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05-14-2019 CC Rpt 17COUNCIL AGENDA STAFF REPORTCOUNCIL AGENDA STAFF REPORT TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS DATE: MAY 14, 2019 FROM: CITY MANAGER ITEM NO:17 SUBJECT:MONTHLY FINANCIAL REPORT AND THIRD QUARTER BUDGET REVIEW FOR FISCAL YEAR 2018-19 RECOMMENDATION: 1. Receive and file the Monthly Financial Report for March 2019. 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 $3,542,286 FOR ADJUSTMENTS BASED ON THE THIRD QUARTER BUDGET REVIEW. BACKGROUND/ANALYSIS: The Monthly Financial Report for March 2019 (see attached) is being presented to the City Council and the public to provide a status update of the City's financials at March 31, 2019. 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 (6) 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: 87/160 Ratify City Manager Budget Amendments 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 may not exceed $100,000 in a fiscal year until ratified by the City Council. In the third quarter of Fiscal Year 2018-19, the City Manager authorized $51,496 in budget amendments. These budget adjustments have already been recorded in the City's financial system, and are reflected in the ending budget balances in the Monthly Financial Report for March 2019 (see attached). It is recommended that the City Council ratify the following: DepartmentDepartment DescriptionDescription AmountAmount FundFund Finance Tres Hermanos closing costs for land purchase $ 10,100 636 Finance Administrative charge increase from remaining AD 94-1 fund balance due to unspent bond proceeds 1,001 691 Finance RAD 10-1 Bond Call 25,000 699 Finance/IT Larger computer monitors for Project Room 1,200 001/552 Finance/IT Additional computer monitor for Finance staff 195 001/552 Public Works Repairs at Lower Los Serranos Channel 14,000 001 TotalTotal $ 51,496$ 51,496 Developer Reimbursement Agreement - General Fund (001) and Quimby In-Lieu Fund (028) On April 1, 2014, the City Council entered into Development Agreement A14-34 (Agreement) with OMP Chino Hills Partners, LLC, for the construction of an apartment project and Pinehurst Park on Butterfield Ranch Road. Subsequent to the approval of the projects and the Agreement, the project was sold to AvalonBay Communities, which assumed the rights and responsibilities assigned to OMP Chino Hills Partners in the Agreement. AvalonBay Communities proceeded to develop the apartment project and Pinehurst Park in accordance with the project approvals and the terms of the Agreement. Per Section 6 of the agreement, the City retained a consulting firm, Moss Adams, to perform an audit of the construction costs. Once the audit is finalized, the City will deem the park improvements complete and accept them into the City's park maintenance program. Pursuant to Section 7 of the Agreement, the City will then complete the reimbursement payment to AvalonBay Communities. The City has special reserves set aside from the original developer payment to the City. It is recommended that the expenditures be increased by $1,618,950 in the General Fund and by $916,984 in the Quimby In-Lieu Fund to account for the developer reimbursement. This budget amendment will decrease the special reserve fund balances in the General Fund and Quimby In-Lieu Fund. Donations - General Fund (001) In previous fiscal years, the City Council accepted two donations from the Chino Hills Community Foundation for the Los Serranos Park (Project No. 800212); one in the amount of $150,000 and a second in the amount of $23,000. In January 2019, the donations were received from the Chino Hills Community Foundation. It is recommended that the revenues be increased by $173,000 and applied to the Los Serranos Park project. This budget amendment will increase the ending fund balance in the General Fund by $173,000. Chino Hills Parkway Entry Monument (New) - General Fund (001) It is recommended to add the Chino Hills Parkway Entry Monument project to the Fiscal Year 2018-19 capital outlay budget. The project will construct a gateway entry monument on Chino Hills Parkway immediately west of SR 71. The project cost will be funded by the General Fund in the amount of $50,000. This budget amendment will decrease the ending fund balance in the General Fund by $50,000. 