Quarterly
Budget Update
Quarter 3
FY 2024
May 1, 2024
Quarterly Budget Update | Quarter 3, FY 2024 | May 1, 2024 Overview
Budget Adjustments &
Revenue Estimates
City Management is pleased to present this
quarterly update summarizing the City’s overall
budget activity through Quarter 3 (March 31,
2024) for Fiscal Year (FY) 2024. The City’s fiscal
year is July 1st through June 30th. For audited
information, or to find greater detail, please refer
to the City’s annual financial statement, which is
released by December 31st following the end of
the fiscal year.
The revenue projections and budget expenditures
presented in this update include budget
adjustments approved by the City Council,
continuing appropriations, and prior year
encumbrances, mid-year revenue estimates, and
updated revenue estimates presented at the
Spring Financial Workshop on March 28, 2024.
General Fund Financial Condition
Quarterly Budget Update | Quarter 3, FY 2024 | May 1, 2024 The City’s General Fund is the primary source of discretionary resources that funds many of the services provided to the citizens of the City of Corona. The General Fund is made up of the General Fund, Measure X Fund, Historic Civic Center Fund, and the Pension Stabilization Trust Fund.
The General Fund inflows (revenue and transfers in) for FY 2024 are currently estimated at $224.6 million. Based on FY 2024 projections, there is an estimated increase of $8.9 million when compared to the cumulative budget.
They City has received or recorded 71.8% of the estimated General Fund inflows, through the end of Quarter 3 (at the time this information was prepared). Overall, inflows are up by 4.7% when compared to the same quarter of FY 2023.
As of Quarter of FY 2024, the General Fund has expended 49.5% of its cumulative budget. The current savings is primarily due to capital improvement projects which will take multiple years to complete. Comparing Quarter 3 of FY 2024 to FY 2023, expenditures are up by 7.6%, or $8.8 million.
Emergency
Contingency
1 Equal to 3 months of
operating expenditures
Adjusted at the end of
each fiscal year
2 3 4
$45,343,853
Been in place for
20-years
Since FY 2022, we no
longer add new money
into this reserve at the
end of the fiscal year
Budget
Balancing
$3,922,049
Reserve for pension
related expenditures –
debt service payments
for the Pension
Obligation Bonds or
the City’s CalPERS
unfunded accrued
liability (UAL)
contributions.
Pension
Stabilization
Measure X
Reserves
$39,297,068 $43,340,023
Unspent Measure X
funds that don’t roll
into next FY will go
into the reserve
Reserve amount
discussed with Council
each year through the
budget cycle
General Fund Reserves
Quarterly Budget Update | Quarter 3, FY 2024 | May 1, 2024 The General Fund has
multiple reserves in fund
balance for various purposes.
For the full list, please
reference the City’s financial
statements, Note 15 (for Fiscal
Year Ending June 30, 2023,
page 119). This quarterly
update highlights four of
those reserves. FY 2023
audited amounts are noted in
the table. The Pension
Stabilization Trust amount has
been updated to reflect the
FY 2024 contribution.
General Fund Inflows
Quarterly Budget Update | Quarter 3, FY 2024 | May 1, 2024 Top Five Revenues
The City’s top five General Fund revenue categories
account for approximately 88.2% of the total
estimated General Fund inflows for FY 2024. Focusing
on these sources can provide a useful understanding
of the City’s income position.
The bar graph to the right illustrates the performance
of the top five revenues as compared to the same
quarter of the prior two fiscal years.
$(10)
$-
$10
$20
$30
$40
$50
$60
$70
Millions
FY 2022
FY 2023
FY 2024
General Fund Revenues
Top 5 Revenues Compared
Quarter 3
At the end of Quarter 3, Sales Tax is the largest General Fund revenue category. This category includes the City’s portion of sales tax, Measure X, Prop. 172 sales tax, and allowance for sales tax agreements. As of Quarter 3, the total received is $58.0 million. At the time this information was prepared, the revenues are down by 0.4%, or $0.2 million as compared to the prior year.
