TO: City Council
FROM: Ryan Smoot, City Manager
PREPARED BY: Susan Kamada, Administrative Services Director MEETING DATE: October 17, 2023
SUBJECT: Fiscal Year (FY) 2023/24 Quarterly Financial Report
RECOMMENDATION
Receive and file the Fiscal Year (FY) 2023/24 Quarterly Financial Report First Quarter Ending September 30, 2023.
BACKGROUND
This financial report summarizes the City’s financial position for the quarter ending September 30, 2023 for the General Fund, Water Funds, and Special Revenue Funds.
The purpose of this report is to provide the 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 First Quarter Financial Report covers financial activity through the first quarter of FY 2023/24, ending September 30, 2023.
OPTIONS:
None. Information only. Receive and file.
Item No. 7i
CITY OF LOMITA
CITY COUNCIL REPORT
FISCAL IMPACT
None. Information only. Receive and file.
ATTACHMENT
1. FY 2023/24 Quarterly Financial Report First Quarter Ending September 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 2023-2024 Quarterly Financial Report
1 st Quarter Ending September 30, 2023
1 1
st QUARTER ENDING SEPTEMBER 30, 2023
OVERVIEW
This financial report summarized the city’s financial position for the quarter ending September 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 first 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 first quarter of each year compared to the adjusted budget as it stood on September 30th of each year. A year-over-year comparison is also presented to show results of the 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 quarter of Fiscal Year 2023-2024, which ended September 30, 2023, are tracking as expected. General Fund revenues are up $164,382 compared to the same period last year; this increase is due mainly to business license and development taxes. Usually most of the revenues are expected to come in in the second half of the fiscal year, which is typical for the city. Fiscal year to date expenditures, excluding transfers to other funds, are at $2.5 million, compared to $2.3 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 preliminary fund balance as of July 1, 2023, was higher than the projected beginning balance in the Fiscal Year 2022-2023 Adopted Annual Operating & Capital Improvements Budget. The following table details the General Fund’s budgeted Fiscal Year 2023-2024 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 first quarter budget-to-actual revenues for Fiscal Years 2022-2023 and 2023-2024. The Fiscal Year 2023-2024 General Fund revenue amended budget is General Fund
Budgeted Fund Balance
Amended
Budget
Actuals as of
09/30/23
Fund Balance, 07/1/2023 (preliminary) $ 8,054,390 $ 8,054,390 Budgeted Revenues 14,215,230 1,198,066
Budgeted Expenditures (13,096,240) (2,515,414)
Budgeted Operating, Transfers In 788,476 -
Budgeted Operating, Transfers Out (1,957,466) -
Budgeted Fund Balance, 06/30/2024 $ 8,004,390 $ 6,737,042 Attachment 1
Fiscal Year 2023-2024 Quarterly Financial Report
1 st Quarter Ending September 30, 2023
2 1
st QUARTER ENDING SEPTEMBER 30, 2023
$15,003,706. Through the end of the first quarter (Q1) of Fiscal Year 2023-2024, total General Fund Revenues were $1.2 million which is approximately $164,382, or 15% more than the same period last fiscal year. Overall, total revenues are at 8% of budget through the first quarter of the current fiscal year, which is slightly higher than the same period last fiscal year, 6.8% of budget.