88/160 Citizen's Option for Public Safety (COPS) - Fund (015) The COPS program is used to pay for a portion of the San Bernardino County Sheriff contract for Police Services. As of March 2019, the COPS fund had received $147,829, with an additional $30,636 received in April. This is $78,465 more than the estimated budget of $100,000. It is recommended that the revenues and expenditures be increased by $78,465 to account for the additional receipts. This budget amendment will have no effect on the COPS ending fund balance. Community Development Block Grant (CDBG) - Fund (017) It's been the City's practice to adjust the revenue budget when the City receives the revenue. It is recommended that the revenues be increased by $7,392 to account for the full CDBG grant award amount. This budget amendment will increase the ending fund balance in the CDBG Fund by $7,392. Emergency Preparedness Grant (Fiscal Year 2018-19) - General Fund (001) and Miscellaneous Grants Fund (199) The Emergency Preparedness Grant is spent out of the General Fund. However, the revenue the City receives from the grant is accounted for in the Miscellaneous Grants Fund. In order to compensate the General Fund for the costs incurred for this grant, the Miscellaneous Grants Fund will need to reimburse the General Fund. It is recommended that the revenues be increased by $19,000 in the General Fund and expenditures be increased by $19,000 in the Miscellaneous Grants Fund. This budget amendment will increase the ending fund balance in the General Fund by $19,000 and decrease the ending fund balance in the Miscellaneous Grants Fund by $19,000. Miscellaneous Grants Fund - Fund (199) It's been the City's practice to adjust the revenue budget when the City receives the revenue. It is recommended to increase grant revenues to reflect the full grant award amount as opposed to the revenues received which will zero out the ending fund balance. The proposed revenue increases are shown below: Funding DescriptionFunding Description AmountAmount Los Serranos Safe Routes to School Grant for the Los Serranos Improvement - SRTS Cycle 3 (Project No. S12009)$ 41,259 Highway Safety Improvement Program (HSIP) 2017 Grant for Raised Median on Pipeline Ave. (Project No. S14009) 35,089 Los Serranos Safe Routes to School Grant for the Los Serranos Infrastructure - ATP Project (Project No. S15008) 988,904 Emergency Preparedness Grant (Fiscal Year 2018-19) 233 TotalTotal $ 1,065,485$ 1,065,485 T his budget amendment will increase the ending fund balance in the Miscellaneous Grants Fund by $1,065,485. Equipment Maintenance - Fund (551) During the fiscal year, there have been unforeseen increases in repair costs related to two large pieces of equipment (a loader and a tractor), various aging vehicles, and the ongoing data service for the vehicle monitoring systems installed on City vehicles. It is recommended that the vehicle maintenance expenditures be increased by $50,000 in the Equipment Maintenance Fund. The Equipment Maintenance Fund is an internal service fund that is funded by vehicle rental charges from various funds. In order to support the additional appropriation in the Equipment Maintenance Fund, it is recommended to increase the equipment rental income in the Equipment Maintenance Fund by $50,000 and increase vehicle rental expenditures by the amounts listed by fund below. 89/160 Peyton Drive Widening and English Channel Improvements (Project No. S15009) Appropriation: Increase Miscellaneous Grants Fund (199) by $165,181 Reason: It is recommended to increase appropriations using the remaining funds from the reimbursement received from SBCTA Major Street Program in the Miscellaneous Grants Fund to cover additional project costs. Los Serranos Safe Routes to School West (Project No. S19005) Appropriation: Increase General Fund (001) by $53,000 Reason: It is recommended to increase appropriations using the General Fund's special project reserves to cover additional project costs for a trail segment to be added to the project. The City received an in-lieu payment from a developer for an equestrian trail that was not originally constructed due to the construction of SR-71. City staff and the developer agreed that this money would be used to enhance equestrian utilization at some other identified location within the City, which includes a trail between Country Club Drive and Gird Avenue. Funding DescriptionFunding Description AmountAmount General Fund (Fund 001)$ 4,650 Community Services (Fund 