Attachment No. 1
Quarterly Financial Report
Fourth Quarter of Fiscal Year 2023-24
Final Audited Results
A
OVERVIEW
Since this report is for the last quarter of the fiscal year, it serves as the final financial report for the fiscal year ending June 30, 2024. It was prepared using the audited Annual Comprehensive Financial Report issue on December 19, 2024, and it provides a basis for assessing the below highlighted funds’ financial position at the end of fiscal year 2023/24.
GENERAL FUND
General Fund Financial Condition. Based on preliminary results, revenues, net of accounting GASB adjustments, came in at $77 million, on target, or $75 thousand over with the City’s projections. However the City’s Major Revenue categories, did not meet projections by $0.8 million, or 1%. Expenditures totaled $83.7 million, out of which Operations reached $66.3 million and were $6.9 million, (9%) under budget, mainly due to savings realized under: personnel ($4.4 million), Sheriff’s contract ($1.1 million), other contract services ($1.3 million), and other expenditures combined ($0.1 million).
As of June 30, 2024, the City had the ending available general fund balance of $21.8 million, which is $7.0 million over the approved FY2023/24 budget, but $0.8 million lower than
anticipated during the preparation of Fiscal Year 2024/25 Budget.
Major Revenues. City’s Major Revenues are Sales Taxes, Real Property Value Derived Revenues, other Taxes and
Franchises. This year, the actual Major Revenue receipts amounted to $63.8 million and represented 83% of total
General Fund revenues. By focusing on these, we can get an understanding of our revenue position. Overall, all categories, but property taxes, underperformed projections by 1% or $0.8 million under budgetary estimates. Any significant variances are noted below.
➢Real Property Value Derived Revenues. This revenue
source represents 34% of the total General Fund
revenues. It came in 2%, or $447 thousand, over the
projected estimates, mainly due to the non-anticipated
allocations received from the former redevelopment
agencies.
➢Sales Taxes – Local Tax & Measure P. City’s second
largest revenue category was $714 thousand, 3%, under
the projections. The decreases were significant primarily under autos and transportation and fuel and service
stations categories.
➢Utility User Tax (UUT). The third largest revenue
category underperformed the budget estimates by 5%, or
$304 thousand. City collects UUT based on the
consumption of utility services such as electricity, gas, telephone and wireless services. Gas category dropped
$401 thousand from the prior year historic peak revenue of $1.3 million, thus contributed to the overall decline in UUT revenues. The remaining categories recorded a
slight increase from the prior year.
General Fund Balance Budget Actual % BUDGET Reported on6/4/24 Unassigned Balance, Start of Year 28,278,175 28,278,175 28,278,175 Change for Prepaid Reserve 4,870 -Change in Reserve Balances 264,981 264,981 264,981 Available Beginning Balance, Start of Year 28,543,156 28,548,026 28,543,156 Plus Revenues: 76,908,327 76,983,357100% 76,825,457
Less Expenditures:Operations & Minor Capital Outlays 73,221,529 66,293,038 91% 65,345,319 Other Sources (Uses)Transfers to PARS & Capital Reserves (16,800,000) (16,800,000)100%(16,800,000)Transfer to Community Rehab Grants (600,000) (600,000)100% (600,000)Unassigned Balance, Year to Date 14,829,954 21,838,344147% 22,623,294 REVENUE DESCRIPTION BUDGETFY 2023/24 ACTUALFY 2023/24 % Budget Variance Actual vs. Budget
