Quarterly Financial Report
Second Quarter FY 2022 Ending December 31, 2021
Prepared – February 2022
1 Overview
This financial report summarizes the City’s General
Fund financial position for Fiscal Year (FY) 2021-2022
through December 31, 2021, and provides projections
for the remainder of the fiscal year ending on June 30, 2022. The purpose of this report is to provide the City Council, Management, and the citizens of Chula Vista
an update on the City’s fiscal status based on the most recent financial information.
At the end of the second quarter, the City’s General
Fund financial ou tlook is projected to have
expenditures exceed revenues by $0.2 million (fund
deficit). The factors contributing to this financial
position are addressed within this report.
American Rescue Plan Act of 2021
The City of Chula Vista will receive just over $57.5
million in American Rescue Plan Act of 2021 (ARPA)
funding for responding to the impacts of COVID -19.
This funding is to be obligated by the end of 2024 and
expended by the end of 2026. Staff has carefully
evaluated the allowable uses of ARPA funds and
prioritize projects in order to protect usage of General Fund resources. Of the total ARPA budget, $28.8
million is appropriated in FY2 022 to support
infrastructure projects, operational support , and
economic development activities. Approximately
$14.0 million will support the provision of
government services via various department -led
projects in various funds including the General Fund .
Additionally, ten (10) positions have been added to
support these projects in the General Fund.
Revenues
The following table shows the Fiscal Year 2021-2022
General Fund Revised Budget revenues and the year -
end Projected Budget revenues. The Projected Budget
includes all of the changes in the projections included in this report . Overall, General Fund revenues are
projected t o increase by approximately $9.2 million
above the Revised Budget amounts . The increase in
revenue from the City’s Sales Tax projection as well as for Measure A and Measure P is based on updated
information provided by HdL, the City’s outside sales
tax consultant. HdL updated the projections for the
City of FY 202 2 based upon prior trends and
information collected from multiple sources. A
corresponding transfer of these funds to the Measure
P and Measure A Funds will result in a net zero impact
to the General Fund.
The City anticipates an additional $1.1 million in
revenues for the Motor Vehicle License Fee (VLF)
based on information from the County of San Diego .
The proposed projections adjustments are shown
within the respective revenue categories in the
following table.
The Finance Department will continue to monitor the
City’s actual revenues and will provide any significant changes in subsequent quarterly budget monitoring
reports.
Expenditures
The following table reflects the Fiscal Year 2021-2022
General Fund Revised Budget expenditures and actual
expenditures by department as of December 31, 2021.
In total, d epartments have expended approximately
$85.0 million or 38% of the General Fund Revise d
Budget after 50% o f the fiscal year (6 months) .
Overall, departmental expenditures are on trend to be
consistent with the total Revised Budget as of the end
of the second quarter.
Quarterly Financial Report
Second Quarter FY 2022 Ending December 31, 2021
Prepared – February 2022
2 Staff will continue to monitor department
expenditures to identify any costs that might trend
higher than anticipated and proposed future actions
to address these trends as appropriate.
The next table reflects the projecte d expenditures
through June 30, 2022. The Projected Budget is
anticipated to exceed the Revised Budget by
approximately $8.4 million. The primary driver of the
projected higher budget is due to the increase of
transfers out from the General Fund to the following
funds: Measure P and Measure A Funds and the
Section 115 Trust fund . As noted previously, the
projected increase in Measure P and Measure A
revenues would require a corresponding transfer to
the Measure P and Measure A Funds. The increase in
these transfers is reflected in t he Non-Departmental
projected actuals.
In review of specific departmental expenses, the Fire
Department is projecting to be over budget by year -
end primarily due to increased overtime costs. Strike
Team and Fire Academy expenditures of
approximately $2.2 million is included as a budget
adjustment request. Staff will address any overtime
overages as a year -end adjustment. For all other
departments, staff will continue to monitor expenses
to determine if future budget amendments would be
necessary.
At the end of the fiscal year, the Finance Department
will be seeking to make transfers from other
expenditure categories with projected savings and
appropriate available revenues to fully utilize
resources and mitigate any departmental budget
deficiencies.
Staff will continue to monitor General Fund expenses
and look for potential cost saving measures in order to remain within budget during the current fiscal year.