003) 2,100 Community Development (Fund 004) 400 Gas Tax (Fund 010)6,200 Open Space Management (Fund 030)6,650 Water Utility (Fund 500)17,800 Sewer Utility (Fund 501) 12,200 TotalTotal $ 50,000$ 50,000 T his budget amendment will have a zero net effect on the Equipment Maintenance Fund and will decrease the ending fund balances in the funds listed in the table above. As a result of the rental charge budget increase in the Open Space Management Fund, the ending fund balance in the fund will be negative. The Open Space Management Fund is a General Fund obligation fund and therefore, it is recommended to increase the revenue in the Open Space Management Fund and increase the expenditures in the General Fund. This will bring the fund balance in the Open Space Management Fund to zero and decrease the ending fund balance in the General Fund by $6,650. Capital Improvement ProgramCapital Improvement Program The City currently has 53 projects designated in the Capital Improvement Program (CIP). As of March 31, 2019, seven projects were completed, 42 projects were either in the design process or under construction, and four projects had been deleted. The completed projects are as follows: City Yard Gate Upgrade - F18002 Government Center Security Cameras - F19001 Grand Avenue Park Artificial Turf Installation - P18003 Installation of Countdown Pedestrian Signals - S17009 Pavement Repairs - S18006 Street Improvement Program FY 17-18 - S18001 Veterans Park Indentation - P18002 Capital Project Budget Modifications:Capital Project Budget Modifications: 90/160 Supervisory Control and Data Acquisition (Project No. D11002) Appropriation: Increase Sewer Facilities Fee Fund (506) by $120,998 Reason: It is recommended to increase appropriations using the Sewer Facilities Fee funds so the total project costs are in line with the total project cost outlined in the David Taussig & Associates Development Impact Fee Program Evaluation Report. City-Wide Water and Recycled Water Master Plan Study (Project No. W19003) Appropriation: Increase Water Utility Fund (500) by $8,460 Decrease Water Facilities Fee Fund (507) by $8,460 Reason: It is recommended to modify the funding for the City-Wide Water and Recycled Water Master Plan Study and increase appropriations using the Water Utility Fund so the project costs are in line with the funding sources outlined in the David Taussig & Associates Development Impact Fee Program Evaluation Report. Los Serranos Park formerly Bird Farm Park (Project No. 800212) Appropriation: Increase CFD No. 5 Fund (640) by $351,598 Decrease General Fund (001) by $351,598 Decrease Capital Improvement Fund (399) by $280,841 Reason: It is recommended to modify the funding for the Los Serranos Park (formerly Bird Farm Park) and increase appropriations using the CFD No. 5 Soquel Canyon, Rincon & Woodview Fund now that enough time has passed to allow there to be CFD funding for the project as opposed to the General Fund. ENVIRONMENTAL (CEQA) REVIEW: This proposed action is exempt from review under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and CEQA Guidelines (Title 14 California Code of Regulations §§ 15000, et seq.), because it does not involve any commitment to a specific project which could result in a potentially significant physical impact on the environment; and, constitutes an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. Accordingly, this action does not constitute a "project" that requires environmental review (see specifically 14 CCR § 15378(b)(4-5)). FISCAL IMPACT: The effects on fund balance, as a result of the proposed FY 2018-19 budget amendments, are as follows: Net Increase/Net Increase/ (Decrease) (Decrease) General Fund - Unreserved (Fund 001)*$ 482,298 General Fund - Reserved (Fund 001)(1,671,950) Community Services (Fund 003)(2,100) Community Development (Fund 004)(400) Gas Tax (Fund 010)(6,200) Community Development Block Grant (Fund 017)7,392 Quimby In-Lieu (Fund 028)(916,984) Miscellaneous Grants (Fund 199)881,304 Water Utility (Fund 500)(26,260) Sewer Utility (Fund 501)(12,200) Sewer Facilities Fee (Fund 506)(120,998) Water Facilities Fee (Fund 507) 8,460 CFD 5 (Fund 640) (351,598) TOTALTOTAL $ (1,729,236) 91/160 *This total does not include the City Manager approved budget amendments, which are reflected in the balances of the Monthly Financial Report for March 2019 (see attached). Respectfully Submitted,Recommended