HomeMy WebLinkAbout14 - OB-1 - FY 2017-18 Mid-Year Budget Report and 5 - 4/17/2018 1
CITY COUNCIL AGENDA REPORT
MEETING DATE: APRIL 17, 2018 ITEM NUMBER: OB-1
SUBJECT: FY 2017-18 MID-YEAR BUDGET REPORT AND 5 YEAR FINANCIAL
PROJECTIONS
DATE: APRIL 11, 2018
FROM: FINANCE DEPARTMENT
PRESENTATION BY: THOMAS R. HATCH, CITY MANAGER
FOR FURTHER INFORMATION CONTACT: TAMARA S. LETOURNEAU, ASSISTANT CITY
MANAGER (714) 754-5122
RECOMMENDATION:
Staff recommends that the City Council:
1.Mid-Year Budget Report:
a.Receive and file this report.
b.Allocate $1 million to potentially establish a 115 Trust.
c.Allocate $1,571,499 towards the Self-Insurance Fund.
d.Approve the two new code enforcement officer positions and eliminate the vacant
Programmer Analyst II in the IT Department and Plan Check Engineer in Development
Services.
e.Approve recommended FY 2017-18 budget adjustments.
2.Five-Year Financial Plan:
a.Review and file the five-year financial plan
b.Provide direction to staff regarding the issues raised in connection with the five-year
financial plan and future priorities.
BACKGROUND:
The City Council adopted the FY 2017-18 budget on June 20, 2017. The total budget was
$163,192,745 including the General Fund budget of $128,845,069. This report reviews the status
of FY 2017-18 General Fund revenues, expenditures, and other budget issues.
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ANALYSIS:
FY 2017-18 General Fund Revenues:
Total year-to-date General Fund revenue is displayed in Attachment A. Through December 31,
2017 total General Fund revenue is $44,619,684. Revenues are on track with budget
expectations. Attachment A provides budget and year-to-date actual revenue detail by category
and account.
FY 2017-18 General Fund Expenditures:
Year-to-date General Fund expenditures are displayed in Attachment B. Expenditures by
Department/Division as of December 31, 2017 is shown on Attachment C. Through December
31, total General Fund expenditures are $68,260,857.
At the February 27, 2018 study session, staff shared that there was a PERS journal entry error
that was in the process of being fixed; however, until it was corrected the department budget
totals regarding funds spent to date were overinflated. This has now been corrected and
Attachment C is the accurate information as of December 31, 2017. A few accounts such as
overtime, part-time labor, consulting and legal costs are above-budget because of vacant
positions. These costs are being offset by salary savings. Overall, total expenditures are
expected to be at or just below budget by fiscal year end.
Allocation of General Fund Contingency:
The current Non-Departmental section of the General Fund budget includes a $1,000,000
contingency appropriation. Attachment D lists a total of $869,949 in items that the City Manager
has approved for use by the various departments and divisions listed. The City Council requested
additional information regarding actual expenditures to date. The summary of contingency
expenditures is below.
Contingency
Description Amount
Dedicated towards projects/programs $869,949.38
Spent/Encumbered year-to-date $640,927.07
Dedicated towards projects/programs and not spent $229,022.31
Available through June 30, 2018 $130,050.62
These appropriations will be transferred out of the General Fund Non-Departmental contingency
account and into the various General Fund department budgets for the purposes indicated on
Attachment D.
• Review Schools Grant Process
For Fiscal Year 2017-2018, the City Council directed staff to include all Costa Mesa
elementary schools in the Facility Improvement Grant Program with Newport Mesa
Unified School District (NMUSD). Currently, the total allocation is $225,000.
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District representatives and City staff evaluated each elementary school and agreed
that the rehabilitation of outdoor basketball courts at schools would be the most
impactful for both students and Costa Mesa residents. The improvements would include
a new asphalt slurry with new striping for each court complete with new backboards and
rims. The total cost for each court rehabilitation will be approximately
$9,000. Currently, the District is finalizing the totals and plans to bring a report back to
the NMUSD board in late April seeking authorization to proceed with the improvements.
Upon receipt of the grant applications from the District, the City will provide funding for
the improvements and work will be scheduled for the summer. In addition, $25,000 of
the grant funding will be utilized to purchase additional musical instruments to
supplement the district-wide elementary music program. These instruments will also
be used during the summer community music program.
Both the Sister City Program ($20,000) and the additional $75,000 for the school grants
will be included in the budget starting in FY 2018-19.
• Public Records Request Assistance
The volume of public records requests received continues to escalate and exceed
previous years’ requests at unprecedented levels. For 2017, the City received 764
requests. Currently for 2018, the City has already received 172 requests and if they
continue on the current pace will exceed 1,000 requests for 2018. Additional interim
assistance is requested to process the public records requests. The hiring of interim
part-time assistance (approximately 30 hours a week) will allow current staff to work on
the electronic document-imaging project that has been delayed due to the time spent
on public records requests. The hourly rate is $40.00 per hour and the estimated cost
through June 30, 2018 is $17,000. The cost estimation for July 1, 2018 through
December 31, 2018 is $33,000.
• Animal Shelter Contract Funds
The previous contingency report allocated $125,000 for the emergency contract for
animal sheltering services. This number has been revised to $90,000, which is needed
for the rest of FY 18-19. There is still $35,000 available in the Police Department budget
for the animal shelter so the contingency amount has been updated accordingly.
• Mercy House Funding for Additional Outreach Workers
A question was asked at the budget Study Session about the additional $31,988 for Mercy
House on the contingency list. W as this in addition to the annual budgeted amount of
approximately $900,000, or is it already included in that number. These funds for
additional Outreach Workers through Mercy House is in addition to the annual funds the
City has been budgeting.
• Chamber Contract with the City
The Council requested a copy of the Chamber contract. The contract is Attachment E.
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• Moving Items from Contingency to the Department Budgets
Staff reviewed the contingency list and department budgets to determine if there was
funding available to move an item from the contingency list to the department budgets.
The following will be transferred off the contingency list and moved to the departments
noted below:
Items Listed on the 1st Draft of the Contingency Report Amount
Development Services – MPS Consulting for supplemental
planning support
$50,000
Development Services – Hearing Officer for Special Use Permits $ 5,000
Public Services – Installation of LED Lights at the
Tennis Center
$ 2,000
Total Being Transferred Back to Departments $57,000
A total of $57,000 will be taken off the contingency list and transferred back to the
respective department budgets.
General Fund- Other Adjustments:
• FY 2016-17 Carryover Appropriations:
It is recommended that carryovers in the amount of $18,697,290 be approved to fund
the following:
Carryover Item Amount
Transportation Consulting $ 190,687
Lions Park Projects – Recognition of Bond
Proceeds
$ 18,506,603
Total $18,697,290
At the September 9, 2017 City Council Meeting, the City Council approved the 2017
lease revenue bonds for the Lions Park Projects and to refund existing 2007 certificates
of participation. The financing plan assumed the issuance of the Bonds in the principal
amount of approximately $29.7 million. A portion of the Bonds will provide partial funding
for the Lions Park Projects in the amount of approximately $18.5 million.
In FY 16-17, a total of $482,823 was appropriated to provide consulting funds for the
Transportation Services Division. The Public Services Department is requesting the
rollover of $190,687 unencumbered remaining funds from FY 16-17 to the FY 17-18
budget to provide consulting funds for on-call traffic engineering services, the Traffic
Impact Fee update, the Bicycle Master Plan update, crossing guard services, and other
projects.
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• Appropriation of FY 2016-17 Operating Budget Surplus:
It is recommended appropriations of $2,571,499 be allocated as follows:
Operating Surplus Amount
Pension Stabilization Trust (115 Trust) $1,000,000
Self-Insurance Fund $1,571,499
Total $2,571,499
115 Trust
A 115 Trust is a tool used by government organizations to set aside monies to meet
future pension contributions or liabilities. For example, a 115 Trust can be used to fund
ongoing pension obligations and can be used to ease budgetary pressures resulting
from unanticipated spikes in employer contribution rates. In addition, funds in a 115
Trust can be applied to pay down specific portions of the City’s CalPERS liabilities.