Sales Tax 01
The second largest General Fund revenue category at the end of Quarter 3 is Property Tax. The total for property tax is $53.6 million, an increase of $3.5 million, or 7.0%, over the prior fiscal year. The increase is primarily in secured property taxes. The majority of property tax revenues are recorded as revenue and booked as a receivable, once the annual report is received from the County of Riverside (generally November/December). Year-end adjustments “true-up” the amounts to the actual cash received.
Property Tax 02
At the end of Quarter 3, a total of $10.4 million has been received in the Current Services category. Items in this revenue group include plan check fees, engineering and inspection fees, recreation revenues, and the Emergency Medical Services Program.
Current Services are down 3.3%, or $0.3 million as compared to Quarter 3 of FY 2023. When comparing to the prior fiscal year, there is a decrease in plan check and engineering and inspection related revenues, as well as police false alarms. In addition, there are increase in after school recreation program, EMS subscription, and special fire equipment inspection.
Current Services 03
General Fund Inflows Top Five Revenues
Quarterly Budget Update | Quarter 3, FY 2024 | May 1, 2024 The Other Revenue category is the fourth largest category at the end of Quarter 3. Activity in this revenue group includes Rental/Lease Income, Development Agreements, Telecommunication Site Rentals, and Billboard Revenues. At the end of Quarter 3, the total received is $9.7 million. Overall, the Other Revenues category is up by 11.2%, or $1.0 million, as compared to the same quarter in FY 2023. This is due to increases in Peg Fees, Damage Recovery, Special District Admin Reimbursements, and Bad Debt Recovery.
Other Revenue 04
This category is usually not one of the five largest, but as of Quarter 3, FY 2024, it ranks fifth largest. There is a significant difference when compared to the prior year that needs to be explained. The biggest factor in this category’s increase is due to how the City must report the unrealized gains/losses from investments. These are book entries and not actual cash. At the end of Quarter 3, this category’s total is $9.6 million which is a positive change of $0.8 million as compared to FY 2023. If we omit the book entries, the total is $4.4 million which is appositive change of $1.4 million as compared to FY 2023.
Investment Earnings 05
General Fund Inflows Top Five Revenues
Quarterly Budget Update | Quarter 3, FY 2024 | May 1, 2024 General Fund Inflows
Quarterly Budget Update | Quarter 3, FY 2024 | May 1, 2024 General Fund Revenues
Revenue + Transfers In
Quarter 3, FY 2023 to FY 2024
General Fund Revenues
Revenue + Transfers In
FY 2024, Projected Revenues to Quarter 3 Actuals
General Fund Projected Through Q3 %
Revenue Category FY 2024 FY 2024 Received
Sales Tax $ 57,027,732 $ 33,622,459 59.0%
Measure X 41,676,454 24,410,671 58.6%
Property Tax 64,184,995 53,640,803 83.6%
Other Revenue 11,566,470 9,725,927 84.1%
Current Services 13,303,127 10,377,381 78.0%
Other Taxes 14,457,606 8,798,554 60.9%
Payments in Lieu of Services 6,445,705 4,720,825 73.2%
Intergovernmental Revenues 4,763,693 2,456,635 51.6%
Licenses, Fees & Permits 2,256,423 1,655,516 73.4%
Utility Service Charges 12,000 11,494 95.8%
Special Assessments 773,347 394,314 51.0%
Fines, Penalties & Forfeitures 1,299,662 946,921 72.9%
Investment Earnings 5,609,700 4,364,531 77.8%
GASB31 Gain/Loss on Investment - 5,228,314 N/A
Total Revenues $ 223,376,914 $ 160,354,346 71.8%
Transfers In 1,235,696 847,663 68.6%
Total Inflows $ 224,612,610 $ 161,202,008 71.8%
Total Inflows (w/o GASB31) $ 224,612,610 $ 155,973,694 69.4% General Fund Through Q3 Through Q3 $ %
Revenue Category FY 2023 FY 2024 Change Change
Sales Tax $ 32,960,330 $ 33,622,459 662,130 2.0%
Measure X 25,291,871 24,410,671 (881,200) -3.5%
Property Tax 50,140,120 53,640,803 3,500,683 7.0%