By: Attachments March 2019 - Financial Report Resolution for Budget Amendment 19B059 Exhibit No. 1 - Budget Amendment 19B059 92/160 Fiscal Year 2018-2019 Financial Report March 31, 2019 93/160 CITY OF CHINO HILLS SUMMARY OF CHANGES IN THE GENERAL FUND BALANCE - ACTUAL FOR THE MONTH ENDED MARCH 31, 2019 Estimated Beginning Fund Balance at 7/1/18 46,491,497$ Revenues 34,331,977$ Expenditures (40,916,381) Revenues over (under) expenditures (6,584,404) Estimated Fund Balance at 3/31/19 39,907,093$ Less: Restricted for PARS, capital projects & special purposes (11,211,308)$ Unrestricted Fund Balance at 3/31/19 28,695,785$ Unrestricted Fund Balance as a % of Budgeted Expenditures 46.95% 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 53,820,712$ Budgeted Expenditures (61,119,177) Revenues over (under) expenditures (7,298,465) Estimated Fund Balance at 6/30/19 39,193,032$ Less: Estimated Restricted for PARS, capital projects & special purposes (11,211,308)$ Estimated Unrestricted Fund Balance at 6/30/19 27,981,724$ Unrestricted Fund Balance as a % of Budgeted Expenditures 45.78% 94/160 CITY OF CHINO HILLS GENERAL FUND REVENUES FOR THE MONTH ENDED MARCH 31, 2019 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 3/31/2018 Budget (Decrease) Property Tax 14,068,534$ 7,580,477$ 54%13,277,800$ 6,995,747$ 53%584,730$ Sales & Use Tax 8,108,000 4,974,826 61%8,110,800 4,895,558 60%79,268 Business License 57,000 40,982 72%110,800 86,064 78%(45,082) A Property Transfer Tax 425,000 370,447 87%640,500 283,477 44%86,970 Transient Occupancy Tax 1,259,700 683,008 54%1,179,500 708,161 60%(25,153) B Franchise Tax 2,172,400 875,088 40%2,383,800 866,365 36%8,723 Intergovernmental 41,300 55,283 134%31,300 57,862 185%(2,579) Charges for Services 7,743,950 4,636,733 60%9,081,200 6,074,821 67%(1,438,088) C Fines & Forfeitures 409,400 354,303 87%404,000 320,659 79%33,644 Use of Money and Property 1,124,900 1,849,136 164%1,088,800 922,935 85%926,201 D City Wide Overhead 10,414,801 7,007,788 67%10,178,900 7,432,905 73%(425,117) E Other Revenues 1,658,114 2,129,829 128%1,771,900 675,497 38%1,454,332 Transfers In 6,337,613 3,774,077 60%5,780,600 3,666,028 63%108,049 Total Revenues 53,820,712$ 34,331,977$ 64%54,039,900$ 32,986,079$ 61%1,345,898$ A - This decrease in business license is due to the timing of revenue received from HdL. 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. E - The decrease in city wide overhead is due to a decrease in the 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 3/31/2019 95/160 CITY OF CHINO HILLS GENERAL FUND EXPENDITURES BY DEPARTMENT FOR THE MONTH ENDED MARCH 31, 2019 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 3/31/2019 Budget Budget 3/31/2018 Budget (Decrease) Legislative City Council 388,836$ 295,066$ 76%308,900$ 225,597$ 73%69,469$ City Attorney 350,000 180,965 52%350,000 275,988 79%(95,023) City Clerk 1,426,610 959,547 67%1,291,900 869,103 67%90,444 City Manager Administration 1,753,483 1,011,804 58%2,221,300 1,030,644 46%(18,840) Public Safety 13,766,600 10,455,225 76%13,200,800 9,603,203 73%852,022 Community Relations 766,395 461,486 60%706,100 412,510 58%48,976 Human Resources 543,889 326,008 60%471,500 282,121 60%43,887 Risk Management 2,156,188 1,979,484 92%A 2,340,100 2,006,897 86%(27,413) Emergency Preparedness 260,133 57,522 22%258,800 48,379 19%9,143 Code Enforcement 718,347 478,236 67%650,500 447,106 69%31,130 Contract Services 234,767 83,440 36%206,100 106,389 52%(22,949) Finance Administration 2,831,996 1,688,350 60%2,877,900 1,766,548 61%(78,198) Development Fee Program 303,500 295,594 97%B 318,500 282,686 89%12,908 Community Services Administration 5,126,258 3,552,402 69%5,024,600 3,561,057 71%(8,655) Recreation 1,781,526 1,110,794 62%1,695,300 1,039,338 61%71,456 Community Development Administration 1,340,524 898,892 67%1,461,000 944,673 65%(45,781) Building Services 1,487,356 950,856 64%1,684,200 1,012,374 60%(61,518) Development Services 2,510,920 1,061,277 42%2,743,700 1,033,652 38%27,625 Economic Development 214,463 145,400 68%159,600 102,552 64%42,848 Public Works Administration 1,414,931 948,177 67%1,164,900 818,419 70%129,758 Engineering 1,985,467 1,356,058 68%1,936,200 1,238,392 64%117,666 Facilities Maintenance 2,332,892 1,499,752 64%2,350,900 1,424,961 61%74,791 Other Maintenance 2,746,644 1,052,275 38%1,817,100 955,008 53%97,267 Total Operating Expenditures 46,441,725$ 