Funds placed in a 115 Trust are irrevocably committed for the specified area described
in the trust agreement. Monies held in a 115 Trust can be invested in accordance with
the rules governing such special purpose accounts (pension funds) which is broader
than investments purchased under the City’s investment policy.
Setting up and funding a 115 Trust account for the City’s unfunded pension obligations is
recommended by the Finance and Pension Advisory Committee and supported by staff.
Staff recommends that the City Council set aside $1,000,000 at this time pending
additional research and formal City Council approval. If the City Council approves this,
staff will contact 115 Trust providers to obtain quotes and determine the best option.
Self-Insurance Fund
Both the California Code of Regulations and GASB require that the City disclose potential
liability regarding workers’ compensation claims, general liability claims and pending legal
issues in certain ways. Regarding workers’ compensation and general liability claims the
potential liability for the outstanding claims are prepared by our respective Third Party
Administrators (TPAs) in each area. That information is then provided to the auditors each
year to review and included in the CAFR.
Regarding workers’ compensation, when the workers’ injury has reached maximum
medical improvement (MMI) or permanent and stationary status, California Code of
Regulations 15300 requires that the estimate of future medical costs shall be based on
the average annual costs over the past three (3) years or the lesser period if three years
has not passed. The estimate is projected over the life expectancy of the injured worker
and shall include any additional costs such as medical procedures or surgeries that can
reasonably be expected over the life of the claim. GASB requires that the self-insurance
fund reporting in the CAFR include all of these items and the balance can vary drastically
from year to year depending upon the number of general liability and workers’
compensation claims, increases in medical costs and pending litigation.
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Further, the potential liability in pending lawsuits that are not reported by TPA’s or covered
by the City’s insurance are required to be included in the calculations for the CAFR in the
self-insurance fund as well. The Finance Department staff obtains the projected liability
estimated in pending cases from the attorney’s working on the cases and that information
is then provided to the auditors.
• Fire Station #1 Early Payment of Construction Costs:
The construction of Fire Station #1 is nearing completion. The final payment for the
construction of this facility was originally planned for the FY 2018-19 budget. Because of
the remaining construction schedule, staff recommends being proactive and moving the
final payment of $2,134,304 to the FY 17-18 budget through the use of reserves. This
amount would be returned to the reserve account through the adoption of the FY 2018-19
budget.
• Group Homes/Sober Living Homes - Additional Code Enforcement Officers:
Addressing the group home/sober living home issue is a top priority of the City Council.
Staff devotes a great deal of resources to this effort, but additional resources are still
needed.
o Code Enforcement
The Code Enforcement Division has been restructured and the priorities of this
division are as follows:
1. Group-Home Related Complaints;
2. Complaints related to immediate health and safety issues; and,
3. Other violations that are in plain sight from public property.
o Streamlining the Administrative Citation Process
Staff is currently working on the development of a streamlined approach to
addressing the sober living home violations. The streamlining will include
shortening timelines for processing violations. Those sober living homes that have
been denied a permit or that are operating without a permit or a pending application
will be cited as appropriate.
o Public Information for Group Homes/Sober Living Homes
Now available on the City’s website is a current list of all code enforcement
activities. This includes current information and staff will be adding the older
information in the coming weeks. Staff will also be keeping this document up-to-
date as new cases are added.
o Staffing
The contingency list includes additional $30,000 in FY 17-18 to fund a part-time
staff member/consultant to be the public liaison for group home/sober living issues.
The responsibilities of this position include:
Obtaining information regarding potential sober living facilities;
Provide an immediate review of the property where there is a
concern/complaint;
Coordinate with code enforcement on all group home/sober living
home issues;
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Follow-up on complaints and provide status reports on findings in the
complaint log on the website;
Coordinate/oversee that the data on the City’s website related to the
status of enforcement of unpermitted group homes and facilitate
responses to public records requests.
Further, two additional code enforcement officers are being requested to properly
address the priorities listed above. Currently there are 6 full-time and 4 part-time
code officers. However, to ensure that the top priorities are being met, that the new
expedited code enforcement process is implemented, and the public receives the
best customer service and most up-to-date information, two-additional full-time
code enforcement officers are needed.
In order to fund these new positions, it is recommended that we eliminate a vacant
Programmer Analyst II in the IT Department and a vacant Plan Check Engineer in
the Development Services Department. The cost of one new code enforcement
officer is $114,747, including salaries and benefits. The total additional cost of both
positions is $229,494. However, eliminating the vacant Programmer Analyst II and
Plan Check Engineer positions will result in a savings of approximately $42,684.
The savings generated by this change will be budgeted in the Development
Services Department for additional funding for sober living enforcement.
Other Items:
• Special Event Rates
Staff confirmed that the current rates for special events includes only direct costs and does
not include the overhead rate. Staff will prepare an analysis of the special event rates for
the City Council’s consideration along with the FY 18-19 budget.
Capital Improvement Program (CIP) Update:
Attachment F is a CIP Status Report. This report includes a general description of the current
and prior year projects, status, funding and unencumbered balance information, the fiscal year in
which the funds were budgeted, and the amount of any grants or other outside funding.
Five-Year Financial Forecast
The updated five-year financial plan (Attachment G) is based on realistic and conservative
revenue and expenditure assumptions, consisting of:
• Revenues
Attachment H is a detailed table which shows the summary of the previous five years for
each revenue category. In addition, the table provides information regarding the current
fiscal year revenue projections and the assumptions made for the next five years.
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Attachment I is the Measure X Excise Tax analysis provided by HdL. This revenue analysis
is based on the square footage, hours of operation and number of machines in each
business. It provides three years of projections, through FY 20-21. During discussions with
HdL, they recommended a 20 percent increase for year 4 and estimating gross receipts in
the 5th year at $100 million.
•Expenditures
Attachment J is a detailed table which shows the summary of the previous five years for
each expenditure category. In addition, the table provides information regarding the current
fiscal year expenditure projections and the assumptions made for the next 5 years.
The five-year projections serve as a foundation for the annual budget process as well as an
opportunity for policy discussions. Staff always recommends a balanced budget for
consideration, and will be presenting the FY 18-19 preliminary budget to the City Council next
month for consideration.
CONCLUSION:
The City’s FY 2017-18 actual revenues and expenses in total are on track with budget
expectations. The review and approval of the recommended budget changes will be updated in
the City’s budget to reflect the current revenue expectations and expenditure requirements that
help enable the City to continue providing the community with quality programs and services.
