Title
Staff Report for a Resolution of the City Council for the City of San Leandro to Approve the City Manager Recommended Amendments and Appropriations to the City of San Leandro Budget for Fiscal Year 2018-19 (for the General Fund, Special Revenue Funds, Enterprise Funds, and Internal Service Funds budget)
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends that the City Council review and approve the City Manager recommended amendments to revenues and appropriation requests for expenditures to the 2018-19 Budget (no change to the Successor Agency revenue and expenditure fund).
BACKGROUND
The City Council approves annual budgets based on the best revenue and expenditure information available several months prior to the actual adoption of budget appropriations. As a result, budget adjustments are periodically necessary for changes that arise and require additional budget appropriations or re-appropriations between budget line items and fund reserves. The City Council originally approved the 2018-19 budget on June 5, 2017.
Discussion
As a result of the January 20, 2018 City Council Winter Planning Session and Council’s direction communicated in subsequent Council meetings, the City Manager proposes increases to the new fiscal year 2018-19 budget, not originally considered during the biennial budget process.
Revenues:
Overall, projected total revenues for 2018-19 of $189.0 million essentially stayed the same as the 2018-19 adopted total revenues of $188.9 million a slight increase of $74,388.
The general fund revenue change ($1.5 million) is attributed to the following:
• Property transfer tax revenues $0.8 million - increased estimate based on improving indicators
• Sales tax revenues ($2.4) million - loss of key sales tax revenue generator and slowing of auto sales
• Utility Users’ tax revenues ($0.5) million - decrease projected for declining use of telephone land lines
• Franchise fee revenues $0.5 million - increased estimate based on improving indicators for cable, refuse and recycling
• Business license tax revenues $0.1 million - increased estimate based on improving indicators
• 9-1-1 tax revenues $0.1 million - increased estimate based on improving indicators
Special revenue fund amounts have increased due to the State Highway Users Gas Tax projected net increase of $0.2 million.
Internal Service fund revenues increased by $1,000,000 for the additional contribution to the Prioritizing Unfunded Liability Liquidation (PULL) program.
Use of fund balance increased due to increased CIP funding of $300,000 for the Best/San Leandro Boulevard improvements and increased PULL program contribution of $1,000,000 for 2018-19.
The following is a summary of projected revenues, by fund and the respective change:
Fund Adopted Projected Change % Change
General Fund $111,699,755 $110,211,073 $-1,488,682 -1.3%
Special Revenue Funds 24,191,214 24,406,034 214,820 0.9%
Capital Project Funds 7,325,000 7,625,000 300,000 4.1%
Debt Service Funds 2,793,911 2,793,911 0 0.0%
Enterprise Activities 17,693,154 17,741,404 48,250 0.3%
Internal Services 17,746,359 18,746,359 1,000,000 5.6%
Successor Agency Fund 7,450,000 7,450,000 0 0.0%
Total Operating Revenues $188,899,393 $188,973,781 $74,388 -0.00%
Use of Fund Balance 5,386,043 1,241,421 -4,144,622 -76.9%
Total Revenues/Resources $194,285,436 $190,215,202 $-4,070,234 -2.1%
Expenditures:
There are ten appropriation increases for expenditures that total $3,515,000 for 2018-19, as follows:
1. Financial forecast consultant $50,000
2. Emergency preparedness supplies 65,000
3. New Housing Specialist I position 160,798
4. Human Services upgraded position net change 39,202
5. Heron Bay tree removal 50,000
6. Election costs for 2018-19 election year 250,000
7. Boys and Girls Club support 300,000
8. Transfer out for PULL contribution and CIP 1,300,000
9. Self-insurance PULL program funding 1,000,000
10. CIP Best/San Leandro Boulevard improvements 300,000
Total Expenditure Appropriation Requests $3,515,000
The projected expenditure appropriations for 2018-19 are summarized below:
Fund Adopted Projected Change % Change
General Fund $115,100,922 $117,315,922 $2,215,000 1.9%
Special Revenue Funds 21,031,002 21,031,002 0 0.0%
Capital Improvement Funds 7,315,000 7,615,000 300,000 4.1%
Debt Service Funds 2,769,786 2,769,786 0 0.0%
Enterprise Funds 19,841,418 19,841,418 0 0.0%
Internal Service Funds 16,620,816 17,620,816 1,000,000 6.0%
Successor Agency Fund 4,021,258 4,021,258 0 0.0%
Total Operating Expenditures $186,700,202 $190,215,202 $3,515,000 1.9%
Fiscal Impact
The total 2018-19 amended revenues and resources is $190,215,202 as summarized below:
Total Amended Operating Revenues $188,973,781
Use of Fund Balance Amendment 1,241,421
Total Proposed Revenues and Resources for 2018-19 $190,215,202
The total proposed 2018-19 expenditure appropriation requested is $190,215,202 as summarized below:
Total Adopted Expenditures $186,700,202
Total Proposed Expenditure Appropriations 3,515,000
Total Proposed Expenditures for 2018-19 $190,215,202
Staff is requesting approval to amend revenues and the use of fund balance and to appropriate fund balance to operating expenditures for an additional $3,515,000 for 2018-19.
ATTACHMENT
None.
PREPARED BY: David Baum, Finance Director, Finance Department