IQkiA It is recommended the City Council receive and file the Fourth Quarter (i.e., April — June 2017) Preliminary Financial Status Report. BACKGROUND / ANALYSIS: Historically on a quarterly basis, staff has submitted reports to the City Council on treasury activities and revenue and expenditure transactions. These reports represent activities for the fourth quarter of Fiscal Year (FY) 2016-17, April 2017 through June 2017. Even though the City completed its fiscal and program year for 2016-17, on June 30, 2017, most of the all financial activities for FY 2016-17 have been recorded due to timing of receipts and recognition of revenues and expenses. This process of recording financial transactions for a few months after the end of a fiscal year is typical, and is commonly referred as accruing, or recording financial transactions for the appropriate fiscal year. In order to keep the City Council updated on the status of the City's financial activities, on a quarterly basis for FY 2016-17, these preliminary reports are presented. These reports, however, do not include all the adjustments for accrued revenues, which will be significant. For example, two months of sales tax and property tax receipts attributable from the State of California and County of Los Angeles are still being finalized. There will be other smaller adjustments as well to other revenue accounts. While most expenses have been recognized, there may be additional minor adjustments. The Comprehensive Annual City Council October 3, 2017 Page 2 of 4 Financial Report (CAFR) will be an all-inclusive reporting of financial transactions for FY 2016-17, and will be completed when Vavrinek, Trine, Day & Company's independent audit is concluded, later in this calendar year (i.e., December 2017). The Fourth Quarter 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. 1. City Treasurer's Report The Treasurer or Chief Fiscal Officer (i.e., Administrative Services Director) is required to render an annual statement of investment policy to the legislative body of the local agency and to complete a monthly report containing specific information regarding investment and deposits to the legislative body and the Chief Administrative Officer. The attached Treasurer's Report (Attachment "A"), which is completed and submitted to the City Council on a monthly and quarterly basis, reflects the cash balances and investments of $28,113,538.31 as of June 30, 2017. This is the only report presented that should not deviate from reported cash and investments in the final FY 2016-17 CAFR. 2. Preliminary Revenue Summary Report This report (Attachment "B") is a summary of revenues by fund and category for the period of July 1, 2016 through June 30, 2017. The City has received and recorded $13.8 million (96% of estimated revenues) in the General Fund to date. This represents an increase of $617,131 or 4.7% 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, property tax is 4.6% higher and sales tax is 9.6% higher from the same period last year. Currently actual receipts collected, in this category to date, are within 90% of estimates, however after the accruals have been recorded, it is anticipated the budget expectations will be met; • 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 have exceeded estimates by 5% overall; • Intergovernmental is primarily Motor Vehicle In Lieu. The actual collections have exceeded