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01-12-2016 CC Rpt A04 COUNCIL AGENDA STAFF REPORT CITY CLERK USE ONLY ,,( Meeting Date: January 12, 2016 RECEIVED ,�. Public Hearing: ❑ JAN 0 4 2016 �;y�� Discussion Item: ❑ (It H'.i City of Chino Hills ChConsent Item: City Clerk's Department January 5, 2016 TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: CITY MANAGER SUBJECT: MONTHLY FINANCIAL REPORT RECOMMENDATION: Receive and file the Financial Report for November 2015. BACKGROUND/ANALYSIS: The Financial Report for November 2015 is attached for your review. The purpose of the monthly Financial Report is to inform the City Council, the City's citizens, and the City's staff about the financial progress of the City in meeting its service mission. The information 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. The monthly Financial Report format was designed to present comparative information for the current fiscal year as well as the prior fiscal year: Current Fiscal Year: This section reports the original budget, the revised budget which includes any approved changes made during the fiscal year, and a proration of the revised budget based on the number of months that have lapsed during the fiscal year. Following the budget presentation columns, the year-to- date actual expenditures for the fiscal year are reported and the dollar and percentage amounts that the year-to-date actual expenditures varied from the pro-rated (year-to-date) revised budget. Any variance of 10 percent or more is explained in the footnotes that are attached to the Financial Report. The footnote legend appears at the right of the column that reports the percentage variance. Prior Fiscal Year: This section reports the year-to-date prior fiscal year actual expenditures and the dollar and percentage amounts that the year-to-date prior year actual expenditures varied from the year-to-date current year actual expenditures. Please note that the percentage variance footnotes relate only to the variance of the current year actual expenditures vs. the current year budget; the footnotes do not explain the prior year percentage variances. PC4-- 23/147 AGENDA DATE: JANUARY 12, 2016 PAGE 2 SUBJECT: MONTHLY FINANCIAL REPORT Another design feature of the report is the schedule of revenues and expenditures by major fund types that are listed down the left margin of the report. The principal discretionary resource fund, the General Fund, is listed first and discloses its major revenue categories and the City functions for which these revenues are a financing resource. Following the General Fund, the Recreation Operations Fund, and the Community Development Operations Fund, the non-discretionary enterprise and non- enterprise funds are reported showing their respective revenue and expenditures in a consolidated format. The report also will show each fund's "bottom line". That is, the net revenues and expenditures for the governmental type funds (such as the General Fund, Development Fee Funds, and Lighting and Landscaping District Funds), and the net profit for the enterprise funds (such as the Water Fund and Sewer Fund). All accruals are made at the end of the fiscal year. Therefore, the amounts reported could be subject to significant adjustments, upward or downward, at the end of the fiscal year. REVIEW BY OTHERS: California Environmental Quality Act (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: Refer to the financial information presented in the report. Respectfully submitted: Recommended by: fik , Konradt Bartlam, City Manager JulR. L. caster, Finance Director KB:J RL:PA:EC:dk Attachment 24/147 City of Chino Hills Revenues,Expenditures,and Transfers Budget and Actual Comparative