Strategic Commitments. Mayor s 100 Day Budget Review Committee April 1 st, 2016

Transcription

1 Mayor s 100 Day Budget Review Committee April 1 st, 2016

2 Agenda Budget Basics and Terminology Fiscal Year End Breakdown of Fund Balance Major Revenue Trends Budget vs Actuals General Fund Budget vs Actuals General Fund Budget vs Actuals Non-General Funds Questions Slide 2

3 The Basics GENERAL FUND Primary Operating Fund of the City ENTERPRISE FUNDS Self Supporting from Charges for Services to Users of That Service Enterprise Funds Other Funds General Fund OTHER Required to be Legally Segregated from General Fund. City of Modesto = $360 Million Slide 3

4 The Language Key Terms Revenues Expenses or Expenditures Surplus Inflow of resources that the City receives as income. Examples include taxes, fees, permits, licenses, grants, and interest Outflow of resources that the City disburses for the cost of goods delivered or services rendered Examples include salaries, benefits, supplies, professional services, building costs and debt payments Revenues exceed expenses Deficit Expenses exceed Revenues Fund Balance Discretionary Funds Equity of the Fund. Sometimes referred to as Net Assets Accumulated Surpluses and Deficits over time. Also equal to the sum of assets minus liabilities Expenses that are under Department Head control and are the most easily reduced or eliminated. Examples include training, conferences, office supplies, professional services, and small equipment Slide 4

5 The Language Acronyms GAAP Generally Accepted Accounting Principals ISF Internal Services Funds CIP Capital Improvement Program FY Fiscal Year: July 1 st to June 30 th BRASS Budget Software System COSMO Oracle Accounting Software System Appropriation Unit A Salaries & Benefits Expenses Appropriation Unit B ISF Expenses Appropriation Unit C Discretionary Expenses GASB Governmental Accounting Standards Board CAFR Comprehensive Annual Financial Report PAFR Popular Annual Financial Report GFOA Government Finance Officers Association Slide 5

6 The Language (Continued) Fund Self-balancing group of accounts that allows for segregation of resources Cost Center Identifier within COSMO that most typically denotes a division within a department Account Basic unit of accounting structure describing an expense, revenue, or balance sheet account Allocation To divide or share a specific cost to various departments Budget Plan of financial operation embodying future estimates for a FY Appropriations - expense authorized by Council Direct Charge Agreement Interdepartmental agreement to provide a specific service for an agreed upon cost Reserve Portion of fund balance set aside for a specific purpose Taxes Charges levied by the City for the purpose of financing services for a common benefit User Charges Payment for a fee for a public service by the party benefiting from the service Self-Supporting Financial resources are sufficient to pay for outflow of resources for that specific fund/service Subsidy Resources required to supplement operations of an activity or a grant from another government Forecast Model to project future operations over the next number of years Slide 6

7 The Financial Structure of the City Fund Cost Center Account Project Activity Slide 7

8 Fiscal Year End Fiscal Year 2015 Beginning Fund Balance $19,914,847 Revenues $116,923,400 Capital Leases $1,070,472 Transfers In $1,009,392 Sale of Assets $53,339 Total Revenues $119,056,603 Expenditures $(107,035,589) Transfers Out $(7,004,745) Total Expenses $(114,040,334) Excess of Revenues Over (Under) Expenses $5,016,269 Prior Period Adjustment $(111,616) Ending Fund Balance $24,819,500 Slide 8

9 General Fund Balance Breakdown Fiscal Year 2015 Ending Fund Balance $24,819,500 Non-Spendable $(2,770,884) Restricted $(1,341,972) Committed (Emergency Reserves) $(3,000,000) Assigned $(3,119,753) Unavailable Fund Balance $(10,232,569) Starting Unassigned Fund Balance $14,586,931 Reserved for Bank of America Letter of Credit $(7,000,000) Unassigned Fund Balance $7,586,931 Slide 9

10 Unassigned Fund Balance Major Appropriations to Date Amount Unassigned Fund Balance $7,586,931 Appropriations in FY : Police Radios $1,755,316 MPMA MOU Agreement (One-Time) $242, th Street Improvements $190,714 Anti-Tagging Cameras $500,000 Remaining Unassigned Fund Balance $4,898,563 Slide 10

11 Total General Fund Revenues (CAFR) Slide 11

12 Trends in Major Revenue Sources Major Revenues $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $ (Budget) Sales Tax Property Tax Users Utility Tax Business License/Mill Tax Franchise Fee Transit Occupancy Tax Slide 12

13 Sales Tax Amount ($) Trends in Sales and Use Tax $2,500,000 Year to Year Monthly Receipt Comparison $2,000,000 $1,500,000 $1,000,000 Sales Tax receipts through December 2015, are down $498k from the same time period in FY $500,000 $- July August September October November December FY 2015 $1,901, $1,548, $2,064, $1,990, $1,684, $2,245, FY 2016 $1,740, $1,580, $2,107, $1,724, $1,620, $2,160, Slide 13

