Financial Report
Fiscal Year 2022-23
OVERVIEW
This report is for the last quarter of the fiscal year, it serves as a recap of the final audited financial report for the year, which was issued in the middle of December 2023.
GENERAL FUND
General Fund Financial Condition. Based on audited
results, revenues, net of accounting GASB adjustments, came in at $78 million and exeeded the City’s projections, by 9%, or a combined total of $6.1 million. Expenditures totaled $74.6 million. Operations were $7. 6 million, ( 11%) under budget, mainly due to savings realized under: personnel ($4.5 million), Sheriff’s contract ($1.8 million), other contract services ($1.2 million), and other expenditures combined ($0.1 million).
As of June 30, 2023 , the City will have the ending available general fund balance of $28.1 million, which is $12.4 million over the approved FY2022/23 budget, and $2.4 million higher than anticipated during the preparation of Fiscal Year 2023/24 Budget.
Major Revenues. Our Major Revenues are Sales Taxes, Real Property Value Derived Revenues, other Taxes and
Franchises. This year the actual receipts represented 81% of total General Fund revenues. By focusing on these, we can get an understanding of our revenue position. Overall, these revenues exceeded projections by 2% or $1.5 million over budgetary estimates. Any significant variances are noted below.
S
ales Taxes – Local Tax & Measure P. Our largest
revenue category was $446 thousand , 2 %, under the
projections. The decreases were significant primarily
under fuel and service stations, auto and transportation, and state and county sales tax pools categories.
Real Property Value Derived Revenues. This revenue
source represents 32% of the total General Fund
revenues. It came in 2%, or $575 thousand, over the
projected estimates , mainly due to the non -anticipated allocations received from the former redevelopment
agencies.
Utility User Tax (UUT). The third largest revenue
category surpassed the budget estimates by 13%, or $697 thousand. City collects UUT based on the consumption of utility services such as electricity, gas, telephone and wireless services. Due to the rise in energy cost, the main increase was recorded under electric and gas utilities. Transient Occupancy Tax. After the pandemic
shutdown, travel has resumed and brought positive results for Norwalk hotels. Consequently, the City received $ 130 thousand, or 19%, more than budgeted in TOT revenues.
Franchise Fees. All categories combined came over the projections by $448 thousand.
General Fund Balance Budget Actual %
BUDGET
Estimated on
June 13, 2023
Unassigned Balance, Start of Year 25,016,168 25,016, 168 25,016,168 Change for GASB moved to Fund 102 676,568 - Change for Prepaid Reserve (18,678) -
Change in Reserve Balances 979,311 979,310 979,311 Available Beginning Balance, Start of Year 25,995,479 26,653,369 25,995,479 Plus Revenues: 71,892,413 78,006,495 109% 75,231,768 Less Expenditures:
Operations & Minor Capital Outlays 68,656,507 61,075,527 89% 60,087,719 Other Sources (Uses)
Transfers to PARS & Capital Reserves (13,522,000) (13,522, 000) 100% (13,522,000) Assign FB to Inflationary Increases - (2,000,000) (2,000,000) Unassigned Balance, Year to Date 15,709,385 28,062,336 179% 25,617,528
REVENUE DESCRIPTION BUDGET
FY 2022/23
ACTUAL
FY 2022/23
%
Budget
Variance Actual
vs. Budget