Six revenue sources account for almost 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 first 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. 2022-2023
Budget
09/30/2022
Actuals
% of
Budget
Received
2023-2024
Amended
Budget
09/30/2023
Actuals
% of
Budget
Received
Revenues
Sales Tax $ 5,000,000 $ 370,654 7.4% $ 5,200,000 $ 348,198 6.7% Vehicle License Fee 2,650,000 - 0.0% 2,700,000 - 0.0%
Property Tax 1,920,670 67,772 3.5% 1,957,084 14,119 0.7% Other Taxes 1,636,750 260,557 15.9% 1,672,646 357,228 21.4% Licenses and Permits 1,009,000 94,133 9.3% 1,110,000 88,424 8.0% Fines and Forfeitures 517,892 64,676 12.5% 543,000 70,151 12.9% Intergovernmental 1,120,500 23,360 2.1% 335,000 123,025 36.7% Use of Money & Property 450,000 98,949 22.0% 460,000 161,766 35.2% Recreation Services 150,000 39,525 26.4% 160,000 30,581 19.1% Other Revenues 349,500 14,057 0.0% 77,500 4,573 0.0%
Transfers In 332,860 - 0.0% 788,476 - 0.0%
Total Revenues $ 15,137,172 $ 1,033,684 6.8% $ 15,003,706 $ 1,198,066 8.0% 2022-2023
Budget
09/30/2022
Actuals
% of
Budget
Received
2023-2024
Amended
Budget
09/30/2023
Actuals
% of
Budget
Received
4210 - Sales and Use Tax $ 5,000,000 $ 370,654 7.4% $ 5,200,000 $ 348,198 6.7% 4629 - Vehicle License Fee 2,650,000 - 0.0% 2,700,000 - 0.0% 4125 - Property Tax 1,920,670 67,772 3.5% 1,957,084 14,119 0.7% 4414 - Business License Tax 659,750 172,321 26.1% 669,646 240,052 35.8% 4270 - Franchise Tax 720,000 67,764 9.4% 735,000 72,176 9.8% 4470 - Building and Safety Fee 650,000 - 0.0% 700,000 - 0.0% Fiscal Year 2023-2024 Quarterly Financial Report
1 st Quarter Ending September 30, 2023
3 1
st QUARTER ENDING SEPTEMBER 30, 2023
Expenditures
The table below shows the budget-to-actual expenditures for Fiscal Years 2022-2023 and 2023-2024 by department.
General Fund expenditures appear to be tracking slightly higher than the prior fiscal year at 16.7% of the budget through the end of the first quarter of the current fiscal year (33%). Overall, departments are tracking as expected. 2022-2023
Budget
09/30/2022
Actuals
% of
Budget
Received
2023-2024
Amended
Budget
09/30/2023
Actuals
% of
Budget
Received
Expenditures
City Attorney $ 200,000 $ 9,221 4.6% $ 165,000 $ 24,401 14.8% City Clerk 323,449 82,132 25.4% 342,514 91,495 26.7%
City Council 60,703 12,543 20.7% 60,879 12,768 21.0%
City Manager 1,114,516 228,160 20.5% 1,240,796 243,615 19.6% Community Development 922,955 153,556 16.6% 996,284 179,718 18.0% Administrative Services 601,628 151,720 25.2% 621,660 145,373 23.4% Human Resources 831,353 492,635 59.3% 932,324 517,825 55.5% Information Technology 672,000 77,603 11.5% 382,000 45,316 11.9% Public Safety 4,745,921 411,021 8.7% 5,005,290 461,018 9.2% Public Works Aministration 1,342,030 267,751 20.0% 1,478,851 366,936 24.8% Recreation & Facilities Administration 1,914,955 457,539 23.9% 1,870,642 426,949 22.8% Transfers Out 2,492,103 - 0.0% 1,957,466 - 0.0%
Total Expenditures $ 15,221,613 $ 2,343,880 15.4% $ 15,053,706 $ 2,515,414 16.7% Fiscal Year 2023-2024 Quarterly Financial Report
1 st Quarter Ending September 30, 2023
4 1
st QUARTER ENDING SEPTEMBER 30, 2023
Proprietary Funds – Water Operations and Water Capital
The Water Funds for the first quarter of Fiscal Year 2023-2024, which ended September 30, 2023, are tracking as expected.
The revenues of the Water Funds are slightly higher compared to the same period last year. Fiscal year to date expenditures, excluding transfers to other funds, are at $1.2 million, which is the same as compared to the same period last year. Details of revenue and expenditure changes from the prior year are explained later in this report.
Revenues
The Fiscal Year 2023-2024 revenue budget for the Water Funds is $9,776,080. Through the end of the first quarter (Q1) of Fiscal Year 2023-2024, total revenues for the Water Funds were $739,756 which is slightly higher compared to the same period last fiscal year. Overall, total revenues are at 7.6% of budget through the first quarter of the current fiscal year, which is slightly higher compared to the same period last fiscal year, 5.8% of budget.
Water Funds revenues appear to be tracking lower than expectations at 7.6% of the budget through the end of the first quarter of the current fiscal year (33%). Usually most of the revenues are expected to come in in the second half of the fiscal year, which is typical for the city.
