mid-year financial review fy15-16 02-02-16

8/20/2019 Mid-Year Financial Review FY15-16 02-02-16

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126

Mid

-Year Review and Supplemental Appropr iations

Staff

Report

February

2

2016

Page

Likewise, General Fund expenditures are trending net positive with negatives and positives split

between functional areas (see

below .

Council and Administrative areas have negative components due mainly to (1) legal fees related

to labor group negotiations, personnel issues and the gas line explosion and (2) greater than

budgeted spending on recruitment and noticing. While some of the legal fees are being

submitted as claims to our insurers for reimbursement, many are not and we will seek to fund

these by utilizing available money that

is

already budgeted.

The overage

in

Planning & Building is mostly due to having contractors effectively filling staff

positions until permanent full-time staff can be hired . While the negative is small

t

this point,

with the adding of staff through hiring, and the doubling up as training continues, more funds

will be required for outside contractors. Again, we will seek to fund these expenditure overages

by utilizing available money that is already budgeted elsewhere.

Expenditures

FY15-16 Annual FY15-16 Mid-Year FY15-16 Mid-Year

Over)/Und

Budget

Actual

Expected

Council

&

Admin

4,685,589 3,117,462 3,139,421 21,95

Planning

&

Building

967,983

485J71

483,992

(1,779

Public Safety

6,294,856

3,111,504 3,147,428

35,92

Public Works

2,636,464 1,193,749 1,318,232 124,48

Library(+ Comm

Act/Marketing)

1,901,128

746,624 950,564

203,94

Debt Service

1,332,623 405,159 405 000 { 59

Total

17,818,643 9,060,269 9,444,637 384,36

To summarize the operational budget, revenues are strong, but we expect a weakening national

economy to slow the excess revenues we are currently seeing (especially in sales tax, less so

in TOT and property tax). Expense-wise, in total, we have been prudent in the first 6 months,

with pockets

of

overspending that we will attempt to fund by re-allocating from the existing

budget. If funds are needed inter-departmentally, approval from the City Council will be

required, and staff will bring the request as needed.

CAPITAL PROJECTS

The City's Capital Projects program at mid-year reflects the same sort of scenario that we have

seen

in

the last 2 years. Capital Project requests are up 36% over last year ($6,471 ,152 vs.

$4,746,425 last year) due to a variety of carry-overs from the previous year.



127

Mid Year Review and Supplemental Appropriations StaffReport

February 2 2 16

Page3

Using the same rationale as with operating revenues and expenditures, as a whole, spending

on Capital Projects is at 30% (or 1,309,408 short)

of

annual projections at the midpoint

of

the

fiscal year.

Capital Projects

FY15-16 Annual FY15-16 Mid-Year FY15-16 Mid-Year

Over)/Und

Budget Actual

Expected

Facilities

258,060 41 072 129 030

87,9

Forest, Parks &

Beach

759,788 90 038

379,894

289,8

Forest Theater

2 000 000 631 ,216

1 368

7

Lib

rary

&

ommun

ity

Activities

20 000

20,000

20 000

Parking

200 000

9,485

100 90

,5

Public

Works 369,817 187,484

184

,

909

(2,57

Sunset Center

689,649 275,940

344

,825 68,

8

Streets & Roads

2,173,838 680,933 1,086,919

405,

9

Total

6,471,152 1,936,168 3,245,576 1,309,4

Vehicles & FY15-16 Annual FY15-16 Mid-Year FY15-16 Mid-Year

Over)/Und

Equipment Budget Actual Expected

dministration

25,000

12 500

12,

50

Information

Technology

150,000

48

,

919

75 000

26,08

Public Safety 237

,914

117

,859 118,957

1,

09

Sunset Center

67,000

33,500 33 50

Forest Parks

&

Beach

98 62,

139

62,

720

58

Total 577,914 228,917 302,677

73,76

The main message here is that, while our spending on capitals has increased by about 50%

over mid-year last year, it still is lagging behind the amount required

in

order

to

complete our

capitals that we planned to complete for FY15-16. To continue this would require us to,

again , roll over the uncompleted projects into FY16-17 while potentially adding new projects.



128

Mid Year Review and Supplemental Appropr iations StaffReport

February 2 2 16

Page4

This would increase our CIP budget by the amount of the roll-over (over $2M last year). This

causes confusion and complicates our accounting and communication related to these projects

The better answer is to budget for what we honestly believe we can complete within any given

fiscal year, and then do everything we can to complete the given projects. It also improves our

planning process and will help us to do a better job of communicating to the community about

improvements around Carmel.

Mid-Year Capital Projects Supplemental Appropriations Request

Even though the financial performance up to mid-year s positive , there are projects that will

require supplemental appropriations. Exhibit A details those requests and their respective

funding sources.

FISCAL IMPACT: 81,000

Budgeted (yes/no) no Funding Sources- General Fund, Measure

D

As designated

PREVIOUS COUNCIL ACTION/DECISION HISTORY:

ATTACHMENTS:

1. Mid-Year Budget Adjustments Resolution

APPROVED: M

l

' Date

Mike Calhoun, Interim City Administrator



129

RESOLUTION 2016

A RESOLUTION OF THE CITY COUNCIL O THE CITY OF CARMEL BY THE SEA

ADOPTING MID YEAR SUPPLEMENTAL APPROPRIATIONS AND ADJUSTMENTS TO THE

FISCAL YEAR 2015 16 BUDGET

WHEREAS, the City Council approved the Fiscal Year 2015-16 Operating Plan and

Budget by Resolution 2015-040 dated June 15, 2015; and

WHEREAS, adjustments are requested for the Fiscal Year 2015-16 budget based on the

actual and estimated sources and uses; and

WHEREAS, the Fiscal Year 2015-16 Budget adjustments requests include adjustments

to capital projects totaling 81,000 per the attached schedule, Exhibit A.

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL O THE CITY OF

CARMEL-BY-THE-SEA DOES:

Approve adjustments to

re

venues and expenditures for the Fiscal Year 2015-16

Budget, per the attached schedule Exhibit

A.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF

CARMEL-BY-THE-SEA this 5

h day of January 2016, by the following roll call vote:

AYES:

NOES:

ABSENT:

APPROVED:

Jason Burnett

Mayor

COUNCIL MEMBERS:

COUNCIL MEMBERS:

COUNCIL MEMBERS:

ATTEST:

Ashlee Wright

City Clerk



130

Account

Source

apital Projects

13-84904

General Fund

Art Appraisal

13-70904

Measure

City Hall

Renovation

13-70901

Measure

PD/PW Roof

Exhibit A

Supplemental Appropriation Request

Mid Year Budget Adjustment

Amount Reason

20,000 To fund an updated art appraisal

11 ,000 To account for timing issue of

payment for the City Hall Renovation

Project

50,000 To fund additional repair work for

Police Department planters and PD/

Public Works roof

Current Adjusted

Budget Budget

0

20,000

2,000

13,000

25,000 75,000

mid-year financial review fy15-16 02-02-16

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