PROP TAX-S.E. REC & PARK AREA 5,141,400 5,322,780 104% 181,380 PROPERTY TAX IN-LIEU/VLF 3,827,100 3,865,162 101% 38,062 NO/LOW PROPERTY TAX-CNTY 14,332,770 14,332,775 100% 5 SA RDAs - AB 1484 ALLOCATIONS 831,000 1,186,910 143% 355,910 REAL-PROPERTY VALUE DERIVED REVENUES: 24,132,270 24,707,627 102% 575,357 SALES & USE TAXES (STATE) 15,683,000 15,367,995 98% (315,005) SALES & USE TAXES (STATE) - MEASURE P 10,928,000 10,796,731 99% (131,269) UTILITY USER TAX 5,277,000 5,973,866 113% 696,866 TRANSIENT OCCUPANCY TAX 1,540,500 1,670,815 108% 130,315 FRANCHISE FEES 2,648,400 3,150,655 119% 502,255 FRANCHISE - CABLE TV 647,600 592,871 92% (54,729) BUSINESS LICENSE 900,000 959,934 107% 59,934 REAL PROPERTY TRANSFER TAX 245,000 238,525 97% (6,475) TAXES & FRANCHISES: 37,869,500 38,751,393 102% 881,893 SUBTOTAL: MAJOR REVENUES: 62,001,770 63,459,020 102% 1,457,250 ARPA REVENUES: 2,888,400 2,889,078 100% 678 OTHER GENERAL REVENUES: 3,204,143 6,233,862 195% 3,029,719 PUBLIC SAFETY REVENUES: 1,240,500 1,362,289 110% 121,789 PUBLIC SERVICES REVENUES: 357,000 863,416 242% 506,416 SOCIAL SERVICES REVENUES: 11,700 18,444 158% 6,744
RECREATION & PARKS REVENUES: 547,500 766,645 140% 219,145 COMMUNITY DEVELOPMENT REVENUES: 1,641,400 2,413,740 147% 772,340 TOTAL: GENERAL FUND REVENUES 71,892,413$ 78,006,495$ 109% 6,114,082$ ATTACHMENT 1
Financial Report Fiscal Year 2022-23
2 | Page
Remaining revenues, classified by governmental functions, recorded a combined net overage of $4.7 million, or 47% over projections. Main contributor s to this substantial increase were: one-time unanticipated settlement for the class action lawsuit Long Beach vs. Monsanto ($2.1 million); rebates for LED street light project from Southern California Edison ($0.5 million); and fees for services generat ed by Community Development’s Building and Safety division.
Expenditures. Operating costs were 11 %, or $ 7.6 million under the budgeted amount. The lower expenditures resulted mainly from savings under personnel, Los Angeles County Sheriff’s and other contract services . The most significant savings in personnel costs were the result of attrition and under-filling of full-time vacant positions city-wide.
The table below shows expenditures by City’s functions. All divisions, but homeless outreach expenses, came in within the approved budget. Public Safety and General Government
departments realized the most significant savings.
PARKING STRUCTURE FUND
Revenues outperformed budgetary estimates by $27
thousand, and expenditures were 6% under budget.
Consequently the s ubsidy from General Fund was $52
thousand lower than anticipated.
EXPENDITURES BY TYPE BUDGET
FY 2022/23
AC T U AL
FY 2022/23
%
BUDGET
VA RIA NCE
BUDGET vs.
AC T U AL
SALARIES & BENEFITS 32,386,023 27,913,784 86% 4, 472,239 OPEB TRUST 1,500,000 1,500,000 100% - SHERIFF'S CONTRACT 17,253,013 15,484,314 90% 1,768,699 CONTRACT SERVICES 8,370,920 7,196,975 86% 1,173,945 UTILITIES 3,111,205 2,730,164 88% 381,041 INSURANCE 925,100 925,677 100% (577) TRANSFER OUT TO DEBT SERVICE 1,616,547 1,616,857 100% (310) OTHER OPERATING COSTS 3,884,027 4,090,503 105% (206,476) MINOR CAPITAL OUTLAYS 780,700 629,569 81% 151,131 TOTAL OPERATIONS 69,827,535 62,087,843 89% 7,739,692 GAS TAX FUND (1,525,000) (1,466,664) 96% (58,336) TRAFFIC CONGESTION RELIEF FUND (450,000) (385,000) 86% (65,000) TRANSER TO PARKING STRUCTURE 381,135 330,343 87% 50,792 TRANSER TO SA HOUSING ADMIN 167,400 167,388 100% 12 OTHER SPECIAL REVENUE FUNDS 255,437 341,617 134% (86,180) TOTAL OPERATIONAL TRANSFERS (IN)/OUT (1,171,028) (1,012,316) 86% (158,712) NET OPERATIONAL EXPENDITURES 68,656,507$ 61,075,527$ 89% 7,580,980$ TRANSFERS TO "REPLACEMENT" FUNDS 12,522,000 12,522,000 100% -
TRANSFER TO POST EMPLOYMENT BENEFITS
TRUST FUND 1,000,000 1,000,000 100% - TOTA L GENERA L FUND EXPENDITURES 82,178,507$ 74,597,527$ 91% 7,580,980$ Less Transfers In From Special Revenues Funds To Offset General Fund Street Maintenance Cost:
EXPENDITURES BY DEPARTMENT BUDGET
FY 2022/23
AC T U AL
FY 2022/23
%
BUDGET
VA RIA NCE
BUDGET vs.
