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02-09-2016 CC Rpt A04 COUNCIL AGENDA STAFF REPORT CITY CLERK USE ONLY Meeting Date: February 9, 2016 Item No.: A04 Public Hearing: EI Discussion Item: LI Chino Hills Consent Item: February 2, 2016 TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: CITY MANAGER SUBJECT: MONTHLY FINANCIAL REPORT T RECOMMENDATION.: EN ATION: Receive and file the Financial Report for December 2015. BACKGROUND/ANALYSIS: for December 2015 is attached for your review. The purpose of The Financial Report 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 Years 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 r-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. 24/470 '° AGENDA DATE: FEBRUARY 9, 2016 PAGE 2 SUBJECT: MONTHLY FINANCIAL!CIAL REPOT T 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: r- 4111 4 Konrad Bartlam$ City M6nag L er Ju r , caster, Finance Director KB: L:PA:EC.d k Attachment 25/470 City of Chino Hills Revenues,Expenditures,and Transfers Budget and Actual Comparative Analysis for the Month Ending December 31,2015 CURRENT YEAR PRIOR YEAR Year to Date Prior Year Month: 6 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 2,298,600 2,266,733 (31,867) (1.39%) 2,058,070 208,663 10.14% Property taxes-Triple Flip 1,954,200 1,954,200 977,100 - (977,100) (100.00%) (1) - - N/A Property taxes VLF Swap 7,086,900 7,086,900 3,543,450 .. (3,543,450) 100.00% (1) - - N/A Sales taxes 5,862,600 5,862,600 2,931,300 1,976,723 (954,577) (32.56%) (2) 1,955,719 21,004 1.07% Other taxes 1,481,600 1,481,600 740,800 768,887 28,087 3.79% 625,733 143,154 22.88% Total taxes 20,982,500 20,982,500 10,491,250 5,012,344 (5,478,906) (52.22%) 4,639,522 372,822 8.04% Motor vehicle in4Xieu fees 31,300 31,300 15,650 31,309 15,659 100.05% (2) 32,363 (1,054) (3.26%) Fines and Penalties 464,100 464,100 232,050 235,124 3,074 1.32% 226,592 8,532 3.77% Interest income and franchise fees 3,293,500 3,293,500 1,646,750 909,733 (737,017) (44,76%) (3) 990,819 (81,086) (8.18%) Engineering Fee 1,623,200 1,623,200 811,600 753,366 (58,234) (7.18%) 797,564 (44,198) (5.54%) Cost reimbursements 474,900 1,019,900 509,950 682,793 172,843 33.89% (5) 61,764 621,029 N/A Other revenues 10,726,800 10,726,800 5,363,400 4,803,654 (559,746) (10.44%) (5) 4,131,775 671,879 16.26% Operating transfers 1,609,800 1,609,800 804,900 15,235,123 14,430,223 N/A (6) (17) 849 F 15,234,274 N/A Total revenues 39,206,100 39,751,100 19,875,550 27,663,446 7,787,896 39.18% 10,881,24E , 16,782,198 154.23% EXPENDITURES Legislative City Council 257,600 272,300 136,150 122,551 13,599 9.99% 117,404 (5,147) (4.38%) City Attorney 350,000 350,000 175,000 109,618 65,382 37.36% (7) 100,721 (8,897) (8.83%) City Clerk 1,128,100 1,223,100 611,550 529,563 81,987 13.41% (7) 449,625 (79,938) (17.78%) Contract Services 187,500 187,500 93,750 76,231 17,519 18.69% (7) 51,331 (24,900) (48.51%) pity Manan Administration 1,062,200 1,170,200 585,100 470,442 114,65E 19.60% (7) 473,361 2,919 0.62% Public Safety 12,058,800 12,060,600 6,030,300 6,408,214 (377,914) (6.27%) 5,602,539 (805,675) (14.38%) Community Relations 636,200 640,100 320,050 268,878 51,172 15.99% (7) 256,479 (12,399) (4,83%) Human Resources 404,800 426,600 213,300 186,393 26,907 12.61% (7) 154,830 (31,563) (20.39%) Risk Management 1,408,300 1,416,400 708,200 1,363,442 (655,242) (92.52%) (7) 2,471,246 1,107,804 44.83% Emergency Preparedness 246,400 251,200 125,600 46,711 78,889 62.81% (7) 133,528 86,817 65.02% Code Enforcement/Neighborhood Srvcs(Prior Yr) 544,000 598,000 299,000 259,506 39,494 13.21% (7) 430,185 170,679 39.68% Engineering Engineering Administration 1,824,600 1,944,400 972,200 863,111 109,089 11.22% (7) 848,926 (14,185) (1.67%) Page 1 of 4 26/470 CURRENT YEAR PRIOR YEAR rrWrr rr r