estimates by 4%; City Council October 3, 2017 Page 3 of 4 • 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. Actual receipts have decreased estimates by 6% overall due to less revenues received from recreation fees and plan check fees; • Fines and Forfeitures reflect revenues received from court fines on a monthly basis and parking citations issued by the Los Angeles County Sheriffs Department and the City's three Parking Control Officers. Actual collections was 12% lower than estimated budget for Fiscal Year 2016-17 but over $491,000 in comparison to the previous fiscal year primarily due to the City received additional one-time $391,258 bail forfeiture from the court due to the dependent failure to appear in court; • 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 MorganStanley SmithBarney and other investment interests from CDs, Government Securities and Corporate Bonds are received monthly, semi- annually or when the account matures. Overall, actual receipts are 10% less due to a decrease in market value of the portfolio in FY 2016-17; and • Miscellaneous 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. This category reflects 135% revenues collected to date. 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 currently is 72% of budgeted estimates primarily due to the fact that there were not many big capital improvement projects were completed in this fiscal year as in prior fiscal year funded by grants. Overall amount of the special revenue is $261,623 or 5.4% lower in comparison to last year. 3. Preliminary Expenditure Summary Report This report (Attachment "C") is a summary of expenditures for the period of July 1, 2016 through June 30, 2017. Any percentage of expenditures that is less than 110% of the adopted budget is considered immaterial when considering the entire City Council October 3, 2017 Page 4 of 4 operating budget of $20,460,340, as the excess is typically only a few thousand dollars. The General Government Buildings Program was over 13% of the adopted budget due to additional costs for rearrangement of offices and higher cost in utilities. 4. Capital Improvement Financial Status Report The fourth quarter expenditures reflect costs for 12 Citywide Capital Improvement Projects undertaken in FY 2016-17 (Attachment "D"). Actual expenditures are $433,536 higher from last fiscal year primarily due to costs of completions for the Live Oak Park Walking and Jogging Path Project, the Veterans Monument Project and the Temple City Boulevard Parking Lot Project. This level of expenditures is typical with Capital Improvement Projects as completion of some projects are over multiple fiscal years. Unspent funds budgeted for projects are either re -programmed to the FY 2017-18 City Budget or returned to the respective Fund Balances. CITY STRATEGIC GOALS: As it will be a couple more months before the audited CAFR will be complete, it is important to keep the City Council updated on the financial status of the operations and capital improvement projects in this interim period. As a result, the City Council is requested to receive and file the FY 2016-17 Fourth Quarter Preliminary Financial Status Report to further City's Strategic Goal to promote Good Governance. FISCAL IMPACT: This item does not have an impact on the FY 2016-17 or the FY 2017-18 City Budgets. ATTACHMENTS: A. City of Temple City Treasurer's Report B. City of Temple City