Analysis for the Month Ending November 30,2015 CURRENT YEAR PRIOR YEAR Year to Date Prior Year Month: 5 Year Revised Budget Actual vs Original Revised to Date Year vs Year Current Year Annual Annual Revised to Date Actual Percentage to Date Actual Percentage Budget Budget Budget Actual Variance Variance Actual Variance Variance GENERAL FUND REVENUES Property taxes 4,597,200 4,597,200 1,915,500 529,141 (1,386,359) (72.38%) (1) 520,253 8,888 171% Property taxes-Triple Flip 1,954,200 1,954,200 814,250 - (814,250) (100.00%) (1) - - N/A Property taxes-VLF Swap 7,086,900 7,086,900 2,952,875 - (2,952,875) (100.00%) (1) - - N/A Sales taxes 5,862,600 5,862,600 2,442,750 1,409,181 (1,033,569) (42.31%) (2) 1,320,891 88,290 6.68% Other taxes 1,481,600 1,481,600 617,333 689,144 71,811 11.63% (2) 516,972 172,172 33.30% Total taxes 20,982,500 20,982,500 8,742,708 2,627,466 (6,115,242) (69.95%) 2,358,116 269,350 11.42% Motor vehicle in-lieu fees 31,300 31,300 13,042 - (13,042) (100.00%) (2) 32,363 (32,363) (100.00%) Fines and Penalties 464,100 464,100 193,375 206,542 13,167 6.81% 193,244 13,298 6.88% Interest income and franchise fees 3,293,500 3,293,500 1,372,292 854,113 (518,178) (37.76%) (3) 893,683 (39,570) (4.43%) Engineering Fee 1,623,200 1,623,200 676,333 657,662 (18,671) (2.76%) 691,606 (33,944) (4.91%) Cost reimbursements 474,900 1,019,900 424,958 639,181 214,223 50.41% (5) 50,243 588,938 N/A Other revenues 10,726,800 10,726,800 4,469,500 3,852,842 (616,658) (13.80%) (5) 3,447,188 405,654 11.77% Operating transfers 1,609,800 1,609,800 670,750 916,195 245,445 36.59% (6) 849 915,346 N/A Total revenues 39,206,100 39,751,100 16,562,958 9,754,002 (6,808,957) (41.11%) 7,667,292 2,086,710 27.22% EXPENDITURES Legislative City Council 257,600 272,300 113,458 96,045 17,414 15.35% (7) 95,092 (953) (1.00%) City Attorney 350,000 350,000 145,833 88,756 57,077 39.14% (7) 83,242 (5,514) (6.62%) City Clerk 1,128,100 1,223,100 509,625 409,653 99,972 19.62% (7) 363,731 (45,922) (12.63%) Contract Services 187,500 187,500 78,125 51,331 26,794 34.30% (7) 51,331 - 0.00% City Manager r Administration 1,062,200 1,170,200 487,583 385,699 101,885 20.90% (7) 398,502 12,803 3.21% Public Safety 12,058,800 12,060,600 5,025,250 5,361,792 (336,542) (6.70%) - 4,749,541 (612,251) (12.89%) Community Relations 636,200 640,100 266,708 217,792 48,916 18.34% (7) 217,277 (515) (0.24%) Human Resources 404,800 426,600 177,750 137,710 40,040 22.53% (7) 127,498 (10,212) (8.01%) Risk Management 1,408,300 1,416,400 590,167 1,350,532 (760,366) (128.84%) (7) 2,460,456 1,109,924 45.11% Emergency Preparedness 246,400 251,200 104,667 40,226 64,440 61.57% (7) 127,701 87,475 68.50% Code Enforcement/Neighborhood Srvcs(Prior Yr) 544,000 598,000 249,167 207,838 41,329 16.59% (7) 391,887 184,049 46.96% Engineering Engineering Administration 1,824,600 1,944,400 810,167 702,175 107,992 13.33% (7) 718,419 16,244 2.26% Ni 01 v Page 1 of 4 CURRENT YEAR PRIOR YEAR Year to Date Prior Year Month: 5 Year Revised Budget Actual vs Original Revised to Date Year vs Year Current Year Annual Annual Revised to Date Actual Percentage to Date Actual Percentage Budget Budget Budget Actual Variance Variance Actual Variance Variance GENERAL FUND(continued) EXPENDITURES_ Finance Administration 2,441,000 2,584,100 1,076,708 905,158 171,551 15.93% (7) 834,102 (71,056) (8.52%) Non-Departmental 60,300 60,300 25,125 20,537 4,588 18.26% (7) 20,421 (116) (0.57%) Development Program 2,932,800 2,932,800 1,222,000 1,257,528 (35,528) (2.91%) 1,248,143 (9,385) (0.75%) Public Works Administration 1,043,600 1,102,400 459,333 395,438 63,895 13.91% (7) 347,046 (48,392) (13.94%) Facility and Equipment Maintenance 1,773,200 1,838,700 766,125 597,156 168,969 22.06% (7) 606,523 