HomeMy WebLinkAboutItem No. 09 FY 2017-18 Mid-Year Operating Budget GFText File
City of Lake Elsinore 130 South Main Street
Lake Elsinore, CA 92530
www.lake-elsinore.org
File Number: ID# 17-524
Agenda Date: 2/13/2018 Status: Consent AgendaVersion: 1
File Type: ReportIn Control: City Council / Successor Agency
Agenda Number: 9)
Page 1 City of Lake Elsinore Printed on 2/8/2018
REPORT TO CITY COUCIL
To:Honorable Mayor and Members of the City Council
From:Grant Yates, City Manager
Prepared By: Jason Simpson, Assistant City Manager
Date:February 13, 2018
Subject: Fiscal Year 2017-18 Mid-Year Operating Budget Status Report – General
Fund
RECOMMENDATIONS
adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, AMENDING THE FY 2017-18 ANNUAL OPERATING BUDGET FORMID-YEAR
ADJUSTMENTS
BACKGROUND
The City is presenting its FY2017-18 Mid-Year Budget review of the General Fund. The City’s
Budget Committee reviewed the FY2017-18 Mid-Year Revised budget for the General Fund.
Please note that a review and status report update for Special Revenue Funds, Capital Project
Funds, and other funds will be a part of the process for the FY2018-19 Operating Budget and
Capital Improvement Plan Budget, which includes a comprehensive workshop in May 2018.
While the economy is showing continuing signs of improving and the development activity
momentum is building within the City, it is critical that we continue to operate in a fiscally prudent
manner, maintain current public safety service levels, and continue providing key services that
our citizens have come to expect. As such, the FY2017-18 Mid-Year Operating Budget Status
Report proposes to maintain current services through June 30, 2018, maintains the Uncertainty
Reserve at 17.5%, and establishes a path towards development of the FY2018-19 Operating
Budget and the Five (5) Year General Fund Financial Plan. Included as attachments to this report
are several schedules illustrate (in a tabular format) the current status of the FY2017-18 Mid-Year
Budget for the General Fund, as follows:
Exhibit A – Resolution 2018- ___ including the attached financial schedules
Summary of Revenues, Expenditures, and Change in Fund Balances – General
Fund - FY2017-18 Mid-Year Annual Operating Budget
Fiscal Year 2017-18 Mid-Year Operating Budget
February 13, 2018
Page 2 of 3
DISCUSSION
Revenues:
At mid-year, the City is anticipating a net increase in recurring operating revenues of $85,852
from $43,311,192 to $43,397,044, a .21% increase. The estimated revenue adjustments are as
follows:
The largest revenue increase of $293,293 is a result of levy adjustment in development
agreement special assessments on new development units. All of the remaining revenue
adjustments reflect projections to year-end upon activity year-to-date.
Expenditures:
Appropriations: The total increase for mid-year appropriations is $75,780. Departments were
requested to reduce or maintain costs within their existing appropriations, except for minor
changes within individual line items.
The FY2017-18 Mid-Year changes include:
An increase in City Clerk for election expenditures in the prior year the County
of Riverside invoiced after the close of the fiscal year-end books in late
September for approximately $75,000. The election costs were funded in the
prior year with a contribution from a developer deposit of $100,000.
Estimated Adjustments to Revenue:Amount
Sales Tax (25,000)$
Property Tax (4,812)
Franchise Tax (199,450)
Other Licenses & Permits 3,001
Fees (159,376)
Fire Service Tax Credit 100,000
Reimbursements and Other 268,197
Special Assessments 293,293
Traffic Safety, Offender & Enforcement (190,001)
Total Revenues 85,852$
Estimated Appropriation Adjustments:Amount
City Clerk 75,780$
Planning (92,715)
Building & Safety 92,715
Total Appropriations 75,780$
Fiscal Year 2017-18 Mid-Year Operating Budget
February 13, 2018
Page 3 of 3
A reclassification of Planning Salary & Benefit costs for program costs
attributable to the Building and Safety division.
