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04-12-2016 CC Rpt A04 COUNCIL AGENDA STAFF REPORT CITY CLERK USE ONLY .r Meeting Date: April' 12, 2016 Item No.: A04 Public Hearing: ❑ Discussion Item: ❑ Chino Hills Consent Item: ❑ April 5, 2016 TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: CITY MANAGER SUBJECT: MONTHLY FINANCIAL REPORT RECOMMENDATION: Receive and file the Financial Report for February 2016. BACKGROUND/ANALYSIS: The Financial Report for February 2016 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. 21/623 AGENDA DATE: APRIL 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: None. ENVIRONMENTAL 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)). Respectfully submitted: Recommended by: 1 Kcinradt Bartlam, City Manager J try '. "ncaster, Finance Director KB:JRL:PA:EC:dk Attachment 22/623 City of Chino Hills Revenues,Expenditures,and Transfers Budget and Actual Comparative Analysis for the Month Ending February 29,2016 CURRENT YEAR PRIOR YEAR Year to Date Prior Year Month: 8 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 3,064,800 2,504,115 (560,685) (1829%) (1) 2,379,733 124,382 5.23% Property taxes-Triple Flip 1,954,200 610,700 407,133 354,301 (52,832) (12.98%) (1) 789,265 (434,961) (55.11%) Property taxes-VLF Swap 7,086,900 7,203,600 4,802,400 3,601,800 (1200,600) (25.00%) (1) 3,455,419 146,381 4.24% Sales taxes 5,862,600 7,011,700 4,674,467 2,993,423 (1.681,043) (35.96%) (2) 2,963,919 29,504 1.00% Other taxes 1,481,600 1,481,600 987,733 985,108 (2,625) (027%) 842,319 142,789 16.95% Total taxes 20,982,500 20,904,800 13,936,533 10,438,748 (3,497,786) (2510%) 10,430,655 8,093 0,08% Motor vehicle in-lieu Fees 31,300 31,300 20,867 31,309 10,442 50.04% (2) 32,363 (1,054) (3.26%) Fines and Penalties 464,100 464,100 309,400 305,812 (3,588) (1.16%) 300,435 5,377 1.79% Interest income and franchise fees 3,293,500 3,293,500 2,195,667 1,560,088 (635,579) (28.95%) (3) 1,503,611 56,477 3.76% Engineering Fee 1,623 200 1,623,200 1,082,133 972,101 (I 10,033) (10.17%) (4) 1,052,748 (80,647) (7.66%) Cost reimbursements 474,900 1,019,900 679,933 743,337 63,404 9.32% 369,412 373,925 101.22% Other revenues 10,726,800 10,726,800 7,151,200 6,869,985 (281.215) (3.93%) 5,522,433 1,347,552 24.40% Operating transfers 1,609,800 15,928,800 10,619,200 15,235,123 4,615,923 43.47% (5)&(16) 4,952 15,230,171 N/A Total revenues 39,206,100 53,992,400 35,994,933 36,156,502 161,568 0.45% 19,216,609 16,939.893 88.15% EXPENDITURES Legislative City Council 257,600 272,300 181,533 180,545 988 0.54% 173,876 (6,669) (3.84%) City Attomey 350,000 350,000 233,333 144,236 89,097 38.18% (6) 135,343 (8.893) (6.57%) City Clerk 1,128,100 1,223,100 815,400 732,817 82,583 10.13% (6) 651,822 (80,995) (12.43%) Contract Services 187,500 187,500 125,000 101,897 23,104 18.48% (6) 101,897 - 0.00% City Manager Administration 1,062,200 1,170,200 780,133 665,210 114,924 14.73% (6) 684,097 18,887 2.76% Public Safety 12,058,800 12,060,600 8,040,400 8,440,380 (399,980) (4.97%) 7,607,270 (833,1 10) (10.95%) Community Relations 636,200 640,100 426,733 353,119 73,614 17.25% (6) 336,761 (16,358) (4.86%) Human Resources 404,800 426,600 284,400 245,029 39,371 13.84% (6) 204,408 (40,621) (19.87%) Risk Management 1,408,300 1,416,400 944,267 1,381,759 (437,492) (46.33%) (6) 2,490,451 1,108,692 44.52% Emergency Preparedness 246,400 251,200 167,467 84,008 83,459 49.84% (6) 146,605 62,597 42.70% Code Enforcement/Neighborhood Srves(Prior Yr) 544,000 598,000 398,667 347,452 51,215 12.85% (6) 497,185 149,733 30.12% Engineering Engineering Administration 1,824,600 1,944,400 1,296,267 1,145,462 150,805 11.63% (6) 1,115,721 (29,741) (2,67%) • Page 1 of 4 23/623 CURRENT YEAR PRIOR YEAR Year to Date Prior Year Month: 8 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 1,722,733 1,458,612 264,121 15.33% (6) 