Other Revenue 8,744,745 9,725,927 981,182 11.2%
Current Services 10,727,229 10,377,381 (349,848) -3.3%
Other Taxes 7,712,694 8,798,554 1,085,860 14.1%
Payments in Lieu of Services 4,509,077 4,720,825 211,748 4.7% Intergovernmental Revenues 1,159,408 2,456,635 1,297,227 111.9% Licenses, Fees & Permits 1,817,503 1,655,516 (161,987) -8.9% Utility Service Charges - 11,494 11,494 N/A
Special Assessments 344,054 394,314 50,260 14.6%
Fines, Penalties & Forfeitures 939,815 946,921 7,106 0.8% Investment Earnings 2,954,851 4,364,531 1,409,680 47.7% GASB31 Gain/Loss on Investment 5,849,469 5,228,314 (621,155) -10.6% Total Revenues $ 153,151,166 $ 160,354,346 $ 7,203,180 4.7% Transfers In 821,658 847,663 26,005 3.2%
Total Inflows $ 153,972,824 $ 161,202,008 $ 7,229,185 4.7% Total Inflows (w/o GASB31) $ 148,123,355 $ 155,973,694 $ 7,850,339 5.3% The FY 2024 budget was adopted with $201.8 million in General Fund expenditures. With continuing appropriations of $21.3 million, and encumbrances (committed purchase orders) of $5.3 million, the beginning outflow budget was $228.3 million. Through Council Actions and other authorized adjustments, the cumulative budget is $250.4 million, with total outflows of $251.2 million.
Through Quarter 3, the City has spent $124.4 million, or 49.5% of the cumulative budget. At this point in the fiscal year, expenditures should be approximately 75% of budget. When comparing the same quarter in FY 2023, outflows are up by 7.6%, or $8.8 million. The largest expenditure category for the General Fund is Personnel Services.
Personnel Services has an increase of $6.1 million as compared to the same quarter last fiscal year. The changes are primarily based on current Memorandum of Understanding (MOU) contracts that are good through December 2024.
Materials and Supplies is up by $2.2 million when compared to Quarter 3 of FY 2023. There are multiple increases and decreases in this category. The primary drivers for change are one-time purchases of minor equipment & furniture in the current fiscal year, and an increase for tree maintenance.
General Fund Expenditures Quarterly Budget Update | Quarter 3, FY 2024 | May 1, 2024 General Fund Outflows
Expenditures + Transfers Out
Quarter 3, FY 2023 to FY 2024
General Fund Outflows
Expenditures + Transfers Out
Budget to Actuals, Quarter 3, FY 2024
General Fund Through Q3 Through Q3 %
Expenditures By Category FY 2023 FY 2024 Change
Contractual 9,495,320 10,024,548 5.6%
Materials and Supplies 28,260,441 30,507,033 7.9%
Other Sources 184,958 - -100.0%
Personnel Services 74,575,964 80,637,468 8.1%
Utilities 3,066,776 3,226,814 5.2%
Total Expenditures $ 115,583,459 $ 124,395,863 7.6%
Transfers Out - - N/A
Total Outflows $ 115,583,459 $ 124,395,863 7.6%
General Fund Cumulative Budget Through Q3 %
Expenditures By Department FY 2024 FY 2024 Spent
CIP / O&M Projects $ 46,992,913 $ 7,065,434 15.0%
City Manager's Office 13,427,404 4,175,583 31.1%
Community Services 18,854,858 12,626,081 67.0%
Debt Service 22,595,308 5,898,196 26.1%
Economic Development 1,604,768 861,182 53.7%
Elected Officials 144,940 91,223 62.9%
Finance 4,613,646 3,403,251 73.8%
Fire 35,030,777 23,380,242 66.7%
General Government 30,029,787 16,611,389 55.3%
Human Resources 2,946,222 1,956,005 66.4%
Information Technology 1,116,937 217,234 19.4%
Legal & Risk Management 2,027,387 1,404,232 69.3%
Planning & Development 10,561,544 5,082,905 48.1%
Police 55,475,930 38,715,420 69.8%
Public Works 5,017,616 2,907,487 57.9%
Total Expenditures $ 250,440,037 $ 124,395,863 49.7%
Transfers Out 791,695 - 0.0%
Total Outflows $ 251,231,732 $ 124,395,863 49.5%
General Fund Expenditures By Department
Quarterly Budget Update | Quarter 3, FY 2024 | May 1, 2024 This budget does not follow the normal trends as these
are multi-year projects. Any unspent encumbrances
(purchase orders) or remaining balance carries forward to the next fiscal year to continue the project activities.