Preliminary Revenue Summary Report C. City of Temple City Preliminary Expenditure Summary Report D. City of Temple City Preliminary Capital Improvement Financial Status Report CITY OF TEMPLE CITY TREASURER'S REPORT June 30, 2017 MoroanStanlev SmithBarnev COST VALUE Cash in Bank Wells Fargo Bank - Checking 503,654.19 - Payroll 9,679.86 - Merchant Card 15,552.92 US Bank - Checking 89,614.44 Camellia Fund East West Bank - Monthly Market Account 160,000.00 Wells Fargo Bank - Checking 10,494.42 Petty Cash 2,100.00 LAIF Effective Quarter to Date Yield 6/30/17 0.930% 2,646,588.66 MoroanStanlev SmithBarnev Certificates of Deposit 5,500,000.00 Weighted Average to Date Yield 6/30/17 1.623% 3,280,000.00 Government Securities 6,250.14 Weighted Average to Date Yield 6/30/17 1.052% 1,200,000.00 Corporate Fixed Income Weighted Average to Date Yield 6/30/17 1.793% 2,004,565.00 Money Market 11,087.49 Mutual Securities Government Securities 5,500,000.00 Weighted Average to Date Yield 6/30/17 1.216% Money Market 6,250.14 US Bank Certificates of Deposit Weighted Average to Date Yield 6/30/17 1.169% 3,973,000.00 Government Securities Weighted Average to Date Yield 6/30/17 1.372% 1,961,659.70 Los Angeles County Pool Investment Fund 5,639,291.49 As of 6/30/17 1.290% OPEB Investment 1,100,000.00 As of 5/31/17 TOTAL $ 28,113,538.31 PRIOR MONTH STATUS Total $ 29,384,345.15 ATTACHMENT A MARKET VALUE 503,654.19 9,679.86 15,552.92 89,614.44 160,000.00 10,494.42 2,100.00 2,644,407.87 3,281,072.09 1,184,837.50 2,000,198.85 11,087.49 5,436,060.00 6,250.14 3,973,000.00 1,969,465.02 5,644,817.28 1,372,436.54 $ 28,314,728.61 $ 29,577,573.01 All investments are placed in accordance with the City of Temple City's Investment Policy. The above summary provides sufficient cash flow liquidity to meet the next six month's estimated expenditures. This report is in accordance with Government Code Section 53646. 4 l)--- TRACEY L. HAUSE CITY TREASURER Taxes Licenses and Permits Intergovernmental Charges for Services Fines, Forfeitures, & Penalities Use of Money and Property Interest Income Unrealized Gain (Loss) Miscellaneous Total General Fund Revenue Total Special Revenue Funds TOTAL REVENUE CITY OF TEMPLE CITY PRELIMINARY REVENUE SUMMARY REPORT - ALL FUNDS QUARTER ENDING -JUNE 30, 2017 2015-16 BUDGET 5,530,540 1,530,000 3,917,000 1,514,100 500,000 200,000 200,000 5,952,835 19,509,475 2015-16 YEAR TO DATE JUL-JUN 4,944,738 1,774,502 4,079,441 1,627,709 288,892 156,991 156,991 347,695 13,219,968 4,853,162 18,073,130 2016-17 BUDGET 5,827,000 1,677,000 4,000,000 1,507,170 891,000 200,000 200,000 238,000 14,340,170 6,405, 580 --------------- 20,745,750 2016-17 PERCENT YEAR TO DATE RECEIVED JUL-JUN 5,238,907 90% 1,767,407 105% 4,172,548 104% 1,416,157 94% 780,408 88% 291,634 146% (151,215) - 140,419 70% 321,253 135% — 13,837,099 96% 4,591,539 72% 18,428,638 89% D D 0 M z CITY OF TEMPLE CITY PRELIMINARY EXPENDITURE SUMMARY REPORT - ALL FUNDS QUARTER ENDING - JUNE 30, 2017 2015-16 2015-16 2016-17 2016-17 PERCENT BUDGET YEAR TO DATE BUDGET YEAR TO DATE EXPENDED JUL-JUN JUL-JUN MANAGEMENT SERVICES City Council 174,545 155,068 178,915 153,490 86% City Manager 856,910 823,398 1,136,395 1,010,693 89% City Manager (Library Project) 1,950,000 450,000 23% City Attorney 492,000 456,947 382,000 353,163 92% Elections 0 0 85,875 52,867 62% City Clerk 304,610 285,632 324,825 306,542 94% 1,828,065 _ 1,721,045 4,058,010 