TO: City Council
FROM: Ryan Smoot, City Manager
PREPARED BY: Susan Kamada, Administrative Services Director MEETING DATE: August 15, 2023
SUBJECT: Fiscal Year (FY) 2022/23 Quarterly Financial Report
RECOMMENDATION
Receive and file the Fiscal Year (FY) 2022/23 Preliminary Quarterly Financial Report Fourth Quarter Ending June 30, 2023.
BACKGROUND
This financial report summarized the city’s financial position for the quarter ending June 30, 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 report son the city’s budget condition.
The Fourth Quarter Financial Report covers financial activity through the fourth quarter of FY 2022/23, ending June 30, 2023.
OPTIONS:
None. Information only. Receive and file.
Item No. 7k
CITY OF LOMITA
CITY COUNCIL REPORT
FISCAL IMPACT
None. Information only. Receive and file.
ATTACHMENT
1. FY 2022/23 Preliminary Quarterly Financial Report Fourth Quarter Ending June 30, 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
4 th Quarter Ending June 30, 2023
1 4
th QUARTER ENDING JUNE 30, 2023
OVERVIEW
This financial report summarized the city’s financial position for the quarter ending June 30, 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 fourth quarter, the General Fund is tracking as expected. The table presented in this report include budgetto-actual comparisons between the current fiscal year and the previous fiscal year to show results of the fourth quarter of each year compared to the adjusted budget as it stood on June 30th of each year. A year-over-year comparison is also presented to show results of the twelve 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 four quarters of Fiscal Year 2022-2023, which ended June 30, 2023, are tracking as expected. General Fund revenues are up $1.57 million compared to the same period last year; this increase is due mainly to licenses and permits, fines and forfeitures, interest, and a Prop A Exchange. Fiscal year to date expenditures, excluding transfers to other funds, are at $11.45 million, compared to $10.89 million last year. Details of revenue and expenditure changes from the prior year are explained later in this report.
Budgeted Fund Balance Summary
The General Fund audited fund balance as of July 1, 2022, was slightly higher than the projected beginning balance in the Fiscal Year 2021-2022 Adopted Annual Operating & Capital Improvements Budget. The following table details the General Fund’s budgeted Fiscal Year 2022-2023 Fund Balance computation:
Revenues
Property Tax, Sales Tax, Vehicle License Fees, Franchise Tax, and Building and Safety Fees are the city’s major tax revenues, and account for nearly 68% of total General Fund Revenues. The table below shows fourth quarter budget-to-actual revenues for Fiscal Years 2021-2022 and 2022-2023. The Fiscal Year 2022-2023 General Fund revenue amended budget is $15,137,172. Through the end of the fourth quarter (Q4) of Fiscal Year 2022-2023, total General Fund Revenues were General Fund
Budgeted Fund Balance
Amended
Budget
Actuals as of
08/01/23
Fund Balance, 07/1/2022 (audited) $ 6,074,923 $ 6,074,923 Budgeted Revenues 14,804,312 15,524,843
Budgeted Expenditures (12,351,602) (11,451,076)
Budgeted Operating, Transfers In 332,860 332,860
Budgeted Operating, Transfers Out (1,500,000) (2,492,103) Budgeted Fund Balance, 06/30/2023 $ 7,360,493 $ 7,989,447 Attachment No. 1
Fiscal Year 2022-2023 Quarterly Financial Report
4 th Quarter Ending June 30, 2023
2 4
th QUARTER ENDING JUNE 30, 2023
$15.8 million which is approximately $1.57 million, or 11% more than the same period last fiscal year. Overall, total revenues are at 104% of budget through the fourth quarter of the current fiscal year, which is slightly less than the same period last fiscal year, 115% of budget. As of August, we are still waiting for a few payments from the State and L.A. County, which will bring us on par with the prior fiscal year.