Year to Date Prior Year Month: 6 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 z Actual Variance Variance Actual Variance Variance GENERAL FUND(continued) EXPENDITURES DTTTURE Finance Administration 2,441,000 2,584,100 1,292,050 1,102,185 189,865 14.69% (7) 994,512 (107,673) (10.83%) Non-Departmental 60300 60,300 30,150 24,906 5,244 17.39% (7) 24,663 (243) (0.99%) Development Program 2,932,800 2,932,800 1,466,400 15,592,952 14,126,552 (963.35%) (13)84(17) 1,261,595 (14,331,357) N/A Public Works Administration 1,043,600 1,102,400 551,200 490,319 60,881 11.05% (7) 419,726 (70,593) (16.82%) Facility and Equipment Maintenance 1,773,200 1,838,700 919,350 753,966 165,384 17.99% (7) 766,770 12,804 1.67% Other Maintenance 1,417,200 2,020,800 1,010,400 815,856 194,544 19.25% (7) 561,768 (254,088) (45.23%) Interfund Transfers Capital Improvement Projects 2,316,200 2,306,400 1,153,200 62,876 1,090,324 94.55% (6) 20,733 (42,143) (203,27%) Operating Transfers 6,174,000 ..._...6,63Q,800 3,315,400 3,814,990 (499,590) (15.07%) (6) 2,895,169 (919,821) (31.77%) Total expenditures 38,266,800 40,016,700 20,008,350 33,362,709 (13,354,359) (66.74%)} 18,035,111 F (15,327, 98) (84.99%) Net revenues over/(under) expenditures 939,300 (265,600) (132,800) (5,699,264) (5,566,464) N/A (7,153,863) 1,454,599 20.33% LTA13 INSURANCE RATE STABILIZATION FUND Operating Transfers 1,X00,000 - 1,100,000 550,000 - (550,000) (100.00%) (6) - N/A Total revenues 1,100,000 i 1,100,000 5550,000 - (550,000) (100.00%) - - N/A Expenditures - - - - - N/A - - N/A Net revenues and expenditures 1,100,000 1,100,000 550,000- - 550.000 N/A N/A RECREATION OPERATIONS FUND Revenues 1372,100 1,372,100 686,050 535,618 (150,432) (21.93%) (8) 462,182 73,436 15.89% Operating Transfers 4,293,600 4,460,900 2,230,450 2,147,400 (83,050) (3.72%) 1,527,770 619,630 40.56% Total revenues 5,665,700 5,833,000 2,916,500 2,683,018 (233,482) (8.01%) 1,989,952 693,066 34.83% Expenditures 5,665,700 5,887,500 2,943,759 2,575,384 368,366 12.51% (7) 2,390,394 (184,990) (7.74%) Net revenues and expenditures - (54,500) (27,250) 107,634 134,884 494.99% (400,442) 508,076 126.88% .CONIMUNTTY DEVELOPMENT OPERATT NS Community Development Fees 4,356,800 4,356,800 2,178,400 1,608,746 (569,654) (26.15%) (4) 899,111 709,635 78.93% Operating Transfers - 136,000x 68,000 (68.000) (100.00%) (6) 948,450 (948,450) (100.00%). Total revenues 4,356,800 4,492,800 2,246,400 1,608,746 (637,654) (28.39%) 1,847,561 (238,815) (12.93%) Expenditums Administration 1,282,200 1,336,100 668,050 608,174 59,876 8.96% 563,520 (44,654) (7.92%) Building Services 1,345,000 1,411,200 705,600 584,609 120,991 17.15% (7) 514,150 (70,459) (13.70%) Development Services 850,300 953,800 476,900 338,259 138,641 29.07% (7) 322,819 15,440) (4.78%) Economic Development 114,700 169,700 84,850 80,262 4,588 5.41% 82,894 2,632 3.18% Operating Transfers 225,800 225,800 112,900 - 112,900 100.00% (6) - - 0.00% Total expenditures 3,818,000 4,096,600 2,048,300 1,611304 , 436,996 21.33% 1,483,383 F (127,921) (8.62%) Net revenues and expenditures - 538,800 396,200 198,100 ( .557) (200,657) (101.29%1 364,178 , (366,735) (100.70%) Page 2 of 4 27/470 CURRENT YEAR PRIOR YEAR Year to Date Prior Year Month: 6 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 Bud Get Budget Budget Actual Variance Variance Actual Variance Variance WATER FUND REVE-NUES Water sales 28,637,900 28,637,900 14,318,950 11,311,267 (3,007,683) (21,00%) (9) 13,954.155 2,642,88 (18.94%) Other revenue 3,423,300 3,423,300 1,711,650 553,587 (1,158,063) (67.66%) (3)&(6) 507,81E 45,769 { 9.01% Total revenues 32,061,200 32,061,200 16,030,600 11,864,854 (4,165.746) (25.99%) 14,461,973 (2,597,119) (17.96%) EXPENDITURES Water costs 12,588,800 12,588,800 6,294,400 5,347,713 946,687 15.04% (11) 