Quarterly
Budget Update
Quarter 4
FY 2024
August 7, 2024
Quarterly Budget Update | Quarter 4, FY 2024 | August 7, 2024 Overview
Budget Adjustments &
Revenue Estimates
City Management is pleased to present this
quarterly update summarizing the City’s overall
budget activity through Quarter 4 (June 30, 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 4, FY 2024 | August 7, 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 $8.4 million when compared to the cumulative budget.
They City has received or recorded 94.2% of the estimated General Fund inflows, through the end of Quarter 4 (at the time this information was prepared). Overall, inflows are down by 4.5% when compared to the same quarter of FY 2023.
As of Quarter 4 of FY 2024, the General Fund has expended 72.8% of its cumulative budget. The current savings is primarily due to capital improvement projects which will take multiple years to complete. Comparing Quarter 4 of FY 2024 to FY 2023, expenditures are up by 6.3%, or $11.2 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
$39,707,142 $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 4, FY 2024 | August 7, 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 4, FY 2024 | August 7, 2024 Top Five Revenues
The City’s top five General Fund revenue categories
account for approximately 89.3% 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.
General Fund Revenues
Top 5 Revenues Compared
Quarter 4
$(20)
$-
$20
$40
$60
$80
$100
Millions $120
FY 2022
FY 2023
FY 2024
At the end of Quarter 4, 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 4, the total received is $81.3 million. At the time this information was prepared, the revenues are down by 19.7%, or $19.9 million as compared to the prior year.
Sales Tax 01
The second largest General Fund revenue category at the end of Quarter 4 is Property Tax. The total for property tax is $66.4 million, an increase of $5.4 million, or 8.9%, 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 4, a total of $14.2 million has been received in the Other Taxes category. Items in this revenue group include Franchise Fees, Transient Occupancy Taxes (TOT), Business License Taxes, and Cannabis Taxes. Other Taxes are up 5.8%, or $0.8 million as compared to Quarter 4 of FY 2023. When comparing to the prior fiscal year, there is a decrease in Transient Occupancy Taxes and Business License Taxes. In addition, there are increase in Franchise Fees and Cannabis Taxes.
Other Taxes 03
General Fund Inflows Top Five Revenues
Quarterly Budget Update | Quarter 4, FY 2024 | August 7, 2024 The Current Services category is the fourth largest category at the end of Quarter 4. Activity in this revenue group include plan check fees, engineering and inspection fees, recreation revenues, and the Emergency Medical Services Program. At the end of Quarter 4, the total received is $13.6 million. Overall, the Current Services category is down by 4.7%, or $0.7 million, as compared to the same quarter in 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, fire residential inspections, senior center activities, and facility rentals.
Current Services 04
This category is usually not one of the five largest, but as of Quarter 4, 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 4, this category’s total is $12.9 million which is a positive change of $6.3 million as compared to FY 2023. If we omit the book entries, the total is $6.4 million which is a positive change of $0.4 million as compared to FY 2023.
Investment Earnings 05
General Fund Inflows Top Five Revenues
Quarterly Budget Update | Quarter 4, FY 2024 | August 7, 2024 General Fund Inflows
Quarterly Budget Update | Quarter 4, FY 2024 | August 7, 2024 General Fund Revenues
Revenue + Transfers In
Quarter 4, FY 2023 to FY 2024
General Fund Revenues
Revenue + Transfers In
FY 2024, Projected Revenues to Quarter 4 Actuals
General Fund Projected Through Q4 %
Revenue Category FY 2024 FY 2024 Received
Sales Tax $ 57,027,732 $ 47,204,196 82.8%
Measure X 41,676,454 34,049,520 81.7%
Property Tax 64,184,995 66,380,726 103.4%
Other Revenue 11,566,470 10,387,526 89.8%
Current Services 13,303,127 13,622,997 102.4%
Other Taxes 14,457,606 14,155,549 97.9%
Payments in Lieu of Services 6,445,705 4,720,825 73.2%
Intergovernmental Revenues 4,763,693 3,130,225 65.7%
Licenses, Fees & Permits 2,256,423 2,263,717 100.3%