Six revenue sources account for over 80% 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 fourth 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 fourth quarter. 2021-2022
Budget
06/30/2022
Actuals
% of
Budget
Received
2022-2023
Amended
Budget
06/30/2023
Actuals
% of
Budget
Received
Revenues
Sales Tax $ 3,851,223 $ 5,040,048 130.9% $ 5,000,000 $ 4,456,991 89.1% Vehicle License Fee 2,500,000 2,633,390 105.3% 2,650,000 2,789,586 105.3% Property Tax 1,864,971 1,990,207 106.7% 1,920,670 2,036,625 106.0% Other Taxes 1,505,000 1,608,652 106.9% 1,636,750 1,659,605 101.4% Licenses and Permits 878,500 1,143,182 130.1% 1,009,000 1,480,929 146.8% Fines and Forfeitures 433,000 619,001 143.0% 517,892 818,565 158.1% Intergovernmental 569,000 604,108 106.2% 1,120,500 1,024,238 91.4% Use of Money & Property 320,000 267,657 83.6% 450,000 732,207 162.7% Recreation Services 95,000 106,912 112.5% 150,000 162,805 108.5% Other Revenues 134,873 77,399 0.0% 349,500 363,293 0.0% Transfers In 191,140 191,140 0.0% 332,860 332,860 0.0%
Total Revenues $ 12,342,707 $ 14,281,695 115.7% $ 15,137,172 $ 15,857,702 104.8% 2021-2022
Budget
06/30/2022
Actuals
% of
Budget
Received
2022-2023
Amended
Budget
06/30/2023
Actuals
% of
Budget
Received
4210 - Sales and Use Tax $ 3,851,223 $ 5,040,048 130.9% $ 5,000,000 $ 4,456,991 89.1% 4629 - Vehicle License Fee 2,500,000 2,633,390 105.3% 2,650,000 2,789,586 105.3% 4125 - Property Tax 1,864,971 1,990,207 106.7% 1,920,670 2,036,625 106.0% 4414 - Business License Tax 650,000 688,309 105.9% 659,750 678,225 102.8% 4270 - Franchise Tax 700,000 871,339 124.5% 720,000 774,020 107.5% 4470 - Building and Safety Fee 600,000 785,427 130.9% 650,000 757,897 116.6% Fiscal Year 2022-2023 Quarterly Financial Report
4 th Quarter Ending June 30, 2023
3 4
th QUARTER ENDING JUNE 30, 2023
Expenditures
The table below shows the budget-to-actual expenditures for Fiscal Years 2021-2022 and 2022-2023 by department.
General Fund expenditures appear to be tracking higher than the prior fiscal year at 100% of the budget through the end of the fourth quarter of the current fiscal year (100%). Overall, departments are tracking as expected.
For City Manager’s Department, the expenditures are tracking slightly higher due to the ARPA Workforce Development Program through the South Bay Workforce Investment Board. For Community Development Department, the expenditures are tracking slightly higher due to a new contract with 4Leaf for Code Enforcement that was approved by City Council.
2021-2022
Budget
06/30/2022
Actuals
% of
Budget
Received
2022-2023
Budget
06/30/2023
Actuals
% of
Budget
Expended
Expenditures
City Attorney $ 185,000 $ 178,767 96.6% $ 200,000 $ 216,899 108.4% City Clerk 267,444 271,547 101.5% 377,249 319,285 84.6% City Council 55,732 56,861 102.0% 56,514 50,496 89.4%
City Manager 856,238 868,613 101.4% 878,672 990,447 112.7% Community Development 971,336 887,619 91.4% 854,251 889,964 104.2% Administrative Services 573,601 588,814 102.7% 601,628 583,847 97.0% Human Resources 742,493 779,437 105.0% 869,303 757,485 87.1% Information Technology 635,005 491,428 77.4% 672,000 439,790 65.4% Public Safety 4,391,821 4,379,762 99.7% 4,730,921 4,292,029 90.7% Public Works Aministration 1,280,406 912,737 71.3% 1,260,809 1,146,952 91.0% Recreation & Facilities Administration 1,692,443 1,482,496 87.6% 1,850,255 1,763,882 95.3% Transfers Out 2,431,954 2,431,954 100.0% 1,500,000 2,492,103 166.1% Total Expenditures $ 14,083,473 $ 13,330,033 94.7% $ 13,851,602 $ 13,943,179 100.7% Fiscal Year 2022-2023 Quarterly Financial Report
4 th Quarter Ending June 30, 2023
4 4
th QUARTER ENDING JUNE 30, 2023
Proprietary Funds – Water Operations and Water Capital
The Water Funds for the four quarters of Fiscal Year 2022-2023, which ended June 30, 2023, are tracking as expected. The revenues of the Water Funds are slightly less compared to the same period last year. Fiscal year to date expenditures, excluding transfers to other funds, are at $6.9 million, compared to $8.9 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 $11,669,904. Through the end of the fourth quarter (Q4) of Fiscal Year 2022-2023, total revenues for the Water Funds were $8.4 million which is slightly less compared to the same period last fiscal year. Overall, total revenues are at 72% of budget through the fourth quarter of the current fiscal year, which is slightly less compared to the same period last fiscal year, 87% of budget.
