1 TO: City Council
FROM: Ryan Smoot, City Manager
PREPARED BY: Susan Kamada, Administrative Services Director MEETING DATE: May 16, 2023
SUBJECT: Fiscal Year (FY) 2022/23 Quarterly Financial Report Third Quarter Ending March 31, 2023
RECOMMENDATION
Receive and file the report.
BACKGROUND
This financial report summarizes the city’s financial position for the quarter ending March 31, 2023, for the General Fund, Water Funds, and Special Revenue Funds. The purpose of this report is to provide City Council, City management, and the Lomita community an update on the city’s fiscal status based on the most recent financial information available.
The city operates on a biennial budget cycle. Through the budget, the City Council approves revenue estimates and authorizes city staff to expend the city’s limited financial resources. As one of the many activities that the city undertakes to help ensure its financial soundness, staff provides quarterly financial reports on the city’s budget condition.
The Third Quarter Financial Report covers financial activity through the second quarter of FY 2022/23, ending March 31, 2023.
OPTIONS:
None. Information only. Receive and file.
Item No. 7m
CITY OF LOMITA
CITY COUNCIL REPORT
2 FISCAL IMPACT
None. Information only. Receive and file.
ATTACHMENT
1. FY 2022/23 Quarterly Financial Report Third Quarter Ending March 31, 2023.
Reviewed by: Approved by:
________ ____________________________
Gary Y. Sugano Ryan Smoot
Assistant City Manager City Manager
Prepared by:
__________________________
Susan Kamada
Administrative Services Director
Fiscal Year 2022-2023 Quarterly Financial Report
3 rd Quarter Ending March 31, 2023
1 3
rd QUARTER ENDING MARCH 31, 2023
OVERVIEW
This financial report summarizes the city’s financial position for the quarter ending March 31, 2023, for the General Fund, Water Funds, and Special Revenue Funds. The purpose of this report is to provide City Council, City management, and the Lomita community an update on the city’s fiscal status based on the most recent financial information available.
General Fund Summary
Through the third quarter, the General Fund is tracking as expected. The table presented in this report include budget-toactual comparisons between the current fiscal year and the previous fiscal year to show results of the third quarter of each year compared to the adjusted budget as it stood on March 31st of each year. A year-over-year comparison is also presented to show results of the first three months of the current fiscal year as compared to the previous year. Major difference in budget-to-actual and year-over-year comparisons are explained in this report.
The city’s General Fund for the first three quarters of Fiscal Year 2022-2023, which ended March 31, 2023, are tracking as expected. General Fund revenues are up $1.4 million compared to the same period last year; this increase is due mainly to sales and use tax, interest, and Prop A Exchange. Fiscal year to date expenditures, excluding transfers to other funds, are at $7.8 million, compared to $6.8 million last year. Details of revenue and expenditure changes from the prior year are explained later in this report.
Budgeted Fund Balance Summary
The following table details the General Fund’s budgeted Fiscal Year 2022-2023 Fund Balance computation:
Revenues
The table below shows third quarter budget-to-actual revenues for Fiscal Years 2021-2022 and 2022-2023. The Fiscal Year 2022-2023 General Fund revenue budget is $13,851,603. Through the end of the third quarter (Q3) of Fiscal Year 2022- 2023, total General Fund Revenues were
General Fund
Budgeted Fund Balance Original Budget Amended Budget
Fund Balance, 07/1/2022 (audited) $ 6,074,923 $ 6,074,923 Budgeted Revenues 13,449,103 13,449,103
Budgeted Expenditures (12,351,602) (12,368,862)
Budgeted Operating, Transfers In 402,500 402,500
Budgeted Operating, Transfers Out (1,500,000) (1,500,000) Budgeted Fund Balance, 06/30/2023 $ 6,074,924 $ 6,057,664 Attachment No. 1
Fiscal Year 2022-2023 Quarterly Financial Report
3 rd Quarter Ending March 31, 2023
2 3
rd QUARTER ENDING MARCH 31, 2023
$9 million which is approximately $1.4 million, or 19% more than the same period last fiscal year. Overall, total revenues are at 36% of budget through the third quarter of the current fiscal year, which is on par with the same period last fiscal year, 65% of budget. Typically, revenues for the city come in in the second half of the fiscal year (January through June).