14 FY Budget vs Actual Revenues $30,000,000 Revenues: Budget vs Actuals $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 Category Variance Property Tax $ 44,880 Sales Tax $ 82,410 Utility Users Tax $ (658,830) Business License/Mill Tax $ 574,347 Franchise Fees $ 342,212 Transient Occupancy Tax $ 207,952 MRFA Dissolution Funds $ 2,500,721 All Other Revenues $ 2,260,531 $- Property Tax Sales Tax Utility Users Tax Business License/Mill Tax Franchise Fees Transient Occupancy Tax MRFA Dissolution Funds All Other Revenues Budgeted Actuals Slide 14

15 FY Budget vs Actual Expenses $60,000,000 Expenses: Budgeted vs Actuals $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 Department Variance Police Department $ 903,073 Fire Department $ (938,616) Public Works $ 541,116 Community and Economic Development $ 513,039 Finance Department $ 397,470 Parks, Recreation, and Neighborhoods $ 200,608 City Attorney's Office $ 115,506 City Manager's Office $ 102,875 Human Resources $ 66,043 Non-Departmental $ 164,429 City Clerk's Office $ 170,016 City Council $ 18,907 City Auditor $ 73,928 Debt Service $ 1 $- Budgeted Actuals Slide 15

16 FY Budget vs Actual Revenues *Actuals are as of Revenue Category FY Budget FY Actuals Percent Taxes: Property Tax - Property $13,515,210 $8,260, % Property Tax - VLF Swap $14,083,984 $7,155, % Sales Tax $30,047,332 $12,317, % Utility Users Tax $20,056,157 $12,075, % Transient Occupancy Tax $1,868,500 $1,375, % Business License/Mill Tax $11,256,000 $6,643, % Fees: Franchise Fees $4,206,884 $2,538, % Motor Vehicle Fees $143,000 $165, % Construction Revenues $2,042,000 $1,256, % Departmental Revenues $15,783,088 $10,211, % One-Time Revenues $1,600,000 $1,600, % Total General Fund Operating Revenues $114,602,155 $63,598, % Slide 16

17 FY Budget vs Actual Expenses *Actuals are as of Department Expenses FY Budget FY Actuals Percent Police Department $57,658,616 $37,153, % Fire Department $27,394,249 $19,129, % Parks, Recreation and Neighborhoods $3,483,268 $2,018, % Community and Economic Development $6,790,985 $4,444, % Public Works $6,864,967 $4,051, % City Council $413,137 $288, % City Manager s Office $1,728,609 $1,328, % Human Resources $1,469,925 $990, % City Attorney s Office $1,777,558 $1,237, % City Clerk s Office $832,275 $769, % Office of the City Auditor $220,399 $62, % Finance Department $5,287,996 $3,406, % Non-Departmental $616,001 $161, % Total General Fund Operating Expenses $114,537,985 $75,041, % To date, approximately 9 months have gone by or about 75% of the fiscal year. Slide 17

18 FORECAST SUMMARY Actual Budget Projected Projected Projected Projected Projected Projected Projected ($ in Millions) Property Tax $27.17 $27.60 $28.99 $30.21 $31.43 $32.53 $33.54 $34.63 $35.75 Sales Tax Utility Users Tax Other Taxes Permits & Fees Other Revenue/Transfers In MRFA Dissolution Funds Capital Leases Sale of Assets Total Revenues Salaries Overtime Health/Dental/Vision Pension Retiree Medical Other Pay & Benefits Budget Adjustments - (0.65) (0.50) (0.50) (0.50) (0.50) (0.50) (0.50) (0.50) Vacancy Rate Savings - (2.33) (2.51) (2.60) (2.71) (2.79) (2.89) (2.95) (3.01) Subtotal Personnel Contract Services ISF Charges Other Expense Debt/Capital/Transfers Out Total Expense Net Annual Surplus (Shortfall) 5.02 (2.84) (2.07) (2.22) (3.06) (2.81) (3.35) (2.82) (1.91) One-Time Council Approved Expenses Prior Period Adjustments (0.11) Total Beginning Fund Balance Total Ending Fund Balance Nonspendable/Restricted/Assigned Emergency/LOC Reserve Unassigned Balance (2.41) (5.75) (8.57) (10.49) Res+Bal % of Total Expense 15.4% 12.5% 10.8% 8.7% 5.9% 3.6% 0.9% (1.2%) (2.6%) General Fund Financial Forecast Slide 18

19 General Fund Revenue Trend (in Millions) $145 $135 $125 $115 $120.4 $126.5 $118.2 Should Be Here $112.9 $136 $119.1 $115.6 Below Adjusted 2007 Revenue Projection $105 $104.2 $106.6 $106.7 $108.0 $95 19% $85 $ Current Budget Total Revenue Real Revenue Adjusted to 2007 Dollars Slide 19

20 FY Budget vs Actual Revenues *Major Non-General Funds $70,000,000 Operating Revenues $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $- Water Fund Wastewater Fund Storm Drain Fund Parking Fund Budget Actual Slide 20

21 FY Budget vs Actual Expenses *Major Non-General Funds $60,000,000 Operating Expenses $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $- Water Fund Wastewater Fund Storm Drain Fund Parking Fund Budget Actual Slide 21

22 Questions? Slide 22