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11-13-2018 CC Rpt 12COUNCIL AGENDA STAFF REPORTCOUNCIL AGENDA STAFF REPORT TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS DATE: NOVEMBER 13, 2018 FROM: CITY MANAGER ITEM NO:12 SUBJECT:MONTHLY FINANCIAL REPORT AND FIRST QUARTER BUDGET REVIEW FOR FISCAL YEAR 2018-19 RECOMMENDATION: 1. Receive and file the Monthly Financial Report for September 2018. 2. Adopt a Resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHINO HILLS, CALIFORNIA, ADOPTING A BUDGET AMENDMENT FOR FISCAL YEAR 2018-19 INCREASING THE BUDGET IN VARIOUS FUNDS BY $811,264 FOR ADJUSTMENTS BASED ON THE FIRST QUARTER BUDGET REVIEW BACKGROUND/ANALYSIS: The Monthly Financial Report for September 2018 (see attached) is being presented to the City Council and the public to provide a status update of the City's financials at September 30, 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 Principles (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. On a quarterly basis, staff reviews the status of the budget, prepares a summary of the Capital Improvement Program, and proposes budget amendments for City Council consideration. City staff is seeking approval for the following budget amendments: Ratify City Manager Budget Amendments - General Fund (001) Resolution No. 2018R-032 authorizes the City Manager to appropriate from reserves up to $25,000 per transaction, for each expenditure line item or capital improvement project. The total appropriations by the City Manager from General Fund reserves may not exceed $100,000 in a fiscal year until ratified by the City Council. In the first quarter of Fiscal Year 2018-19, the City Manager authorized $62,800 in budget amendments. These budget 24/211 Appropriation: Appropriation: Decrease CFD 5 - Soquel Cyn Fund (640) $551,100 Increase Parks & Recreation Facilities Fee Fund (027) $551,100 Reason: Reason: It is recommended to replace $551,100 of CFD 5 appropriations with Parks & Recreation Facilities Fee funds to utilize the maximum amount available of the development impact fee funding. amendments have already been recorded in the City's financial system, and are reflected in the ending budget balances in the Monthly Financial Report for September 2018. It is recommended that the City Council ratify the following: DepartmentDepartment DescriptionDescription AmountAmount FundFund Finance Correct Internal Service charges for Water/Sewer Utility Funds $ 3,700 500/501 Public Works Install security cameras at the Civic Center 23,200 100/399 Public Works Increase Street Tree Maintenance appropriation 25,000 010 Public Works Increase Street Sweeping Contract appropriation 5,900 033 Finance Increase various CFD's budgets for CAFR extension 5,000 Various TotalTotal $ 62,800$ 62,800 City-Wide Administrative Overhead Charges - Various Funds The Fiscal Year 2018-19 adopted budget included annual appropriations to charge various funds administrative overhead charges that are calculated through the City's cost allocation plan. After the start of the Fiscal Year, it was discovered that these charges were incorrectly entered into the City's financial system. In order to correct the error, it is recommended to increase appropriations by $811,264 in various funds as detailed in Exhibit No. 1 of the resolution. This amendment will decrease the unreserved fund balance in the affected funds by a total amount of $811,264. In addition, the General Fund revenues adopted by the City Council related to the overhead charges were overstated and need to be decreased by $110,000 to correspond to the related charges. This adjustment will decrease the General Fund Unreserved Fund Balance by $110,000. Public Works Department- Storm Drain Personnel Changes - General Fund (001) The Fiscal Year 2018-19 adopted budget included a part-time Management Analyst