9,367 1,54% Other Maintenance 1,417,200 2,020,800 842,000 660,013 181,987 21.61% (7) 395,360 (264,653) (66.94%) Interfund Transfers Capital Improvement Projects 2,316,200 2,306,400 961,000 21,028 939,972 97,81% (6) 14,197 (6,831) (48.12%) Operating Transfers 6,174,000 6,630,800 2,762,833 2,114,767 648,067 23.46% (6) 2,421,186 306,419 12.66% Total expenditures 38,266,800 40,016,700 16,673,625 15,021,175 1,652,450 9.91% 15,671,655 650,481 4.15% Net revenues over/(under) expenditures 939,300 (265,600) (110,667) (5,267,173) (5,156,506) N/A (8,004,363), 2,737,190 34.20% 1..IAB INSURANCE RATE STABILIZATION FUND Operating Transfers 1,100,000 1,100,000 458,333 - (458,333) (100.00%) (6) - - N/A Total revenues 1,100,000 1,100,000 458,333 - (458,333) (100.00%) - - N/A Expenditures - - - - - N/A - - N/A Net revenues and expenditures 1,100,000 1,100,000 458,333 - (458,333) N/A - - N/A RECREATION OPERATIONS FUND Revenues 1,372,100 1,372,100 571,708 494,530 (77,178) (13.50%) (8) 445,785 48,745 10.93% Operating Transfers 4,293,600 4,460,900 1,858,708 1,789,600 (69,108) (3.72%) 1,274,070 515,530 40.46% Total revenues 5,665,700 5,833,000 2,430,417 2,284,130 (146,287) (6.02%) 1,719,855 564,275 32.81% Expenditures 5,665,700 5,887,500 2,453,125 2,117,767 335,358 13.67% (7) 2,013,736 (104,032) (5.17%) Net revenues and expenditures - (54,500) (22,708) 166,363 189,071 832.61% (293,881) 460,244 156.61% COMMUNITY DEVELOPMENT OPERATIONS Community Development Fees 4,356,800 4,356,800 1,815,333 1,323,858 (491,475) (27.07%) (4) 765,662 558,196 72.90% Operating Transfers - 136,000 56,667 - (56,667) (100.00%) (6) 790,375 (790,375) (100.00%) Total revenues 4,356,800 4,492,800 1,872,000 1,323,858 (548,142) (29.28%) 1,556,037 (232,179) (14.92%) Expenditures Administration 1,282,200 1,336,100 556,708 503,511 53,197 9.56% 470,990 (32,521) (6.90%) Building Services 1,345,000 1,411,200 588,000 472,579 115,421 19.63% (7) 430,664 (41,915) (9.73%) Development Services 850,300 953,800 397,417 269,947 127,470 32.07% (7) 275,112 5,165 1.88% Economic Development 114,700 169,700 70,708 66,624 4,084 5.78% 70,197 3,573 5.09% Operating Transfers 225,800 225,800 94,083 - 94,083 100.00% (6) - - 0.00% Total expenditures 3,818,000 4,096,600 1,706,917 1,312,661 394,255 23.10% 1,246,963 (65,698) (5.27%) r9etrevenues and expenditures 538,800 396,200 165,083 11,197 (153,886) (9322%) 309,074 (297,877) (96.38%) v m Page 2 of 4 CURRENT YEAR PRIOR YEAR Year to Date Prior Year Month: 5 Year Revised Budget Actual vs Original Revised to Date Year vs Year Current Year Annual Annual Revised to Date Actual Percentage to Date Actual Percentage Budget Budget Budget Actual Variance Variance Actual Variance Variance WATER FUND REVENUES Water sales 28,637,900 28,637,900 11,932,458 9,592,236 (2,340,222) (19.61%) (9) 12,168,953 (2,576,717) (21.17%) Other revenue 3,423,300 3,423,300 1,426,375 468,592 (957,783) (67.15%) (3)&(6) 423,547 45,045 10.64% Total revenues 32,061,200 32,061,200 13,358,833 10,060,828 (3.298,005) (24.69%) 12,592,500 (2,531,672) (20.10%) EXPENDITURES Water costs 12,588,800 12,588,800 5,245,333 3,668,604 1,576,729 30.06% (11) 4,619,606 951,002 20.59% Power costs 1,000,000 1,000,000 416,667 347,581 69,086 16.58% (I I) 434,399 86,818 19.99% Interfund Transfers 5,309,200 5,052,800 2,105,333 262,907 1,842,426 87.51% (6) 866,439 603,532 69.66% Other costs 14,109,100 14,571,500 6,071,458 3,167,887 2,903,571 47.82% (10) 3,141,779 (26,108) (0,83%) Total expenditures 33,007,100 33,213,100 13,838,792 7,446,979 6,391,812 46.19% 9,062,223 1,615,244 17.82% Net profit(loss) (945,900) (1,151,900) (479,958) 2,613,849 3,093,807 644.60% 3,530,277 (916,428) (25.96%) SEWER FUND Revenues 10,841,600 10,841,600 4,517,333 2,579,465 (1,937,868) (42.90%) (9) 2,536,640 42,825 1.69% Expenditures 9,034,400 9,200,300 3,833,458 2,107,747 1,725,711 45.02% (7) 1,990,843 (116,904) (5.87%) Net profit(loss) 1,807,200 1,641,300 683,875 471,718 (212,157) (31.02%) 545,797 (74,079) (13.57%) SOLID WASTE FUND Revenues 4,814,600 4,814,600 2,006,083 1,774,902 (231,181) (11.52%) (12) 1,735,146 39,756 2.29% Expenditures 4,814,600 4,814,600 2,006,083 979,763 1,026,320 51.16% (12) 973,437 (6,326) (0.65%) Net revenues and expenditures - - 795,139 795,139 N/A 761,709 33,430 4.39% DEVELOPMENT FUNDS(14) Revenues 24,762,100 24,762,100 10,317,542 1,847,269 (8,470,272) (82.10%) (13) 646,787 1,200,482 185.61% Expenditures 8,411,100 8,405,700 3,502,375 671,782 2,830,593 80.82% (13) 75,203 (596,579) (793.29%) Net revenues and expenditures 16,351,000 16,356,400 6,815,167 1,175,487 (5,639,680) (82.75%) 57I,584 603,903 105.65% CONSTRUCTION FUNDS Revenues 25,027,800 23,381,300 9,742,208 5,199,167 (4,543,042) (46.63%) (6) 2,885,623 2,313,544 80.17% Expenditures 25,027,800 23,381,300 9,742,208 5,199,167 4,543,042 46.63% (6) 2,885,374 (2,313,793) (80.19%) Net revenues and expenditures - - - - N/A 249 (249) 0.00% LANDSCAPE AND LIGHTING DISTRICT FUNDS Revenues 8,641,100 8,735,100 3,639,625 1,780,738 (1,858,887) (51.07%) (1) 1,805,493 (24,755) (1.37%) Expenditures 10,288,600 10,539,700 4,391,542 3,468,904 922,638 21.01% (6)&(7) 3,891,615 422,711 10.86% Net revenues and expenditure (1,647,500) (1,804,600) (751,917) (1,688,166) (936,249) (124.52%) (2,086,122) 397,956 19.08% ASSESSMENT DISTRICT FUNDS Revenues 447,900 447,900 186,625 23,837 (162,788) (87.23%) (1) 40,040 (16,203) (40.47%) Expenditures 447,900 447,900 186,625 357,567 (170,942) (91.60%) (6)&(7) 592,762 235,195 39.68% CNet revenues and expenditures - - - (333,730) (333,730) N/A (552,722) 218,992 39.62% Page 3 of 4 CURRENT YEAR PRIOR YEAR Year to Date Prior Year Month: 5 Year Revised Budget Actual vs Original Revised to Date Year vs Year Current Year Annual Annual Revised to Date Actual Percentage to Date Actual Percentage Budget Budget Budget Actual Variance Variance Actual Variance Variance COMMUNITY FACILITIES DISTRICTS FUNDS Revenues 7,925,100 8,573,700 3,572,375 785,704 (2,786,671) (78.01%) (1) 1,020,503 (234,799) (23.01%) Expenditures 10,242,700 10,158,800 4,232,833 6,737,102 (2,504,269) (59.16%) (6)&(7) 7,185,522 448,420 6.24% Net revenues and expenditures (2,317,600) (1.585,100) (660,458) (5,951,398) (5,290,939) N/A (6,165,019) 213,621 3.47% MISCELLANEOUS FUNDS(15) Revenues 19,370,600 21,244,400 8,851,833 4,020,968 (4,830,865) (54.57%) (16) 2,629,792 1,391,176 52.90% Expenditures 19,534,100 19,429,500 8,095,625 6,575,547 1,520,078 18.78%(6)&(16) 3,824,149 (2,751,398) (71.95%) Net revenues and expenditures (163,500) 1,814,900 756,208 (2,554,578) (3,310,787) (437.81%) (1,194,357) (1,360,221) (113.89%) N) Oo -A v Page 4 of 4 FOOTNOTES: 1. Due to the cyclical nature of the collection of property and special assessments taxes,less are received at the beginning of the fiscal year; there is an increase from December through April when the two property tax installments become due. The Triple Flip and the Vehicle In-Lieu Property Taxes are received in two installments during January and May of the fiscal year. 2. Sales tax,motor vehicle in lieu fees,property transfer tax,and fines and forfeitures are collected at different intervals throughout the fiscal year. The sales tax received in the months of July and August were actually related to previous fiscal year.This variance is mainly caused by the two-month time lag in receiving the sales tax revenue. 