Quarterly Financial Report
Third Quarter FY 2022 Ending March 31, 2022
Prepared – April 2022
1 Overview
This financial report summarizes the City’s General
Fund financi al position for Fiscal Y ear (FY) 2021-22
through March 31, 2022 , and projections for the
remainder of the fiscal year ending on June 30, 20 22.
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 third quarter, the City’s General Fund financial outlook is projected to have revenues exceed
expenditures by $9.1 million (fund surplus). The
factors contributing to this financial position are
addressed within this report.
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 projections included in
this report . Overall, General Fund revenues are
projected to increase by approximately $11.6 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 adjusted 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 additional revenue
projections are based on current trends staff is seeing in actual revenue collected to d ate projected for the
remainder of the fiscal year.
The projected actuals 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 March 31, 2022. In
total, d epartments have expended approximately
$142.7 million or 62% of the General Fund Revise d
Budget after 75% o f the fiscal year (9 months).
Overall, departmental expenditures are tracking
consistent with the total Revised Budget as of the end
of the third quarter.
Quarterly Financial Report
Third Quarter FY 2022 Ending March 31, 2022
Prepared – April 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, 20 22. The Projected Actuals are
anticipated to exceed the Revised Budget by
approximately $0.9 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 , Pension
Obligation Bonds debt service, and the Section 115
Trust fund contribution. As noted previously, the
projected increase in Measure P and Measure A
revenues require a corresponding transfer to the
Measure P and Measur e A Funds. The increase in
these transfers is reflected in the Non -Departmental
budget.
In review of specific departmental expenses, the Fire
Department is projecting to be over the revised budget
by year -end primarily due to increased overtime
costs. The Police Department is project to be under
budget by year -end primarily due to salary savings
from vacant positions. For all departments, staff will
continue to monitor expenses to determine if future
budget amendments would be necessary.
At the en d 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
expenditures and look for potential cost saving
measures in order to remain within budget during the
current fiscal year.