position in the Storm Drain division that was funded by the Sewer Utility and General Fund. Due to the reorganization of duties within the Public Works Department, Staff is requesting to adjust the funding for this position to the Public Works Administration division which is funded entirely by the General Fund. It is recommended to decrease the funding in the Sewer Fund by $58,102, and increase the appropriation in the General Fund by the same amount. This budget amendment will decrease the General Fund Unreserved Fund Balance by $58,102 and increase the Sewer Utility Unreserved Fund balance by the same amount. Capital Improvement ProgramCapital Improvement Program The City currently has 52 projects designated in the Capital Improvement Program (CIP). As of September 30, 2018, two projects were completed, 48 projects were either in the design process or under construction, and two projects had been deleted. The completed projects are as follows: Pavement Repairs Veterans Park Indentation Capital Project Budget Modifications:Capital Project Budget Modifications: Los Serranos Park (Project No. 800212) 25/211 Appropriation: Appropriation: Decrease Sewer Utility Fund (501) $54,800 Increase Sewer Facilities Fee Fund (506) $54,800 Reason: Reason: It is recommended to replace $54,800 of Sewer Utility Fund appropriations with Sewer Facility Fee funds to align the budget with the percentage allocated in the Development Impact Fee study. Appropriation: Appropriation: Decrease Water Facilities Fee Fund (507) $2,997,700 Increase Water Utility Fund (500) $2,997,700 Reason: Reason: It is recommended to replace $2,997,700 of Water Facilities Fee Fund appropriations with Water Utility funds to align the budget with the percentage allocated in the Development Impact Fee study. Appropriation: Appropriation: Decrease Water Facilities Fee Fund (507) $166,500 Increase Water Utility Fund (500) $166,500 Reason: Reason: It is recommended to replace $166,500 of Water Facilities Fee Fund appropriations with Water Utility funds to align the budget with the percentage allocated in the Development Impact Fee study. Revenue: Revenue: Increase Miscellaneous Grant Fund (199) $87,100 Reason: Reason: It is recommended to increase the Miscellaneous Grant Fund revenues $87,100 to account for the projected reimbursements expected to be received based on the adopted Fiscal Year 2018-19 CIP budget. Revenue: Revenue: Increase Miscellaneous Grant Fund (199) $249,800 Reason: Reason: It is recommended to increase the Miscellaneous Grant Fund revenues $249,800 to account for the projected reimbursements expected to be received based on the adopted Fiscal Year 2018-19 CIP budget. Repair of Sewer on Boys Republic and Grand Avenue (Grand Avenue/Highway 71 Trunk Relief) (Project No. D13002) Reservoir No. 18 (Project No. W11004) Supervisory Control & Data Acquisition System (SCADA) (Project No. 800162) Los Serranos Transit Access Park (Project No. S19003) Los Serranos Safes Routes to School West (Project No. S19005) ENVIRONMENTAL (CEQA) REVIEW: This proposed action is exempt from review under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and CEQA Guidelines (Title 14 California Code of Regulations §§ 15000, et seq.), because it does not involve any commitment to a specific project which could result in a potentially significant physical impact on the environment; and, constitutes an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. Accordingly, this action does not constitute a "project" that requires environmental review (see specifically 14 CCR § 15378(b)(4-5)). 