Utility Service Charges 12,000 13,060 108.8%
Special Assessments 773,347 769,790 99.5%
Fines, Penalties & Forfeitures 1,299,662 1,275,274 98.1% Investment Earnings 5,609,700 6,400,898 114.1%
GASB31 Gain/Loss on Investment - 6,455,446 N/A
Total Revenues $ 223,376,914 $ 210,829,749 94.4%
Transfers In 1,235,696 847,663 68.6%
Total Inflows $ 224,612,610 $ 211,677,412 94.2%
Total Inflows (w/o GASB31) $ 224,612,610 $ 205,221,965 91.4% General Fund Through Q4 Through Q4 $ %
Revenue Category FY 2023 FY 2024 Change Change
Sales Tax $ 58,686,615 $ 47,204,196 (11,482,420) -19.6% Measure X 42,449,749 34,049,520 (8,400,229) -19.8%
Property Tax 60,965,345 66,380,726 5,415,381 8.9%
Other Revenue 10,997,550 10,387,526 (610,023) -5.5%
Current Services 14,300,569 13,622,997 (677,572) -4.7%
Other Taxes 13,376,528 14,155,549 779,021 5.8%
Payments in Lieu of Services 6,029,949 4,720,825 (1,309,123) -21.7% Intergovernmental Revenues 2,217,199 3,130,225 913,026 41.2% Licenses, Fees & Permits 2,783,393 2,263,717 (519,676) -18.7% Utility Service Charges - 13,060 13,060 N/A
Special Assessments 669,915 769,790 99,875 14.9%
Fines, Penalties & Forfeitures 1,436,615 1,275,274 (161,341) -11.2% Investment Earnings 6,018,132 6,400,898 382,766 6.4%
GASB31 Gain/Loss on Investment 528,727 6,455,446 5,926,719 1120.9% Total Revenues $ 220,460,285 $ 210,829,749 $ (9,630,536) -4.4% Transfers In 1,108,821 847,663 (261,158) -23.6%
Total Inflows $ 221,569,106 $ 211,677,412 $ (9,891,694) -4.5% Total Inflows (w/o GASB31) $ 221,040,379 $ 205,221,965 $ (15,818,413) -7.2% 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 $257.8 million, with total outflows of $258.6 million.
Through Quarter 4, the City has spent $188.3 million, or 72.8% of the cumulative budget. At this point in the fiscal year, expenditures should be approximately 100% of budget. When comparing the same quarter in FY 2023, outflows are up by 6.3%, or $11.2 million. The largest expenditure category for the General Fund is Personnel Services.
Personnel Services has an increase of $9.1 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 down by $1.4 million when compared to Quarter 4 of FY 2023. There are multiple increases and decreases in this category. The primary drivers for change are one-time purchases of technical rescue equipment and minor equipment & furniture in the last fiscal year.
General Fund Expenditures Quarterly Budget Update | Quarter 4, FY 2024 | August 7, 2024 General Fund Outflows
Expenditures + Transfers Out
Quarter 4, FY 2023 to FY 2024
General Fund Outflows
Expenditures + Transfers Out
Budget to Actuals, Quarter 4, FY 2024
General Fund Through Q4 Through Q4 %
Expenditures By Category FY 2023 FY 2024 Change
Contractual 15,473,254 19,038,807 23.0%
Materials and Supplies 56,047,115 54,675,670 -2.4%
Other Sources 184,958 - -100.0%
Personnel Services 101,599,518 110,652,657 8.9%
Utilities 3,776,264 3,937,874 4.3%
Total Expenditures $ 177,081,109 $ 188,305,009 6.3%
Transfers Out - - N/A
Total Outflows $ 177,081,109 $ 188,305,009 6.3%
General Fund Cumulative Budget Through Q4 %
Expenditures By Department FY 2024 FY 2024 Spent
CIP / O&M Projects $ 53,480,740 $ 13,098,579 24.5%
City Manager's Office 13,399,575 8,918,273 66.6%
Community Services 19,015,319 17,131,073 90.1%
Debt Service 22,595,308 22,589,307 100.0%
Economic Development 1,604,768 1,129,561 70.4%
Elected Officials 144,940 128,172 88.4%
Finance 4,713,646 4,522,823 96.0%
Fire 35,369,648 32,147,097 90.9%
General Government 30,213,854 19,458,087 64.4%
Human Resources 2,946,222 2,614,698 88.7%
Information Technology 1,116,937 601,817 53.9%
Legal & Risk Management 2,027,387 2,002,367 98.8%
Planning & Development 10,599,644 7,460,851 70.4%
Police 55,562,132 52,357,301 94.2%
Public Works 5,024,761 4,145,004 82.5%
Total Expenditures $ 257,814,880 $ 188,305,009 73.0%
Transfers Out 791,695 - 0.0%
Total Outflows $ 258,606,575 $ 188,305,009 72.8%
General Fund Expenditures By Department
Quarterly Budget Update | Quarter 4, FY 2024 | August 7, 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 (24.5%)
Current savings are across all categories: personnel
services, materials and supplies, utilities, and contractual services.
City Manager’s Office (66.6%)
Current savings is due to personnel services, materials and supplies, and contractual services.