30,848,610$ 66%45,239,900$ 29,487,597$ 65%1,361,013$ Capital Improvement Projects 675,749$ 91,123$ 13%6,929,831$ 162,667$ 2%(71,544)$ Transfers Out 14,001,703 9,976,648 71%6,490,500 4,218,894 65%5,757,754 Total Expenditures 61,119,177$ 40,916,381$ 67%58,660,231$ 33,869,158$ 58%7,047,223$ A - Risk Management has expended 90% 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. B - The Western Water Works Sales Tax Reimbursement Agreement, which is 91% of the budget, is paid out in September of each year. 96/160 CITY OF CHINO HILLS CHANGES IN FUND BALANCE - ACTUAL FOR THE MONTH ENDED MARCH 31, 2019 Fund Balance Change in Fund Balance Fund #Fund Title 7/1/18 Revenues Expenditures Fund Balance 3/31/19 001 General Fund 45,333,549$ 27,515,924$ 33,330,019$ (5,814,095)$ 39,519,454$ 003 Community Services 100,798 4,661,878 4,661,878 - 100,798 004 Community Development 1,057,150 1,788,204 2,558,513 (770,309) 286,841 005 TDA Pass Thru - 365,971 365,971 - - TOTAL GENERAL FUND 46,491,497$ 34,331,977$ 40,916,381$ (6,584,404)$ 39,907,093$ 010 Gas Tax 2,699,857$ 1,262,302$ 1,554,158$ (291,856)$ 2,408,001$ 011 Air Quality Management District 479,965 66,663 6,162 60,501 540,466 012 Measure I 1,210,106 850,802 655,661 195,141 1,405,247 015 Citizen's Option for Public Safety (757) 149,300 4,791 144,509 143,752 017 Community Development Block Grant (7,392) 88,842 87,760 1,082 (6,310) A 018 Affordable Housing Program 2,980,851 152,615 12,754 139,861 3,120,712 026 Landscape & Lighting - Administration 99,200 1,546,327 1,373,916 172,411 271,611 027 Parks & Recreation Facilities Fee 1,182,662 185,078 1,293,644 (1,108,566) 74,096 028 Quimby In-Lieu 2,339,740 113,305 515,285 (401,980) 1,937,760 030 Open Space Management - 199,144 154,749 44,395 44,395 031 Parks Maintenance - 452,817 375,163 77,654 77,654 032 L & L - 1-C Commercial 410,817 181,133 316,050 (134,917) 275,900 033 Street Sweeping 29,728 113,247 108,059 5,188 34,916 040 L & L - Rolling Ridge 564,128 491,666 612,082 (120,416) 443,712 045 L & L - 1-H Los Ranchos 373,493 1,931,824 2,402,788 (470,964) (97,471) B 046 L & L - 1-I Los Ranchos - 10,266 12,225 (1,959) (1,959) B 050 L & L - 1-B The Oaks 67,966 71,633 97,555 (25,922) 42,044 055 L & L - 1-K Woodview 160,059 15,904 16,500 (596) 159,463 060 L & L - 1-N Carbon Canyon 10,198 1,585 2,250 (665) 9,533 061 L & L - 1-P Carbon Canyon - 46,644 55,368 (8,724) (8,724) B 062 L & L - 1-T Carbon Canyon 22,409 2,946 2,325 621 23,030 071 L & L - 1-M Rincon 48,500 1,023,665 1,088,435 (64,770) (16,270) B 072 L & L - Los Serranos 24,976 24,100 9,445 14,655 39,631 073 L & L - Vellano 382,532 148,912 203,672 (54,760) 327,772 104 SMA2 - Sleepy Hollow Road Improvements 44,052 8,336 765 7,571 51,623 121 L & L - Los Ranchos Arterial 21,788 265,493 206,022 59,471 81,259 123 L & L - Woodview Arterial 1,496 7,040 4,791 2,249 3,745 124 L & L - Carbon Canyon Arterial 4,911 11,129 8,859 2,270 7,181 131 Traffic Signal Fee 186,018 5,932 - 5,932 191,950 132 Existing Infrastructure Fee 8,142,683 1,009,981 408,967 601,014 8,743,697 133 General City Facilities Fee 4,726,755 259,037 8,060 250,977 4,977,732 134 Traffic Facilities Fee 2,474,265 92,696 1,026 91,670 2,565,935 135 Storm Drain Facilities Fee 7,434,928 313,049 317,093 (4,044) 7,430,884 136 Traffic Impact Fee 44,250 21,441 1,491 19,950 64,200 140 Protected Tree Replacement (1,611) 1,611 - 1,611 - 150 PEG Access Fee 948,395 128,893 - 128,893 1,077,288 184 Road Maintenance & Rehabilitation Account (268) 881,308 101,346 779,962 779,694 198 Public Safety Programs 30,316 988 - 988 31,304 199 Miscellaneous Grants 278,036 2,631,092 1,617,414 1,013,678 1,291,714 504 Solid Waste - 3,526,358 2,749,804 776,554 776,554 506 Sewer Facilities Fee 4,703,390 205,427 29,958 175,469 4,878,859 507 Water Facilities Fee 16,276,225 798,592 127,000 671,592 16,947,817 TOTAL SPECIAL REVENUE FUNDS 58,394,667$ 19,299,123$ 16,543,393$ 2,755,730$ 61,150,397$ 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 3/31/19 A - Grant expenditures are reimbursed after they have been requested. 