1 TO: City Council
FROM: Joe Hoefgen, Interim City Manager
PREPARED BY: Susan Kamada, Administrative Services Director MEETING DATE: January 16, 2024
SUBJECT: Fiscal Year (FY) 2022/23 Quarterly Financial Report
RECOMMENDATION
Receive and file the Fiscal Year (FY) 2022/23 Quarterly Financial Report Second Quarter Ending December 31, 2023.
BACKGROUND
This financial report summarized the city’s financial position for the quarter ending December 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 Second Quarter Financial Report covers financial activity through the second quarter of FY 2023/24, ending December 31, 2023.
OPTIONS:
None. Information only. Receive and file.
FISCAL IMPACT
None. Information only. Receive and file.
Item No. 7k
CITY OF LOMITA
CITY COUNCIL REPORT
2 ATTACHMENT
1. FY 2023/24 Quarterly Financial Report Second Quarter Ending December 31, 2023.
Reviewed by: Approved by:
________ ____________________________
Gary Y. Sugano Joe Hoefgen
Assistant City Manager Interim City Manager
Prepared by:
__________________________
Susan Kamada
Administrative Services Director
Fiscal Year 2023-2024 Quarterly Financial Report
2 nd Quarter Ending December 31, 2023
1 2
nd QUARTER ENDING DECEMBER 31, 2023
OVERVIEW
This financial report summarized the city’s financial position for the quarter ending December 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 second 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 second quarter of each year compared to the adjusted budget as it stood on December 31st 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 second quarter of Fiscal Year 2023-2024, which ended December 31, 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 66% of total General Fund Revenues. The table below shows second 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
12/31/23
Fund Balance, 07/1/2023 (preliminary) $ 8,054,390 $ 8,054,390 Budgeted Revenues 14,215,230 6,089,864
Budgeted Expenditures (13,096,240) (5,523,435)
Budgeted Operating, Transfers In 788,476 -
Budgeted Operating, Transfers Out (1,957,466) -
Budgeted Fund Balance, 06/30/2024 $ 8,004,390 $ 8,620,819 Attachment No. 1
Fiscal Year 2023-2024 Quarterly Financial Report
2 nd Quarter Ending December 31, 2023
2 2
nd QUARTER ENDING DECEMBER 31, 2023
$15,003,706. Through the end of the second quarter (Q2) of Fiscal Year 2023-2024, total General Fund Revenues were $6 million which is approximately $1,2 million, or 24% more than the same period last fiscal year. Overall, total revenues are at 40.6% of budget through the second quarter of the current fiscal year, which isslightly higher than the same period last fiscal year, 32.4% 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 second 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
12/31/2022
Actuals
% of
Budget
Received
2023-2024
Amended
Budget
12/31/2023
Actuals
% of
Budget
Received
Revenues
Sales Tax $ 5,000,000 $ 1,633,643 32.7% $ 5,200,000 $ 1,608,393 30.9% Vehicle License Fee 2,650,000 - 0.0% 2,700,000 - 0.0%
Property Tax 1,920,670 849,551 44.2% 1,957,084 837,068 42.8% Other Taxes 1,636,750 619,727 37.9% 1,672,646 737,526 44.1% Licenses and Permits 1,009,000 337,187 33.4% 1,110,000 346,429 31.2% Fines and Forfeitures 517,892 259,732 50.2% 543,000 233,663 43.0% Intergovernmental 1,120,500 896,044 80.0% 335,000 321,217 95.9% Use of Money & Property 450,000 222,827 49.5% 460,000 1,945,051 422.8% Recreation Services 150,000 60,151 40.1% 160,000 53,598 33.5% Other Revenues 349,500 25,976 0.0% 77,500 6,918 0.0%
Transfers In 332,860 - 0.0% 788,476 - 0.0%
Total Revenues $ 15,137,172 $ 4,904,838 32.4% $ 15,003,706 $ 6,089,864 40.6% 2022-2023
Budget
12/31/2022
Actuals
% of
Budget
Received
2023-2024
Amended
Budget
12/31/2023
Actuals
% of
Budget
Received
4210 - Sales and Use Tax $ 5,000,000 $ 1,633,643 32.7% $ 5,200,000 $ 1,608,393 30.9% 4629 - Vehicle License Fee 2,650,000 - 0.0% 2,700,000 - 0.0% 4125 - Property Tax 1,920,670 849,551 44.2% 1,957,084 837,068 42.8% 4414 - Business License Tax 659,750 331,081 50.2% 669,646 412,777 61.6% 4270 - Franchise Tax 720,000 215,662 30.0% 735,000 218,995 29.8% 4470 - Building and Safety Fee 650,000 145,892 22.4% 700,000 174,630 24.9% Fiscal Year 2023-2024 Quarterly Financial Report