26/211 FISCAL IMPACT: The effects on fund balance, as a result of the proposed FY 2018-19 budget amendments, are as follows: Net Increase/Net Increase/ (Decrease)(Decrease) AppropriationsAppropriations General Fund -- Unreserved (001)*$ (55,902) Community Services Fund (003) 35 Community Development Fund (004) 31 Gas Tax Fund (010) 50 CDBG Fund (017) (380) Parks & Recreation Facilities Fee Fund (027) (611,300) Water Utility Fund (500) (3,133,600) Sewer Utility Fund (501) 123,702 Sewer Facilities Fee Fund (506) (125,000) Water Facilities Fee Fund (507) 2,727,700 Equipment Maintenance Fund (551) (100) CFD 5 - Soquel Cyn, Rincon & Woodview Fund (640) 551,100 Various Development Impact Fee Funds (287,600) Appropriations SubtotalAppropriations Subtotal (811,264) RevenuesRevenues General Fund - Unreserved (001)(110,000) Miscellaneous Grants (199) 336,900 Revenues SubtotalRevenues Subtotal 226,900 TotalTotal ($584,364) *This total does not include the City Manager approved budget amendments, which are reflected in the balances of the Monthly Financial Report for September 2018. REVIEWED BY OTHERS: None Respectfully Submitted,Recommended By: Attachments Financial Report - September 2018 Resolution_Amendment No. 19B021 Exhibit No. 1 to Resolution 27/211 Fiscal Year 2018-2019 Financial Report September 30, 2018 28/211 CITY OF CHINO HILLS SUMMARY OF CHANGES IN THE GENERAL FUND BALANCE - ACTUAL FOR THE MONTH ENDED SEPTEMBER 30, 2018 Estimated Beginning Fund Balance at 7/1/18 46,491,497$ Revenues 7,632,894$ Expenditures (12,397,154) Revenues over (under) expenditures (4,764,260) Estimated Fund Balance at 9/30/18 41,727,237$ Less: Restricted for PARS, capital projects & special purposes (12,788,376)$ Unrestricted Fund Balance at 9/30/18 28,938,861$ Unrestricted Fund Balance as a % of Budgeted Expenditures 48.35% 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 46,491,497$ Budgeted Revenues 52,558,676$ Budgeted Expenditures (59,850,609) Revenues over (under) expenditures (7,291,933) Estimated Fund Balance at 6/30/19 39,199,564$ Less: Estimated Restricted for PARS, capital projects & special purposes (12,788,376)$ Estimated Unrestricted Fund Balance at 6/30/19 26,411,188$ Unrestricted Fund Balance as a % of Budgeted Expenditures 44.13% 29/211 CITY OF CHINO HILLS GENERAL FUND REVENUES FOR THE MONTH ENDED SEPTEMBER 30, 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 9/30/2017 Budget (Decrease) Property Tax 13,724,800$ -$ 0%13,277,800$ -$ 0%-$ Sales & Use Tax 8,108,000 698,541 9%8,110,800 800,157 10%(101,616) A Business License 57,000 14,062 25%110,800 27,460 25%(13,398) Property Transfer Tax 425,000 105,641 25%640,500 37,236 6%68,405 Transient Occupancy Tax 1,259,700 96,849 8%1,179,500 194,194 16%(97,345) B Franchise Tax 2,172,400 74,582 3%2,383,800 71,010 3%3,572 Intergovernmental 41,300 15,366 37%31,300 15,369 49%(3) Charges for Services 7,743,950 1,673,240 22%8,646,300 2,253,564 26%(580,324) C Fines & Forfeitures 409,400 103,634 25%404,000 117,175 29%(13,541) Use of Money and Property 1,124,900 1,027,937 91%1,066,100 150,136 14%877,801 D City Wide Overhead 10,523,800 2,379,987 23%10,178,900 2,596,448 26%(216,461) E Other Revenues 632,102 257,578 41%2,617,900 213,844 8%43,734 Transfers In 6,336,324 1,185,476 19%5,780,600 1,161,801 20%23,675 Total Revenues 52,558,676$ 7,632,893$ 15%54,428,300$ 7,638,394$ 14%(5,501)$ A - The State of California implemented a new sales tax software system and some vendors are experiencing difficulties, so the revenue to the City is delayed. B - This decrease in transient occupancy tax is due to the timing of revenue received from HdL. C - The decrease in charges for services is largely due to the reduction in development related user fees, permits and services provided. D - The increase in use of money and property is due to the reversal of the loss in fair market value in the prior fiscal year. FY 2018-19 Year-to-Date Actuals through 9/30/2018 E - The 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. 