97/160 CITY OF CHINO HILLS CHANGES IN FUND BALANCE - ACTUAL FOR THE MONTH ENDED MARCH 31, 2019 Fund Balance Change in Fund Balance Fund #Fund Title 7/1/18 Revenues Expenditures Fund Balance 3/31/19 Actuals through 3/31/19 377 CFD 10 Construction 133,620$ 14,090$ -$ 14,090$ 147,710$ 379 CFD 9 Construction 4,862,044 611,283 27,740 583,543 5,445,587 399 Capital Improvement - 5,233,852 5,233,852 - - TOTAL CAPITAL PROJECT FUNDS 4,995,664$ 5,859,225$ 5,261,592$ 597,633$ 5,593,297$ 500 Water Utility 42,469,431$ 21,054,009$ 16,679,905$ 4,374,104$ 46,843,535$ 501 Sewer Utility 25,789,341 6,593,557 5,680,098 913,459 26,702,800 512 Water Depreciation/Rate Stabilization 7,124,811 227,226 - 227,226 7,352,037 TOTAL ENTERPRISE FUND*75,383,583$ 27,874,792$ 22,360,003$ 5,514,789$ 80,898,372$ 551 Equipment Maintenance 5,066,279$ 1,055,335$ 632,777$ 422,558$ 5,488,837$ 552 Information Technology 1,095,557 1,415,374 1,293,903 121,471 1,217,028 TOTAL INTERNAL SERVICE FUNDS*6,161,836$ 2,470,709$ 1,926,680$ 544,029$ 6,705,865$ 009 General Agency 35,454$ -$ -$ -$ 35,454$ 627 CFD 1 - Rolling Ridge 1,498,695 262,835 693,825 (430,990) 1,067,705 636 CFD 4 - The Oaks 5,384,290 205,331 3,457,538 (3,252,207) 2,132,083 640 CFD 5 - Soquel Cyn, Rincon & Woodview 5,709,612 1,903,796 2,381,595 (477,799) 5,231,813 644 CFD 6 - Carbon Canyon 1,569,661 213,007 888,505 (675,498) 894,163 647 CFD 8 - Butterfield 435,866 61,918 92,035 (30,117) 405,749 657 CFD 9 - Rincon Village-1998 1,583,514 682,807 1,081,507 (398,700) 1,184,814 658 CFD 10 - Fairfield Ranch 1,917,669 565,534 953,533 (387,999) 1,529,670 659 CFD-Vila Borba 806,864 205,785 156,956 48,829 855,693 691 Assessment District 1994 950 50 250 (200) 750 698 CFD 2 - Los Ranchos 4,563,288 902,800 1,893,540 (990,740) 3,572,548 699 Reassesment District 10-1 564,902 165,027 314,960 (149,933) 414,969 TOTAL AGENCY FUNDS 24,070,765$ 5,168,890$ 11,914,244$ (6,745,354)$ 17,325,411$ GRAND TOTAL 215,498,012$ 95,004,716$ 98,922,293$ (3,917,577)$ 211,580,435$ *Long-term debt, fixed assets and investment in joint venture have been removed to reflect working capital. 98/160 CITY OF CHINO HILLS CHANGES IN FUND BALANCE - BUDGET FOR THE MONTH ENDED MARCH 31, 2019 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$ 42,039,500$ 48,816,463$ (6,776,963)$ 38,556,586$ 003 Community Services 100,798 6,858,685 6,907,784 (49,099) 51,699 004 Community Development 1,057,150 3,315,579 3,787,982 (472,403) 584,747 005 TDA Pass Thru - 1,606,948 1,606,948 - - TOTAL GENERAL FUND 46,491,497$ 53,820,712$ 61,119,177$ (7,298,465)$ 39,193,032$ 010 Gas Tax 2,699,857$ 1,764,085$ 3,266,813$ (1,502,728)$ 1,197,129$ 011 Air Quality Management District 479,965 100,700 166,527 (65,827) 414,138 012 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) 669,249 619,249 50,000 42,608 B 018 Affordable Housing Program 2,980,851 438,500 33,926 404,574 3,385,425 026 Landscape & Lighting - Administration 99,200 2,040,500 2,122,003 (81,503) 17,697 027 Parks & Recreation Facilities Fee 1,182,662 406,900 1,464,500 (1,057,600) 125,062 028 Quimby In-Lieu 2,339,740 145,700 1,503,400 (1,357,700) 982,040 030 Open Space Management - 266,417 266,417 - - 031 Parks Maintenance - 603,791 603,791 - - 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 564,128 817,200 961,800 (144,600) 419,528 045 L & L - 1-H Los Ranchos 373,493 3,186,200 3,508,100 (321,900) 51,593 046 L & L - 1-I Los Ranchos - 16,300 16,300 - - 050 L & L - 1-B The Oaks 67,966 129,300 171,600 (42,300) 25,666 055 L & L - 1-K Woodview 160,059 21,700 22,000 (300) 159,759 060 L & L - 1-N Carbon Canyon 10,198 2,000 3,000 (1,000) 9,198 061 L & L - 1-P Carbon Canyon - 74,900 74,900 - - 062 L & L - 1-T Carbon Canyon 22,409 3,100 3,100 - 22,409 071 L & L - 1-M Rincon 48,500 1,581,900 1,630,400 (48,500) - 072 L & L - Los Serranos 24,976 33,400 26,191 7,209 32,185 073 L & L - Vellano 382,532 207,400 323,433 (116,033) 266,499 104 SMA2 - 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 2,532,700 (316,000) 7,826,683 133 General City Facilities Fee 4,726,755 300,900 100 300,800 5,027,555 134 Traffic Facilities Fee 2,474,265 38,300 - 38,300 2,512,565 135 Storm Drain Facilities Fee 7,434,928 443,200 2,000,000 (1,556,800) 5,878,128 136 Traffic Impact Fee 44,250 296,900 - 296,900 341,150 140 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 Grants 278,036 3,095,991 4,255,331 (1,159,340) (881,304) C 504 Solid Waste - 5,311,621 5,311,621 - - 506 Sewer Facilities Fee 4,703,390 77,600 1,219,892 (1,142,292) 3,561,098 507 Water Facilities Fee 16,276,225 1,179,900 7,427,495 (6,247,595) 10,028,630 TOTAL SPECIAL REVENUE FUNDS 58,394,667$ 29,277,264$ 44,670,374$ (15,393,110)$ 43,001,557$ A - The negative beginning fund balance is due to a negative fair market value adjustment at the end of the prior fiscal year. C - A budget amendment is being presented with the 3rd quarter budget review to reflect an ending fund balance of zero. 