Six revenue sources account for over 86% of the General Fund revenue budget. Those accounts, in order of greatest to smallest, are Sales and Use Tax, Vehicle License Fee, Property Taxes, Business License Taxes, Franchise Taxes, and Building and Safety Fee. As of the end of the third quarter, these revenues are tracking closely to last fiscal year’s percentages.
Below is a comparison of prior and current fiscal year through the end of the third quarter. 2021-2022
Budget
03/31/2022
Actuals
% of
Budget
Received
2022-2023
Budget
03/31/2023
Actuals
% of
Budget
Received
Revenues
Sales Tax $ 3,851,223 $ 2,733,675 71.0% $ 4,756,791 $ 2,821,560 59.3% Vehicle License Fee 2,500,000 1,328,497 53.1% 2,650,000 1,405,524 53.0% Property Tax 1,864,971 1,130,378 60.6% 1,920,670 1,182,392 61.6% Other Taxes 1,505,000 977,977 65.0% 1,636,750 997,235 60.9% Licenses and Permits 878,500 567,837 64.6% 1,001,000 598,708 59.8% Fines and Forfeitures 433,000 356,041 82.2% 490,892 505,526 103.0% Intergovernmental 569,000 283,052 49.7% 420,500 957,253 227.6% Use of Money & Property
320,000 137,413 42.9% 350,000 441,551 126.2%
Recreation Services 95,000 44,248 46.6% 150,000 92,935 62.0% Other Revenues 134,873 41,139 0.0% 72,500 35,483 0.0%
Transfers In 191,140 - 0.0% 402,500 - 0.0%
Total Revenues $ 12,342,707 $ 7,600,256 61.6% $ 13,851,603 $ 9,038,166 65.2% 2021-2022
Budget
03/31/2022
Actuals
% of
Budget
Received
2022-2023
Budget
03/31/2023
Actuals
% of
Budget
Received
4210 - Sales and Use Tax $ 3,851,223 $ 2,733,675 71.0% $ 4,756,791 $ 2,821,560 59.3% 4629 - Vehicle License Fee 2,500,000 1,328,497 53.1% 2,650,000 1,405,524 53.0% 4125 - Property Tax 1,864,971 1,130,378 60.6% 1,920,670 1,182,392 61.6% 4414 - Business License Tax 650,000 522,616 80.4% 659,750 493,180 74.8% 4270 - Franchise Tax 700,000 372,128 53.2% 720,000 387,666 53.8% 4470 - Building and Safety Fee 600,000 337,593 56.3% 650,000 294,387 45.3% Fiscal Year 2022-2023 Quarterly Financial Report
3 rd Quarter Ending March 31, 2023
3 3
rd QUARTER ENDING MARCH 31, 2023
Expenditures
The table below shows the budget-to-actual expenditures through March 31st for Fiscal Years 2021-2022 and 2022-2023 by department. General Fund expenditures appear to be tracking higher than the prior fiscal year at 63% of the budget through the end of the third quarter of the current fiscal year (75%). Overall, most departments are tracking as expected, apart from Human Resources.
