Preliminary Annual Financial ResultsFor the year ending June 30, 2023 Council Regular Meeting of
February 13, 2024
Presentation – Receive Update
General FundHighlights
Steady revenue growth improves the City’s financial position General Tax revenues continue to show positive results
Overall, the General Fund revenues were higher than anticipated
General FundTotal Revenues
About 82% of the General Fund revenues comes from voter-approved taxes and these tax revenues levied to fund general government services.
General FundRevenues – Preliminary Results
Overall General Fund revenues have increased 21% compared to FY 20-21 during pandemic.
Sales tax revenue exceeded revenue projections by 15% or $749K.
The City collected close to $4 million in UUT, about $407K higher than the forecast.
Due to rising interest rates (post-pandemic), the City’s investment income was higher by $508K compared to the estimate.
Parks & Recreation program revenues have increased due to the reopening of programs.
General FundExpenditures – Preliminary Results
Overall General Fund expenditures have increased compared to FY 20-21 by 19% The increase in Ongoing Expenditures is attributed to the following:
Salary Increases
Operating Cost Increases, and
Reopening of Parks & Recreation Programs
General Fund Summary
Non-General Funds Year End Results
Non-General Funds Year End Results, Cont’d.
Capital Projects funds account for the construction or acquisition of fixed assets, such as buildings, equipment and roads. Depending on its use, a fixed asset may instead be financed by a special revenue fund or a proprietary fund. A capital project fund exists only until completion of the project. The Capital Improvement Projects Funds had an aggregate expense of $52 million through June 30, 2023, as illustrated in attachment 3. There is sufficient funding to complete the projects.
Debt Service funds accounts for the long-term debt of the City. Sufficient funds are transferred from a variety of sources to meet debt service obligations as they come due.
Non-General Funds Year End Results, Cont’d.
Internal Service funds includes funds created for the accumulation of reserves for vehicle replacement, technology and equipment replacement, and facility maintenance. Revenues for these funds are derived from administrative (cost recovery) charges to other funds, primarily the General Fund. The fund balance of the Internal Service Funds group was $2 million as of June 30, 2023.
Non-General Funds Year End Results, Cont’d.
The Fiduciary Funds group includes the assessment district bond that is not an obligations of the City and a trust fund established for the Other Post-Employment Benefits (OPEB). As of June 30, 2023, the OPEB account has accumulated $2.7 million.
The Successor Agency is an entity separate from the City and accounted for in separate trust funds that are used to account for tax increment monies received and payments of items approved by the Oversight Board in the Required Obligation Payment Schedule (ROPS). The responsibility of the successor agency is to wind down the affairs of the former Redevelopment Agency and pay off any debt obligations incurred by the Redevelopment Agency.
Questions?