AC T U AL
GENERAL GOVERNMENT 14,320,718 12,428,646 87% 1,892,072 DEBT SERVICE 1,616,547 1,616,857 100% (310) PUBLIC SAFETY 23,617,990 21,039,695 89% 2,578,295 PUBLIC SERVICES 14,464,485 13,412,143 93% 1,052,342 SOCIAL SERVICES 3,640,761 2,802,117 77% 838,644 HOMELESS SERVICES 888,620 965,989 109% (77,369) RECREATION 5,805,149 5,430,314 94% 374,835 COMMUNITY DEVELOPMENT 4,302,237 3,379,766 79% 922,471
TOTA L A LL DEPA RTMENTS
- OPERATIONS & MINOR CAPITAL OUTLAYS
68,656,507$ 61,075,527$ 89% 7,580,980
TRANSFERS TO "REPLACEMENT" FUNDS 12,522,000 12,522,000 100% -
TRANSFER TO POST EMPLOYMENT BENEFITS
TRUST FUND 1,000,000 1,000,000 100% - TOTAL EXPENDITURES 82,178,507$ 74,597,527$ 91% 7,580,980 Parking Structure Fund Balance Budget Act ual %
BUDGET
Revenues 300,000 327,113 109% General Fund Operational Transfer In 382,600 330,343 Expenditures:
Operational 430,214 405,068 94% Capital Improvement Projects
-
Other Sources (Uses) - Txf Debt Svc Fund (252,386) (252,388) 100% Balance, Start of Year - -
Balance, Year to Date 0.00 0.00
ATTACHMENT 1
Financial Report Fiscal Year 2022-23
3 | Page
ENTERPRISE FUNDS
The following summarizes fiscal year 2022 /23 revenues, expenses and changes in retained earnings for the enterprise funds, net of GASB accounting adjustments. Operating
revenues were $798 thousand over our projections in water , and $218 thousand in sewer funds. Transit revenues came $1 million over the projections. Operating expenses were under the budgeted amounts in all enterprise funds.
Norwalk Municipal Water System
Norwalk Sewer System
Norwalk Transportation System
Water Fund - Working Capital Budget YTD Actual %
BUDGET
Revenues 5,834,500 6,632,853 114% Expenses
Personnel 1,105, 826 819,454 74% Operations & Maintenance 4,244,249 3,322,952 78% Total Operating Expenses 5,350,075 4,142,407 77% Operating Income (Loss) 484,425 2,490,446 Debt Service 552,615 540,108 98% CIP Expense 5,423,026 1,675,723 31% Capital Income (Loss) (5,423,026) (1,675,723) Working Capital, Start of Year 8,342,216 8,342,216 Working Capital, Year to Date 2,851,000 8,616,832 Sewer Fund - Working Capital Budget YTD Actual %
BUDGET
Revenues 2,630,000 2,847, 611 108% Expenses
Personnel 548,017 398,109 73% Operations & Capital Outlays 1,065,155 809,968 76% Total Operating Expenses 1,613,172 1,208,078 75% Operating Income (Loss) 1,016,828 1,639,534 Capital Revenues - -
CIP Expense 1,944,739 15,376 1% Capital Income (Loss) (1,944,739) (15,376)
Working Capital, Start of Year 9,202,396 9,202,396 Working Capital, Year to Date 8,274,485 10,826,554 Transportation Budget YTD Actual %
BUDGET
Operating Revenues 20,092,044 21,114, 629 105% Expenses
Personnel 13,663,213 11,652,363 85%
Operations & Maintenance 4,920,266 4,302,700 87% Total Operating Expenses 18,583,479 15,962,800 86% Operating Income (Loss) 1,508,565 5, 151,829 Capital Revenues 7,469,615 448,196 6% Expenses - Capital Outlay 7,589,067 463,786 6% Expenses - CIPs 2,328,668 56,730 2% Capital Income (Loss) - Use of reserves (2, 448,120) (72,319) Working Capital, Start of Year 8,038,400 8,038, 400 Working Capital, Year to Date 7,098,845 13,117,910 For More Information. This summary is based on detailed information produced by the City’s financial management system.
If you would like additional information, or have any questions about the report, please call Finance at (562) 929-5748.
ATTACHMENT 1