Economic Development (70.4%)
Through June 30, 2024, approximately 100% of the fiscal year is complete. Departments with a variance of 10% or more are explained in the following section.
Quarter 4 is trending low due to materials and
supplies. Insurance premiums are reconciled and
recorded at year-end.
General Government (64.4%)
Quarter 4 is trending low due to personnel services,
materials and supplies, and contractual services.
Human Resources (88.7%)
Related to Measure X. Current savings due to
contractual services, specifically CAD Dispatch
services.
Information Technology (53.9%)
Current savings is due to personnel services, materials and supplies and contractual services.
Planning & Development (70.4%)
Current savings is due to materials and supplies and
contractual services.
Public Works (82.5%)
Enterprise Funds
Quarterly Budget Update | Quarter 4, FY 2024 | August 7, 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 4
FY 2022 – FY 2023 – FY 2024
$-
$10
$20
$30
$40
$50
$60
$70
$80
$90
Electric Water Sewer
FY 2022
FY 2023
Millions FY 2024
Emergency
Contingency
1 2 3
GOAL
$4,901,402
Electric
Utility
$234,438
Water
Utility
Sewer
Utility
$3,103,828 $1,151,962
Utilities Funds Reserves
Quarterly Budget Update | Quarter 4, FY 2024 | August 7, 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
$23,726,374
GOAL
$12,817,081
Water Sewer
Utilities Funds Inflows
Quarterly Budget Update | Quarter 4, FY 2024 | August 7, 2024 Comparing Quarter 4 FY 2024 revenues to FY 2023,
there is a decrease of $3.3 million, or 18.2%. There were decreases in categories: Fines, Penalties & Forfeitures, Fees & Permits, Intergovernmental Revenues, and
Utility Services Charges. There were increases in
categories: Current Services, Investment Earnings, and
Other Revenue. 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.
Utilities Revenues - Through Quarter 4 FY 2024, revenues received have decreased 26.6%, or $37.7 million, as compared to the same quarter in Fiscal Year 2023.
Through the fourth quarter of FY 2024, there is a
decrease of 33.9%, or $28.8 million, as compared to FY
2023. Other Revenue has a decrease of $19.3 million,
largely due to a one-time lawsuit settlement from last
fiscal year. Investment Earnings has an increase of $2.1 million, due to the unrealized gains/losses from
investments which are book entries. There is an
increase of $5.0 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.
Through Quarter 4, there is a decrease of 28.3%, or
$11.1 million, when compared to FY 2023. There were
decreases in categories: Fees & Permits, Fines,
Penalties, & Forfeitures, Utility Services Charges, and Licenses, Fees & Permits. There were increases in
categories: Current Services, Investment Earnings, and
Intergovernmental Revenue. 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.
Electric
Utilities Funds Inflows
Quarterly Budget Update | Quarter 4, FY 2024 | August 7, 2024 Utilities Funds Revenues
Revenue + Transfers In
Quarter 4, FY 2023 to FY 2024
Utilities Funds Revenues
Revenue + Transfers In
FY 2024, Projected Revenues to Quarter 4 Actuals
Enterprise Funds Through Q4 Through Q4 %
Fund Type FY 2023 FY 2024 Change
Electric $ 18,276,151 $ 14,944,546 -18.2%
GASB31 Gain/Loss on Investment 169,848 703,652 314.3%
Water 84,861,254 56,093,938 -33.9%
GASB31 Gain/Loss on Investment (753,902) 1,763,490 -333.9% Sewer 39,084,093 28,010,780 -28.3%
GASB31 Gain/Loss on Investment 90,626 2,549,010 2712.7% Total Revenues $ 141,728,069 $ 104,065,416 -26.6%
Transfers In - Electric - - N/A
Transfers In - Water - - N/A
Transfers In - Sewer 6 - -100.0%
Total Inflows $ 141,728,075 $ 104,065,416 -26.6%
Total Inflows (w/o GASB31) $ 142,221,503 $ 99,049,264 -30.4% Enterprise Funds Projected Through Q4 %
Fund Type FY 2024 FY 2024 Received
Electric $ 18,303,718 $ 14,944,546 81.6%
GASB31 Gain/Loss on Investment - 703,652 N/A
Water 90,462,031 56,093,938 62.0%
GASB31 Gain/Loss on Investment - 1,763,490 N/A
Sewer 35,820,439 28,010,780 78.2%
GASB31 Gain/Loss on Investment - 2,549,010 N/A
Total Revenues $ 144,586,188 $ 104,065,416 72.0%
Transfers In - Electric - - N/A
Transfers In - Water 1,114,779 - 0.0%
Transfers In - Sewer - - N/A
Total Inflows $ 145,700,967 $ 104,065,416 71.4%
Total Inflows (w/o GASB31) $ 145,700,967 $ 99,049,264 68.0% Water Sewer
Utilities Funds Outflows
Quarterly Budget Update | Quarter 4, FY 2024 | August 7, 2024 Overall, the Electric utility expenditures through
Quarter 4 are down by 25.2% when compared to last
fiscal year. There are decreases across all categories:
contractual, depreciation, materials and supplies,
personnel services, and utilities.