2 nd Quarter Ending December 31, 2023
3 2
nd QUARTER ENDING DECEMBER 31, 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 36.7% of the budget through the end of the second quarter of the current fiscal year (50%). Overall, departments are tracking below budget. 2022-2023
Budget
12/31/2022
Actuals
% of
Budget
Received
2023-2024
Amended
Budget
12/31/2023
Actuals
% of
Budget
Received
Expenditures
City Attorney $ 200,000 $ 63,856 31.9% $ 165,000 $ 124,166 75.3% City Clerk 323,449 161,395 49.9% 342,514 165,788 48.4%
City Council 60,703 27,300 45.0% 60,879 30,254 49.7%
City Manager 1,114,516 457,514 41.1% 1,240,796 514,779 41.5% Community Development 922,955 312,022 33.8% 996,284 453,896 45.6% Administrative Services 601,628 313,458 52.1% 621,660 308,772 49.7% Human Resources 831,353 568,028 68.3% 932,324 575,514 61.7% Information Technology 672,000 204,419 30.4% 382,000 113,977 29.8% Public Safety 4,745,921 1,571,830 33.1% 5,005,290 1,729,370 34.6% Public Works Aministration 1,342,030 559,040 41.7% 1,478,851 686,552 46.4% Recreation & Facilities Administration 1,914,955 843,957 44.1% 1,870,642 820,368 43.9% Transfers Out 2,492,103 - 0.0% 1,957,466 - 0.0%
Total Expenditures $ 15,221,613 $ 5,082,818 33.4% $ 15,053,706 $ 5,523,435 36.7% Fiscal Year 2023-2024 Quarterly Financial Report
2 nd Quarter Ending December 31, 2023
4 2
nd QUARTER ENDING DECEMBER 31, 2023
Proprietary Funds – Water Operations and Water Capital
The Water Funds for the second quarter of Fiscal Year 2023-2024, which ended December 31, 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 second quarter (Q2) 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 second 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 slightly higher than the prior year at 24.4% of the budget through the end of the second quarter of the current fiscal year (50%). 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 below budget at 26.4% of the budget through the end of the second quarter of the current fiscal year (50%). Overall, most departments are tracking below expectations. 2022-2023
Budget
12/31/2022
Actuals
% of
Budget
Received
2023-2024
Amended
Budget
12/31/2023
Actuals
% of
Budget
Received
Revenues
Waterworks #13 Anney $ 900,000 $ 408,904 45.4% $ 920,000 $ 407,957 44.3% Permits and Fees 136,000 38,412 28.2% 246,000 92,608 37.6% Use of Money & Property 25,000 - 0.0% 30,000 - 0.0%
Intergovernmental 4,220,404 2,291 0.1% 2,000,000 15,503 0.8% Water Billing Fees 6,386,000 1,658,287 26.0% 6,577,580 1,866,701 28.4% Miscellaneous 2,500 209 8.4% 2,500 2,193 87.7%
Total Revenues $ 11,669,904 $ 2,108,103 18.1% $ 9,776,080 $ 2,384,963 24.4% Fiscal Year 2023-2024 Quarterly Financial Report
2 nd Quarter Ending December 31, 2023
5 2
nd QUARTER ENDING DECEMBER 31, 2023
2022-2023
Budget
12/31/2022
Actuals
% of
Budget
Received
2023-2024
Amended
Budget
12/31/2023
Actuals
% of
Budget
Received
Expenditures
City Attorney $ 20,000 $ 8,259 41.3% $ 20,000 $ 6,768 33.8% City Clerk 57,287 30,184 52.7% 79,480 40,828 51.4%
City Council 2,990 1,422 47.6% 2,993 1,402 46.8%
City Manager 152,241 80,462 52.9% 174,090 87,327 50.2%
Administrative Services 497,267 273,403 55.0% 515,524 287,160 55.7% Human Resources 209,158 157,031 75.1% 224,446 157,419 70.1% Information Technology 83,500 59,767 71.6% 83,500 79,006 94.6% Water Maintenance 5,210,903 1,860,194 35.7% 5,473,203 2,044,439 37.4% Capital Outlay 4,209,602 609,857 14.5% 5,616,075 400,522 7.1% Debt Service 470,008 234,502 49.9% 466,034 233,534 50.1% Total Expenditures $ 10,912,956 $ 3,315,081 30.4% $ 12,655,345 $ 3,338,405 26.4% Fiscal Year 2023-2024 Quarterly Financial Report
2 nd Quarter Ending December 31, 2023
6 2
nd QUARTER ENDING DECEMBER 31, 2023
Special Revenue Funds
The Special Revenue Funds for the second quarter of Fiscal Year 2023-2024, which ended December 31, 2023, are tracking as expected. The revenues are down $2.6 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 $1,339,133, compared to $3,949,065 last year.
