PREPARED BY: J. KELLY SESSIONS DATE OF MEETING: 08/06/18
SUBJECT:
TITLE
RECEIVE AND FILE THE 4TH QUARTER BUDGET REPORT FOR FISCAL YEAR ENDING JUNE 30, 2018
Label
RECOMMENDATION
Recommendation
For Informational Purposes Only
Body
COUNCIL PRIORITY WORKPLAN COMPLIANCE STATEMENT:
General Fund Reserves Protection, Budget Spending Controls, and Increase Financial Transparency are adopted policy items under the FY 2018-21 Council Priority Workplan, effective November 1, 2017.
CEQA Compliance Statement
This is not a project as defined by CEQA.
BACKGROUND
Best Management Practices (BMP’s) established by the Government Finance Officers Association (GFOA) urge local governments to fulfill their financial reporting responsibilities by providing timely financial statements regarding the entire financial reporting entity. This 4th quarter budget report, therefore, is provided to the City Council to support meeting the City’s fiduciary responsibilities to the residents of San Pablo.
This report uses unaudited figures and is for budgetary control purposes only. The final year-end audited fund balance will be contained in the Comprehensive Annual Financial Report (CAFR) and will be presented to City Council no later than January 2019.
4th Quarter Revenues
At $43.5 million, revenues collected are 110% of budget, resulting in the addition of $4.0 million. The excess is primarily due to additional casino revenue of $2.7 million, property tax of $0.8 million, charges for service of $0.7 million and miscellaneous revenues of $0.7 million. This overage is offset by shortages in intergovernmental revenue of $0.5 million and sales tax of $0.7 million. However, because of the lag in collection of sales tax, staff expects that the entire sales tax shortfall will be made up in subsequent payments from the State.
4th Quarter Expenditures
At fiscal year-end, the operating expenditure budget is in good shape. With an adjusted budget of $41.1 million, a total of $36.9 million was spent, leaving 10% of the budget unspent. When accounting for the $2.2 million in encumbered funds, $2.0 million is left available, or 5% of budget. The City ended the fiscal year under budget on the expenditure side and should return at least $2.0 million to fund balance.
Expenditure Detail (YTD Adjusted Budget). Salary & Benefits: At $23.7 million, salary and benefits makes up the largest part of the budget (58%). At year-end, $23.2 million was spent, leaving 2% of the salary and benefits budget available. With $15.7 million, service and supplies makes up 38% of the budget. $12.8 million was spent with $1.4 million encumbered, leaving a balance of $1.6 million available (10%). The capital budget totals $1.7 million or 4% of budget. A total of $0.9 million was spent. With encumbrances of approximately $0.8 million, the capital budget is overcommitted by $79,525 (-5%). Staff expects this overage to be corrected through the closing of unused purchase orders and through the audit process.
FISCAL IMPACT
This report describes the budget status of the City through the month of June for FY 2017/18 and has no direct fiscal impact.