2,326,755 57% ADMINISTRATIVE SERVICES DEPARTMENT Support Services 132,810 129,529 136,600 134,805 99% Insurance/Benefits 952,665 1,007,534 1,045,285 1, 089,663 104% Accounting 543,510 517,969 611,510 611,075 100% Purchasing 282,900 234,446 296,595 320,334 108% 1,911,885 1,889,478 2,089,990 2,155,877 103% COMMUNITY DEVELOPMENT DEPARTMENT Planning 1,891,915 826,350 1,609,655 930,741 58% Building 895,860 1,024,860 927,410 953,000 103% Housing 205,990 178,719 439,600 308,971 70% i --- 2,993,765 2,029,929 2,976,665 2,192,712 74% COMMUNITY SERVICES DEPARTMENT n Recreation/Human Services 1,197,260 1,160,230 1,263,885 1,196,763 95% Public Transportation 851,885 702,492 852,830 665,300 78% Parks - Maintenance/Facilities 1,006,935 976,978 1,078,840 1,078,206 100% Trees & Parkways 675,410 534,667 691,690 599,585 87% M 3,731,490 3,374,367 3,887,245 3,539,854 91% CITY OF TEMPLE CITY PRELIMINARY EXPENDITURE SUMMARY REPORT - ALL FUNDS QUARTER ENDING -JUNE 30, 2017 COMMUNITY SERVICES DEPARTMENT PUBLIC SAFETY DIVISION Law Enforcement Traffic Engineering Animal Control Emergency Services Community Preservation Parking Administration PUBLIC WORKS DIVISION Administration & Engineering Street Cleaning Traffic Signal Maintenance Traffic Signs & Strip Maint. Street Maintenance Sidewalk Maintenance Solid Waste Management Street Lighting MAINTENANCE DIVISION General Government Buildings Parking Facilities Graffiti Abatement SUB TOTAL PROGRAM EXPENDITURES 2015-16 2015-16 2016-17 2016-17 PERCENT BUDGET YEAR TO DATE BUDGET YEAR TO DATE EXPENDED JUL-JUN JUL-JUN 4,019,860 3,973,703 4,271,475 4,244,350 99% 40,000 34,164 40,000 15,469 39% 201,790 183,902 240,045 232,903 97% 117,775 104,658 113,075 102,782 91% 291,825 222,144 335,860 277,334 83% 390,545 309,517 412,985 321,394 78% 5,061,795 4,828,088 5,413,440 5,194,232 96% 525,125 543,788 480,550 476,380 99% 202,490 204,474 208,800 208,265 100% 151,500 164,153 136,500 134,115 98% 173,925 81,116 132,565 83,879 63% 61,150 62,762 93,100 71,511 77% 63,340 48,433 40,000 38,602 97% 19,490 9,046 10,115 8,195 81% 375,425 336,670 394,010 313,822 80% 1,572,445 1,450,442 1,495,640 1,334,769 89% 239,300 245,212 322,270 363,214 113% 152,855 118,283 167,080 152,069 91% 50,000 41,598 50,000 39,443 79% 442,155 405,093 539,350 554,726 103% 17,541,600 15,698,442 20,460,340 17,298,925 85% CITY OF TEMPLE CITY PRELIMINARY EXPENDITURE SUMMARY REPORT - ALL FUNDS QUARTER ENDING -JUNE 30 2017 TOTAL EXPENDITURES 2015-16 2015-16 2016-17 2016-17 PERCENT CDBG LOAN REPAYMENT BUDGET YEAR TO DATE BUDGET YEAR TO DATE EXPENDED GRAND TOTAL 21,220,040 JUL-JUN 26,116,180 JUL-JUN 74% SUB TOTAL PROGRAM EXPENDITURES 17,541,600 15,698,442 20,460,340 17,298,925 85% CAPITAL IMPROVEMENT FUND 3,404,255 1,434,676 5,540,640 1,868,212 34% EQUIPMENT REPLACEMENT 210,900 229,663 90,200 60,551 67% TRUST FUND 0 2,960 0 260 - TOTAL EXPENDITURES 21,156,755 17,365,741 26,091,180 19,227,948 74% CDBG LOAN REPAYMENT 63,285 63,284 25,000 25,000 100% GRAND TOTAL 21,220,040 17,429,025 26,116,180 19,252,948 74% Recap of Funding Sources General Fund 40,500 CITY OF TEMPLE CITY PRELIMINARY FINANCIAL STATUS REPORT JUL 16 - JUN 17 269,350 Lightiing/Landscape CAPITAL IMPROVEMENT PROGRAM 5th District 2015 Excess 240,000 PARKS - MAI NTENANCE/FACILITIES PROJECT DETAIL ACCT. NO. 60-980-59-4810 Year To Date No. Proiect Funding Source Budget Expenditure Balance P16-01 Live Oak Park Walking and Jogging Path (D) DEFG 