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. 99/160 CITY OF CHINO HILLS CHANGES IN FUND BALANCE - BUDGET FOR THE MONTH ENDED MARCH 31, 2019 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 Construction 4,862,044 476,600 2,348,705 (1,872,105) 2,989,939 399 Capital Improvement - 6,369,982 6,369,982 - - TOTAL CAPITAL PROJECT FUNDS 4,995,664$ 6,846,582$ 8,718,687$ (1,872,105)$ 3,123,559$ 500 Water Utility 42,469,431$ 30,555,005$ 37,394,143$ (6,839,138)$ 35,630,293$ 501 Sewer Utility 25,789,341 8,615,000 10,581,857 (1,966,857) 23,822,484 512 Water Depreciation/Rate Stabilization 7,124,811 108,000 - 108,000 7,232,811 TOTAL ENTERPRISE FUND*75,383,583$ 39,278,005$ 47,976,000$ (8,697,995)$ 66,685,588$ 551 Equipment Maintenance 5,066,279$ 1,143,100$ 940,189$ 202,911$ 5,269,190$ 552 Information Technology 1,095,557 1,859,095 2,451,491 (592,396) 503,161 TOTAL INTERNAL SERVICE FUNDS*6,161,836$ 3,002,195$ 3,391,680$ (389,485)$ 5,772,351$ 009 General Agency 35,454$ -$ -$ -$ 35,454$ 627 CFD 1 - Rolling Ridge 1,498,695 401,600 1,169,340 (767,740) 730,955 636 CFD 4 - The Oaks 5,384,290 161,000 4,573,645 (4,412,645) 971,645 640 CFD 5 - Soquel Cyn, Rincon & Woodview Op.5,709,612 3,049,500 4,299,786 (1,250,286) 4,459,326 644 CFD 6 - Carbon Canyon 1,569,661 266,300 907,057 (640,757) 928,904 647 CFD 8 - Butterfield 435,866 91,400 286,115 (194,715) 241,151 657 CFD 9 - Rincon Village-1998 1,583,514 1,160,600 1,114,526 46,074 1,629,588 658 CFD 10 - Fairfield Ranch 1,917,669 1,000,000 957,136 42,864 1,960,533 659 CFD-Vila Borba 806,864 370,000 303,767 66,233 873,097 691 Assessment District 1994 950 - 1,001 (1,001) (51) A 698 CFD 2 - Los Ranchos 4,563,288 1,346,700 2,643,133 (1,296,433) 3,266,855 699 Reassesment District 10-1 564,902 309,500 321,443 (11,943) 552,959 TOTAL AGENCY FUNDS 24,070,765$ 8,156,600$ 16,576,949$ (8,420,349)$ 15,650,416$ GRAND TOTAL 215,498,012$ 140,381,358$ 182,452,867$ (42,071,509)$ 173,426,503$ A - The negative beginning fund balance is due to a negative fair market value adjustment at the end of the prior fiscal year. *Long-term debt, capital assets and investment in joint venture have been removed to reflect working capital. 100/160 RESOLUTION NO. 2019R-__ 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 $3,542,286 FOR ADJUSTMENTS BASED ON THE THIRD QUARTER BUDGET REVIEW WHEREAS, the City Manager has presented to the City Council a proposed budget for Fiscal Year 2018-19; and WHEREAS, the City Council of the City of Chino Hills conducted a public meeting on June 12, 2018, to consider the Fiscal Year 2018-19 budget document, and adopted a budget for the fiscal year commencing July 1, 2018, and ending July 30, 2019; and WHEREAS, amendments must periodically be made to the budget to conform to changed circumstances following adoption of the budget. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHINO HILLS DOES RESOLVE, DETERMINE, AND ORDER AS FOLLOWS: SECTION 1. Budget Amendment No. 19B059 is hereby approved as reflected on Exhibit No. 1, attached hereto. SECTION 2. The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED, AND ADOPTED this 14th day of May, 2019. _________________________________ CYNTHIA MORAN, MAYOR ATTEST: _________________________________ CHERYL BALZ, CITY CLERK APPROVED AS TO FORM: _________________________________ MARK D. HENSLEY, CITY ATTORNEY 101/160 STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) § CITY OF CHINO HILLS ) I, Cheryl Balz, City Clerk of the City of Chino Hills, DO HEREBY CERTIFY that the foregoing Resolution No. 2019R-_____ was duly adopted at a regular meeting of the City Council of the City of Chino Hills held on the 14th day of May, 2019, by the following vote, to wit: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ___________________________________ CHERYL BALZ, CITY CLERK The foregoing is the original of Resolution No. 2019R-____ duly passed and adopted by the Chino Hills City Council at their regular meeting held May 14, 2019. ___________________________________ CHERYL BALZ, CITY CLERK 102/160 Exhibit No. 1 BA # 19B059 Date: 5/14/2019 Fiscal Year: 2018-19 Requested by: Christa Buhagiar, Finance Director Amount: 3,542,286.00$ Dept/Div: Finance Description: Third Quarter Budget Amendments and Revenue Adjustments EXPENDITURES Account Number Project