THOMAS R. HATCH TAMARA S. LETOURNEAU
City Manager
COLLEEN O’DONOGHUE
Assistant Finance Director
Assistant City Manager
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Attachments:
A.General Fund Revenues July 1, 2017 – December 31, 2017
B.General Fund Expenditures July 1, 2017 – December 31, 2017
C.General Fund Expenditures by Department/Division – December 31, 2017
D.2017-18 Contingency Expenditures
E.Chamber Contract – October 3, 2016
F.CIP Status Report
G.Five-Year Financial Forecast
H.Five-Year Projections – Historical Information & Projection Assumptions
(Revenues)
I.Measure X Excise Tax Analysis from HdL
J.Five-Year Projections – Historical Information & Projection Assumptions
(Expenditures)
F:\FINANCE\BUDGET\2017-18 Budget Info\Mid Year Budget Review\Exp Bud to Act Analysis 17-18 (Garcia 3-26-18)Page 1
FY 2017-18 Revenue thru Dec 31, 2017
Fund 101 - General Fund
Account Description Adopted Adjustments YTD Amended Cur Recognized YTD Recognized UnRecognized Pct
410100 Secured Property Tax 25,806,310.00 25,806,310.00 11,135,230.81 13,824,951.57 11,981,358.43 46
410110 Unsecured Property Tax 804,419.00 804,419.00 581,690.55 222,728.45 28
410120 Supplemental Property Tax 645,000.00 645,000.00 83,495.74 280,115.07 364,884.93 57
410130 Homeowners Property Tax 156,008.00 156,008.00 22,326.60 22,326.60 133,681.40 86
410135 Delinquent Tax - Penalties/Int 50,000.00 50,000.00 2,944.10 18,119.21 31,880.79 64
410140 Property Transfer Tax 650,000.00 650,000.00 121,281.29 473,230.47 176,769.53 27
410145 Property Tax In-Lieu of VLF 10,578,189.00 10,578,189.00 - 10,578,189.00 100
410160 Sales Tax 56,906,000.00 56,906,000.00 5,029,625.43 18,368,530.34 38,537,469.66 68
410180 Transient Occupancy Tax 9,250,000.00 9,250,000.00 151,897.20 3,365,855.99 5,884,144.01 64
410190 Electric Utility Franchise Tax 1,336,525.00 1,336,525.00 - 1,336,525.00 100
410200 Cable TV Franchise Tax 1,161,948.00 1,161,948.00 267,334.89 894,613.11 77
410205 PEG Cable TV Franchise Tax 150,000.00 150,000.00 88.49 16,345.73 133,654.27 89
410210 Gas Utility Franchise Tax 250,000.00 250,000.00 - 250,000.00 100
410220 Business License Tax 969,005.00 969,005.00 61,114.03 409,062.31 559,942.69 58
410221 Business License Web Fee - - (1,158.49) (6,182.06) 6,182.06
410225 Solid WasteHauler Frnchise Tax 1,900,000.00 1,900,000.00 30,181.45 582,472.37 1,317,527.63 69
415100 Dog Licenses 98,400.00 98,400.00 7,192.50 41,177.00 57,223.00 58
415120 Fire Permits 176,115.00 176,115.00 3,788.00 51,028.80 125,086.20 71
415130 Building Permits 1,268,000.00 1,268,000.00 90,930.74 608,248.78 659,751.22 52
415140 Electrical Permits 249,000.00 249,000.00 14,256.08 88,162.60 160,837.40 65
415150 Plumbing/Mechanical Permits 270,000.00 270,000.00 17,157.65 98,681.80 171,318.20 63
415160 Plan Check Fee 430,020.00 430,020.00 24,935.74 176,834.88 253,185.12 59
415170 Street Permits 320,000.00 320,000.00 20,605.00 166,070.00 153,930.00 48
415210 Special Business Permits 200.00 200.00 430.00 (230.00)
415215 Medical Marijuana Bus Permit 215,250.00 215,250.00 107,625.00 322,875.00 (107,625.00)
415220 Home Occupation Permits 12,000.00 12,000.00 350.00 4,650.00 7,350.00 61
415250 Operator's Permits 3,000.00 3,000.00 1,200.00 1,800.00 60
415999 Other Permits 24,543.00 24,543.00 4,143.00 16,363.00 8,180.00 33
420100 Municipal Code Violations 190,000.00 190,000.00 7,075.00 49,170.59 140,829.41 74
420110 Vehicle Code Violations 345,000.00 345,000.00 93,007.16 251,992.84 73
420120 Parking Citations 1,000,000.00 1,000,000.00 93,657.63 417,068.55 582,931.45 58
420200 Red-Light Camera Violation - - 11,093.43 (11,093.43)
425100 Investment Earnings 250,000.00 250,000.00 16,643.85 27,008.86 222,991.14 89
425999 Other Interest - - 250,674.87 (250,674.87)
430199 Other Federal Grants 175,000.00 20,000.00 195,000.00 35,097.13 63,849.31 131,150.69 67
430205 Motor Vehicle In-Lieu Tax 48,000.00 48,000.00 - 48,000.00 100
430245 Peace Offcrs. Stand./Training 20,000.00 20,000.00 - 20,000.00 100
430281 Beverage Container Program 30,000.00 30,000.00 - 30,000.00 100
430285 Reimb. of Mandated Costs 30,000.00 30,000.00 - 30,000.00 100
430299 Other State Grants 95,000.00 95,000.00 24,575.34 70,424.66 74
430399 Other County Grants 75,000.00 75,000.00 28,261.74 46,738.26 62
430499 Other Governmental Agencies 115,836.00 115,836.00 - 115,836.00 100
435100 Zoning, Variance & CUP Fees 167,000.00 167,000.00 28,993.00 260,287.00 (93,287.00)
435105 Medical Marijuana CUP 275,080.00 275,080.00 - 275,080.00 100
435110 Subdivision Map Fees 25,500.00 25,500.00 7,225.00 18,275.00 72
435120 Environmental Impact Fees 18,000.00 18,000.00 - 18,000.00 100
435140 Vacation/Abandonment of R-O-W 500.00 500.00 - 500.00 100
435240 Source Reduction/Recycling 16,600.00 16,600.00 610.00 15,990.00 96
435250 Special Policing Fees 475,000.00 475,000.00 (46,509.68) 406,156.10 68,843.90 14
435255 Med Marijuana HdL Background - - 2,100.00 8,400.00 (8,400.00)
435260 Vehicle Storage/Impound Fees 195,000.00 195,000.00 17,240.00 101,120.00 93,880.00 48
435265 Vehicle Code Violation Fee 4,000.00 4,000.00 100.00 730.00 3,270.00 82
435270 Repossessed Veh. Release Fees 3,400.00 3,400.00 225.00 1,920.00 1,480.00 44
435280 DUI Emergency Response 6,000.00 6,000.00 1,004.50 4,995.50 83
435290 Jail Booking Fees - City 39,140.00 39,140.00 (10,360.00) (554.50) 39,694.50 101
435320 Police False Alarms 200,000.00 200,000.00 (3,570.00) 66,234.00 133,766.00 67
435330 Fingerprinting 60,700.00 60,700.00 3,155.00 24,848.00 35,852.00 59
435365 Fire Cost Recovery 5,000.00 5,000.00 - 5,000.00 100
435370 Fire Inspections 505,000.00 505,000.00 3,060.00 3,610.00 501,390.00 99
435375 Hazrdous Material Disclose Fee 139,333.00 139,333.00 310.00 129,435.00 9,898.00 7
ATTACHMENT A
F:\FINANCE\BUDGET\2017-18 Budget Info\Mid Year Budget Review\Exp Bud to Act Analysis 17-18 (Garcia 3-26-18)Page 2
FY 2017-18 Revenue thru Dec 31, 2017
Fund 101 - General Fund
Account Description Adopted Adjustments YTD Amended Cur Recognized YTD Recognized UnRecognized Pct
435380 EMS - First Responder Fee 222,112.00 222,112.00 22,367.81 95,676.20 126,435.80 57
435390 Paramedic Fee - Advanced 972,898.00 972,898.00 28,118.19 128,563.18 844,334.82 87
435395 Medical Supply Reimbursement 130,000.00 130,000.00 35,701.05 94,298.95 73
435400 Fire False Alarms 1,400.00 1,400.00 - 1,400.00 100
435405 Accident Cost Recovery 25,800.00 25,800.00 389.33 4,300.01 21,499.99 83
435440 Park Permits 42,385.00 42,385.00 3,317.43 16,671.28 25,713.72 61
435450 Park Improvements 7,389.00 7,389.00 777.00 6,612.00 89
435470 Aquatics 80,000.00 80,000.00 32,587.93 47,412.07 59
435480 Day Camp 347,000.00 347,000.00 4,377.64 21,354.25 325,645.75 94
435490 Playgrounds 360,000.00 360,000.00 25,066.22 244,094.50 115,905.50 32
435500 Special Events 34,364.00 34,364.00 10,275.00 24,089.00 70
435510 Early Childhood 128,125.00 128,125.00 11,223.90 45,475.32 82,649.68 65
435520 Instructional Classes 476,625.00 476,625.00 42,874.21 195,202.93 281,422.07 59
