Consent Calendar Item d
STAFF REPORT
City Council Consent Item
DATE: September 19, 2022
TO: Honorable Mayor and Council Members
FROM: Aaron Felmlee, Finance Director
THROUGH: Merritt Perry, City Manager
SUBJECT: Finance Department Monthly Report
STAFF RECOMMENDATION:
Receive report as an informational item.
EXECUTIVE SUMMARY:
Recognized Obligation Payment Schedule (ROPS) Prior Period Adjustment (PPA):
The Recognized Obligation Payment Schedule (ROPS) is the authorizing document that enables the Successor Agency to proceed with winding down the affairs of the former Fortuna Redevelopment Agency and make payments to all its enforceable obligations and projects in progress for the fiscal year. The City, as the successor to the former Fortuna Redevelopment Agency, annually gets approval for its ROPS through the Humboldt County Oversight Board and historically receives between $700 thousand and $1.1 million through the ROPS approval process (January of each year) to wind down the former Fortuna Redevelopment Agency’s activities.
Pursuant to Health and Safety Code (HSC) section 34186 (c), Agencies are required to submit their PPA form to the County Auditor-Controller (CAC) for review by October 1, 2022. This form reports the differences between the estimated obligations on past ROPS and the actual expenditures. Agencies must report the actual expenditures that were expended three years earlier than the upcoming annual ROPS period. Failure to submit the PPA report can result in lost revenue to the City in future ROPS submissions. Finance staff is pleased to announce that the City’s PPA has been submitted and received by the California Department of Finance.
Fiscal Year 2021-22 Financial Statement Audit:
July 1 signaled the start of a new fiscal year for the City. As such, staff is working on closing the previous fiscal year and preparing for the City’s annual financial statement audit. The Cities auditor will be Michael O’Connor from R.J. Ricciardi, Inc., CPA who also performed last year’s audit for the City. Last year Michael and his staff were unable to come onsite due to COVID which made the interim audit work more difficult and time consuming to complete. However, this year Michael and his staff are considering coming on site for a week to conduct interim audit. If they are unable to come on site staff is prepared to conduct interim audit work remotely.
Finance staff have been preparing for this interim audit work by preparing the necessary reconciliations, reports, adjustments and backup information that is required during the audit Consent Calendar Item d
process. Having these documents ready prior to the auditors’ arrival has provided for a smooth audit process in years past.
Measure E Update:
The Measure E committee’s next regularly scheduled meeting is set for September 20, 2022 at 5:30pm. The primary purpose of this meeting will be for Staff to review with the Committee the list of Measure E funded projects that were included in the Council Adopted Budget for fiscal year 2022-23. Staff will additionally be giving a preliminary review of how fiscal year 2021-22 Measure E expenditures ended the year compared to what was budgeted.
List of Measure E items funded this month:
• (2) Police Detective Positions
• Police Community Services Officer Position
• Police Records Clerk Position
• Parks and Recreation Director Position
• Recreation Program Supervisor Position
• Transit Trips to Eureka for Seniors
• PT Code Compliance Officer Position
• Illegal Camp Coordination and Assistance
• K-9 Program
• Storm Drain Infrastructure Vulnerability Assessment Project • Senior Center Program MOU
An activity log displaying important Finance data is attached for informational purposes.
RECOMMENDED COUNCIL ACTION:
Receive Finance Department Monthly Report. Consent Agenda vote.
ATTACHMENTS:
• Finance Staff Activity Log for August 2022
City of Fortuna
Finance Department
Fiscal Year 2022/23
Finance Department March April May June July August
Activity Log 2022 2022 2022 2022 2022 2022
Payroll Checks Issued: 187 319 194 278 257 236
Accounts Payable Checks Issued: 264 243 220 247 206 285 Number of Invoices Processed: 541 447 434 509 472 545
CDBG Loan Payments/Payoff 0 0 0 0 0 0
# Telephone Calls 2159 1593 1806 1551 2212 2023
Avg Daily 94 76 86 71 111 88
Daily Walk-in Customers
Utility 719 574 673 628 791 723
Bldg 53 60 46 57 39 59
Plan 33 30 27 25 36 43
Other 0 53 64 64 0 55
Total: 805 717 810 774 866 880
Average Daily Walk-in Customers 35 34 39 35 43 38
Monthly Bills 4569 4584 4583 4585 4595 4598
Reminder Notices 391 429 444 408 501 519
Shut Off Notices Mailed 245 251 229 234 292 256
Shut Offs 39 17 31 22 26 23
Ebills - Bills sent via email 374 380 368 375 381 379
Utility Bills paid online 1163 1131 1123 1137 1166 1159 % of Utility bills paid in person 16% 13% 15% 14% 17% 16% Public Works Calls Dispatched: 81 88 82 107 86 123
Avg Service Calls 94.5
Utility Billing Aging Report Total Bal Current 30 Days 60 Days 90 Days $ 622,978 $ 474,925 $ 93,225 $ 22,376 $ 32,452
76.2% 15.0% 3.6% 5.2%
76%
15%
4% 5%
Utility Accounts Aging
Current
30 Days
60 Days
90 Days