3. Investment interest is allocated and recorded on a monthly basis except for the Local Agency Investment Fund(LAIF)that is received on a quarterly basis. Franchise fees are generally recorded annually except for the cable and telecommunication carriers that are recorded on a quarterly basis. A separate account was set up to account for the Fair Market Value(FMV)adjustment at year end,which should not be considered as interest earnings. 4. The collection of both building permits and engineering inspection fees are cyclical in nature. 5. These accounts include a variety of cost reimbursements from different sources such as reimbursement for the School Resource Officer, which is reimbursed on a semi-annual basis.Also includes Workers'Compensation Reimbursement to the General Fund,and this calculation could vary significantly from year to year.Other miscellaneous revenues in the General Fund such as PEG Access Fee,is remitted to the City either quarterly or annually from the vendors. 6. The principal reason for the variance is that some of the operating transfers are made at year end,depending on the overall result of the related fund(s)and if a transfer/subsidy is needed.Also,operating transfers that are related to the capital projects are made only when the expenditures incurred. In some cases projects are budgeted for the fiscal year but the actual construction process has not started during the fiscal year,and therefore,the transfer amount reflects the status of these capital projects. 7. Selective budgeted expenditures are either one-time expenditures or cyclical in nature and are not expended evenly throughout the fiscal year. Examples include the audit and information technology related costs(Finance),insurance premiums(Risk Management),or one-time payment to the developers. Department is likely to request unexpended budget to be rollover into the following fiscal year,contingent to approval by the City Manager. 8. This variance is due to significant portion of the recreation revenues are generated through the summer programs,and not evenly collected throughout the fiscal year. 9. This variance is caused by the timing when the utility billings were sent out and the actual revenues collected for the period. 10. This account includes debt services payments that are paid on a semi-annual basis,and interfund transfers that relate to various CIP projects reimbursement. 11. Water purchase and pumping costs are highly seasonal and they are contingent on factors such as weather and demands from customers. 12. The City collects the solid waste fees on behalf of the contractor.This variance is caused by the lag time between when the City collects the fees and when it pays the contractor. 13. The principal reason for this variance is that the collection of the facilities development fees is cyclical in nature and depends on when the developers obtain permits for construction,and the timing when the development related credits were exercised during the fiscal year. 14. Development fees funds consist of the following:Park&Rec Facilities Fee,Quimby in Lieu, Existing Infrastructure Fee,General City Facilities Fee, Traffic Facilities Fee,Storm Drain Facilities Fee,Sewer Facilities Fee,Water Facilities Fee Funds. 15. Miscellaneous funds consist of the following:TDA Pass Through,Special Gas Tax, Air Quality, Measure I Trans Sales Tax, Citizens Option Public Safety,CDBG Entitlement,Affordable Housing,Street Sweeping,Sleepy Hollow Road Improvement,Traffic Signal Fee,Protected Tree Replacement, Public Safety Programs, Misc.Grant,Gas Tax Sec 7360, Equipment Maintenance, Information Technology and Federal Emergency Management Agency Funds. 16. The principle reason for this variance is due to the timing when the City is eligible to draw down various Federal Grants related to several capital improvement projects. CON v Page 1 of 1