CIP / O&M Projects (15%)
Current savings are related to the contractual services budget. The contractual services are primarily related to the Homeless Program. There are some billing delays due to contract amendments that were recently approved,
retroactive to January 2024.
City Manager’s Office (31.1%)
Quarter 3 is low due to the timing of debt service
payments based on approved payment cycles.
Debt Services (26.1%)
Through March 31, 2024, approximately 75% of the fiscal year is complete. Departments with a variance of 10% or more are explained in the following section.
Current savings is due to materials and supplies and
contractual services.
Economic Development (53.7%)
Quarter 3 is trending low due to materials and
supplies. Insurance premiums are reconciled and
recorded at year-end.
General Government (55.3%)
Related to Measure X. Current savings due to
contractual services, specifically CAD Dispatch
services.
Information Technology (19.4%)
Current savings is due to materials and supplies and
contractual services.
Planning & Development (48.1%)
Current savings is due to materials and supplies and
contractual services.
Public Works (57.9%)
Enterprise Funds
Quarterly Budget Update | Quarter 3, FY 2024 | May 1, 2024 Utilities Inflows
The City operates three utility services through
the Utilities Department: electric, water, and
sewer. Through the collection of fees and
charges, these funds should collect revenues
sufficient to finance the costs associated with
administration, operations, capital improvement
projects (CIP), and debt service.
Enterprise Funds - Utilities
Revenues Compared, Quarter 3
FY 2022 – FY 2023 – FY 2024
$-
$10
$20
$30
$40
$50
$60
$70
Electric Water Sewer
FY 2022
FY 2023
FY 2024
Millions
Emergency
Contingency
1 2 3
GOAL
$4,202,715
Electric
Utility
$234,438
Water
Utility
Sewer
Utility
$3,103,828 $1,151,962
Utilities Funds Reserves
Quarterly Budget Update | Quarter 3, FY 2024 | May 1, 2024 The Utilities Funds target reserve amount for each of the operating funds shall be set at ninety (90) days. To build the target reserve amount, the Utilities Department shall annually contribute ten percent (10%) of the difference between actual operating revenues and actual operating
expenses for each of the Utilities Department Operating Funds at the beginning of each fiscal year until the target reserve is met. Depending on the fund, it will take time to hit the target reserve amount. If the reserve amount
exceeds the target reserve amount, the additional funds shall remain in reserves. The reserve process occurs
annually, once the audit and financials are finalized.
GOAL
$23,648,198
GOAL
$12,688,183
Water Sewer
Utilities Funds Inflows
Quarterly Budget Update | Quarter 3, FY 2024 | May 1, 2024 Comparing Quarter 3 FY 2024 revenues to FY 2023,
there is an increase of $0.7 million, or 5.4%. There were decreases in categories: Fines, Penalties & Forfeitures, Investment Earnings, and Intergovernmental Revenues.
There were increases in categories: Current Services,
Fees & Permits, Other Revenue, and Utility Services
Charges. The change in the Investment Earnings
category is due to how the City must report the
unrealized gains/losses from investments. These are
book entries and not actual cash. Adjusting for GASB31
book entries, Quarter 3 revenues are a net increase of
$1.0 million, or 7.6%
Utilities Revenues - Through Quarter 3 FY 2024, revenues received have decreased 14.5%, or $15.5 million, as compared to the same quarter in Fiscal Year 2023.