For Human Resources, the expenditures are tracking slightly higher due to several factors such as increases in the workers’ compensation/liability premiums, and PERS Unfunded Liability (Tiers 1-3) being paid in a lump sum at the beginning of the fiscal year; this prepayment is made every fiscal year and saves the city approximately 4% on the expenditure. 2021-2022
Budget
03/31/2022
Actuals
% of
Budget
Received
2022-2023
Budget
03/31/2023
Actuals
% of
Budget
Expended
Expenditures
City Attorney $ 185,000 $ 69,329 37.5% $ 200,000 $ 112,552 56.3% City Clerk 267,444 168,588 63.0% 377,249 239,758 63.6%
City Council 55,732 31,511 56.5% 56,514 37,691 66.7%
City Manager 856,238 600,336 70.1% 878,672 684,948 78.0% Community Development 971,336 568,151 58.5% 854,251 504,099 59.0% Administrative Services 573,601 382,731 66.7% 601,628 404,799 67.3% Human Resources 742,493 662,799 89.3% 869,303 714,068 82.1% Information Technology 635,005 126,544 19.9% 672,000 378,518 56.3% Public Safety 4,391,821 2,533,878 57.7% 4,730,921 2,727,754 57.7% Public Works Aministration 1,280,406 710,391 55.5% 1,260,809 824,160 65.4% Recreation & Facilities Administration 1,692,443 968,535 57.2% 1,850,255 1,198,081 64.8% Transfers Out 2,431,954 - 0.0% 1,500,000 - 0.0%
Total Expenditures $ 11,651,519 $ 6,822,791 58.6% $ 12,351,602 $ 7,826,428 63.4% Fiscal Year 2022-2023 Quarterly Financial Report
3 rd Quarter Ending March 31, 2023
4 3
rd QUARTER ENDING MARCH 31, 2023
Proprietary Funds – Water Operations and Water Capital
The Water Funds for the first three quarters of Fiscal Year 2022-2023, which ended March 31, 2023, are tracking as expected. The revenues of the Water Funds are comparable to the same period last year. Fiscal year to date expenditures, excluding transfers to other funds, are at $4.7 million, compared to $5.2 million last year. Details of revenue and expenditure changes from the prior year are explained later in this report.
Revenues
The Fiscal Year 2022-2023 revenue budget for the Water Funds are $9,967,428. Through the end of the third quarter (Q3) of Fiscal Year 2022-2023, total revenues for the Water Funds were $4.2 million which is comparable to the same period last fiscal year. Overall, total revenues are at 36% of budget through the third quarter of the current fiscal year, which is comparable to the same period last fiscal year, 44% of budget. Typically, revenues for the city come in in the second half of the fiscal year (January through June).
Water Funds revenues appear to be tracking lower than expectations at 36% of the budget through the end of the third quarter of the current fiscal year (50%). Some revenues sources, such as Interest and Grant Revenues, will not be received until later quarters.
Expenditures
The table below shows the current budget-to-actual expenditures for Fiscal Years 2022-2023 and 2021-2022 by department. Expenditures in the Water Funds appear to be tracking as expected at 35% of the budget through the end of the third quarter of the current fiscal year (75%). Overall, most departments are tracking as expected or below expectations. Those departments that are tracking above 75% are a result of PERS Unfunded Liability (Tiers 1-3) being paid in a lump sum at the beginning of the fiscal year; these prepayments are made every fiscal year and saves the city 4% on these expenditures.
2021-2022
Budget
03/31/2022
Actuals
% of
Budget
Received
2022-2023
Budget
03/31/2023
Actuals
% of
Budget
Received
Revenues
Waterworks #13 Anney $ 830,000 $ 532,235 64.1% $ 900,000 $ 569,462 63.3% Permits and Fees 90,500 87,958 97.2% 136,000 54,960 40.4% Use of Money & Property 75,000 - 0.0% 25,000 - 0.0%
Intergovernmental 2,769,428 13,541 0.5% 4,220,404 5,439 0.1% Water Billing Fees 6,200,000 3,796,378 61.2% 6,386,000 3,566,350 55.8% Miscellaneous 2,500 7,206 288.3% 2,500 932 37.3%
Total Revenues $ 9,967,428 $ 4,437,318 44.5% $ 11,669,904 $ 4,197,143 36.0% Fiscal Year 2022-2023 Quarterly Financial Report
3 rd Quarter Ending March 31, 2023
5 3
rd QUARTER ENDING MARCH 31, 2023
Special Revenue Funds
The Special Revenue Funds for the first three quarters of Fiscal Year 2022-2023, which ended March 31, 2023, are tracking as expected. The revenues are up $89,964, slightly higher compared to the same period last year; this increase is due mainly to increases in allocations. Fiscal year to date expenditures, excluding transfers to other funds, are at $2,011,339, compared to $1,047,737 last year.
Revenues
The Fiscal Year 2022-2023 revenue budgets for the Special Revenue Funds are $5,120,179. Through the end of the third quarter (Q3) of Fiscal Year 2022-2023, total revenues were $2,303,535 which is slightly higher than last fiscal year for the same period. Overall, total revenues are at 45% of budget through the third quarter of the current fiscal year, which is comparable with the same period last fiscal year, 45% of budget. The Special Revenue Funds revenues appear to be tracking lower than expectations at 45% of the budget through the end of the third quarter of the current fiscal year (75%).