435540 Basketball 21,000.00 21,000.00 8,914.83 12,085.17 58
435541 Adult Open Gym 5,000.00 5,000.00 376.77 3,207.47 1,792.53 36
435550 Softball 38,000.00 38,000.00 10,656.00 27,344.00 72
435555 Adult Futsal 5,000.00 5,000.00 11.37 297.59 4,702.41 94
435565 Teen Camp 34,000.00 34,000.00 1,405.41 32,594.59 96
435575 Senior Center Charges 10,000.00 10,000.00 (273.96) 10,273.96 103
435580 Photocopies 3,300.00 3,300.00 218.90 2,012.14 1,287.86 39
435590 Police Reports 27,560.00 27,560.00 1,989.00 14,477.00 13,083.00 47
435610 Police Clearance Letters 4,515.00 4,515.00 150.00 1,290.00 3,225.00 71
435630 Sale of Maps & Publications 900.00 900.00 30.40 869.60 97
435640 Sale of Other Supplies 1,500.00 1,500.00 40.00 729.60 770.40 51
435680 Central Services Charges 75,000.00 75,000.00 5,913.48 45,290.38 29,709.62 40
435999 Other Charges for Services 14,280.00 14,280.00 (19,684.80) 12,391.61 1,888.39 13
440200 Special Assessments 2,000.00 2,000.00 (4.76) 2,004.76 100
445100 Buildings/Grounds, Rental 210,000.00 210,000.00 6,988.81 114,984.65 95,015.35 45
445110 Downtown Community Center,Rent 15,000.00 15,000.00 165.25 4,262.80 10,737.20 72
445120 Balearic Community Center,Rent 20,000.00 20,000.00 784.83 11,158.63 8,841.37 44
445130 Neighborhood Comm Center, Rent - - 3,107.37 (3,107.37)
445135 Senior Center, Rental 105,000.00 105,000.00 8,640.28 39,755.06 65,244.94 62
445150 Field Rental 140,000.00 140,000.00 4,286.59 21,975.07 118,024.93 84
445160 Tennis,Rental 49,749.00 49,749.00 3,243.55 21,545.08 28,203.92 57
445180 Golf Course Operations 2,215,000.00 2,215,000.00 152,405.10 909,977.18 1,305,022.82 59
445190 Bus Shelter Advertising 105,000.00 105,000.00 6,300.00 41,257.02 63,742.98 61
450100 Contributions 150,000.00 150,000.00 - 150,000.00 100
450300 Donations - 150,000.00 150,000.00 54,220.75 95,779.25 64
455180 Construction Permit Insp. Fees 70,000.00 70,000.00 750.00 8,395.00 61,605.00 88
455210 Damage to City Property 25,000.00 25,000.00 300.00 24,700.00 99
455220 Civil Subpoena Costs 11,000.00 11,000.00 1,259.25 6,617.13 4,382.87 40
455999 Other Reimbursements 400,000.00 400,000.00 (111.50) 58,053.60 341,946.40 85
460100 Operating Transfers In - - 47.79 455.42 (455.42)
465600 Nonoperating Income - Other 556,850.00 556,850.00 556,849.60 0.40 0
499150 Sale of Other Equipment 1,000.00 1,000.00 - 1,000.00 100
499999 Other 350,000.00 350,000.00 16,183.32 80,357.49 269,642.51 77
125,682,773.00 170,000.00 125,852,773.00 17,402,920.01 44,619,684.06 81,233,088.94 65
ATTACHMENT B
FY 2017-18 Expense thru Dec 31, 2017
Fund 101 - General Fund
Account Description Adopted Adjustments YTD Amended Cur Expended YTD Expended Remaining Pct
501100 Regular Salaries - Sworn 21,881,255.00 21,881,255.00 2,564,383.32 10,492,707.08 11,388,547.92 52
501200 Regular Salaries - Non-Sworn 18,334,361.00 -306,997.00 18,027,364.00 1,826,849.09 8,042,682.12 9,984,681.88 55
501300 Regular Salaries - Part-Time 4,736,329.00 20,000.00 4,756,329.00 580,589.59 2,642,001.53 2,114,327.47 44
501400 Overtime 4,273,872.00 4,273,872.00 883,529.72 3,782,331.07 491,540.93 12
501500 Accrual Payoff - Excess Max.212,072.00 212,072.00 52,411.36 242,473.48 -30,401.48
501600 Vacation/Comp. Time Cash Out 156,915.00 156,915.00 55,932.31 243,621.18 -86,706.18
501700 Holiday Allowance 475,141.00 475,141.00 230,641.91 371,083.06 104,057.94 22
501800 Separation Pay-Off 0 0 25,471.36 92,311.55 -92,311.55
501900 Other Compensation 2,438,339.00 2,438,339.00 255,592.83 1,080,358.75 1,357,980.25 56
505100 Cafeteria Plan 5,517,696.00 -50,482.00 5,467,214.00 658,714.92 2,466,331.96 3,000,882.04 55
505200 Medicare 649,415.00 -3,951.00 645,464.00 96,816.72 392,274.66 253,189.34 39
505300 Retirement 22,263,260.00 -87,885.00 22,175,375.00 551,867.85 10,021,094.53 12,154,280.47 55
505400 Longevity 2,760.00 2,760.00 273.26 1,380.08 1,379.92 50
505500 Professional Development 716,330.00 250 716,580.00 54,720.12 297,567.26 410,632.74 57
505600 Auto Allowance 35,662.00 35,662.00 4,880.70 20,884.32 14,777.68 41
505800 Unemployment 84,596.00 84,596.00 7,049.67 42,298.02 42,297.98 50
505900 Workers' Compensation 3,240,252.00 3,240,252.00 270,020.99 1,620,125.94 1,620,126.06 50
506100 City Contrib - Retiree Medical 1,915,100.00 1,915,100.00 59,605.37 652,035.17 1,263,064.83 66
510100 Stationery and Office 191,854.00 -2,157.00 189,697.00 15,294.08 84,341.58 105,176.24 55
510200 Multi-Media, Promos, Subscrpt.633,853.00 10,334.00 644,187.00 31,458.04 203,005.40 319,911.10 50
510300 Small Tools and Equipment 339,888.00 -4,108.00 335,780.00 7,771.54 95,270.33 223,847.86 67
510400 Uniforms and Clothing 401,169.00 1,459.00 402,628.00 20,697.86 92,075.08 229,133.98 57
510500 Safety and Health 478,849.00 -11,390.00 467,459.00 23,155.53 94,929.14 342,627.50 73
510600 Maintenance and Construction 429,230.00 -2,000.00 427,230.00 17,406.06 180,902.49 236,343.31 55
510700 Agriculture 102,000.00 102,000.00 2,226.32 27,753.06 74,246.94 73
510800 Fuel 200 200 72.22 127.78 64
515100 Electricity - Buildings & Fac.545,708.00 545,708.00 5,866.13 215,012.08 330,695.92 61
515200 Electricity - Power 276,400.00 276,400.00 20,263.19 101,584.46 174,815.54 63
515300 Electricity - Street Lights 1,100,000.00 -26,259.00 1,073,741.00 83,058.11 415,618.46 658,122.54 61
515400 Gas 46,600.00 46,600.00 317.7 9,894.30 36,705.70 79
515500 Water - Domestic 159,210.00 159,210.00 115 48,458.39 110,751.61 70
515600 Water - Parks and Parkways 689,813.00 -100,000.00 589,813.00 17,994.77 327,061.96 262,751.04 45
515700 Waste Disposal 149,600.00 149,600.00 11,666.54 63,588.60 25,936.65 17
515800 Janitorial and Housekeeping 438,711.00 2,687.00 441,398.00 33,885.23 177,429.93 8,673.17 2
520100 Postage 100,600.00 -607 99,993.00 11,161.17 51,429.53 48,563.47 49
520200 Legal Advertising/Filing Fees 219,400.00 219,400.00 35,577.00 43,851.82 175,548.18 80
520300 Advertising and Public Info.10,750.00 10,750.00 830 8,807.00 1,943.00 18
520400 Telephone/Radio/Communications 514,186.00 514,186.00 27,980.22 267,177.73 247,008.27 48
520500 Meetings and Conferences 37,000.00 3,700.00 40,700.00 3,748.65 15,612.09 25,087.91 62
520600 Mileage Reimbursement 4,195.00 4,195.00 76.76 883.39 3,311.61 79
520800 Board Member Fees 34,200.00 34,200.00 4,000.00 15,100.00 19,100.00 56
525100 Buildings and Structures 293,550.00 293,550.00 9,989.00 236,258.73 -8,771.41
525200 Landscaping and Sprinklers 2,864,384.00 99,870.00 2,964,254.00 436,519.92 1,058,093.20 1,174,520.98 40
525300 Underground Lines 4,000.00 4,000.00 0 4,000.00 100
525400 Automotive Equipment 1,800.00 1,800.00 174 1,626.00 90
525600 Office Furniture 3,850.00 3,850.00 350 3,500.00 91
525700 Office Equipment 58,402.00 -955 57,447.00 2,023.44 47,975.09 721.91 1
525800 Other Equipment 892,536.00 11,500.00 904,036.00 97,115.92 228,922.43 231,940.01 26
525900 Streets, Alleys and Sidewalks 1,089,394.00 1,089,394.00 61,350.98 403,967.95 270,828.16 25
530100 Employment 51,800.00 -2,342.00 49,458.00 4,203.00 21,478.92 27,979.08 57