240,000 Park Acquisition 51,850 General Fund 20,500 312,350 298,234 14,116 P16-02 Veteran's Monument (D) Park Acquisition 197,500 196,046 1,454 P17-01 Renovation of Las Tunas Drive Lighting (D) Lighting/Lanscape 9,810 9,810 - District P17-02 Senior Master Plan (D) General Fund 20,000 8,314 11,686 P17-06 Resurface Six Courts at Live Oak Park (D) Park Acquistion 20,000 12,600 7,400 Recap of Funding Sources General Fund 40,500 Park Acquisition 269,350 Lightiing/Landscape 9,810 District 5th District 2015 Excess 240,000 Funds Grant TOTAL CIP - PARKS MAINTENANCE I FACILITIES (E) = Essential (N) = Necessary 559,660 525,004 34,656 m z (M) = Mandated (R) = Routine (D) = Discretionary r� v CITY OF TEMPLE CITY PRELIMINARY FINANCIAL STATUS REPORT JUL 16 - JUN 17 CAPITAL IMPROVEMENT PROGRAM PROJECT DETAIL No. Project P15-06 Update Traffic Signals on Temple City Blvd. (N) between EI Camino Real Avenue and Ellis Lane, and Other Safety Improvements P15-07 Upgrade Traffic Signals Citywide and Install Other Safety Improvements Recap of Funding Sources (N) TOTAL CIP - TRAFFIC SIGNAL MAINTENANCE (E) = Essential (N) = Necessary Fundino Source Highway Safety Improvement Program Prop C Surface Transportation Program Local Highway Safety Improvement Program General Fund General Fund Prop C Highway Safety Improvement Program Surface Transportation Program Local (M) = Mandated TRAFFIC SIGNAL MAINTENANCE ACCT. NO. 60-980-73-4810 Year To Date Budget Expenditure 934,560 704,790 437,300 2,076,650 18,517 282,900 9,930 292,830 8,534 9,930 704,790 1,217,460 437,300 Balance 2,058,133 284,296 2,369,480 27,051 2,342,429 (R) = Routine (D) = Discretionary CITY OF TEMPLE CITY PRELIMINARY FINANCIAL STATUS REPORT JUL 16 -JUN 17 CAPITAL IMPROVEMENT PROGRAM PROJECT DETAIL STREET CONSTRUCTION ACCT. NO. 60-980-76-4810 Year To Date No. Project Funding Source Budget Expenditure Balance P12-04 Citywide Upgrade Traffic Street Signage (M) General Fund 200,000 6,217 193,783 P13-02 Repaving of Streets per Re -assessment (E) Measure R 1,500,000 811,809 688,191 Pavement Management Plan P14-07 NPDES Storm Water Management Project (E) General Fund 66,500 66,500 P17-03 Las Tunas Drive Study (D) General Fund 200,000 8,155 191,845 Recap of Funding Sources General Fund 466,500 Measure R 1,500,000 TOTAL CIP - STREET CONSTRUCTION 1,966,500 826,181 1,140,319 (E) = Essential (N) = Necessary (M) = Mandated (R) = Routine (D) = Discretionary CITY OF TEMPLE CITY PRELIMINARY FINANCIAL STATUS REPORT CAPITAL IMPROVEMENT PROGRAM GENERAL GOVERNMENT BUILDINGS Year To Date No. Project Funding Source Budget Expenditure Balance P14-11 Rebuild the Roof for the City Yard Buildings (D) General Fund 45,000 45,000 P17-04 City Hall Space Planning Project (D) General Fund 50,000 11,712 38,288 Recap of Funding Sources TOTAL CIP - GEN GOVT BLDGS (E) = Essential (N) = Necessary General Fund (M) = Mandated 95,000 95,000 (R) = Routine 11,712 83,288 (D) = Discretionary CITY OF TEMPLE CITY PRELIMINARY FINANCIAL STATUS REPORT JUL 16 - JUN 17 CAPITAL IMPROVEMENT PROGRAM PARKING FACILITIES PROJECT DETAIL ACCT. NO. 60-980-8211810 Year To Date No. Project Funding Source Budget Expenditure Balance P17-05 Temple City Blvd. Parking Lot Project (D) General Fund 550,000 478,264 71,736 Recap of Funding Sources TOTAL CIP - GEN GOVT BLDGS (E) = Essential (N) = Necessary General Fund (M) = Mandated 550,000 550,000 (R) = Routine 478,264 71,736 (D) = Discretionary