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09-11-2018 CC Rpt 11COUNCIL AGENDA STAFF REPORTCOUNCIL AGENDA STAFF REPORT TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS DATE: SEPTEMBER 11, 2018 FROM: CITY MANAGER ITEM NO:11 SUBJECT:MONTHLY FINANCIAL REPORT RECOMMENDATION: Receive and file the monthly Financial Report for July 2018. BACKGROUND/ANALYSIS: The Financial Report is being presented to the City Council and the public to provide a status update of the City's financials as of July 31, 2018. The Financial Report includes the budgetary information for the City's annual financial plan as well as the actual resources received and the use of these resources in fulfilling the financial plan. Financial data is reported on a cash basis, meaning that revenue is reported when cash is received and expenditures are reported when cash payments are made. The majority of General Fund revenues come in sporadically throughout the year and most of it is received or accrued in the last six months of the fiscal year. Meanwhile, expenditure transactions continue to be paid each month regardless of when the revenues are received. This highlights the importance of maintaining a reserve that allows for cash flow needs during the lean months when there are no revenues. At the end of the fiscal year the accrual basis of accounting is applied to all governmental accounts. As a result, many of the revenues received or expenditures paid in July and August are accrued to the month of June to comply with the Generally Accepted Accounting Standard (GAAP) which matches the transaction to the period in which the revenue was earned or the expenditure occurred. The Enterprise Funds, or business type funds, use the "accrual" method of accounting. These business type funds charge customers a fee to cover the cost of services that are provided. This method applies to the Water Utility Fund and Sewer Utility Fund. ENVIRONMENTAL (CEQA) REVIEW: This proposed action is exempt from review under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq.; "CEQA") and CEQA regulations (14 California Code Regulations §§15000, et seq.) because it does not involve any commitment to a specific project which could result in a potentially significant physical impact on the environment; and constitutes an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. Accordingly, this action does not constitute a "project" that requires environmental review (see specifically 14 CCR § 15378(b)(4-5)). FISCAL IMPACT: None. 28/131 REVIEWED BY OTHERS: None. Respectfully Submitted,Recommended By: Attachments July 2018 Financial Report 29/131 Fiscal Year 2018-2019 Financial Report July 31, 2018 30/131 CITY OF CHINO HILLS SUMMARY OF CHANGES IN THE GENERAL FUND BALANCE - ACTUAL FOR THE MONTH ENDED JULY 31, 2018 Estimated Beginning Fund Balance at 7/1/18 36,679,797$ Revenues 1,791,840$ Expenditures (4,877,495) Revenues over (under) expenditures (3,085,655) Estimated Fund Balance at 7/31/18 33,594,142$ Less: Restricted for PARS, capital projects & special purposes (17,488,672)$ Unrestricted Fund Balance at 7/31/18 16,105,470$ Unrestricted Fund Balance as a % of Budgeted Expenditures 30.83% CITY OF CHINO HILLS SUMMARY OF CHANGES IN THE GENERAL FUND BALANCE - BUDGET FOR THE YEAR ENDING JUNE 30, 2019 Estimated Beginning Fund Balance at 7/1/18 36,679,797$ Budgeted Revenues 52,179,378$ Budgeted Expenditures (52,246,812) Revenues over (under) expenditures (67,434) Estimated Fund Balance at 6/30/19 36,612,363$ Less: Estimated Restricted for PARS, capital projects & special purposes (17,488,672)$ Estimated Unrestricted Fund Balance at 6/30/19 19,123,691$ Unrestricted Fund Balance as a % of Budgeted Expenditures 36.60% 31/131 CITY OF CHINO HILLS GENERAL FUND REVENUES FOR THE MONTH ENDED JULY 31, 2018 Actual FY 2017-18 Actual Year-to-Date as a % of Prior Year Prior YTD as a % of Variance Adjusted Adjusted Adjusted Actuals through Adjusted Increase / Revenue Type Budget Budget Budget 7/31/2017 Budget (Decrease) Property Tax 13,724,800$ -$ 0%13,277,800$ -$ 0%-$ Sales & Use Tax 8,108,000 - 0%8,110,800 - 0%- Business License 57,000 1,772 3%110,800 9,337 8%(7,565) Property Transfer Tax 425,000 - 0%640,500 - 0%- Transient Occupancy Tax 1,259,700 - 0%1,179,500 - 0%- Franchise Tax 2,172,400 - 0%2,383,800 2 0%(2) Intergovernmental 41,300 - 0%31,300 - 0%- Charges for Services 7,364,652 406,702 6%8,646,300 654,287 8%(247,585) A Fines & Forfeitures 409,400 38,275 9%404,000 31,490 8%6,785 Use of Money and Property 1,124,900 175,954 16%1,066,100 (54,897) -5%230,851 B City Wide Overhead 10,523,800 773,342 7%10,178,900 1,024,998 10%(251,656) C Other Revenues 632,102 188,439 30%2,617,900 101,979 4%86,460 Transfers In 6,336,324 207,356 3%5,780,600 227,604 4%(20,248) Total Revenues 52,179,378$ 1,791,840$ 3%54,428,300$ 1,994,800$ 4%(202,960)$ B - The $230,851 increase in use of money and property is due to the pending reversal of the Fair Market Value adjustment at year end which will be done in August. A - The $247,585 decrease in charges for services is largely due to the reduction in development related user fees, permits and services provided. C - The $251,656 decrease in city wide overhead is due to the reduction of impact fees collected from developers to pay for public facilities, such as traffic signal, storm drain, water, and sewer facilities. The overhead related to these projects are calculated by taking 7.5% of the gross development impact fees received prior to each new project being started. FY 2018-19 Year-to-Date Actuals through 7/31/2018 32/131 CITY OF CHINO HILLS GENERAL FUND EXPENDITURES BY DEPARTMENT FOR THE MONTH ENDED JULY 31, 2018 FY 2018-19 Actual FY 2017-18 Actual Year-to-Date Year-to-Date as a % of Prior Year Prior YTD as a % of Variance Adjusted Actuals through Adjusted Adjusted Actuals through Adjusted Increase / Department Budget 7/31/2018 Budget Budget 7/31/2017 Budget (Decrease) Legislative City Council 336,510$ 33,352$ 10%308,500$ 20,483$ 7%12,869$ City Attorney 350,000 - 0%350,000 - 0%- City Clerk 1,426,220 34,016 2%1,264,800 34,599 3%(583) Contract Services 176,100 - 0%198,900 - 0%- City Manager Administration 1,517,540 43,194 3%1,376,100 33,140 2%10,054 Public Safety 13,756,600 1,233,769 9%13,200,800 1,070,612 8%163,157 Community Relations 758,300 14,582 2%683,700 10,812 2%3,770 Human Resources 482,120 11,021 2%461,500 11,301 2%(280) Risk Management 2,152,960 1,531,475 71%A 2,340,100 1,582,591 68%(51,116) Emergency Preparedness 257,100 1,163 