Expenditures
The table below shows the current budget-to-actual expenditures for Fiscal Years 2022-2023 and 2023-2024 by department. Expenditures in the Water Funds appear to be tracking as expected at 9.8% of the budget through the end of the first quarter of the current fiscal year (33%). Overall, most departments are tracking below expectations. 2022-2023
Budget
09/30/2022
Actuals
% of
Budget
Received
2023-2024
Amended
Budget
09/30/2023
Actuals
% of
Budget
Received
Revenues
Waterworks #13 Anney $ 900,000 $ 23,340 2.6% $ 920,000 $ - 0.0% Permits and Fees 136,000 19,238 14.1% 246,000 25,489 10.4% Use of Money & Property 25,000 - 0.0% 30,000 - 0.0%
Intergovernmental 4,220,404 - 0.0% 2,000,000 - 0.0%
Water Billing Fees 6,386,000 639,529 10.0% 6,577,580 712,909 10.8% Miscellaneous 2,500 119 4.8% 2,500 1,358 54.3%
Total Revenues $ 11,669,904 $ 682,225 5.8% $ 9,776,080 $ 739,756 7.6% Fiscal Year 2023-2024 Quarterly Financial Report
1 st Quarter Ending September 30, 2023
5 1
st QUARTER ENDING SEPTEMBER 30, 2023
2022-2023
Budget
09/30/2022
Actuals
% of
Budget
Received
2023-2024
Amended
Budget
09/30/2023
Actuals
% of
Budget
Received
Expenditures
City Attorney $ 20,000 $ 1,379 6.9% $ 20,000 $ 947 4.7% City Clerk 57,287 16,999 29.7% 79,480 22,930 28.9%
City Council 2,990 763 25.5% 2,993 750 25.1%
City Manager 152,241 106,589 70.0% 174,090 49,620 28.5% Administrative Services 497,267 134,175 27.0% 515,524 132,143 25.6% Human Resources 209,158 138,721 66.3% 224,446 137,503 61.3% Information Technology 83,500 35,550 42.6% 83,500 32,162 38.5% Water Maintenance 5,210,903 710,021 13.6% 5,473,203 799,915 14.6% Capital Outlay 4,209,602 88,693 2.1% 5,616,075 65,834 1.2% Debt Service 470,008 - 0.0% 466,034 - 0.0%
Total Expenditures $ 10,912,956 $ 1,232,890 11.3% $ 12,655,345 $ 1,241,804 9.8% Fiscal Year 2023-2024 Quarterly Financial Report
1 st Quarter Ending September 30, 2023
6 1
st QUARTER ENDING SEPTEMBER 30, 2023
Special Revenue Funds
The Special Revenue Funds for the first quarter of Fiscal Year 2023-2024, which ended September 30, 2023, are tracking as expected. The revenues are down $2.4 million, compared to the same period last year; this decrease is due mainly to ARPA Funds that were received last fiscal year. Fiscal year to date expenditures, excluding transfers to other funds, are at $251,231, compared to $554,773 last year.
Revenues
The Fiscal Year 2023-2024 revenue budgets for the Special Revenue Funds are $7,272,441. Through the end of the first quarter (Q1) of Fiscal Year 2023-2024, total revenues were $586,592 which is lower than last fiscal year for the same period. Overall, total revenues are at 8.1% of budget through the first quarter of the current fiscal year, which is less than the same period last fiscal year, 34.4% of budget. The Special Revenue Funds revenues appear to be tracking as expected at 8.1% of the budget through the end of the first quarter of the current fiscal year (33%). Usually most of the revenues are expected to come in in the second half of the fiscal year, which is typical for the city.
Fiscal Year 2023-2024 Quarterly Financial Report
1 st Quarter Ending September 30, 2023
7 1
st QUARTER ENDING SEPTEMBER 30, 2023
Expenditures
The table below shows the current budget-to-actual expenditures for Fiscal Years 2022-2023 and 2023-2024 by fund.