30/211 CITY OF CHINO HILLS GENERAL FUND EXPENDITURES BY DEPARTMENT FOR THE MONTH ENDED SEPTEMBER 30, 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 9/30/2018 Budget Budget 9/30/2017 Budget (Decrease) Legislative City Council 336,510$ 78,225$ 23%308,900$ 59,478$ 19%18,747$ City Attorney 350,000 33,642 10%350,000 43,640 12%(9,998) City Clerk 1,426,220 275,238 19%1,266,700 245,483 19%29,755 Contract Services 176,100 - 0%206,100 3,694 2%(3,694) City Manager Administration 1,665,968 293,186 18%2,055,300 223,029 11%70,157 Public Safety 13,756,600 3,527,381 26%13,200,800 3,326,520 25%200,861 Community Relations 758,300 126,163 17%697,900 119,299 17%6,864 Human Resources 482,120 89,456 19%471,500 78,237 17%11,219 Risk Management 2,152,960 1,919,865 89%A 2,340,100 1,945,476 83%(25,611) Emergency Preparedness 257,100 17,619 7%258,800 12,718 5%4,901 Code Enforcement 708,860 123,645 17%650,500 122,182 19%1,463 Finance Administration 2,879,563 458,995 16%2,915,600 484,637 17%(25,642) Development Fee Program 303,500 275,449 91%B 318,500 267,426 84%8,023 Community Services Administration 5,050,870 1,076,504 21%5,024,600 1,078,334 21%(1,830) Recreation 1,781,526 416,364 23%1,695,300 400,257 24%16,107 Community Development Administration 1,331,711 261,541 20%1,461,000 282,614 19%(21,073) Building Services 1,478,720 249,881 17%1,684,200 289,037 17%(39,156) Development Services 2,504,867 255,686 10%2,743,700 284,246 10%(28,560) Economic Development 212,425 38,557 18%159,600 28,691 18%9,866 Public Works Administration 1,291,900 252,956 20%1,164,900 247,289 21%5,667 Engineering 1,946,664 361,990 19%1,849,200 356,504 19%5,486 Facilities Maintenance 2,180,130 401,455 18%2,360,600 367,601 16%33,854 Other Maintenance 2,708,162 344,547 13%1,623,000 304,204 19%40,343 Total Operating Expenditures 45,740,776$ 10,878,345$ 24%44,806,800$ 10,570,596$ 24%307,749$ Capital Improvement Projects 95,919$ 13,420$ 14%283,900$ -$ 0%13,420$ Transfers Out 14,013,914 1,505,389 11%12,904,800 1,335,165 10%170,224 Total Expenditures 59,850,609$ 12,397,154$ 21%57,995,500$ 11,905,761$ 21%491,393$ B - The Western Water Works Sales Tax Reimbursement Agreement, which is 91% of the budget, is paid out in September of each year. A - Risk Management has expended 89% of their budget on the City's liability, fire and workers compensation insurance. These are one-time expenditures by nature, and are required to be paid at the beginning of each fiscal year. 31/211 CITY OF CHINO HILLS CHANGES IN FUND BALANCE - ACTUAL FOR THE MONTH ENDED SEPTEMBER 30, 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 45,333,549$ 5,280,855$ 10,137,178$ (4,856,323)$ 40,477,226$ 003 Community Services 100,798 1,492,727 1,492,869 (142) 100,656 004 Community Development 1,057,150 822,309 730,104 92,205 1,149,355 005 TDA Pass Thru - 37,003 37,003 - - TOTAL GENERAL FUND 46,491,497$ 7,632,894$ 12,397,154$ (4,764,260)$ 41,727,237$ 010 Gas Tax 2,699,857$ 330,512$ 549,934$ (219,422)$ 2,480,435$ 011 Air Quality Management District 479,965 9,993 2,791 7,202 487,167 012 Measure I 1,210,106 160,171 358,890 (198,719) 1,011,387 015 Citizen's Option for Public Safety (757) 818 1,574 (756) (1,513) 017 Community Development Block Grant (7,392) 7,392 10,859 (3,467) (10,859) A 018 Affordable Housing Program 2,980,851 120,410 3,654 116,756 3,097,607 026 Landscape & Lighting - Administration 99,200 520,308 413,764 106,544 205,744 027 Park & Recreation Facilities Fee 1,182,662 142,533 31,438 111,095 1,293,757 028 Quimby In-Lieu 2,339,740 89,438 7,196 82,242 2,421,982 030 Open Space Management - 65,172 50,183 14,989 14,989 031 Park Maintenance - 149,247 129,331 19,916 19,916 032 L & L - 1-C Commercial 410,817 9,298 105,350 (96,052) 314,765 033 Street Sweeping 29,728 49 26,097 (26,048) 3,680 040 L & L - Rolling Ridge Operations & Arterial 564,128 13,675 170,183 (156,508) 407,620 045 L & L - 1-H Los Ranchos Operations 373,493 85,963 733,196 (647,233) (273,740) B 046 L & L - 1-I Los Ranchos