Expenditures
The table below shows the current budget-to-actual expenditures for Fiscal Years 2021-2022 and 2022-2023 by fund.
Expenditures in the Special Revenue Funds appear to be tracking lower than expectations at 27% of the budget through the end of the third quarter of the current fiscal year (75%). Prop A Local Return expenditures are over budget due to the Prop A Exchange with the City of Commerce. The city sold $1 million of Prop A Funds in exchange for $700,000 of General Funds. Overall, all departments are tracking as expected. 2021-2022
Budget
03/31/2022
Actuals
% of
Budget
Received
2022-2023
Budget
03/31/2023
Actuals
% of
Budget
Expended
Expenditures
City Attorney $ 43,000 $ 8,271 19.2% $ 20,000 $ 10,542 52.7% City Clerk 56,178 40,393 71.9% 57,287 41,744 72.9%
City Council 2,668 2,003 75.1% 2,990 1,989 66.5%
City Manager 138,098 113,522 82.2% 152,241 118,982 78.2% Administrative Services 480,700 333,663 69.4% 497,267 367,368 73.9% Human Resources 192,405 155,852 81.0% 209,158 171,907 82.2% Information Technology 83,549 55,558 66.5% 83,551 74,660 89.4% Water Maintenance 4,966,274 2,943,142 59.3% 5,203,319 2,971,929 57.1% Capital Outlay 6,779,916 1,344,619 19.8% 6,711,016 739,549 11.0% Debt Service 469,838 224,594 47.8% 470,008 234,502 49.9% Total Expenditures $ 13,212,626 $ 5,221,615 39.5% $ 13,406,837 $ 4,733,172 35.3% Fiscal Year 2022-2023 Quarterly Financial Report
3 rd Quarter Ending March 31, 2023
6 3
rd QUARTER ENDING MARCH 31, 2023
2021-2022
Budget
03/31/2022
Actuals
% of
Budget
Received
2022-2023
Budget
03/31/2023
Actuals
% of
Budget
Expended
Expenditures
State Gas Tax $ 1,680,419 $ 400,447 23.8% $ 1,336,563 $ 373,005 27.9% Measure R Local Return 543,018 23,362 4.3% 787,698 76,548 9.7% Measure M 511,833 12,007 2.3% 1,076,949 75,272 7.0%
Measure W 99,762 206,697 207.2% 273,000 116,017 42.5%
Community Development Block Grant 271,540 20,203 7.4% 142,935 46,008 32.2% Prop A Local Return 124,137 103,980 83.8% 395,487 1,114,436 281.8% Prop C Local Return 41,220 8,980 21.8% 100,000 10,560 10.6% Transportation Development Act 68,661 2,760 4.0% 13,226 7,560 57.2% South Coast AQMD 43,454 22,959 52.8% 35,000 6,250 17.9% Landscape Maintenance District #1 17,160 11,001 64.1% 23,000 4,927 21.4% Park Facilities Fee - - 0.0% - - 0.0%
Park Athletic 41,236 7,465 18.1% 51,193 25,750 50.3%
Park Grant 120,000 116,126 96.8% 250,000 - 0.0%
Lomita Manor 562,303 - 0.0% 468,542 - 0.0%
Capital Improvement 129,500 89,500 69.1% 75,000 - 0.0%
Street Improvement 625,000 13,395 2.1% 1,438,455 133,370 9.3% Facility Improvement - - 0.0% 9,000 - 0.0%
Equipment Replacement 199,000 - 0.0% 200,000 6,815 3.4% Park Equipment Replacement - - 0.0% 515,000 6,046 1.2%
Sewer Replacement - - 0.0% 125,000 - 0.0%
Railroad Museum Foundation 15,000 6,357 42.4% 15,000 6,775 45.2% Tom Rico Memorial 5,000 2,500 50.0% - 2,000 0.0%
Other Special Funds Total: $ 5,098,243 $ 1,047,737 20.6% $ 7,331,048 $ 2,011,339 27.4%