530200 Consulting 3,675,238.00 383,200.00 4,058,438.00 210,169.03 1,299,144.67 259,186.99 6
530300 Legal 258,500.00 -4,050.00 254,450.00 51,390.37 250,925.64 -420.75
530400 Engineering and Architectural 276,938.00 40,315.00 317,253.00 29,640.33 147,288.59 115,696.23 36
530500 Financial & Information Svcs.227,230.00 227,230.00 -217.2 62,332.60 117,770.70 52
530600 Medical and Health Inspection 213,555.00 213,555.00 6,726.40 65,351.36 121,002.64 57
530700 Law Enforcement 722,242.00 -2,100.00 720,142.00 45,117.08 323,127.03 396,257.47 55
530800 Recreation 548,571.00 -780 547,791.00 3,447.56 265,343.82 282,407.18 52
F:\FINANCE\BUDGET\2017-18 Budget Info\Mid Year Budget Review\Exp and Rev Bud to Act Analysis 17-18 (Garcia 3-26-18)Run Date: 3/27/2018
ATTACHMENT B
Account Description Adopted Adjustments YTD Amended Cur Expended YTD Expended Remaining Pct
535100 Principal Payments 2,860,000.00 2,860,000.00 2,860,000.00 0
535200 Interest Payments 860,865.00 860,865.00 412,177.57 448,687.43 52
535400 External Rent 762,440.00 159,800.00 922,240.00 39,789.61 348,951.56 408,121.07 44
535500 Grants, Loans and Subsidies 156,100.00 156,100.00 112,505.57 43,594.43 28
535800 Central Services 144,450.00 -21,500.00 122,950.00 17,260.68 104,620.27 18,329.73 15
536100 Internal Rent - Maintenance 1,517,263.00 1,517,263.00 58,974.02 432,940.80 1,084,322.20 71
536200 Internal Rent - Fleet 668,653.00 668,653.00 55,367.76 332,206.56 336,446.44 50
536300 Internal Rent - IT Replacement 250,002.00 250,002.00 20,833.50 125,001.00 125,001.00 50
540100 General Liability 2,286,314.00 2,286,314.00 190,526.18 1,143,463.08 1,142,850.92 50
540700 Taxes and Assessments 25,235.00 25,235.00 89,302.06 -64,067.06
540800 Contingency 1,000,000.00 1,000,000.00 0 1,000,000.00 100
540900 Other Costs 0 0 3.31 1,194.42 -1,194.42
545300 Assistance 20,000.00 20,000.00 785 5,863.36 14,136.64 71
590600 Office Furniture 14,626.00 14,626.00 0 14,626.00 100
590800 Other Equipment 932,434.00 35,089.00 967,523.00 77,419.37 559,140.20 172,871.23 18
595100 Operating Transfers Out 12,327,926.00 26,259.00 12,354,185.00 12,279,335.00 74,850.00 1
128,845,069.00 166,900.00 129,011,969.00 9,972,336.25 68,260,856.28 55,469,598.36 43
F:\FINANCE\BUDGET\2017-18 Budget Info\Mid Year Budget Review\Exp and Rev Bud to Act Analysis 17-18 (Garcia 3-26-18)Run Date: 3/27/2018
S:\Common\City Manager\Sylvia\Mid Year Budget Report 041718\Attachment C Copy of Exp Bud to Act Analysis 17-18.xlsx Page 1 of 4
GENERAL FUND
YTD Remaining
Adopted Expended Balance Percent
Department/Division FY 17-18 12-31-17 12-31-17 Remaining
City Council
Salaries & Benefits 425,268$ 230,693$ 194,575$ 45.75%
Maintenance & Operations 18,675 52,693 (34,018) -182.16%
Fixed Assets 3,150 - 3,150 -
Total City Council 447,093$ 283,386$ 163,707$ 36.62%
CEO's Office
Salaries & Benefits 2,857,708$ 1,320,155$ 1,537,553$ 53.80%
Maintenance & Operations 1,137,797 550,920 586,877 51.58%
Fixed Assets 710 6,089 (5,379) -
Total City Manager 3,996,215$ 1,877,164$ 2,119,051$ 53.03%
Human Resources
Salaries & Benefits 913,932$ 453,119$ 460,813$ 50.42%
Maintenance & Operations 506,980 262,642 244,338 48.19%
Fixed Assets - - - -
Total Personnel Division 1,420,912$ 715,761$ 705,151$ 49.63%
Risk Management
Salaries & Benefits 2,405,420$ 925,278$ 1,480,142$ 61.53%
Maintenance & Operations 60,805 11,890 48,915 80.45%
Fixed Assets - (15) 15 -
Total Risk Management 2,466,225$ 937,153$ 1,529,072$ 62.00%
City Clerk
Salaries & Benefits 737,433$ 326,445$ 410,988$ 55.73%
Maintenance & Operations 241,040 13,064 227,976 94.58%
Fixed Assets - - - -
Total City Clerk 978,473$ 339,509$ 638,964$ 65.30%
City Attorney
Salaries & Benefits -$ -$ -$ -
Maintenance & Operations 1,020,000 592,932 427,068 41.87%
Fixed Assets - - - -
Total City Attorney 1,020,000$ 592,932$ 427,068$ 41.87%
Finance Administration
Salaries & Benefits 348,923$ 175,411$ 173,512$ 49.73%
Maintenance & Operations 96,121 43,649 52,472 54.59%
Fixed Assets - - - -
Total Finance Admin.445,044$ 219,059$ 225,985$ 50.78%
Financial Operations
Salaries & Benefits 1,419,586$ 665,400$ 754,186$ 53.13%
Maintenance & Operations 200,780 65,186 135,594 67.53%
Fixed Assets - - - -
Total Financial Operations 1,620,366$ 730,586$ 889,780$ 54.91%
CITY OF COSTA MESA
BUDGET TO ACTUAL ANALYSIS - GENERAL FUND EXPENDITURES
BY DEPARTMENT/DIVISION
AS OF DECEMBER 31, 2017
Attachment C
S:\Common\City Manager\Sylvia\Mid Year Budget Report 041718\Attachment C Copy of Exp Bud to Act Analysis 17-18.xlsx Page 2 of 4
GENERAL FUND
YTD Remaining
Adopted Expended Balance Percent
Department/Division FY 17-18 12-31-17 12-31-17 Remaining
CITY OF COSTA MESA
BUDGET TO ACTUAL ANALYSIS - GENERAL FUND EXPENDITURES
BY DEPARTMENT/DIVISION
AS OF DECEMBER 31, 2017
Financial Planning
Salaries & Benefits 956,063$ 392,502$ 563,561$ 58.95%
Maintenance & Operations 46,927 910 46,017 98.06%
Fixed Assets - - - -
Total Financial Planning 1,002,990$ 393,412$ 609,578$ 60.78%
Information Technology
Salaries & Benefits 2,218,013$ 949,616$ 1,268,397$ 57.19%
Maintenance & Operations 438,907 95,357 343,550 78.27%
Fixed Assets 852,533 475,548 376,985 44.22%
Total Management Info.3,509,453$ 1,520,522$ 1,988,931$ 56.67%
Police Administration
Salaries & Benefits 3,901,105$ 1,906,002$ 1,995,103$ 51.14%
Maintenance & Operations 711,039 508,799 202,240 28.44%
Fixed Assets 3,300 60,133 (56,833) -
Total Police Admin.4,615,444$ 2,474,935$ 2,140,509$ 46.38%
Police Field Operations
Salaries & Benefits 20,964,650$ 10,916,364$ 10,048,286$ 47.93%
Maintenance & Operations 1,480,387 473,823 1,006,564 67.99%
Fixed Assets 44,000 99 43,901 -
Total Police Field Oper.22,489,037$ 11,390,287$ 11,098,750$ 49.35%
Police Support Services
Salaries & Benefits 15,593,667$ 6,254,309$ 9,339,358$ 59.89%
Maintenance & Operations 2,515,653 896,544 1,619,109 64.36%
Fixed Assets 27,605 10,613 16,992 -
Total Police Support 18,136,925$ 7,161,466$ 10,975,459$ 60.51%
Fire Administration
Salaries & Benefits 2,068,637$ 1,061,802$ 1,006,835$ 48.67%
Maintenance & Operations 199,398 137,259 62,139 31.16%
Fixed Assets - - - -
Total Fire Admin.2,268,035$ 1,199,061$ 1,068,974$ 47.13%
Fire Suppression
Salaries & Benefits 17,958,972$ 8,890,212$ 9,068,760$ 50.50%
Maintenance & Operations 1,226,226 488,455 737,771 60.17%
Fixed Assets - 61 (61) -
Total Fire Suppression 19,185,198$ 9,378,728$ 9,806,470$ 51.11%
Fire Prevention
Salaries & Benefits 581,774$ 237,232$ 344,542$ 59.22%
Maintenance & Operations 299,123 115,513 183,610 61.38%
Fixed Assets - - - -
Total Fire Prevention 880,897$ 352,745$ 528,152$ 59.96%
S:\Common\City Manager\Sylvia\Mid Year Budget Report 041718\Attachment C Copy of Exp Bud to Act Analysis 17-18.xlsx Page 3 of 4
GENERAL FUND
YTD Remaining
Adopted Expended Balance Percent
Department/Division FY 17-18 12-31-17 12-31-17 Remaining
CITY OF COSTA MESA
BUDGET TO ACTUAL ANALYSIS - GENERAL FUND EXPENDITURES
BY DEPARTMENT/DIVISION
AS OF DECEMBER 31, 2017
Development Serv. Admin.