Operations - 236 4,075 (3,839) (3,839) B 050 L & L - 1-B The Oaks Operations 67,966 1,703 35,034 (33,331) 34,635 055 L & L - 1-K Woodview Operations 160,059 3,516 5,500 (1,984) 158,075 060 L & L - 1-N Carbon Canyon Operations 10,198 219 750 (531) 9,667 061 L & L - 1-P Carbon Canyon Operations - 5,696 22,648 (16,952) (16,952) B 062 L & L - 1-T Carbon Canyon Operations 22,409 488 775 (287) 22,122 071 L & L - 1-M Rincon Operations 48,500 170,037 306,678 (136,641) (88,141) B 072 L & L - Los Serranos 24,976 662 3,719 (3,057) 21,919 073 L & L - Vellano 382,532 8,893 58,882 (49,989) 332,543 104 Sleepy Hollow Road Improvements 44,052 963 255 708 44,760 121 L & L - Los Ranchos Arterial 21,788 85,644 69,685 15,959 37,747 123 L & L - Woodview Arterial 1,496 2,365 1,763 602 2,098 124 L & L - Carbon Canyon Arterial 4,911 3,769 2,469 1,300 6,211 131 Traffic Signal Fee 186,018 4,077 - 4,077 190,095 132 Existing Infrastructure Fee 8,142,683 704,229 161,205 543,024 8,685,707 133 General City Facilities Fee 4,726,755 185,884 6,179 179,705 4,906,460 134 Traffic Facilities Fee 2,474,265 64,707 787 63,920 2,538,185 135 Storm Drain Facilities Fee 7,434,928 220,896 4,350 216,546 7,651,474 136 Traffic Impact Fee 44,250 14,173 992 13,181 57,431 140 Protected Tree Replacement (1,611) 1,611 - 1,611 - 150 PEG Access Fee 948,395 18,729 - 18,729 967,124 184 Road Maintenance & Rehabilitation Account (268) 134,177 29,010 105,167 104,899 198 Public Safety Programs 30,316 664 - 664 30,980 199 Miscellaneous Grant 278,036 - 120,807 (120,807) 157,229 504 Solid Waste - 943,845 181,393 762,452 762,452 506 Sewer Facilities Fee 4,703,390 136,021 1,594 134,427 4,837,817 507 Water Facilities Fee 16,276,225 518,072 22,476 495,596 16,771,821 TOTAL SPECIAL REVENUE FUNDS 58,394,667$ 4,936,255$ 3,635,466$ 1,300,789$ 59,695,456$ B - 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. Actuals through 9/30/18 A - Expenditures are reimbursed after they have been reported to the U.S. Department of Housing and Urban Development. 32/211 CITY OF CHINO HILLS CHANGES IN FUND BALANCE - ACTUAL FOR THE MONTH ENDED SEPTEMBER 30, 2018 Estimated Estimated Fund Balance Change in Fund Balance Fund #Fund Title 7/1/18 Revenues Expenditures Fund Balance 6/30/19 Actuals through 9/30/18 377 CFD 10 Construction 133,620$ 12,849$ -$ 12,849$ 146,469$ 379 CFD 9 Capital Projects 4,862,044 106,585 14,772 91,813 4,953,857 399 Capital Improvement - 113 2,716,061 (2,715,948) (2,715,948) C TOTAL CAPITAL PROJECT FUNDS 4,995,664$ 119,547$ 2,730,833$ (2,611,286)$ 2,384,378$ 500 Water Utility 42,768,149$ 7,149,853$ 4,908,490$ 2,241,363$ 45,009,512$ 501 Sewer Utility 25,895,480 2,108,300 1,150,932 957,368 26,852,848 512 Water Depreciation/Rate Stabilization 7,124,811 156,167 - 156,167 7,280,978 TOTAL ENTERPRISE FUND*75,788,440$ 9,414,320$ 6,059,422$ 3,354,898$ 79,143,338$ 551 Equipment Maintenance 5,066,279$ 382,197$ 190,375$ 191,822$ 5,258,101$ 552 Information Technology 1,095,557 478,648 370,539 108,109 1,203,666 TOTAL INTERNAL SERVICE FUNDS*6,161,836$ 860,845$ 560,914$ 299,931$ 6,461,767$ 009 General Agency 35,454$ -$ -$ -$ 35,454$ 627 CFD 1 - Rolling Ridge Operations 1,498,695 26,221 185,469 (159,248) 1,339,447 636 CFD 4 - The Oaks Operations 5,384,290 121,953 1,270,852 (1,148,899) 4,235,391 640 CFD 5 - Soquel Cyn, Rincon & Woodview Op.5,709,612 105,871 1,829,308 (1,723,437) 3,986,175 644 CFD 6 - Carbon Canyon Operations 1,569,661 33,710 367,124 (333,414) 1,236,247 647 CFD 8 - Butterfield Operations 435,866 8,280 49,178 (40,898) 394,968 657 CFD 9 - Rincon Village-1998 1,583,514 29,892 586,746 (556,854) 1,026,660 658 CFD 10 - Fairfield Ranch 1,917,669 20,157 754,335 (734,178) 1,183,491 659 CFD-Vila Borba 806,864 17,922 64,750 (46,828) 760,036 691 Assessment District 1994 Operations 950 62 - 62 1,012 698 CFD 2 - Los Ranchos Special Tax 4,563,288 85,416 1,496,607 (1,411,191) 3,152,097 699 RAD 10-1 564,902 9,632 290,083 (280,451) 284,451 TOTAL AGENCY FUNDS 24,070,765$ 459,116$ 6,894,452$ (6,435,336)$ 17,635,429$ GRAND TOTAL 215,902,869$ 23,422,977$ 32,278,241$ (8,855,264)$ 207,047,605$ C - The necessary transfer from the General Fund for capital projects will be booked in October 2018. *Long-term debt, fixed assets and investment in joint venture have been removed to reflect working capital. 