Water Funds revenues appear to be tracking lower than expectations at 72% of the budget through the end of the fourth quarter of the current fiscal year (100%). Some revenues sources, such as Interest and Grant Revenues, will not be received until later.
Expenditures
The table below shows the current budget-to-actual expenditures for Fiscal Years 2021-2022 and 2022-2023 by department. Expenditures in the Water Funds appear to be tracking as expected at 63% of the budget through the end of the fourth quarter of the current fiscal year (100%). Overall, most departments are tracking as expected or below expectations. Those departments that are tracking above 100% 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
06/30/2022
Actuals
% of
Budget
Received
2022-2023
Amended
Budget
06/30/2023
Actuals
% of
Budget
Received
Revenues
Waterworks #13 Anney $ 830,000 $ 949,625 114.4% $ 900,000 $ 984,484 109.4% Permits and Fees 90,500 151,167 167.0% 136,000 82,178 60.4% Use of Money & Property 75,000 10,470 14.0% 25,000 - 0.0% Intergovernmental 2,769,428 1,346,088 48.6% 4,220,404 1,739,270 41.2% Water Billing Fees 6,200,000 6,281,832 101.3% 6,386,000 5,605,571 87.8% Miscellaneous 2,500 7,206 288.3% 2,500 1,028 41.1%
Total Revenues $ 9,967,428 $ 8,746,388 87.7% $ 11,669,904 $ 8,412,531 72.1% Fiscal Year 2022-2023 Quarterly Financial Report
4 th Quarter Ending June 30, 2023
5 4
th QUARTER ENDING JUNE 30, 2023
2021-2022
Budget
06/30/2022
Actuals
% of
Budget
Received
2022-2023
Amended
Budget
06/30/2023
Actuals
% of
Budget
Expended
Expenditures
City Attorney $ 43,000 $ 16,542 38.5% $ 20,000 $ 17,144 85.7% City Clerk 56,178 53,678 95.5% 57,287 55,667 97.2%
City Council 2,668 2,700 101.2% 2,990 2,689 89.9%
City Manager 138,098 149,342 108.1% 152,241 158,725 104.3% Administrative Services 480,700 462,030 96.1% 497,267 476,597 95.8% Human Resources 192,405 176,495 91.7% 209,158 190,633 91.1% Information Technology 83,549 83,936 100.5% 83,500 98,246 117.7% Water Maintenance 4,966,274 4,641,582 93.5% 5,210,903 4,328,344 83.1% Capital Outlay 6,779,916 3,274,610 48.3% 4,209,602 1,103,320 26.2% Debt Service 469,838 116,142 24.7% 470,008 465,008 98.9% Total Expenditures $ 13,212,626 $ 8,977,058 67.9% $ 10,912,956 $ 6,896,373 63.2% Fiscal Year 2022-2023 Quarterly Financial Report
4 th Quarter Ending June 30, 2023
6 4
th QUARTER ENDING JUNE 30, 2023
Special Revenue Funds
The Special Revenue Funds for the four quarters of Fiscal Year 2022-2023, which ended June 30, 2023, are tracking as expected. The revenues are up $704,104,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 $4,799,470, compared to $5,389,548 last year.
Revenues
The Fiscal Year 2022-2023 revenue budgets for the Special Revenue Funds are $8,764,476. Through the end of the fourth quarter (Q4) of Fiscal Year 2022-2023, total revenues were $8,424,444 which is slightly higher than last fiscal year for the same period. Overall, total revenues are at 96% of budget through the fourth quarter of the current fiscal year, which is comparable with the same period last fiscal year, 104% of budget. The Special Revenue Funds revenues appear to be tracking as expected at 67% of the budget through the end of the fourth quarter of the current fiscal year (100%).
