1 TO: City Council
FROM: Andrew Vialpando, City Manager
PREPARED BY: Susan Kamada, Administrative Services Director MEETING DATE: October 15, 2024
SUBJECT: Fiscal Year 2023/2024 Year-End Budget Amendments
RECOMMENDATION
Approve the amended FY 23-24 expenditure and revenue budget and implement corresponding recommendations.
BACKGROUND
The City is required to maintain a balanced annual budget. In order to do so, the City’s Administrative Services Department annually reviews the year-end financial conditions of the City’s various funds and recommends any necessary adjustments based on actual revenues and expenditures throughout the fiscal year. The City completed its fiscal year 2023/2024 year-end review on October 3, 2024.
DISCUSSION
After inclusion of the transfers and adjustments, the General Fund is estimated to end the fiscal year with $15,769,912 in revenues and $15,764,258 in expenditures.
Fiscal Year 2023/2024 Adopted Budget
In June 2022 the City Council adopted the biennial operating and capital improvement budgets. The adopted budget at Mid-Year contains general fund expenditures of $14,620,151 and revenues of $14,620,151, reflecting a balanced budget. Attachment A contains a summary of all-funds expenditure and revenue amendments.
Recommended Year-End Adjustments Summary
CITY OF LOMITA
CITY COUNCIL REPORT
Item No. {{section.number}}j
2 The adjustments to the City’s budget at year-end include transfers to specific funds established by the City Council to fund future projects and programs. As part of the review by staff, the following adjustments and transfer are recommended:
• Transfer an additional $600,000 to the Street Improvement Fund to provide additional funding for the Street Reconstruction Project for Zone G. • Transfer an additional $548,673 to the Facility Improvement Fund to provide additional funding for the City Hall HVAC Upgrades Project. • Transfer $7,800 to the Park Grant Fund to fund the Stephenson Center Design Project.
• Reduce transfer to Sewer Replacement Fund by $7,800, for a total transfer of $92,200.
These recommendations are included along with recommendation for revenue and expenditure adjustments to specific city funds described below.
Detailed Revenue Amendments
Staff reviewed the status of the City’s major revenue sources to identify variances between budgeted and actual revenues, and to make recommendations for revenue budget amendments. The City’s primary revenue sources include property, sales, and motor vehicle in lieu taxes. The other major revenue source is development related revenue. As a result, staff is not recommending any adjustments for General Fund revenues. Other Special Revenue funds have also seen better than anticipated revenues during the fiscal year that require an amendment. Fund 312 Facility Improvement has a decrease of $710,382 in the Transfer from ARPA, since the project has not started and is anticipated to be completed in the next fiscal year. The following revenue account amendments are being recommended:
Other Funds:
Fund 257 Park Grant $7,800
Fund 311 Street Improvement 600,000
Fund 312 Facilities (710,382)
Fund 612 Sewer Replacement (7,800)
Total Other Funds $ (110,382)
Detailed Expenditure Amendments
Staff also reviewed the status of the City’s expenditures to identify potential variances between budgeted and actual expenditures, and to make recommendations for expenditure budget amendments. A review of the General Fund expenditures found several areas where actual year-end expenditures were less than anticipated in the adopted budget. Planning had an increase due to Building and Safety fees. City Manager, Administrative Services, Emergency Operations, Safety Enforcement, Information Technology, Public Works, Parks & Recreation, and Park Maintenance all had decreases 3 due to salary savings, and unspent contracts that will be appropriated in the next fiscal year at the Mid-Year Budget Review. The total increase to the General Fund budget is due to Transfers to Other Funds in order to fund future projects and programs. Some Special Revenues funds have seen an increase in costs during the fiscal year that also require amendment. As a result, the following expenditure account amendments are being recommended:
General Fund:
City Council $10,144
City Attorney 48,000
City Manager (81,400)
City Clerk 2,500
Administrative Services (10,000)
Human Resources 30,000
Public Safety 106,471
Emergency Operations (71,000)
Safety Enforcement (77,135)
Animal Care & Control (9,000)
Planning 290,000
Economic Development 5,000
Information Technology (45,600)
Public Works Administration (304,071)
Street Maintenance (9,000)
Parks & Recreation (158,740)
Park Maintenance (56,830)
Transfers to Other Funds 1,248,673
Total General Fund $918,012
Other Funds:
Fund 260 Lomita Manor 194,320
Total Other Funds $194,320
OPTIONS
1. Approve staff’s recommendations.
2. Amend staff’s recommendations.
3. Provide further direction to staff.
4 FISCAL IMPACT
The adjustments identified will decrease revenues by $110,382 and increase expenditures by $1,112,332.
ATTACHMENTS
1. Fiscal Year 2023/2024 Budget Amendments
Reviewed by: Approved by:
_______________________ ______________________
Gary Y. Sugano Andrew Vialpando
Assistant City Manager City Manager
Prepared by:
__________________________
Susan Kamada, Administrative Services Director