33/211 CITY OF CHINO HILLS CHANGES IN FUND BALANCE - BUDGET FOR THE MONTH ENDED SEPTEMBER 30, 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 45,333,549$ 40,803,753$ 47,646,785$ (6,843,032)$ 38,490,517$ 003 Community Services 100,798 6,832,396 6,832,396 - 100,798 004 Community Development 1,057,150 3,315,579 3,764,480 (448,901) 608,249 005 TDA Pass Thru - 1,606,948 1,606,948 - - TOTAL GENERAL FUND 46,491,497$ 52,558,676$ 59,850,609$ (7,291,933)$ 39,199,564$ 010 Gas Tax 2,699,857$ 2,037,929$ 3,173,789$ (1,135,860)$ 1,563,997$ 011 Air Quality Management District 479,965 100,700 2,342 98,358 578,323 012 Measure I 1,210,106 1,376,800 2,500,573 (1,123,773) 86,333 015 Citizen's Option for Public Safety (757) 100,000 100,000 - (757) A 017 Community Development Block Grant (7,392) 669,249 669,249 - (7,392) B 018 Affordable Housing Program 2,980,851 438,500 33,570 404,930 3,385,781 026 Landscape & Lighting - Administration 99,200 2,040,500 2,132,808 (92,308) 6,892 027 Park & Recreation Facilities Fee 1,182,662 406,900 853,200 (446,300) 736,362 028 Quimby In-Lieu 2,339,740 145,700 1,459,900 (1,314,200) 1,025,540 030 Open Space Management - 263,400 266,417 (3,017) (3,017) 031 Park Maintenance - 592,100 603,791 (11,691) (11,691) 032 L & L - 1-C Commercial 410,817 312,700 421,400 (108,700) 302,117 033 Street Sweeping 29,728 202,800 224,879 (22,079) 7,649 040 L & L - Rolling Ridge Operations & Arterial 564,128 817,200 961,800 (144,600) 419,528 045 L & L - 1-H Los Ranchos Operations 373,493 3,186,200 3,474,100 (287,900) 85,593 046 L & L - 1-I Los Ranchos Operations - 16,300 16,300 - - 050 L & L - 1-B The Oaks Operations 67,966 129,300 165,600 (36,300) 31,666 055 L & L - 1-K Woodview Operations 160,059 21,700 22,000 (300) 159,759 060 L & L - 1-N Carbon Canyon Operations 10,198 2,000 3,000 (1,000) 9,198 061 L & L - 1-P Carbon Canyon Operations - 74,900 74,900 - - 062 L & L - 1-T Carbon Canyon Operations 22,409 3,100 3,100 - 22,409 071 L & L - 1-M Rincon Operations 48,500 1,581,900 1,581,900 - 48,500 072 L & L - Los Serranos 24,976 33,400 26,191 7,209 32,185 073 L & L - Vellano 382,532 207,400 433,433 (226,033) 156,499 104 Sleepy Hollow Road Improvements 44,052 10,400 10,104 296 44,348 121 L & L - Los Ranchos Arterial 21,788 340,600 340,600 - 21,788 123 L & L - Woodview Arterial 1,496 9,300 9,300 - 1,496 124 L & L - Carbon Canyon Arterial 4,911 14,600 14,600 - 4,911 131 Traffic Signal Fee 186,018 - 22,129 (22,129) 163,889 132 Existing Infrastructure Fee 8,142,683 2,216,700 2,216,700 - 8,142,683 133 General City Facilities Fee 4,726,755 300,900 22,600 278,300 5,005,055 134 Traffic Facilities Fee 2,474,265 38,300 2,900 35,400 2,509,665 135 Storm Drain Facilities Fee 7,434,928 120,000 24,200 95,800 7,530,728 136 Traffic Impact Fee 44,250 296,900 22,300 274,600 318,850 140 Protected Tree Replacement (1,611) - - - (1,611) A 150 PEG Access Fee 948,395 100,000 152,500 (52,500) 895,895 184 Road Maintenance & Rehabilitation Account (268) 1,339,710 1,339,700 10 (258) A 198 Public Safety Programs 30,316 - - - 30,316 199 Miscellaneous Grant 278,036 2,749,723 3,005,822 (256,099) 21,937 504 Solid Waste - 5,311,621 5,311,621 - - 506 Sewer Facilities Fee 4,703,390 77,600 1,094,892 (1,017,292) 3,686,098 507 Water Facilities Fee 16,276,225 1,179,900 10,155,195 (8,975,295) 7,300,930 TOTAL SPECIAL REVENUE FUNDS 58,394,667$ 28,866,932$ 42,949,405$ (14,082,473)$ 44,312,194$ A - The negative