Salaries & Benefits 740,131$ 390,913$ 349,218$ 47.18%
Maintenance & Operations 164,076 88,440 75,636 46.10%
Fixed Assets - - - -
Total Development Serv.904,207$ 479,353$ 424,854$ 46.99%
Planning
Salaries & Benefits 1,444,249$ 590,077$ 854,172$ 59.14%
Maintenance & Operations 348,341 76,652 271,689 78.00%
Fixed Assets 4,594 1,324 3,270 -
Total Planning 1,797,184$ 668,052$ 1,129,132$ 62.83%
Building Safety
Salaries & Benefits 1,984,271$ 606,218$ 1,378,053$ 69.45%
Maintenance & Operations 186,760 120,729 66,031 35.36%
Fixed Assets - 371 (371) -
Total Building Safety 2,171,031$ 727,319$ 1,443,712$ 66.50%
Community Improvement
Salaries & Benefits 1,343,082$ 532,802$ 810,280$ 60.33%
Maintenance & Operations 187,224 102,256 84,968 45.38%
Fixed Assets - 371 (371) -
Total Building Safety 1,530,306$ 635,429$ 894,877$ 58.48%
Public Services Admin.
Salaries & Benefits 877,659$ 445,454$ 432,205$ 49.25%
Maintenance & Operations 1,171,664 567,236 604,428 51.59%
Fixed Assets - 318 (318) -
Total Public Serv. Adm.2,049,323$ 1,013,007$ 1,036,316$ 50.57%
Engineering
Salaries & Benefits 2,138,579$ 645,745$ 1,492,834$ 69.80%
Maintenance & Operations 318,302 64,754 253,548 79.66%
Fixed Assets 3,500 - 3,500 -
Total Engineering 2,460,381$ 710,499$ 1,749,882$ 71.12%
Transportation Services
Salaries & Benefits 786,535$ 220,826$ 565,709$ 71.92%
Maintenance & Operations 1,987,795 618,835 1,368,960 68.87%
Fixed Assets - 635 (635) -
Total Transportation 2,774,330$ 840,297$ 1,934,033$ 69.71%
Recreation Division
Salaries & Benefits 4,033,605$ 1,811,488$ 2,222,117$ 55.09%
Maintenance & Operations 1,868,533 923,307 945,226 50.59%
Fixed Assets - 3,593 (3,593) -
Total Recreation Div.5,902,138$ 2,738,388$ 3,163,750$ 53.60%
S:\Common\City Manager\Sylvia\Mid Year Budget Report 041718\Attachment C Copy of Exp Bud to Act Analysis 17-18.xlsx Page 4 of 4
GENERAL FUND
YTD Remaining
Adopted Expended Balance Percent
Department/Division FY 17-18 12-31-17 12-31-17 Remaining
CITY OF COSTA MESA
BUDGET TO ACTUAL ANALYSIS - GENERAL FUND EXPENDITURES
BY DEPARTMENT/DIVISION
AS OF DECEMBER 31, 2017
Maintenance Services
Salaries & Benefits 3,651,915$ 2,055,498$ 1,596,417$ 43.71%
Maintenance & Operations 7,319,310 2,731,840 4,587,470 62.68%
Fixed Assets 7,668 - 7,668 -
Total Maintenance Serv.10,978,893$ 4,787,338$ 6,191,555$ 56.40%
Non-Departmental
Salaries & Benefits (3,417,822)$ 500,000$ (3,917,822)$ 114.63%
Maintenance & Operations 4,884,865 3,315,134 1,569,731 32.13%
Transfers Out 12,327,926 12,279,335 48,591 -
Total Non-Departmental 13,794,969$ 16,094,469$ (2,299,500)$ -16.67%
RECAP:
Salaries & Benefits 86,933,355$ 42,503,562$ 44,429,793$ 51.11%
Maintenance & Operations 28,636,728 12,918,819 15,717,909 54.89%
Fixed Assets 947,060 559,140 387,920 40.96%
Transfers Out 12,327,926 12,279,335 48,591 -
Grand Total 128,845,069$ 68,260,857$ 60,584,212$ 47.02%
4/11/2018 7:22 PM
FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23
Actual Actual Actual Actual Actual Adopted Forecast Forecast Forecast Forecast Forecast
Sales & Use Tax 45,830,110$ 49,264,633$ 51,115,064$ 57,593,561$ 56,556,867$ 56,906,000$ 57,058,647$ 57,543,407$ 57,940,565$ 58,373,408$ 58,844,317$
Property Tax 23,172,595 22,821,008 24,058,820 25,998,070 27,286,121 28,111,737 31,564,950 33,075,652 34,665,697 36,339,249 38,100,692
Transient Occupancy Tax 7,257,695 7,676,090 7,995,155 8,622,505 8,924,854 9,250,000 9,571,342 9,954,195 10,352,363 10,766,458 11,197,116
Franchise Fees 4,818,970 4,891,465 4,885,926 5,060,402 4,593,631 4,798,473 5,054,219 5,211,546 5,379,885 5,560,009 5,752,740
Licenses & Permits 1,723,297 1,778,622 1,970,946 2,584,241 2,508,556 2,636,508 2,888,431 3,339,272 3,385,415 3,432,478 3,480,479
Fines & Forfeitures 1,506,940 1,216,018 1,204,868 1,530,045 1,352,205 1,535,000 1,554,770 1,557,830 1,560,951 1,564,135 1,567,382
Use of Money & Property 2,888,003 4,228,621 4,392,138 4,085,050 2,628,292 3,109,749 3,415,698 3,438,578 3,462,021 3,486,048 3,509,864
Vehicle License Fee Swap - Property Tax 8,814,644 9,229,059 9,481,340 9,982,948 10,541,298 10,626,189 11,447,958 12,017,254 12,615,016 13,242,665 13,901,696
Fees & Charges for Services 3,531,070 3,434,706 3,553,059 3,650,893 3,743,620 5,635,426 4,020,187 4,104,149 4,191,272 4,285,461 4,384,630
Paramedic Fee - Advanced 252,306 276,086 279,902 313,452 336,046 - - - - - -
Paramedic Transportation - 1,200,000 1,224,000 1,248,480 1,273,450 1,298,919
Marijuana Business Tax - - - - - - 1,560,000 2,490,000 4,650,000 5,580,000 6,000,000
Measure X MM Business Permits - - - - - - - 100,000 100,000 100,000 100,000
Measure X MM CUP - - - - - - - - - - -
All Other Revenues 6,225,203 2,584,805 4,046,241 2,976,026 2,996,395 3,065,491 2,615,973 2,622,604 2,629,335 2,636,168 2,643,102
Total Revenues 106,020,833$ 107,401,115$ 112,983,458$ 122,397,193$ 121,467,885$ 125,674,573$ 131,952,175$ 136,678,487$ 142,181,000$ 146,639,527$ 150,780,937$
Regular Salaries 36,964,019$ 37,450,971$ 37,727,587$ 38,257,223$ 39,044,230$ 44,951,945$ 47,153,413$ 49,361,981$ 50,199,450$ 51,236,455$ 52,289,757$
Retirement 14,084,805 15,599,620 16,928,366 18,003,320 19,037,806 22,263,260 24,626,597 27,454,723 30,363,307 33,194,748 35,737,558
Other Pay & Benefits 18,441,092 18,626,243 19,482,793 20,120,572 21,596,765 19,718,150 22,079,039 22,383,196 22,694,401 23,012,824 23,338,639
Maintenance & Operations 20,170,385 19,808,025 19,907,748 20,690,753 22,971,262 22,997,208 24,445,528 24,684,186 25,041,807 25,432,786 26,024,737