At Quarter 4, the operating budget expenditures total
74.9% of the current FY 2024 budget.
When comparing the total of utility outflows, Quarter 4 of FY 2024 to FY 2023, outflows are higher by 2.7%, or $3.0 million.
Overall, the Water utility expenditures are up by 6.5%
or $4.0 million when compared to Quarter 4 in FY
2023. There are increases in contractual but there are
decreases in materials and supplies, personnel
services, and utilities.
Through Quarter 4, projected expenditures are 23.8%
of the current expenditure budget. The operating
budget transactions total 53.8% of the current FY 2024
budget.
The Sewer utility expenditures are up by 10.8%, or $3.7 million, when compared to Quarter 4 of FY 2023. There
were increases in contractual but there are decreases
in materials and supplies, personnel services, and
utilities.
At the end of Quarter 4, projected expenditures total
17.7% of the cumulative budget. The operating budget
expenditures total 41.2% of the current FY 2024
budget.
Electric
Utilities Funds Outflows
Quarterly Budget Update | Quarter 4, FY 2024 | August 7, 2024 Utilities Funds Outflows
Expenditures + Transfers Out
Quarter 4, FY 2023 to FY 2024
Utilities Funds Outflows
Expenditures + Transfers Out
Budget to Actuals, Quarter 4, FY 2024
Enterprise Funds Through Q4 Through Q4 %
Expenditures By Category FY 2023 FY 2024 Change
Electric
Contractual $ 615,670 $ 442,575 -28.1%
Depreciation $ 410,579 $ - -100.0%
Materials and Supplies 2,022,325 1,628,548 -19.5%
Personnel Services 610,709 547,956 -10.3%
Utilities 14,714,590 11,122,038 -24.4%
Electric Total 18,373,872 13,741,116 -25.2%
Water
Contractual $ 3,634,421 $ 15,998,959 340.2%
Depreciation 9,533,321 - N/A
Materials and Supplies 33,597,387 34,946,742 4.0%
Personnel Services 8,829,560 8,476,447 -4.0%
Utilities 5,724,886 5,884,125 2.8%
Water Total 61,319,574 65,306,273 6.5%
Sewer
Contractual $ 1,763,365 $ 10,421,889 491.0%
Depreciation $ 5,215,826 $ - -100.0%
Materials and Supplies 17,901,827 18,100,303 1.1%
Personnel Services 7,003,868 6,821,506 -2.6%
Utilities 2,105,964 2,325,480 10.4%
Sewer Total 33,990,850 37,669,178 10.8%
Transfers Out - Electric - - N/A
Transfers Out - Water - - N/A
Transfers Out - Sewer 6 - N/A
Grand Total $ 113,684,303 $116,716,567 2.7%
Enterprise Funds Cumulative Budget Through Q4 %
Expenditures By Department FY 2024 FY 2024 Spent
Electric
CIP / O&M Projects $ 1,937,311 $ 38,118 2.0%
Debt Service 85,863 395,475 460.6%
Planning & Development 14,021 1,032 7.4%
Public Works 185,642 61,442 33.1%
Utilities Department 16,132,490 13,245,050 82.1%
Electric Total 18,355,327 13,741,116 74.9%
Water
CIP / O&M Projects $ 60,141,159 $ 14,317,077 23.8%
Debt Service 383,627 1,779,736 463.9%
Planning & Development 82,652 47,047 56.9%
Public Works 927,482 720,251 77.7%
Utilities Department 59,952,686 48,442,162 80.8%
Water Total 121,487,606 65,306,273 53.8%
Sewer
CIP / O&M Projects $ 58,998,482 $ 10,446,029 17.7%
City Manager's Office 3,572 3,070 85.9%
Debt Service 215,364 991,937 460.6%
Planning & Development 35,444 34,724 98.0%
Public Works 597,236 466,532 78.1%
Utilities Department 31,676,495 25,726,887 81.2%
Sewer Total 91,526,593 37,669,178 41.2%
Transfers Out - Electric - - N/A
Transfers Out - Water - - N/A
Transfers Out - Sewer - - N/A
Grand Total $ 231,369,527 $116,716,567 50.4%
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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