beginning fund balance is due to a negative fair market value adjustment at the end of the prior fiscal year. B - The negative beginning fund balance is due to a pending reimbursement from the U.S. Department of Housing and Urban Development for expenditures that occurred in the prior fiscal year. 34/211 CITY OF CHINO HILLS CHANGES IN FUND BALANCE - BUDGET FOR THE MONTH ENDED SEPTEMBER 30, 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 133,620$ -$ -$ -$ 133,620$ 379 CFD 9 Capital Projects 4,862,044 476,600 2,348,705 (1,872,105) 2,989,939 399 Capital Improvement - 6,398,390 6,398,390 - - TOTAL CAPITAL PROJECT FUNDS 4,995,664$ 6,874,990$ 8,747,095$ (1,872,105)$ 3,123,559$ 500 Water Utility 42,768,149$ 30,555,005$ 33,545,884$ (2,990,879)$ 39,777,270$ 501 Sewer Utility 25,895,480 8,615,000 10,673,595 (2,058,595) 23,836,885 512 Water Depreciation/Rate Stabilization 7,124,811 108,000 - 108,000 7,232,811 TOTAL ENTERPRISE FUND*75,788,440$ 39,278,005$ 44,219,479$ (4,941,474)$ 70,846,966$ 551 Equipment Maintenance 5,066,279$ 1,143,100$ 937,436$ 205,664$ 5,271,943$ 552 Information Technology 1,095,557 1,856,300 2,015,087 (158,787) 936,770 TOTAL INTERNAL SERVICE FUNDS*6,161,836$ 2,999,400$ 2,952,523$ 46,877$ 6,208,713$ 009 General Agency 35,454$ -$ -$ -$ 35,454$ 627 CFD 1 - Rolling Ridge Operations 1,498,695 401,600 739,305 (337,705) 1,160,990 636 CFD 4 - The Oaks Operations 5,384,290 161,000 2,533,578 (2,372,578) 3,011,712 640 CFD 5 - Soquel Cyn, Rincon & Woodview Op.5,709,612 3,049,500 4,850,092 (1,800,592) 3,909,020 644 CFD 6 - Carbon Canyon Operations 1,569,661 266,300 407,033 (140,733) 1,428,928 647 CFD 8 - Butterfield Operations 435,866 91,400 286,115 (194,715) 241,151 657 CFD 9 - Rincon Village-1998 1,583,514 1,160,600 1,113,976 46,624 1,630,138 658 CFD 10 - Fairfield Ranch 1,917,669 1,000,000 956,586 43,414 1,961,083 659 CFD-Vila Borba 806,864 370,000 303,767 66,233 873,097 691 Assessment District 1994 Operations 950 - - - 950 698 CFD 2 - Los Ranchos Special Tax 4,563,288 1,346,700 3,546,127 (2,199,427) 2,363,861 699 RAD 10-1 564,902 309,500 295,893 13,607 578,509 TOTAL AGENCY FUNDS 24,070,765$ 8,156,600$ 15,032,472$ (6,875,872)$ 17,194,893$ GRAND TOTAL 215,902,869$ 138,734,603$ 173,751,583$ (35,016,980)$ 180,885,889$ *Long-term debt, capital assets and investment in joint venture have been removed to reflect working capital. 35/211 Page 1 of 2 RESOLUTION NO. 2018R-__ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHINO HILLS, CALIFORNIA, ADOPTING A BUDGET AMENDMENT FOR FISCAL YEAR 2018-19 INCREASING THE BUDGET IN VARIOUS FUNDS BY $811,264 FOR ADJUSTMENTS BASED ON THE FIRST QUARTER BUDGET REVIEW WHEREAS, the City Manager has presented to the City Council a proposed budget for Fiscal Year 2018-19; and WHEREAS, the City Council of the City of Chino Hills conducted a public meeting on June 12, 2018, to consider the Fiscal Year 2018-19 budget document, and adopted a budget for the fiscal year commencing July 1, 2018, and ending July 30, 2019; and WHEREAS, amendments must periodically be made to the budget to conform to changed circumstances following adoption of the budget. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHINO HILLS DOES RESOLVE, DETERMINE, AND ORDER AS FOLLOWS: SECTION 1. Budget Amendment No. 19B021 is hereby approved as reflected on Exhibit No. 1, attached hereto. SECTION 2. The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED, AND ADOPTED this 13th day of November, 2018. _________________________________ PETER J. ROGERS, MAYOR ATTEST: _________________________________ CHERYL BALZ, CITY CLERK APPROVED AS TO FORM: _________________________________ MARK D. HENSLEY, CITY ATTORNEY 36/211 Page 2 of 2 STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) § CITY OF CHINO HILLS ) I, Cheryl Balz, City Clerk of the City of Chino Hills, DO HEREBY CERTIFY that the