1,328,552 (130,060) (9.79%) Non-Departmental 60,300 60,300 40,200 32,498 7,702 19.16% (6) 36,487 3,989 10.93% Development Program 2,932,800 17,251,800 11,501,200 15,620,941 (4,119,741) (35.82%) (12)&(16) 1,300,378 (14,320,563) N/A Public Works Administration 1,043,600 1,102,400 734,933 656,185 78,749 10.72% (6) 566,088 (90.097) (15.92%) Facility and Equipment Maintenance 1,773,200 1,838,700 1,225,800 1,024,263 201,537 16.44% (6) 1,003,818 (20,445) (2.04%) Other Maintenance 1,417,200 2,020,800 1,347.200 1,052.789 294,411 21.85% (6) 802,194 (250,595) (31.24%) Interfund Transfers Capital Improvement Projects 2,316,200 2,306,400 1,537,600 41,336 1,496,264 97.31% (5) 156,080 114,744 73.52% Operating Transfers 6,174,000 7,908,200 5,272,133 4,660,657 611,477 11.60% (5) 3,843,136 (817,521) (21.27%) Total expenditures 38,266,800 55,613,100 37,075,400 38,369,194 (1,293.794) (3.49%) 23,182,169 (15,187,026) (65.51%) Net revenues over/(under) expenditures 939,300 (1.620,700) (1,080,467) (2,212,692) (1,132226) 104.79% (1965.5601 1,752,867 44.20% LTAB INSURANCE RATE STABILIZATION FUND Operating Transfers 1,100,000 1,100,000 733,333 - (733,333) (100.00%) (5) - - N/A Total revenues 1,100,000 1,100,000 733,333 - (733,333) (100.00%) - - N/A Expenditures - - - - - N/A - - N/A Net revenues and expenditures 1,100,000 1,100,000 733,333 - (733.333) N/A - - N/A RECREATION OPERATIONS FUND Revenues 1,372,100 1,372,100 914,733 803,404 (111,329) (12.17%) (7) 748,712 54,692 7.30% Operating Transfers 4,293,600 4,460,900 2,973,933 2,863,000 (110,933) (3.73%) 2,035,170 827,830 40.68% Total revenues 5,665.700 5,833,000 3,888,667 3,666,404 (222,263) (5.72%) 2,783,882 882,522 31.70% Expenditures 5,665,700 5,887,500 3,925,000 3,399,058 525,942 13.40% (6) 3,187,844 (211.214) (6.63%) Net revenues and expenditures - (54,500) (36,333) 267,346 303,680 835.82% (403,962) 671,308 166.18% COMMUNITY DEVELOPMENT OPERATIONS Community Development Fees 4,356,800 4,171,800 2,781,200 2,198,115 (583,085) (20.97%) (4) 1,167,181 1,030,934 88.33% Operating Transfers - 136,000 90,667 - (90.667) (100.00%) (5) 1.264.600 (1,264,600) (100.00%) Total revenues 4,356,800 4,307,800 2,871.867 2,198.115 (673,751) (23.46%) 2,431,781 (233,666) (9.61%) Expenditures Administration 1,282,200 1,358,300 905.533 806,512 99,021 10.94% (6) 752,171 (54,341) (7.22%) Building Services 1,345,000 1,411,200 940,800 784,452 156,348 16.62% (6) 681,813 (102,639) (15.05%) Development Services 850,300 931,600 621,067 456,979 164,087 26.42% (6) 437,339 (19,640) (4.49%) Economic Development 114,700 169,700 113,133 109,901 3,233 2.86% 108,276 (1,625) (1.50%) Operating Transfers 225,800 225,800 150,533 - 150,533 100.00% (5) - - 0.00% Total expenditures 3,818,000 4,096,600 2,731,067 2,157,844 573,223 20.99% 1,979,599 (178,245) (9.00%) Net revenues and expenditures 538,800 211,200 140,800 40,271 (100.529) (71.10%) 452,182 _ (411,911) (91.09%) Page 2 of 4 24/623 CURRENT YEAR PRIOR YEAR Year to Date Prior Year Month: 8 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 19,091,933 14,695,582 (4,396,351) (23.03%) (8) 17,392,654 (2,697,072) (15.51%) Other revenue 3,423,300 3,423,300 2,282,200 1,385,809 (896,391) (39.28%) (3)&(5) 4,119,823 (2,734,014) (66.36%) Total revenues 32,061,200 32,061,200 21,374,133 16,081,391 (5,292,742) (24.76%) 21,512,477 (5.431,086) (25.25%) EXPENDITURES Water costs 12,588,800 12,588,800 8,392,533 6,611,467 1,781,066 21.22% (10) 7,175,929 564,462 7.87% Power costs 1,000,000 1,000,000 666,667 464,965 201,702 30.26% (10) 582,615 117,650 20.19% Interfund Transfers 5,309,200 5,052,800 3,368,533 289,911 3,078,622 91.39% (5) 1,043,703 753,792 72.22% Other costs 14,109,100 14,571,500 9,714,333 5,407,521 4,306,812 44.33% (9) 5,401,690 (5,831) (0.11%) Total expenditures 33,007,100 33,213,100 22,142,067 12,773,864 9,368,203 42.31% 14 203,937 1,430,073 10.07% Net