0%258,800 3,184 1%(2,021) Code Enforcement 708,860 12,084 2%650,500 11,918 2%166 Finance Administration 2,800,450 53,437 2%2,863,700 58,415 2%(4,978) Non-Departmental - - N/A 63,700 - 0%B - Development Fee Program 303,500 - 0%318,500 - 0%- Community Services Administration 5,050,870 245,804 5%4,940,000 256,199 5%(10,395) Recreation 1,781,526 53,239 3%1,695,300 57,082 3%(3,843) Community Development Administration 1,325,788 54,692 4%1,453,100 59,758 4%(5,066) Building Services 1,478,720 32,572 2%1,635,300 39,388 2%(6,816) Development Services 2,128,099 46,261 2%2,290,000 34,003 1%12,258 Economic Development 212,425 2,672 1%159,600 3,133 2%(461) Public Works Administration 1,291,900 42,694 3%1,164,300 38,522 3%4,172 Engineering 1,934,800 44,052 2%1,847,900 41,808 2%2,244 Facilities Maintenance 2,160,100 54,507 3%2,163,300 47,340 2%7,167 Other Maintenance 2,120,800 58,845 3%1,567,500 48,957 3%9,888 Total Operating Expenditures 44,511,288$ 3,603,431$ 8%43,255,900$ 3,463,245$ 8%140,186$ Capital Improvement Projects -$ 960,108$ N/A C 151,200$ 332$ 0%959,776 Transfers Out 7,735,524 313,956 4%12,904,800 285,112 2%28,844 Total Expenditures 52,246,812$ 4,877,495$ 9%56,311,900$ 3,748,689$ 7%1,128,806$ B - The Non-Departmental budget was allocated to the respective department budgets in August of 2017. A - Risk Management has expended 71% of their budget on the City's liability and workers compensation insurance. These are one-time expenditures by nature, and are required to be paid at the beginning of each fiscal year. C - The purchase of automatic license plate readers was budgeted for in Fiscal Year 2017-18, but was not physically received until Fiscal Year 2018-19. The Fiscal Year 2017-18 purchase order and associated budget will be rolled in September to cover the costs of the license plate readers. 33/131 CITY OF CHINO HILLS CHANGES IN FUND BALANCE - ACTUAL FOR THE MONTH ENDED JULY 31, 2018 Estimated Estimated Fund Balance Change in Fund Balance Fund #Fund Title 7/1/18 Revenues Expenditures Fund Balance 6/30/19 001 General Fund 36,175,743$ 1,326,627$ 4,444,973$ (3,118,346)$ 33,057,397$ 003 Community Services 61,076 299,043 299,043 - 61,076 004 Community Development 442,978 166,170 133,479 32,691 475,669 005 TDA Pass Thru - - - - - TOTAL GENERAL FUND 36,679,797$ 1,791,840$ 4,877,495$ (3,085,655)$ 33,594,142$ 010 Gas Tax 1,858,440$ 139,552$ 78,587$ 60,965$ 1,919,405$ 011 Air Quality Management District 315,334 984 2,635 (1,651) 313,683 012 Measure I 245,204 3,955 5,621 (1,666) 243,538 015 Citizen's Option Public Safety 1 - 502 (502) (501) A 017 Community Development Block Grant - - - - - 018 Affordable Housing Program 3,429,713 6,474 625 5,849 3,435,562 026 Landscape & Lighting - Administration 1,284 170,439 71,230 99,209 100,493 027 Park & Recreation Facilities Fee 568,579 5,004 3,631 1,373 569,952 028 Quimby In-Lieu 1,823,181 5,083 - 5,083 1,828,264 030 Open Space Management - 21,568 15,333 6,235 6,235 031 Park Maintenance - 49,416 24,243 25,173 25,173 032 L & L - 1-C Commercial 416,167 886 35,117 (34,231) 381,936 033 Street Sweeping 21,524 - 2,158 (2,158) 19,366 040 L & L - Rolling Ridge Operations & Arterial 576,377 1,256 47,470 (46,214) 530,163 045 L & L - 1-H Los Ranchos Operations 287,904 25,146 198,890 (173,744) 114,160 046 L & L - 1-I Los Ranchos Operations 200 75 1,358 (1,283) (1,083) B 050 L & L - 1-B The Oaks Operations 59,394 153 8,699 (8,546) 50,848 055 L & L - 1-K Woodview Operations 162,209 346 1,833 (1,487) 160,722 060 L & L - 1-N Carbon Canyon Operations 10,107 21 250 (229) 9,878 061 L & L - 1-P Carbon Canyon Operations - 1,883 8,130 (6,247) (6,247) B 062 L & L - 1-T Carbon Canyon Operations 19,898 48 258 (210) 19,688 071 L & L - 1-M Rincon Operations - 55,953 77,107 (21,154) (21,154) B 072 L & L - Los Serranos 30,790 64 350 (286) 30,504 073 L & L - Vellano 281,571 855 12,386 (11,531) 270,040 104 Sleepy Hollow Road Improvements 36,096 96 67 29 36,125 121 L & L - Los Ranchos Arterial 22,774 28,426 20,439 7,987 30,761 123 L & L - Woodview Arterial 1,528 779 375 404 1,932 124 L & L - Carbon Canyon Arterial 5,000 1,229 367 862 5,862 131 Traffic Signal Fee 169,009 404 - 404 169,413 132 Existing Infrastructure Fee 4,770,710 29,126 859 28,267 4,798,977 133 General City Facilities Fee 5,127,922 12,059 134 11,925 5,139,847 134 Traffic Facilities Fee 2,559,313 5,603 17 5,586 2,564,899 135 Storm Drain Facilities Fee 7,712,100 17,412 95 17,317 7,729,417 136 Traffic Impact Fee 50,687 651 42 609 51,296 140 Protected Tree Replacement - - - - - 150 PEG Access Fee 907,579 2,013 - 2,013 909,592 184 Road Maintenance & Rehabilitation Account - - 749 (749) (749) C 198 Public Safety Programs 30,761 66 - 66 30,827 199 Miscellaneous Grant 789,794 - 20,974 (20,974) 768,820 504 Solid Waste - 172,772 - 172,772 172,772 506 Sewer Facilities Fee 3,783,153 13,599 35 13,564 3,796,717 507 Water Facilities Fee 7,899,810 54,703 2,727 51,976 7,951,786 TOTAL SPECIAL REVENUE FUNDS 43,974,113$ 828,099$ 643,293$ 184,806$ 44,158,919$ Actuals through 7/31/18 B - The property tax distributions are the main funding source for these funds.The two largest installments are to be received in December and April of each year. C - The Road Maintenance and Rehabilitation revenue received in July has been recorded in Fiscal Year 2017-18 through the year end accrual process. The Fiscal Year 2018-19 revenues will be reflected beginning in September. A - Frontline Policing expenditures are funded by the State Community Oriented Policing Services (COPS) grant received on a monthly basis, beginning in September of each fiscal year. 34/131 CITY OF CHINO HILLS CHANGES IN FUND BALANCE - ACTUAL FOR THE MONTH ENDED JULY 31, 2018 Estimated Estimated Fund Balance Change in Fund Balance Fund #Fund Title 7/1/18 Revenues Expenditures Fund Balance 6/30/19 Actuals through 7/31/18 377 CFD 10 Construction 760$ -$ -$ -$ 760$ 379 CFD 9 Capital Projects 2,615,051 10,562 8,667 1,895 2,616,946 399 Capital Improvement - - - - - TOTAL CAPITAL PROJECT FUNDS 2,615,811$ 10,562$ 8,667$ 1,895$ 2,617,706$ 500 Water Utility 36,023,282$ 1,410,094$ 1,478,591$ (68,497)$ 35,954,785$ 501 Sewer Utility 24,421,841 345,265 139,302 205,963 24,627,804 512 Water Depreciation/Rate Stabilization 7,249,636 15,477 - 15,477 7,265,113 TOTAL ENTERPRISE FUND*67,694,759$ 1,770,836$ 1,617,893$ 152,943$ 67,847,702$ 551 Equipment Maintenance 5,407,182$ 104,799$ 19,453$ 85,346$ 5,492,528$ 552 Information Technology 612,155 156,110 171,795 (15,685) 596,470 TOTAL INTERNAL SERVICE FUNDS*6,019,337$ 