foregoing Resolution No. 2018R-_____ was duly adopted at a regular meeting of the City Council of the City of Chino Hills held on the 13th day of November, 2018, by the following vote, to wit: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ___________________________________ CHERYL BALZ, CITY CLERK The foregoing is the original of Resolution No. 2018R-____ duly passed and adopted by the Chino Hills City Council at their regular meeting held November 13, 2018. ___________________________________ CHERYL BALZ, CITY CLERK 37/211 Exhibit No. 1 \ BA # 19B021 Date:11/13/2018 Fiscal Year:2018-19 Requested by:Christa Buhagiar, Finance Director Amount:811,264.00$ Dept/Div:Finance Description:First Quarter Budget Amendments and Revenue Adjustments EXPENDITURES Account Number Project Number Account Description Current Budget Proposed Amendment Amended Budget 001-8123-888-7225 Departmental Overhead 14,500.00$ (600.00)$ 13,900.00$ 001-8400-888-7225 Departmental Overhead 218,800.00 (1,600.00) 217,200.00 500-8110-888-7225 Departmental Overhead 708,400.00 (30,600.00) 677,800.00 501-8120-888-7225 Departmental Overhead 247,200.00 (10,800.00) 236,400.00 003-0900-888-7220 Administrative Overhead 2,032,135.00 (35.00) 2,032,100.00 004-4000-888-7220 Administrative Overhead 301,322.00 (22.00) 301,300.00 004-4100-888-7220 Administrative Overhead 179,872.00 28.00 179,900.00 004-4200-888-7220 Administrative Overhead 426,137.00 (37.00) 426,100.00 010-7300-888-7220 Administrative Overhead 80,250.00 50.00 80,300.00 010-8300-888-7220 Administrative Overhead 148,800.00 (100.00) 148,700.00 015-6000-888-7220 Administrative Overhead 6,020.00 380.00 6,400.00 027-5000-888-7220 Administrative Overhead 30,500.00 60,200.00 90,700.00 028-5000-888-7220 Administrative Overhead 10,900.00 43,500.00 54,400.00 132-5000-888-7220 Administrative Overhead 166,300.00 316,000.00 482,300.00 133-5000-888-7220 Administrative Overhead 22,600.00 (22,500.00) 100.00 134-5000-888-7220 Administrative Overhead 2,900.00 (2,900.00) - 135-5000-888-7220 Administrative Overhead 24,200.00 (24,200.00) - 136-5000-888-7220 Administrative Overhead 22,300.00 (22,300.00) - 506-5000-888-7220 Administrative Overhead 5,800.00 70,200.00 76,000.00 507-5000-888-7220 Administrative Overhead 69,000.00 436,500.00 505,500.00 551-8200-888-7220 Administrative Overhead 103,000.00 100.00 103,100.00 501-8123-888-1010 Regular Salaries 58,102.00 (58,102.00) - 001-8123-888-1010 Regular Salaries 58,102.00 (58,102.00) - 001-8001-888-1010 Regular Salaries 460,100.00 116,204.00 578,304.00 640-7000-888-8040 800212 Improvements Other than Bldg 2,108,059.00 (551,100.00) 1,556,959.00 027-7000-888-8040 800212 Improvements Other than Bldg 750,000.00 551,100.00 1,301,100.00 501-7000-888-8210 D13002 Sanitary Sewer Lines 75,000.00 (54,800.00) 20,200.00 506-7000-888-8210 D13002 Sanitary Sewer Lines - 54,800.00 54,800.00 507-7000-888-8450 W11004 Water Supply Facilities 7,485,528.00 (2,997,700.00) 4,487,828.00 500-7000-888-8450 W11004 Water Supply Facilities - 2,997,700.00 2,997,700.00 507-7000-888-8450 800162 Water Supply Facilities 322,200.00 (166,500.00) 155,700.00 500-7000-888-8450 800162 Water Supply Facilities - 166,500.00 166,500.00 CITY OF CHINO HILLS BUDGET AMENDMENT 38/211 Exhibit No. 1 REVENUES Account Number Project Number Account Description Current Budget Proposed Amendment Amended Budget 001-0000-388-3001 G/F Citywide Overhead 8,140,400.00 (227,500.00) 7,912,900.00 001-0000-388-3003 7.5% Impact Fee Overhead 1,141,500.00 67,500.00 1,209,000.00 001-0000-388-3005 Public Works Overhead 1,241,900.00 50,000.00 1,291,900.00 199-0000-325-4010 S19003 County Grants/SBCTA TDA Grant - 87,100.00 87,100.00 199-0000-325-4010 S19005 County Grants/SBCTA TDA Grant - 249,800.00 249,800.00 REASON/JUSTIFICATION To adjust the Fiscal Year 2018-19 budget based on the First Quarter Budget Review. 39/211