Through the third quarter of FY 2024, there is a
decrease of 24.5%, or $16.3 million, as compared to FY
2023. Other Revenue has a decrease of $18.9 million,
largely due to a one-time lawsuit settlement from last
fiscal year. Investment Earnings has an increase of $1.0 million, due to the unrealized gains/losses from
investments which are book entries. There is an
increase of $0.2 million in Intergovernmental
Revenues. This is due to how we record revenue for
grants. It is spread over several years and is
recognized in the period in which it is earned. If
GASB31 book entries are excluded, Quarter 3 revenues
are a net decrease of $17.0 million, or 25.9%.
Through Quarter 3, there is an increase of 0.5%, or $0.1 million, when compared to FY 2023. There were
decreases in categories: Fines, Penalties, & Forfeitures, Intergovernmental Revenues, and Licenses, Fees &
Permits. There were increases in categories: Current
Services, Fees & Permits, Investment Earnings, Other
Revenue, and Utility Services Charges. The change in
the Investment Earnings category is due to how the
City must report the unrealized gains/losses from
investments. These are book entries and not actual
cash. Excluding GASB31 book entries, Quarter 3
revenues are a net increase of $0.4 million, or 1.5%.
Electric
Utilities Funds Inflows
Quarterly Budget Update | Quarter 3, FY 2024 | May 1, 2024 Utilities Funds Revenues
Revenue + Transfers In
Quarter 3, FY 2023 to FY 2024
Utilities Funds Revenues
Revenue + Transfers In
FY 2024, Projected Revenues to Quarter 3 Actuals
Enterprise Funds Through Q3 Through Q3 %
Fund Type FY 2023 FY 2024 Change
Electric $ 12,239,658 $ 13,166,342 7.6%
GASB31 Gain/Loss on Investment 913,547 703,652 -23.0%
Water 65,532,836 48,553,319 -25.9%
GASB31 Gain/Loss on Investment 1,088,853 1,763,490 62.0% Sewer 23,772,787 24,139,194 1.5%
GASB31 Gain/Loss on Investment 2,786,290 2,549,010 -8.5% Total Revenues $ 106,333,971 $ 90,875,006 -14.5%
Transfers In - Electric - - N/A
Transfers In - Water - - N/A
Transfers In - Sewer 6 - -100.0%
Total Inflows $ 106,333,977 $ 90,875,006 -14.5%
Total Inflows (w/o GASB31) $ 101,545,287 $ 85,858,854 -15.4% Enterprise Funds Projected Through Q3 %
Fund Type FY 2024 FY 2024 Received
Electric $ 18,303,718 $ 13,166,342 71.9%
GASB31 Gain/Loss on Investment - 703,652 N/A
Water 90,462,031 48,553,319 53.7%
GASB31 Gain/Loss on Investment - 1,763,490 N/A
Sewer 35,820,439 24,139,194 67.4%
GASB31 Gain/Loss on Investment - 2,549,010 N/A
Total Revenues $ 144,586,188 $ 90,875,006 62.9%
Transfers In - Electric - - N/A
Transfers In - Water 1,114,779 - 0.0%
Transfers In - Sewer - - N/A
Total Inflows $ 145,700,967 $ 90,875,006 62.4%
Total Inflows (w/o GASB31) $ 145,700,967 $ 85,858,854 58.9% Water Sewer
Utilities Funds Outflows
Quarterly Budget Update | Quarter 3, FY 2024 | May 1, 2024 Overall, the Electric utility expenditures through
Quarter 3 are down by 22.9% when compared to last
fiscal year. There is an increase in personnel services and there are decreases in contractual, utilities, and
materials and supplies.
At Quarter 3, project expenditures equal a negative
15.5% as compared to the cumulative budget due to
an accounting correction. The operating budget
expenditures total 64.6% of the current FY 2024
budget.
When comparing the total of utility outflows, Quarter 3 of FY 2024 to FY 2023, outflows are higher by 11.0%, or $8.1 million.