Expenditures in the Special Revenue Funds appear to be tracking lower than expectations at 2.4% of the budget through the end of the first quarter of the current fiscal year (33%). 2022-2023
Budget
09/30/2022
Actuals
% of
Budget
Received
2023-2024
Amended
Budget
09/30/2023
Actuals
% of
Budget
Received
Revenues
State Gas Tax $ 994,796 $ 142,509 14.3% $ 1,120,153 $ 150,125 13.4% Measure R Local Return 313,089 85,255 27.2% 375,971 87,725 23.3% Measure M 352,434 96,548 27.4% 422,434 66,568 15.8%
Measure W 225,000 - 0.0% 575,000 - 0.0%
Community Development Block Grant 148,379 - 0.0% 140,077 - 0.0% Prop A Local Return 526,451 139,648 26.5% 610,316 143,290 23.5% Prop C Local Return 418,452 113,700 27.2% 499,628 117,163 23.4% Transportation Development Act 19,204 - 0.0% 13,843 - 0.0% South Coast AQMD 26,300 - 0.0% 26,500 - 0.0%
Landscape Maintenance District #1 11,738 - 0.0% 11,738 - 0.0% Park Facilities Fee 5,500 900 0.0% 6,000 1,200 20.0%
Park Athletic 54,500 12,926 23.7% 55,000 16,912 30.7%
Park Grant 272,000 - 0.0% - - 0.0%
Lomita Manor 468,542 - 0.0% 548,339 - 0.0%
American Rescue Plan 2,430,488 2,430,488 100.0% - - 0.0% General Plan Update 683,623 - 0.0% 866,377 - 0.0%
Capital Improvement 1,000 - 0.0% 1,500 - 0.0%
Street Improvement 1,003,000 - 0.0% 396,089 - 0.0%
Facility Improvement 100,000 - 0.0% 1,186,976 - 0.0%
Equipment Replacement 500,500 - 0.0% 300,500 343 0.1%
Park Equipment Replacement 100,000 - 0.0% 100,000 - 0.0% Sewer Replacement 108,480 - 0.0% - - 0.0%
Railroad Museum Foundation 15,000 2,341 15.6% 15,000 2,046 13.6% Tom Rico Memorial 1,000 - 0.0% 1,000 1,220 122.0%
Other Special Funds Total: $ 8,779,476 $ 3,024,314 34.4% $ 7,272,441 $ 586,592 8.1% Fiscal Year 2023-2024 Quarterly Financial Report
1 st Quarter Ending September 30, 2023
8 1
st QUARTER ENDING SEPTEMBER 30, 2023
2022-2023
Budget
09/30/2022
Actuals
% of
Budget
Received
2023-2024
Amended
Budget
09/30/2023
Actuals
% of
Budget
Received
Expenditures
State Gas Tax $ 639,563 $ 147,204 23.0% $ 2,214,572 $ 79,855 3.6% Measure R Local Return 167,698 61,260 36.5% 955,680 - 0.0% Measure M 192,485 35,182 18.3% 1,058,623 225 0.0%
Measure W 163,076 88,474 54.3% 336,000 498 0.1%
Community Development Block Grant 148,379 1,443 1.0% 140,077 5,701 4.1% Prop A Local Return 1,123,600 29,090 2.6% 142,227 20,043 14.1% Prop C Local Return 408,572 105,540 25.8% 250,000 - 0.0% Transportation Development Act 13,226 5,640 42.6% 13,843 - 0.0% South Coast AQMD 35,000 2,500 7.1% 35,000 - 0.0%
Landscape Maintenance District #1 16,738 1,801 10.8% 11,738 1,793 15.3% Park Facilities Fee - - 0.0% - - 0.0%
Park Athletic 51,193 4,202 8.2% 52,574 5,889 11.2%
Park Grant 250,000 - 0.0% - 17,520 0.0%
Lomita Manor 468,542 - 0.0% 496,602 - 0.0%
American Rescue Plan 2,063,348 - 0.0% 1,336,976 - 0.0%
Capital Improvement 5,000 - 0.0% 70,000 - 0.0%
Street Improvement 1,438,455 62,097 4.3% 775,000 53,673 6.9% Facility Improvement 9,000 - 0.0% 1,504,720 - 0.0%
Equipment Replacement 400,000 6,815 1.7% 285,000 57,587 20.2% Park Equipment Replacement 15,000 - 0.0% 515,000 233 0.0% Sewer Replacement 10,000 - 0.0% 115,000 5,010 0.0%
Railroad Museum Foundation 15,000 1,525 10.2% 15,000 3,204 21.4% Tom Rico Memorial 2,000 2,000 100.0% 1,000 - 0.0%
Other Special Funds Total: $ 7,635,875 $ 554,773 7.3% $ 10,324,632 $ 251,231 2.4%