profit(loss) (945,900) (1,151,900) (767.933) 3,307,527 4,075,460 530.70% 7,308,540 (4.001,013) (54.74%) SEWER FUND Revenues 10,841,600 10,841,600 7,227,733 4,411,849 (2.815.884) (38.96%) (8) 4,239,437 172,412 4.07% Expenditures 9,034,400 9,202,000 6,134,667 3,900,778 2,233,889 36.41% (6) 3,571,876 (328,902) (9.21%) Net profit(loss) 1,807,200 1,639,600 1,093,067 511,071 (581,995) (53.24%) 667,561 (156490) (23.44%) SOLID WASTE FUND Revenues 4,814,600 4,814,600 3,209,733 2,987,959 (221,774) (6.91%) 2,919,129 68,830 2.36% Expenditures 4,814,600 4,814,600 3,209,733 2,187,046 1,022,688 31.86% (I1) 2,142,299 (44,747) (2,09%) Net revenues and expenditures - - - 800,914 800,914 N/A 776,830 24,084 3.10% DEVELOPMENT FUNDS(13) Revenues 24,762,100 25,242,000 16,828,000 10,097,811 (6,730,189) (39.99%) (12) 760,023 9,337,788 N/A Expenditures 8.411,100 8,885,600 5,923,733 2,116,704 3,807,030 64.27% (12) 266,373 (1,850,331) N/A Net revenues and expenditures 16,351,000 16,356,400 10,904,267 7,981,108 (2,923,159) (26.81%) 493,650 7,487,458 N/A CONSTRUCTION FUNDS Revenues 25,027,800 23,381,300 15,587,533 7,401,760 (8,185,773) (52.51%) (5) 3,762,808 3,638,952 96.71% Expenditures 25,027,800 23,381,300 15,587,533 7,401,563 8,185,970 52.52% (5) 3,762,808 (3,638,755) (96.70%) Net revenues and expenditures - - - 197 197 N/A - 197 0.00% LANDSCAPE AND LIGHTING DISTRICT FUNDS Revenues 8,641,100 8,748,700 5,832,467 5,195,494 (636.972) (10.92%) (1) 5,172,584 22,910 0.44% Expenditures 10,288,600 10,574,200 7,049,467 5,599,593 1,449.874 20.57% (5)&(6) 5,775,669 176,076 3.05% Net revenues and expenditure (1,647,500) (1,825,500) (1.217.000) (404.099) 812,901 66.80% (603.085) 198,986 32.99% — ASSESSMENT DISTRICT FUNDS Revenues 447,900 447,900 298,600 264,455 (34,145) (11.43%) (1) 254,029 10,426 4.10% Expenditures 447,900 447,900 298,600 363,567 (64,967) (21.76%) (5)&(6) 600,818 237,251 39.49% Net revenues and expenditures - - - ('-)`,i 1-l (99,112) N/A 046_780) 247,677 71.42% Page 3 of 4 25/623 CURRENT YEAR PRIOR YEAR Year to Date Prior Year Month: 8 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 21,787,900 14,525267 17,972,132 3,446,865 23.73% (1)&(16) 5,037,815 12,934,3[7 256.74% Expenditures 10,242,700 24,776,800 16,517,867 22,030,137 (5,512 271) (33.37%) (5),(6)8(16) 7,369,699 (14,660.438) (198.93%) Net revenues and expenditures (2,317,600) (2,988,900) (1,992,600) (4,058,006) (2.065.406) (103.65%) (2.331.884) (1,726,122) (74.02%) MISCELLANEOUS FUNDS(14) Revenues 19,370,600 20,786,000 13,857,333 8,014,536 (5,842,797) (42.16%) (15) 5,743,290 2,271,246 39.55% Expenditures 19,534,100 19,474,200 12,982,800 9,547,614 3,435,186 26.46% (5)&(15) 5,583,451 (3,964,163) (71.00%) Net revenues and expenditures (163.500) 1,311,800 874,533 (1,533,078) (2,407.611) (275.30%) 159,839 (1,692,917) N/A Page 4 of 4 26/623 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. 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. 6. 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. 7. 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. 8. This variance is caused by the timing when the utility billings were sent out and the actual revenues collected for the period. 9. This account includes debt services payments that are paid on a semi-annual basis,and interfund transfers that relate to various C1P projects reimbursement. 10. Water purchase and pumping costs are highly seasonal and they are contingent on factors such as weather and demands from customers. 11. 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. 12. 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. 13. 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. 14. 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. 15. 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. 16. 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 1 of 1 27/623