Debt Service 3,832,025 3,521,623 3,514,579 3,518,316 3,518,054 3,720,865 3,038,450 3,030,958 3,030,360 3,017,905 2,803,300
115 Trust - PERS Payment - - - - - - 750,000 1,250,000 2,250,000 2,750,000 3,000,000
Contingency 193,717 20,113 - - - 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Total Operating Expenses 93,686,044$ 95,026,595$ 97,561,073$ 100,590,184$ 106,168,117$ 114,651,428$ 123,093,027$ 129,165,044$ 134,579,325$ 139,644,718$ 144,193,990$
Transfers - Non-Capital 2,684,946$ 5,572,511$ 10,814,636$ 8,934,119$ 7,796,786$ 873,786$ 244,544$ 44,544$ 44,544$ 44,544$ 44,544$
Operating Surplus/Deficit 9,649,844$ 6,802,008$ 4,607,750$ 12,872,890$ 7,502,982$ 10,149,359$ 8,614,604$ 7,468,899$ 7,557,131$ 6,950,265$ 6,542,403$
Capital:
Fixed Assets 520,297$ 800,292$ 428,858$ 1,163,383$ 743,217$ 947,060$ 968,646$ 968,646$ 968,646$ 968,646$ 968,646$
Equipment Replacement Cost 983,600 1,231,044 253,231 689,465 744,682 668,653 655,696 688,480 722,904 759,050 797,002
IT Replacement Cost - - 100,000 150,002 200,000 250,002 250,000 250,000 250,000 250,000 250,000
Capital Improvement Project - - - - - 6,481,649 6,597,609 6,833,924 7,109,050 7,331,976 7,539,047
City Facilities Improvement - - - - - 1,801,995 1,979,283 2,050,177 2,132,715 2,199,593 2,261,714
Total Needs 1,503,897$ 2,031,336$ 782,089$ 2,002,850$ 1,687,899$ 10,149,359$ 10,451,233$ 10,791,228$ 11,183,315$ 11,509,265$ 11,816,409$
Total Operating & Capital Surplus/(Use of
Fund Balance)8,145,947$ 4,770,672$ 3,825,661$ 10,870,040$ 5,815,084$ -$ (1,836,629)$ (3,322,329)$ (3,626,184)$ (4,559,000)$ (5,274,006)$
Notes:
FY 17/18: $3,170,491 General Fund reserves to Self-Insurance Fund
CITY OF COSTA MESA - FIVE YEAR FINANCIAL PLAN
General Fund
Attachment G
Revenue Category Historical Experience Current Year Future Projections Notes
Sales Tax
Significant sales tax growth over
5 years (average 5.53%).
Original projection was $56.9 million.
HdL is projecting current year revenue
may come in slightly underbudget.
HdL provided the sales tax projections
and a modest growth factor is
projected for the next 5 years. This
represents a significant flattening of
our revenue growth.
Property Tax
Average increase is 4.23% over 5
years.
Original projection was $28.1 million
and the revised estimate is
approximately $30.0 million ($1.9
million inc).
For the next 5 years property tax is
projected to increase by 4.88% over 5
years.
Transient Occupancy Tax Average growth is 5.32% over 5
years.
Projections are coming in as
anticipated.
Increase of 4% in future years.
Franchise Fees
Over 5 years revenue has been
generally flat.
Projections are coming in as
anticipated.
Increase of 3.27% over 5 years in the
future based upon utility increases.
Included in this revenue
category are fees from
solid waste haulers,
electricity, cable, and gas
companies.
Licenses & Permits
Average growth of 10% over 5
years.
Projections are coming in as
anticipated.
Increase 16% per year in years 1-2 and
1.4% for years 3-5.
Fines & Forfeitures
Average growth was -1.2% over
5 years.
Projections are coming in as
anticipated.
Assumptions for the next 5 years
assume revenues are flat.
Use of Money & Property
Average growth was 1.91%
increase over 5 years.
Original projection was $3.1 million
and the revised estimate is $3.38,
which is approximately a $280,000
increase.
Average 0.74% increase for the next 5
years.
Revenues
5 Year Projections - Historical Information & Projections Assumptions
Attachment H
Revenue Category Historical Experience Current Year Future Projections Notes
Vehicle License Fee Swap
Average growth was 4.58%
increase over 5 years.
Increase of 2.6% increase over the
original projections.
5% increase projected for the next 5
years.
Fees & Charges for Services
Average growth was a 1.5%
increase over 5 years.
Increased transportation fee of $600K
was anticipated in the current year
and that will now occur in next fiscal
year. However, marijuana revenue
was expected to be $500,000 will now
be a $1 million.
2.1% growth in the future.
Paramedic Transportation
N/A Starting ambulance transportation
was anticipated to begin in early 2018.
However, revenue is now anticipated
to be received in July 2018 at
$1,200,000 annually.
Added $1.2 million annually starting in
FY 18-19 with a slight growth in the
future years.
Marijuana Business Tax
N/A N/A HdL provided the analysis based upon
square footage, hours of operation
and number of machines.
Measure X MM Business Permits
N/A Revenue was expected to be $250,000
and is now $452,000, which is an
increase of $202,000.
There is a 2 year renewal period fpr
the business permits and the renewal
fees are included in future years.
Measure X MM CUP
N/A Revenue was expected to be $275,000
and is now $577,000, which is an
increase of $302,000.
No revenue is included in future years.
All Other Revenues
Revenue varies from year to
year.
Projections are coming in as
anticipated.
Growth is projected to remain the
same for FY 18-19.
Revenues
ATTACHMENT I
2018-19 Gross Receipts Total Revenue Tax 6%
Manufacturers 6 3,000,000$ 18,000,000$ 1,080,000$
Distributors 4 2,000,000$ 8,000,000$ 480,000$
2019-20
Manufacturers 9 3,500,000$ 31,500,000.00$ 1,890,000$
Distributors 5 2,000,000$ 10,000,000$ 600,000$
2020-21
Manufacturers/Distributors 15 4,500,000$ 67,500,000$ 4,050,000$
Distributors 5 2,000,000$ 10,000,000$ 600,000$
Total Businesses 20
Costa Mesa Measure X Excise Tax Analysis - Provided by HdL
Expenditure Category Historical Experience Current Year Future Projections Notes
Regular Salaries
Salary increases based on
annual step increases.