Overall, the Water utility expenditures are up by 13.4% or $5.3 million when compared to Quarter 3 in FY
2023. There are increases across all categories:
contractual, depreciation, materials and supplies,
personnel services, and utilities.
Through Quarter 3, project expenditures are 13.9% of
the current expenditure budget. The operating budget
transactions total 61.4% of the current FY 2024 budget.
The Sewer utility expenditures are up by 26.2%, or $5.6 million, when compared to Quarter 3 of FY 2023. There
were increases across all categories: contractual,
materials and supplies, personnel services, and utilities.
At the end of Quarter 3, project expenditures total
9.4% of the cumulative budget. The operating budget
expenditures total 65.5% of the current FY 2024
budget.
Electric
Utilities Funds Outflows
Quarterly Budget Update | Quarter 3, FY 2024 | May 1, 2024 Utilities Funds Outflows
Expenditures + Transfers Out
Quarter 3, FY 2023 to FY 2024
Utilities Funds Outflows
Expenditures + Transfers Out
Budget to Actuals, Quarter 3, FY 2024
Enterprise Funds Cumulative Budget Through Q3 %
Expenditures By Department FY 2024 FY 2024 Spent
Electric
CIP / O&M Projects $ 1,751,337 $ (271,066) -15.5%
Debt Service 85,863 42,987 50.1%
Planning & Development 14,021 1,032 7.4%
Public Works 185,642 47,404 25.5%
Utilities Department 14,890,136 9,709,536 65.2%
Electric Total 16,926,999 9,529,893 56.3%
Water
CIP / O&M Projects $ 52,300,991 $ 7,253,882 13.9%
Debt Service 383,627 200,560 52.3%
Planning & Development 82,652 34,874 42.2%
Public Works 927,482 544,852 58.7%
Utilities Department 59,955,241 36,868,750 61.5%
Water Total 113,649,993 44,902,918 39.5%
Sewer
CIP / O&M Projects $ 58,998,482 $ 5,559,002 9.4%
City Manager's Office 3,572 2,030 56.8%
Debt Service 215,364 107,820 50.1%
Planning & Development 35,444 25,365 71.6%
Public Works 597,236 357,010 59.8%
Utilities Department 31,678,585 20,815,937 65.7%
Sewer Total 91,528,683 26,867,165 29.4%
Transfers Out - Electric - - N/A
Transfers Out - Water - - N/A
Transfers Out - Sewer 1,114,779 - N/A
Grand Total $ 223,220,455 $ 81,299,976 36.4%
Enterprise Funds Through Q3 Through Q3 %
Expenditures By Category FY 2023 FY 2024 Change
Electric
Contractual $ 684,710 $ (62,259) -109.1%
Materials and Supplies 706,436 397,529 -43.7%
Personnel Services 253,113 421,209 66.4%
Utilities 10,709,714 8,773,414 -18.1%
Electric Total 12,353,972 9,529,893 -22.9%
Water
Contractual $ 6,482,550 $ 8,356,443 28.9%
Depreciation - 53,826 N/A
Materials and Supplies 23,259,720 25,690,377 10.5%
Personnel Services 5,473,267 6,170,211 12.7%
Utilities 4,368,150 4,632,062 6.0%
Water Total 39,583,687 44,902,918 13.4%
Sewer
Contractual $ 2,164,517 $ 5,455,965 152.1%
Materials and Supplies 12,839,959 14,438,763 12.5%
Personnel Services 4,499,450 5,056,748 12.4%
Utilities 1,779,754 1,915,689 7.6%
Sewer Total 21,283,680 26,867,165 26.2%
Transfers Out - Electric - - N/A
Transfers Out - Water - - N/A
Transfers Out - Sewer 6 - N/A
Grand Total $ 73,221,345 $ 81,299,976 11.0%
What do you think?
We value your opinion.
Is there anything additional you’d like to see in
future reports? This will be an evolving process to
capture the areas that are of most interest to the
City Council and the community. Please let us know.
We appreciate the feedback! Please share your
ideas at [email protected], or contact
budget staff at (951) 279-3500.
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