6,531,072 1,183,359 18.12% Power costs 1,000,000 1,000,000 500,000 400,459 99,541 19.91% 11 501,027 100,568 20.07% Interfund Transfers 5,309,200 5,052,800 2,526,400 266,042 2,260,358 89.47% (6) 954,042 688,000 72.11% Other costs 14)09,100 14,571,500 7,285,750 4,093,899 3,191,851 43.81% (10) 4,032,032 (61,867) (1.53%) Total expenditures 33,007,100 33,213,100 16,606,550 10,108,113 6,498,437 39.13% — 12,018,173 1,910,060 , 15.89% Net profit(loss) (945.900) . (1,151,900) (575,950) 1,756,741 2,332,691 405.02% 2,443,800 (687,059), (28.11%) SEWERFOND Revenues 10,841,600 10,841,600 5,420,800 3,176,172 (2,244,628) (41.41%) (9) 3,102,215 73,957 2.38% Expenditures – 9,034,400 9,202,000 4,601,000 2,684,922 1,916,078 41.64% (7) 2,531,269 (153.653) (6.07%) Net profit(loss) 1,807,200 1,639,600 819,800 491,251 (328,550) (40.08%) 570,946 (79,696) (13.96%) soup WASTE FUND Revenues 4,814,600 4,814,600 2,407300 2,176,163 (231,137) (9.60%) 2,126,391 49,772 2.34% Expenditures 4,814,600 4,814,600 2,407,300 } 1379,574 } 1,027,726 } 42.69% (12) 1,302,665 (76,909) (5.90%) Net revenues and expenditures - - - 796,588 796,588 N/A 823,726 (27.138) (3.29%) DE "EL PI T T FUNDS(14) Revenues 24,762,100 24,762,100 12,381,050 4,468,115 (7,912,935) (63.91%) (13) 708,091 3,760,024 531.01% Expenditures 8,411,10Q 8,405,700 4,202,850 879,092 3,323,758 79.08% (13) 85,008 (794,084) (934.13%) Net revenues and expenditures 16,351,000 16,356,400 8,178,200 3,589,023 (4,589,177) (56.11%) 623,083 2,965,940 476.01% ONSTRCTTON FUNDS Revenues 25,027,800 23,381,300 11,690,650 6,479,853 (5,210,797) (44.57%) (6) 3,053,343 3,426,510 112.22% Expenditures 25,027,800 23,381,300 11,690,650 6,480,155 5,210,495 44.57% (6) 3,053343 F (3,426.812) (112.23%) Net revenues and expenditures (3021 02 N/A - (302) 0.00% LANDSCAPE AND LIGHTING DISTRICT FUNDS Revenues 8,641,100 8,748,700 4,374,350 4,462,561 88,211 2.02% 4,233,100 229,461 5.42% Expenditures 10,288,600 10,574,200 5,287,100 4,200,324 1,086,776 20.56% (6)&(7) 4,599,364 399,040 8.68% Net revenues and expenditure (1p7,500) (1,8253500) (912,750) 262,237 1,174,987 128.73% (366,264) 628,501 171.60% ASSESSMENT DISTRICT FUNDS Revenues 447,900 447,900 223,950 191,093 (32,857) (14.67%) (1) 210,951 (19,858) (9.41%) Expenditures 447,900 447,900 223,950 } 359,209 (135_259) (60.40%) (6)&(7) 594,705 235,496 39.60% Net revenues and expenditures - - 168)16 (168,116) N/A (383,754) 215,63E 56.19% Page 3 of 4 28/470 CURRENT YEAR PRIOR YEAR i Year to Date Prior Year Month: 6 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 udet Budget Budget Actual —— Variance Variance Actual Variance Variance CO1VIIVIUNITY FACILITIES DISTRICTS FUNDS. • Revenues 7,925,100 8,573,700 4,286,850 17,615,968 13,329,118 310.93% (1)&07) 4,501,700 13,114,268 291.32% Expenditures 10,242,700 10,158,800 5,079,400 21,677,656 (16,598,2,56) (326.78%) (6),(7)&07) 7,243,478 (14,434,178) (199.27%) Net revenues and expenditures 2,31 7,600) (1,585_100) 792,550) (4,061,688) (3269,138) N/A (1741,778) (1,319,910) (48.14%) MISCELLANEOUS FUNDS(1 51 Revenues 19,370,600 21,244,400 10,622.200 5,312,172 (5,310,028) (49.99%) (16) 3,832,841 1,479,331 38,60% Expenditures 19,534,100 ---...._9,438,300 9,719,150 7,986,858 1,732,292 17.82% 6)8(16) 4,478,376 (3,508,482) (78.34%) ° Net revenues and expenditures (163,500) 1,806,100 903,050 (2,674,686) (3,577,736) (396.18%) (645,535) (2,029,151) (314,34% Page 4 of 4 29/470 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. 17. This variance is caused by the refunding of the 2007 COP for the Civic Center Interim Financing Project in the entire amount of$14,175,000 in November 2015. This refunding was financed by the issuance of the 2016 CFD Revenue Bonds,Series C in a total of 11,195,00,together with the fundings available in the CFDs_ Page I of 1 30/470