Numerous vacancies over prior
year resulted in savings.
All provisions in the agreed upon
MOUs have been factored into the
current year.
All provisions in the agreed upon
MOUs have been factored into this
forecast. A vacancy factor of 6% is
included in each year.
Retirement
Retirement costs were paid
based on rising PERS rates. Prior
year retirement costs were also
impacted by the larger number
of vacancies.
PERS rates have been included in the
current year, which includes the
increase in contributions paid by
employees and agreed to in the
MOU’s.
PERS forecasted rates have been
included in these projections, which
includes the increase in contributions
paid by employees and agreed to in
the MOU’s.
Other Pay & Benefits
Benefit costs vary based on
MOU changes.
All provisions in the agreed upon
MOUs have been factored into the
current year.
All provisions in the agreed upon
MOUs have been factored into this
forecast.
Maintenance & Operations
Average growth is 7.64% over 5
years.
Modest growth was included in the
current year.
6.3% growth is forecast for the first
year to reflect increases in contracts,
utility costs and new services. There is
a 1% increase projected for the
second year, 1.5% for the third and
fourth years, and 2% is projected for
year five.
Debt Service
Principal and interest debt
service payments decreased on
average by 7.38% as bonds were
refinanced or paid off.
Issued the 2017 Lease Revenue Bonds
to refund existing 2007 bonds and
provide partial funding for the Lions
Park Project. Paid off the 2003
Certificates of Participation.
Debt service is funded as prescribed
by the bond documents.
115 Trust
N/A N/A Assuming the 115 Trust is established,
an expenditure line item has been
added to continue to set aside funding
for unfunded pension liability.
Contingency
Annually budgeted $1 million
for contingency.
Budgeted at $1 million.Contingency funding of $1 million
remains in each year of the forecast.
Expenditures
5 Year Projections - Historical Information & Projections Assumptions
Attachment J
Expenditure Category Historical Experience Current Year Future Projections Notes
Fixed Assets
Acquisitions vary from year to
year.
Acquisitions will be made per the
budget and may span fiscal years.
Budgeted at current levels.
Equipment Replacement Cost Acquisitions vary from year to
year.
Expenditures are on target with the
budget.
5% increase projected for the next 5
years.
IT Replacement Cost
Allocations began in FY 14-15
with $100,000, increasing to
$150,000 in FY 15-16 and
$200,000 in FY 16-17.
Allocation increased to $250,000 and
are on target.
Continued funding for IT replacement
has been included in all five years at
current funding level.
Capital Improvement Project
CAN Ordinance: 5% of annual
general fund revenue allocated
to capital projects beginning FY
15-16. Varies year to year.
CAN funded capital projects at 5% of
budgeted revenues.
Continued funding for capital projects
has been included in all five years per
City ordinance.
City Facilities Improvement
CAN Ordinance: 1.5% of annual
general fund revenue allocated
to capital facilities beginning FY
15-16. Varies year to year.
CAN funded capital projects at 1.5% of
budgeted revenues.
Continued funding for capital projects
has been included in all five years per
City ordinance.
Expenditures
OB-1 ADDITIONAL DOCUMENTS
April 14, 2018
To: City Council
From: FiPAC Budget Subcommittee
CC: Tom Hatch – City Manager, Tamara Letourneau – Assist City Manager,
Colleen O’Donoghue – Assist Finance Director
Subject: FY 17/18 Mid-Year Report
This letter updates our Mid-Year letter dated February 21, 2018. We have
reviewed the revised FY 17/18 Mid-Year Staff Report dated April 11, 2018. Below
are our comments and recommendations. As in our earlier letter, some of our
concerns are in the form of questions to Staff.
Our review covers three main topics: Five Year Plan, FY 17/18 Midyear, FY 16/17
Surplus. The major recommendations are:
•Limit the Five Year Revenue growth rate (excluding Marijuana & Transport)
to 2%
•Explain the differences in Revenue and Expense forecasts between the
current and the prior Five Year presented at the Study Session
•Transfer a total of $536k from Contingency to the Operating Depts.
Five Year Plan
We compared the current Five Year Plan with the Plan presented at the February
Study Session. There are significant differences between the two. The current
Plan includes $21.6M additional revenue (half from Property Tax) than the prior
Plan. Expenses have increased $8.9M, all from Maintenance & Operation
expenses. Staff needs to explain the differences in Revenue and Expenses
between the two Plans.
Both Plans include new revenue from Marijuana and Hospital Transport. Not
including the new revenue (to normalize with prior years) the current Plan has a
OB-1 ADDITIONAL DOCUMENTS
revenue growth of 14.8% over the 5 years or an average of about 3% a year. We
recommend an average of 2% a year. This helps insulate the City from an
economic downturn (that will come) and yet is prudent. Marijuana and Hospital
Transport revenue will then add to this baseline. This change will decrease
revenue $17.3M or 2.3% over the five years.
Expenses increased $8.9M from the prior Plan. If revenue is decreased then
expenses will also have to decrease. As mentioned, the increase is from
Maintenance & Operations which is the most ‘controllable’ category of expenses.
The forecasted increasing annual deposits to the 115 Trust would have to be
reduced and Contingency would need to be reviewed.
Additional expense comments:
Salaries increase 4.9% and 4.7% in the next two years respectively. In the
following three years they increase 1.7%, 2.1%, and 2.0%. What supports this
reduction?
Retirement expenses decreased $12.8M from the prior Plan. What assumption
changed or is this input from CalPERS?
The Five Year Plan should also include a plan for headcount.
FY 17/18 Midyear
Revenue
The Staff Report states that Revenues are on track to meet budget. Attachment A
lists YTD Dec actuals and budgets but the reader must refer to the Five Year
Assumptions (Attachment H) for comments explaining the rational for individual
revenue forecasts. Based on Attachment H comments, revenue should meet
budget but it is unclear by how much.
Expenses
Our previous Mid-Year letter raised several Expense concerns. We had forecasted
an overrun in Retirement expense. After learning of the PERS journal entry
problem and its subsequent correction, we no longer forecast an overrun.
We concur with the Staff Report that Overtime will overrun. We estimate about
$2.1M. As expected, the Police Dept. is the primary cause of the overrun. Not
just due to the headcount shortage but staff mentioned a number of crime
investigations have required overtime effort.
We agree with the Staff Report that Salaries are favorable but we don’t think this
takes into consideration the 6% vacancy adjustment. Factoring in this adjustment
means Salaries are 50% spent through December and may preclude an underrun
at year end.
Consulting expense is a concern and purchase order encumbrances come into
play when attempting to forecast a year end amount. We can’t determine if
Consulting will overrun or be within budget.
The Staff Report states that expenses “will be at or just below budget by fiscal
year end”. Overall we don’t feel enough information has been provided in the
Mid-Year package for us to comment except to say it will be close.
Contingency
The Contingency account should only be used for out of the norm, nonstandard,
or nonrecurring expenses. Given the brief description of the expenses on
Attachment D, it appears the items under Development Services are normal to
that department. We recommend transferring all the items listed under
Development Services, totaling $248k, to that department. After the transfer
their budget would be 57% remaining, more than half for the balance of the year.
We believe an additional $288k, should be transferred because they are unusual
or out of the norm. They are listed on Schedule A at the end of this report.
FY 16/17 Surplus
We concur with the recommended allocation of the FY 16/17 budget surplus. Set
aside $1.0 M to potentially establish a Pension Stabilization Trust (115 Trust) and
the transfer of $1,571,499 to the Self Insurance Fund.
Thank You
Ralph Taboada Wendy Leece Tom Pollett
Budget Subcommittee
SCHEDULE A
Additional Contingency Items recommend transfer to Departments
Total = $288k
1.Sister City Program $20k
2.Mercy House additional hours $32k
3.Legislative trips to Sacramento $ 4k
4.Part-time funds homeless team $60k
5.Part-time PRA assistance (3)$17k
6.Proj Mgmt homeless housing $25k
7.Tree Trimming $50k
8.Pressure Washing & Maint.$80k