Regarding Police and Fire Services appropriations, the City is maintaining existing levels of
service, nevertheless, the modifications noted directly relate to effectively managing the operating
expenditures within budget line items including training, fees, supplies, and other line items. In
addition, the City Manager will be working closely with the departments to further reduce
expenditures before June 30, 2018.
General Fund Balance Reserves
The General Fund Balance Reserves at June 30, 2018 would reflect the following as a result of
the proposed Mid-Year adjustments, as follows:
Fiscal Impact
While the City is beginning to benefit from the improving economy, the development of an
accurate, balanced and achievable budget is critical to establishing a solid foundation to manage
the anticipated growth and demand for services within and by the community. In developing and
implementing a comprehensive operating budget plan, the factors impacting the City’s operations
and financial condition are numerous, and while the City’s General Fund is still in a vulnerable
condition, efforts will continue to monitor operating activities closely to ensure the General Fund’s
resources are programmed appropriately.
The FY2017-18 Mid-Year Budget Report is one of the first steps in beginning the FY2018-19
budget preparation process. The City Manager will be proactively working with each department
to develop and present a balanced budget to the Mayor and City Council that moves the City
forward in achieving its financial goals as part of the FY2018-19 Budget process. The overallfiscal
impact of the FY2017-18 Mid-Year Operating Budget for the General Fund is as follows:
Exhibit
A- Resolution
B- Exhibit A to the Resolution
Revenue adjustments 85,852$
Appropriation adjustments 75,780
Net change/(impact) - FY2017-18 Mid-Year 10,072$
RESOLUTION NO. 2018-____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, AMENDING THE FY 2017-18 ANNUAL OPERATING BUDGET
FORMID-YEAR ADJUSTMENTS
Whereas, the City Council has a policy of adopting an annual operating budget to plan
expenditures and to match anticipated revenues available in various City accounts in order to
make the most efficient use of the City’s limited resources for each fiscal year; and
Whereas, the City of Lake Elsinore Municipal Code Section 3.04.010 defines the fiscal year for
the City of Lake Elsinore as extending from July 1
st of each year to and including June 30th of
the following year.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,CALIFORNIA,
DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. The City of Lake Elsinore FY2017-18 Mid-Year Annual Operating Budget is hereby
approved as amended for the 2017-18 fiscal year per attached Exhibit A.
Section 2.This Resolution shall take effect from and after the date of its passage and adoption.
Passed, Approved And Adopted on this 13th day of February, 2018.
Natasha Johnson, Mayor
ATTEST:
Susan M. Domen, MMC
City Clerk
FY 16‐17 ACTUALS
FY 17‐18
CURRENT
BUDGET
FY 17‐18
MIDYEAR
BUDGET $ Inc/(Dec)
% Inc/
(Dec)
Revenues:
Sales Tax 9,745,714$ 10,230,112$ 10,205,112$ (25,000) ‐0.26%
Property Tax 7,033,142 7,598,544 7,593,732 (4,812) ‐0.07%
Franchise Tax 2,329,566 2,755,808 2,556,358 (199,450) ‐7.53%
Building Permit Fee 2,119,709 2,343,250 2,343,250 ‐ 0.00%