Number Account Description Current Budget Proposed Amendment Amended Budget 001-5000-888-7710 General Fund - Developer Reimb Agmt 275,500.00$ 1,618,950.00$ 1,894,450.00$ 028-5000-888-7710 Quimby Fund - Developer Reimb Agmt -916,984.00 916,984.00 015-6000-888-3170 COPS Fund - Prof & Contract Svcs 93,600.00 78,465.00 172,065.00 199-9999-888-9010 Misc. Grants Fund - Transfers Out -19,000.00 19,000.00 551-8200-888-5035 Equip Maint Fund - Vehicle Maintenance 200,000.00 50,000.00 250,000.00 001-0300-888-5620 General Fund - Vehicle Rental 8,800.00 550.00 9,350.00 001-2510-888-5620 General Fund - Vehicle Rental 45,200.00 2,600.00 47,800.00 001-7300-888-5620 General Fund - Vehicle Rental 14,200.00 800.00 15,000.00 001-8001-888-5620 General Fund - Vehicle Rental 7,400.00 400.00 7,800.00 001-8123-888-5620 General Fund - Vehicle Rental 4,200.00 150.00 4,350.00 001-8300-888-5620 General Fund - Vehicle Rental 1,900.00 150.00 2,050.00 003-0900-888-5620 Community Services Fund - Vehicle Rental 36,200.00 2,100.00 38,300.00 004-4100-888-5620 Community Development - Vehicle Rental 5,600.00 400.00 6,000.00 010-8300-888-5620 Gas Tax Fund - Vehicle Rental 108,100.00 6,200.00 114,300.00 030-8400-888-5620 Open Space Mgmt Fund - Vehicle Rental 115,600.00 6,650.00 122,250.00 500-8110-888-5620 Water Utility Fund - Vehicle Rental 7,800.00 400.00 8,200.00 500-8111-888-5620 Water Utility Fund - Vehicle Rental 310,500.00 11,500.00 322,000.00 500-8112-888-5620 Water Utility Fund - Vehicle Rental 48,700.00 1,800.00 50,500.00 500-8113-888-5620 Water Utility Fund - Vehicle Rental 117,800.00 4,000.00 121,800.00 500-8114-888-5620 Water Utility Fund - Vehicle Rental 2,200.00 100.00 2,300.00 501-8120-888-5620 Water Utility Fund - Vehicle Rental 308,900.00 12,200.00 321,100.00 001-9997-888-9010 General Fund - Transfers Out 310,708.00 6,650.00 317,358.00 001-7300-888-8040 General Fund - Capital Outlay -50,000.00 50,000.00 199-7000-888-8110 S15009 Misc. Grants Fund - Sts, Curbs, Gutters, etc. 2,253,219.00 165,181.00 2,418,400.00 001-9998-888-9011 General Fund - Transfers Out 1,445,447.00 53,000.00 1,498,447.00 399-7000-888-8110 S19005 CIP Fund - Sts, Curbs, Gutters, etc.-53,000.00 53,000.00 506-7000-888-8210 D11002 Sewer Facilities Fee - Sanitary Sewer Lines 1,139,202.00 120,998.00 1,260,200.00 500-7000-888-8450 W19003 Water Fund - Water Supply Facilities 390,000.00 8,460.00 398,460.00 507-7000-888-8450 W19003 Water Facilities Fee - Water Supply Facilities 210,000.00 (8,460.00) 201,540.00 001-7000-888-8040 800212 General Fund - Capital Outlay 93,757.00 (70,757.00) 23,000.00 001-9998-888-9012 800212 Gen Fund - Gen P&L Maintenance 430,841.00 (280,841.00) 150,000.00 399-7100-888-8040 800212 CIP Fund - Capital Outlay 240,000.00 (71,200.00) 168,800.00 399-7000-888-8040 800212 CIP Fund - Capital Outlay 209,641.00 (209,641.00) - 640-7000-888-8040 800212 CFD No. 5 - Capital Outlay 1,556,959.00 351,598.00 1,908,557.00 CITY OF CHINO HILLS BUDGET AMENDMENT 103/160 Exhibit No. 1 BA # 19B059 Date: 5/14/2019 Fiscal Year: 2018-19 Requested by: Christa Buhagiar, Finance Director Amount: 3,542,286.00$ Dept/Div: Finance Description: Third Quarter Budget Amendments and Revenue Adjustments CITY OF CHINO HILLS BUDGET AMENDMENT REVENUES Account Number Project Number Account Description Current Budget Proposed Amendment Amended Budget 015-0000-323-1600 COPS Fund - Frontline Policing 100,000.00$ 78,465.00$ 178,465.00$ 001-0000-388-1001 800212 General Fund - Donations -173,000.00 173,000.00 017-0000-321-2000 CDBG Fund - CDBG Grant 669,249.00 7,392.00 676,641.00 001-0000-393-2013 General Fund - Transfers In -19,000.00 19,000.00 199-0000-321-3800 S12009 Misc. Grants Fund - Safe Rts to School 523,700.00 41,259.00 564,959.00 199-0000-321-2800 S14009 Misc. Grants Fund - Hwy Safety Imp 338,100.00 35,089.00 373,189.00 199-0000-323-4600 S15008 Misc. Grants Fund - ATP Grant 423,000.00 988,904.00 1,411,904.00 199-0000-321-2400 Misc. Grants Fund - Emrgncy Prepare -233.00 233.00 551-0000-388-2030 Equipment Maint Fund - Equip Rental Fee 1,143,100.00 50,000.00 1,193,100.00 030-0000-393-2201 Open Space Mgmt Fund - Transfers In 92,817.00 6,650.00 99,467.00 399-0000-393-2007 S19005 CIP Fund - Transfers In -53,000.00 53,000.00 399-0000-393-2007 800212 General Fund - Transfers In 430,841.00 (280,841.00) 150,000.00 REASON/JUSTIFICATION To adjust the Fiscal Year 2018-19 budget based on the Third Quarter Budget Review. 104/160