Fiscal Year 2022-2023 Quarterly Financial Report
4 th Quarter Ending June 30, 2023
7 4
th QUARTER ENDING JUNE 30, 2023
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 67% of the budget through the end of the fourth quarter of the current fiscal year (100%). 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
06/30/2022
Actuals
% of
Budget
Received
2022-2023
Amended
Budget
06/30/2023
Actuals
% of
Budget
Received
Revenues
State Gas Tax $ 1,018,130 $ 951,182 93.4% $ 994,796 $ 968,766 97.4% Measure R Local Return 268,159 324,636 121.1% 313,089 333,987 106.7% Measure M 297,580 367,120 123.4% 352,434 377,811 107.2% Measure W 225,000 226,310 100.6% 225,000 526,909 234.2% Community Development Block Grant 282,326 72,106 25.5% 148,379 49,634 33.5% Prop A Local Return 448,976 530,637 118.2% 526,451 545,841 103.7% Prop C Local Return 374,212 434,529 116.1% 418,452 445,445 106.5% Transportation Development Act 68,661 13,226 19.3% 19,204 20,621 107.4% South Coast AQMD 27,000 26,212 97.1% 26,300 20,355 77.4% Landscape Maintenance District #1 11,738 11,479 97.8% 11,738 11,469 97.7% Park Facilities Fee - 158,006 0.0% 5,500 116,684 2121.5% Park Athletic 56,000 21,363 38.1% 54,500 56,336 103.4%
Park Grant 36,914 36,914 100.0% 272,000 50,000 18.4%
Lomita Manor 461,048 686,430 148.9% 468,542 - 0.0%
American Rescue Plan 2,430,488 2,430,488 100.0% 2,430,488 2,430,488 100.0% General Plan Update 100,000 100,000 100.0% 683,623 683,623 100.0% Capital Improvement 1,500 479 32.0% 1,000 - 0.0%
Street Improvement 715,000 702,830 98.3% 1,003,000 1,000,000 99.7% Facility Improvement - - 0.0% 100,000 50,000 50.0%
Equipment Replacement 613,430 614,352 100.2% 500,500 519,094 103.7% Park Equipment Replacement - - 0.0% 100,000 100,000 100.0% Sewer Replacement - - 0.0% - 108,480 0.0%
Railroad Museum Foundation 15,000 10,036 66.9% 108,480 8,900 8.2% Tom Rico Memorial 1,000 2,005 200.5% 1,000 - 0.0%
Other Special Funds Total: $ 7,452,162 $ 7,720,340 103.6% $ 8,764,476 $ 8,424,444 96.1% Fiscal Year 2022-2023 Quarterly Financial Report
4 th Quarter Ending June 30, 2023
8 4
th QUARTER ENDING JUNE 30, 2023
2021-2022
Budget
06/30/2022
Actuals
% of
Budget
Received
2022-2023
Amended
Budget
06/30/2023
Actuals
% of
Budget
Expended
Expenditures
State Gas Tax $ 1,680,419 $ 905,748 53.9% $ 639,563 $ 531,115 83.0% Measure R Local Return 543,018 540,411 99.5% 167,698 110,159 65.7% Measure M 511,833 558,513 109.1% 159,949 109,142 68.2%
Measure W 99,762 227,662 228.2% 139,576 132,223 94.7%
Community Development Block Grant 271,540 72,114 26.6% 148,379 49,728 33.5% Prop A Local Return 124,137 124,116 100.0% 1,123,600 1,162,242 103.4% Prop C Local Return 41,220 35,980 87.3% 9,880 10,560 106.9% Transportation Development Act 68,661 19,204 28.0% 13,226 7,560 57.2% South Coast AQMD 43,454 34,209 78.7% 35,000 16,250 46.4% Landscape Maintenance District #1 17,160 17,160 100.0% 16,738 6,929 41.4% Park Facilities Fee - - 0.0% - - 0.0%
Park Athletic 41,236 11,251 27.3% 51,193 42,897 83.8%
Park Grant 120,000 116,126 96.8% 250,000 - 0.0%
Lomita Manor 562,303 562,303 100.0% 468,542 - 0.0%
American Rescue Plan 1,460,652 1,460,652 100.0% 2,063,348 2,063,348 100.0% Capital Improvement 129,500 89,500 69.1% 5,000 - 0.0%
Street Improvement 625,000 566,650 90.7% 1,438,455 253,646 17.6% Facility Improvement - - 0.0% - - 0.0%
Equipment Replacement 199,000 33,939 17.1% 400,000 272,062 68.0% Park Equipment Replacement - - 0.0% 15,000 20,807 138.7% Sewer Replacement - - 0.0% 10,000 - 0.0%
Railroad Museum Foundation 15,000 10,510 70.1% 15,000 8,803 58.7% Tom Rico Memorial 5,000 3,500 70.0% 2,000 2,000 0.0%
Other Special Funds Total: $ 6,558,895 $ 5,389,548 82.2% $ 7,172,147 $ 4,799,470 66.9%