Revenues
The Fiscal Year 2023-2024 revenue budgets for the Special Revenue Funds are $7,272,441. Through the end of the second quarter (Q2) of Fiscal Year 2023-2024, total revenues were $1,339,133 which is lower than last fiscal year for the same period. Overall, total revenues are at 18.4% of budget through the second quarter of the current fiscal year, which is less than the same period last fiscal year, 45% of budget. The Special Revenue Funds revenues appear to be tracking as expected at 18.4% of the budget through the end of the second quarter of the current fiscal year (50%). 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
2 nd Quarter Ending December 31, 2023
7 2
nd QUARTER ENDING DECEMBER 31, 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 7.1% of the budget through the end of the second quarter of the current fiscal year (50%). 2022-2023
Budget
12/31/2022
Actuals
% of
Budget
Received
2023-2024
Amended
Budget
12/31/2023
Actuals
% of
Budget
Received
Revenues
State Gas Tax $ 994,796 $ 394,825 39.7% $ 1,120,153 $ 432,664 38.6% Measure R Local Return 313,089 142,647 45.6% 375,971 172,796 46.0% Measure M 352,434 193,423 54.9% 422,434 162,650 38.5%
Measure W 225,000 226,909 100.8% 575,000 - 0.0%
Community Development Block Grant 148,379 12,761 8.6% 140,077 10,792 7.7% Prop A Local Return 526,451 279,497 53.1% 610,316 282,584 46.3% Prop C Local Return 418,452 228,010 54.5% 499,628 230,609 46.2% Transportation Development Act 19,204 - 0.0% 13,843 - 0.0% South Coast AQMD 26,300 6,926 26.3% 26,500 7,145 27.0%
Landscape Maintenance District #1 11,738 4,649 39.6% 11,738 4,631 39.5% Park Facilities Fee 5,500 1,200 0.0% 6,000 4,800 80.0%
Park Athletic 54,500 22,932 42.1% 55,000 25,072 45.6%
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 4,799 32.0% 15,000 3,821 25.5% Tom Rico Memorial 1,000 - 0.0% 1,000 1,226 122.6%
Other Special Funds Total: $ 8,779,476 $ 3,949,065 45.0% $ 7,272,441 $ 1,339,133 18.4% Fiscal Year 2023-2024 Quarterly Financial Report
2 nd Quarter Ending December 31, 2023
8 2
nd QUARTER ENDING DECEMBER 31, 2023
2022-2023
Budget
12/31/2022
Actuals
% of
Budget
Received
2023-2024
Amended
Budget
12/31/2023
Actuals
% of
Budget
Received
Expenditures
State Gas Tax $ 639,563 $ 272,954 42.7% $ 2,214,572 $ 234,368 10.6% Measure R Local Return 167,698 75,263 44.9% 955,680 - 0.0% Measure M 192,485 73,873 38.4% 1,058,623 17,581 1.7%
Measure W 163,076 108,884 66.8% 336,000 27,164 8.1%
Community Development Block Grant 148,379 42,148 28.4% 140,077 12,274 8.8% Prop A Local Return 1,123,600 1,070,326 95.3% 142,227 56,586 39.8% Prop C Local Return 408,572 10,560 2.6% 250,000 - 0.0%
Transportation Development Act 13,226 7,560 57.2% 13,843 360 2.6% South Coast AQMD 35,000 5,000 14.3% 35,000 6,250 17.9%
Landscape Maintenance District #1 16,738 4,029 24.1% 11,738 2,752 23.4% Park Facilities Fee - - 0.0% - - 0.0%
Park Athletic 51,193 16,399 32.0% 52,574 11,735 22.3%
Park Grant 250,000 - 0.0% - 18,000 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 94,518 6.6% 775,000 102,782 13.3% Facility Improvement 9,000 - 0.0% 1,504,720 - 0.0%
Equipment Replacement 400,000 6,815 1.7% 285,000 189,754 66.6% Park Equipment Replacement 15,000 - 0.0% 515,000 233 0.0% Sewer Replacement 10,000 - 0.0% 115,000 45,215 0.0%
Railroad Museum Foundation 15,000 3,795 25.3% 15,000 3,504 23.4% Tom Rico Memorial 2,000 2,000 100.0% 1,000 - 0.0%
Other Special Funds Total: $ 7,635,875 $ 1,794,123 23.5% $ 10,324,632 $ 728,559 7.1%