260,909$ 191,248$ 69,661$ 6,088,998$ 009 General Agency 39,260$ -$ -$ -$ 39,260$ 627 CFD 1 - Rolling Ridge Operations 1,479,379 1,693 230 1,463 1,480,842 636 CFD 4 - The Oaks Operations 4,181,071 12,027 12,804 (777) 4,180,294 640 CFD 5 - Soquel Cyn, Rincon & Woodview Op.5,654,126 8,035 592 7,443 5,661,569 644 CFD 6 - Carbon Canyon Operations 1,390,726 3,112 1,927 1,185 1,391,911 647 CFD 8 - Butterfield Operations 389,750 802 524 278 390,028 657 CFD 9 - Rincon Village-1998 1,585,072 2,359 1,142 1,217 1,586,289 658 CFD 10 - Fairfield Ranch 1,962,639 2,021 42 1,979 1,964,618 659 CFD-Vila Borba 708,304 1,759 8,134 (6,375) 701,929 691 Assessment District 1994 Operations - 6 - 6 6 698 CFD 2 - Los Ranchos Special Tax 2,823,017 6,374 9,298 (2,924) 2,820,093 699 RAD 10-1 599,583 597 83 514 600,097 TOTAL AGENCY FUNDS 20,812,927$ 38,785$ 34,776$ 4,009$ 20,816,936$ GRAND TOTAL 177,796,744$ 4,701,031$ 7,373,372$ (2,672,341)$ 175,124,403$ *Long-term debt, fixed assets and investment in joint venture have been removed to reflect working capital. 35/131 CITY OF CHINO HILLS CHANGES IN FUND BALANCE - BUDGET FOR THE MONTH ENDED JULY 31, 2018 Estimated Projected Fund Balance Budgeted Budgeted Change in Fund Balance Fund #Fund Title 7/1/18 Revenues Expenditures Fund Balance 6/30/19 001 General Fund 36,175,743$ 40,803,753$ 40,428,209$ 375,544$ 36,551,287$ 003 Community Services 61,076.00 6,832,396 6,832,396 - 61,076 004 Community Development 442,978.00 3,315,579 3,758,557 (442,978) - 005 TDA Pass Thru - 1,227,650 1,227,650 - - TOTAL GENERAL FUND 36,679,797$ 52,179,378$ 52,246,812$ (67,434)$ 36,612,363$ 010 Gas Tax 1,858,440$ 2,037,929$ 2,456,750$ (418,821)$ 1,439,619$ 011 Air Quality Management District 315,334 100,700 900 99,800 415,134 012 Measure I 245,204 1,376,800 1,580,200 (203,400) 41,804 015 Citizen's Option Public Safety 1 100,000 100,000 - 1 017 Community Development Block Grant - 375,372 350,000 25,372 25,372 018 Affordable Housing Program 3,429,713 438,500 30,240 408,260 3,837,973 026 Landscape & Lighting - Administration 1,284 2,040,500 2,040,500 - 1,284 027 Park & Recreation Facilities Fee 568,579 406,900 103,200 303,700 872,279 028 Quimby In-Lieu 1,823,181 145,700 36,900 108,800 1,931,981 030 Open Space Management - 263,400 263,400 - - 031 Park Maintenance - 592,100 592,100 - - 032 L & L - 1-C Commercial 416,167 312,700 421,400 (108,700) 307,467 033 Street Sweeping 21,524 196,900 218,400 (21,500) 24 040 L & L - Rolling Ridge Operations & Arterial 576,377 817,200 961,800 (144,600) 431,777 045 L & L - 1-H Los Ranchos Operations 287,904 3,186,200 3,474,100 (287,900) 4 046 L & L - 1-I Los Ranchos Operations 200 16,100 16,300 (200) - 050 L & L - 1-B The Oaks Operations 59,394 129,300 165,600 (36,300) 23,094 055 L & L - 1-K Woodview Operations 162,209 21,700 22,000 (300) 161,909 060 L & L - 1-N Carbon Canyon Operations 10,107 2,000 3,000 (1,000) 9,107 061 L & L - 1-P Carbon Canyon Operations - 74,900 74,900 - - 062 L & L - 1-T Carbon Canyon Operations 19,898 3,100 3,100 - 19,898 071 L & L - 1-M Rincon Operations - 1,581,900 1,581,900 - - 072 L & L - Los Serranos 30,790 33,400 26,100 7,300 38,090 073 L & L - Vellano 281,571 207,400 433,300 (225,900) 55,671 104 Sleepy Hollow Road Improvements 36,096 10,400 10,100 