PROP TAX-S.E. REC & PARK AREA 5,417,100 5,299,704 98% (117,396)PROPERTY TAX IN-LIEU/VLF 4,027,900 4,053,886 101% 25,986NO/LOW PROPERTY TAX-CNTY 15,258,170 15,258,172 100% 2SA RDAs - AB 1484 ALLOCATIONS 920,000 1,458,343 159% 538,343REAL-PROPERTY VALUE DERIVED REVENUES: 25,623,170 26,070,106 102% 446,936 SALES & USE TAXES (STATE) 15,294,000 14,800,085 97% (493,915)SALES & USE TAXES (STATE) - MEASURE P 10,994,000 10,773,447 98% (220,553)UTILITY USER TAX 5,995,000 5,690,673 95% (304,327)TRANSIENT OCCUPANCY TAX 1,651,300 1,616,215 98% (35,085)FRANCHISE FEES 3,399,500 3,375,545 99% (23,955)FRANCHISE - CABLE TV 510,000 502,469 99% (7,531)BUSINESS LICENSE 930,000 762,105 82% (167,895)REAL PROPERTY TRANSFER TAX 240,000 223,969 93% (16,031)TAXES & FRANCHISES: 39,013,800 37,744,508 97% (1,269,292)SUBTOTAL: MAJOR REVENUES: 64,636,970 63,814,613 99% (822,357) ARPA REVENUES: 2,888,292 2,891,392 100% 3,100OTHER GENERAL REVENUES: 5,195,230 5,429,484 105% 234,254PUBLIC SAFETY REVENUES: 1,209,360 1,422,749 118% 213,389PUBLIC SERVICES REVENUES: 354,115 523,207 148% 169,092SOCIAL SERVICES REVENUES: 11,700 25,987 222% 14,287RECREATION & PARKS REVENUES: 827,760 947,864 115% 120,104COMMUNITY DEVELOPMENT REVENUES: 1,784,900 1,928,060 108% 143,160 TOTAL: GENERAL FUND REVENUES 76,908,327$ 76,983,357$ 100% 75,030$ Quarterly Financial Report – FINALFourth Quarter of Fiscal Year 2023-24 2 | P a g e
➢Transient Occupancy Tax (TOT). City received total of $35 thousand, or 2%, less than budgeted in TOT
revenues.
➢Franchise Fees. All categories combined came slightly, 1% or, $31 thousand, under the projections.
➢Business Licenses (BL). Actual revenues came in 18%,
or $168 thousand under the projections. Due to the
implementation of the new business licensing, applications and online payment software, the BL renewal letters for the calendar year 2024 were distributed in April, rather than December. As of June 30, 2024, out of approximately 3,600 businesses, 500 licenses remained still outstanding.
Rest of General Fund revenues, classified by governmental functions, recorded a combined net overage of $0.9 million, or 7% over projections. Main contributors to this substantial increase were one-time rebates for LED street light project from Southern California Edison ($0.5 million); fees for services generated by Community Development, and Recreation and
Parks departments.
Expenditures. Operating costs were 9%, or $6.9 million under the budgeted amount. The lower overall expenditures resulted mainly from savings under personnel, Los Angeles County Sheriff’s and other contract services. The most significant savings in personnel costs were the result of attrition and under-filling of full-time vacant positions city-wide.
The table below shows expenditures by City’s functions. All divisions, but legal and debt administration related
expenditures, came in within the approved budget. General Government and Public Safety functions realized the most significant savings.
EXPENDITURES BY TYPE BUDGETFY 2023/24 ACTUALFY 2023/24 % BUDGET VARIANCE BUDGET vs. ACTUAL
SALARIES & BENEFITS 33,792,239 29,384,166 87% 4,408,073 OPEB TRUST 1,500,000 1,500,000 100% -
SHERIFF'S CONTRACT 18,284,489 17,188,370 94% 1,096,119
CONTRACT SERVICES 9,336,800 7,989,966 86% 1,346,834
UTILITIES 3,329,900 2,866,599 86% 463,301
INSURANCE 914,200 898,317 98% 15,883
TRANSFER OUT TO DEBT SERVICE 1,613,713 1,617,979 100% (4,266) OTHER OPERATING COSTS 4,716,227 4,751,138 101% (34,911) MINOR CAPITAL OUTLAYS 648,286 447,789 69% 200,497
TOTAL OPERATIONS 74,135,854 66,644,324 90% 7,491,530