Property Transfer Tax 375,262 337,486 337,486 ‐ 0.00%
Transient Occupancy Tax 565,961 508,800 508,800 ‐ 0.00%
Other Licenses & Permits 1,318,716 1,315,326 1,318,327 3,001 0.23%
Intergovernmental 92,573 92,185 92,185 ‐ 0.00%
Fees 2,735,270 4,563,128 4,403,752 (159,376) ‐4.58%
Fines and Forfeitures 653,023 773,598 773,598 ‐ 0.00%
Fire Service Tax Credit 2,599,314 2,583,134 2,683,134 100,000 4.03%
Investment Earnings 7,707 108,150 108,150 ‐ 0.00%
Reimbursements and Other 5,705,977 4,890,055 5,158,251 268,197 4.59%
Special Assessments 3,513,535 3,689,246 3,982,539 293,293 8.02%
Traffic Safety, Offender Enf. 260,778 723,871 533,870 (190,001) ‐25.87%
Reimbursements for Street Prog. 950,435 798,500 798,500 ‐ 0.00%
Total Revenues 40,006,679 43,311,192 43,397,044 85,852 0.21%
Expenditures by Department:
General Government:
City Council 232,226 227,299 227,299 ‐ 0.00%
Community Support 33,484 92,900 92,900 ‐ 0.00%
City Treasurer ‐ ‐ ‐ ‐ 0.00%
City Clerk 528,511 577,810 653,590 75,780 12.55%
City Attorney 587,649 500,000 500,000 ‐ 0.00%
City Manager 789,166 901,293 901,293 ‐ 0.00%
Administrative Services
Finance 1,433,928 1,518,371 1,518,371 ‐ 0.00%
Human Resources 257,865 447,149 447,149 ‐ 0.00%
Public Safety:
Police Services 11,705,026 13,010,246 13,010,246 ‐ 0.00%
Fire Services 7,938,614 7,900,281 7,900,281 ‐ 0.00%
Animal Services 807,243 836,640 836,640 ‐ 0.00%
Community Development:
Planning 1,165,703 1,214,828 1,122,113 (92,715) ‐7.46%
Economic Development 443,952 278,043 278,043 ‐ 0.00%
Building & Safety/Fire Prev.1,949,144 2,602,499 2,695,214 92,715 5.38%
Code Enforcement/Graffiti 764,064 962,062 962,062 ‐ 0.00%
Public Services:
Engineering 1,919,098 2,062,723 2,062,723 ‐ 0.00%
Public Works 2,038,307 2,186,487 2,186,487 ‐ 0.00%
Park Maintenance 2,075,011 2,395,377 2,395,377 ‐ 0.00%
Lake Maintenance 1,235,856 1,554,841 1,554,841 ‐ 0.00%
Community Services:
Recreation 827,835 674,866 674,866 ‐ 0.00%
Community Center 585,929 1,134,387 1,134,387 ‐ 0.00%
Senior Center 155,906 264,079 264,079 ‐ 0.00%
Campground 427,642 527,777 527,777 ‐ 0.00%
Non‐Departmental ‐ Operating 2,970,771 2,658,638 2,658,638 ‐ 0.00%
Total Expenditures 40,872,930 44,528,597 44,604,377 75,780 0.18%
Excess of Revenues Over
(Under) Expenditures (866,250) (1,217,405) (1,207,333) 10,072
Operating Transfers In 2,193,813 416,739 416,739 ‐
Operating Transfers out (1,113,319) (532,498) (532,498) ‐
Expenditures & Op Transfers
In/(Out) 214,244 (1,333,164) (1,323,092) 10,072
Fund Balance, Beg. of Year 12,394,909 12,609,153 12,609,153
Fund Balance, End of Year 12,609,153$ 11,275,990$ 11,286,061$
SUMMARY OF REVENUES, EXPENDITURES, AND CHANGE IN FUND BALANCE
CITY OF LAKE ELSINORE, CALIFORNIA
2017‐18 MIDYEAR ANNUAL OPERATING BUDGET
FY 16‐17 ACTUALS
FY 17‐18
CURRENT
BUDGET
FY 17‐18
MIDYEAR
BUDGET $ Inc/(Dec)
% Inc/
(Dec)
SUMMARY OF REVENUES, EXPENDITURES, AND CHANGE IN FUND BALANCE
CITY OF LAKE ELSINORE, CALIFORNIA
2017‐18 MIDYEAR ANNUAL OPERATING BUDGET
Detail of Fund Balance
Nonspendable:
Deposits and prepaid items 29,015$ 25,000$ 25,000$
Loans Receivable 1,000,000 1,000,000 1,000,000
Assigned
Uncertainty reserve (17.5%) 7,347,593 7,885,692 7,898,953
Unassigned
Unallocated reserve 4,232,545 2,365,298 2,362,108
Total Fund Balance (net) 12,609,153$ 11,275,990$ 11,286,061$