300 36,396 121 L & L - Los Ranchos Arterial 22,774 340,600 340,600 - 22,774 123 L & L - Woodview Arterial 1,528 9,300 9,300 - 1,528 124 L & L - Carbon Canyon Arterial 5,000 14,600 14,600 - 5,000 131 Traffic Signal Fee 169,009 - - - 169,009 132 Existing Infrastructure Fee 4,770,710 2,216,700 2,216,700 - 4,770,710 133 General City Facilities Fee 5,127,922 300,900 22,600 278,300 5,406,222 134 Traffic Facilities Fee 2,559,313 38,300 2,900 35,400 2,594,713 135 Storm Drain Facilities Fee 7,712,100 120,000 24,200 95,800 7,807,900 136 Traffic Impact Fee 50,687 296,900 22,300 274,600 325,287 140 Protected Tree Replacement - - - - - 150 PEG Access Fee 907,579 100,000 152,500 (52,500) 855,079 184 Road Maintenance & Rehabilitation Account - 1,339,710 1,339,700 10 10 198 Public Safety Programs 30,761 - - - 30,761 199 Miscellaneous Grant 789,794 19,000 336,900 (317,900) 471,894 504 Solid Waste - 5,311,621 5,311,621 - - 506 Sewer Facilities Fee 3,783,153 77,600 5,800 71,800 3,854,953 507 Water Facilities Fee 7,899,810 1,179,900 279,000 900,900 8,800,710 TOTAL SPECIAL REVENUE FUNDS 43,974,113$ 25,836,232$ 25,044,911$ 791,321$ 44,765,434$ 36/131 CITY OF CHINO HILLS CHANGES IN FUND BALANCE - BUDGET FOR THE MONTH ENDED JULY 31, 2018 Estimated Projected Fund Balance Budgeted Budgeted Change in Fund Balance Fund #Fund Title 7/1/18 Revenues Expenditures Fund Balance 6/30/19 377 CFD 10 Construction 760$ -$ -$ -$ 760$ 379 CFD 9 Capital Projects 2,615,051 476,600 - 476,600 3,091,651 399 Capital Improvement - 120,000 120,000 - - TOTAL CAPITAL PROJECT FUNDS 2,615,811$ 596,600$ 120,000$ 476,600$ 3,092,411$ 500 Water Utility 36,023,282$ 30,555,005$ 30,648,770$ (93,765)$ 35,929,517$ 501 Sewer Utility 24,421,841 8,615,000 9,469,100 (854,100) 23,567,741 512 Water Depreciation/Rate Stabilization 7,249,636 108,000 - 108,000 7,357,636 TOTAL ENTERPRISE FUND*67,694,759$ 39,278,005$ 40,117,870$ (839,865)$ 66,854,894$ 551 Equipment Maintenance 5,407,182$ 1,143,100$ 902,700$ 240,400$ 5,647,582$ 552 Information Technology 612,155 1,856,300 1,856,300 - 612,155 TOTAL INTERNAL SERVICE FUNDS*6,019,337$ 2,999,400$ 2,759,000$ 240,400$ 6,259,737$ 009 General Agency 39,260$ -$ -$ -$ 39,260$ 627 CFD 1 - Rolling Ridge Operations 1,479,379 401,600 717,400 (315,800) 1,163,579 636 CFD 4 - The Oaks Operations 4,181,071 161,000 1,385,200 (1,224,200) 2,956,871 640 CFD 5 - Soquel Cyn, Rincon & Woodview Op.5,654,126 3,049,500 2,737,200 312,300 5,966,426 644 CFD 6 - Carbon Canyon Operations 1,390,726 266,300 197,400 68,900 1,459,626 647 CFD 8 - Butterfield Operations 389,750 91,400 6,300 85,100 474,850 657 CFD 9 - Rincon Village-1998 1,585,072 1,160,600 1,112,300 48,300 1,633,372 658 CFD 10 - Fairfield Ranch 1,962,639 1,000,000 955,000 45,000 2,007,639 659 CFD-Vila Borba 708,304 370,000 278,900 91,100 799,404 691 Assessment District 1994 Operations - - - - - 698 CFD 2 - Los Ranchos Special Tax 2,823,017 1,346,700 1,705,600 (358,900) 2,464,117 699 RAD 10-1 599,583 309,500 294,300 15,200 614,783 TOTAL AGENCY FUNDS 20,812,927$ 8,156,600$ 9,389,600$ (1,233,000)$ 19,579,927$ GRAND TOTAL 177,796,744$ 129,046,215$ 129,678,193$ (631,978)$ 177,164,766$ *Long-term debt, capital assets and investment in joint venture have been removed to reflect working capital. 37/131