GAS TAX FUND (2,062,564) (1,579,138) 77% (483,426) TRANSER TO PARKING STRUCTURE 427,510 413,184 97% 14,326 TRANSER TO ENP GRANT 325,303 436,329 134% (111,026) TRANSER TO SA HOUSING ADMIN 344,180 344,181 100% (1) OTHER SPECIAL REVENUE FUNDS 51,246 34,157 67% 17,089 TOTAL OPERATIONAL TRANSFERS (IN)/OUT (914,325) (351,286) 38% (563,039) NET OPERATIONAL EXPENDITURES 73,221,529$ 66,293,038$ 91% 6,928,491$ TRANSFERS TO "REPLACEMENT" FUNDS 17,400,000 17,400,000 100% - TOTAL GENERAL FUND EXPENDITURES 90,621,529$ 83,693,038$ 92% 6,928,491$ Less Transfers In From Special Revenues Funds To Offset General Fund Street Maintenance Cost:
EXPENDITURES BY DEPARTMENT BUDGETFY 2023/24 ACTUALFY 2023/24 % BUDGET VARIANCE BUDGET vs. ACTUAL
GENERAL GOVERNMENT 15,152,749 13,178,666 87% 1,974,083
DEBT SERVICE 1,613,713 1,617,979 100% (4,266)
PUBLIC SAFETY 24,956,451 23,187,096 93% 1,769,355
PUBLIC SERVICES 16,137,907 14,616,640 91% 1,521,267
SOCIAL SERVICES 4,147,451 3,060,520 74% 1,086,931
RECREATION 6,547,892 6,506,109 99% 41,783
COMMUNITY DEVELOPMENT 4,665,366 4,126,028 88% 539,338
TOTAL ALL DEPARTMENTS - OPERATIONS & MINOR CAPITAL OUTLAYS 73,221,529$ 66,293,038$ 91% 6,928,491 TRANSFERS TO "REPLACEMENT" FUNDS 17,400,000 17,400,000 100% - TOTAL EXPENDITURES 90,621,529$ 83,693,038$ 92% 6,928,491 Quarterly Financial Report – FINALFourth Quarter of Fiscal Year 2023-24 3 | P a g e
PARKING STRUCTURE FUND
Revenues outperformed budgetary estimates by $3 thousand, and expenditures were 6% under budget. Consequently, the subsidy from General Fund was $16 thousand lower than
anticipated.
ENTERPRISE FUNDS
The following summarizes fiscal year 2023/24 revenues,
expenses and changes in retained earnings for the enterprise funds, and net of GASB accounting adjustments. Operating revenues were $616 thousand under projections in water, and $481 thousand over the estimates in sewer funds. Transit revenues came $503 thousand over the projections. Operating expenses were under the budgeted amounts in all enterprise funds.
Norwalk Municipal Water System
Norwalk Sewer System
Norwalk Transportation System
Parking Structure Fund Balance Budget Actual % BUDGET
Revenues 295,000 297,933 101%General Fund Operational Transfer In 428,975 413,184 96% Available Resources 723,975 711,117
Expenditures:Operational 487,888 457,495 94%Capital Improvement Projects - - Other Sources (Uses) - Txf Debt Svc Fund 253,622 253,622 0%Balance, Start of Year - -Balance, Year to Date (17,535) - Water Fund - Working Capital Budget YTD Actual % BUDGET Revenues 6,634,500 6,018,100 91%ExpensesPersonnel 1,130,043 948,544 84%Operations & Maintenance 4,906,522 3,676,300 75%Total Operating Expenses 6,036,565 4,624,844 77%Operating Income (Loss) 597,935 1,393,255 Debt Service 540,612 541,138 100%
CIP Expense 5,452,303 1,946,352 36%Capital Income (Loss) (5,452,303) (1,946,352) Working Capital, Start of Year 8,442,784 8,442,784Working Capital, Year to Date 3,047,804 7,348,550 Sewer Fund - Working Capital Budget YTD Actual % BUDGET Revenues 2,630,000 3,111,492 118%ExpensesPersonnel 555,759 432,871 78%Operations & Capital Outlays 1,335,542 784,688 59%Total Operating Expenses 1,891,301 1,217,559 64%Operating Income (Loss) 738,699 1,893,932 Capital Revenues - -CIP Expense 2,312,363 304,826 13%Capital Income (Loss) (2,312,363) (304,826) Working Capital, Start of Year 12,190,803 12,190,803Working Capital, Year to Date 10,617,139 13,779,909 Transportation Budget YTD Actual % BUDGET
Operating Revenues 19,364,325 19,867,030 103%
ExpensesPersonnel 13,809,367 12,115,562 88%Operations & Maintenance 5,328,094 4,341,498 81%Total Operating Expenses 19,137,461 16,457,390 86%Operating Income (Loss) 226,864 3,409,640 Capital Revenues 9,286,444 2,271,359 24%Expenses - Capital Outlay 8,200,521 2,384,444 29%Expenses - CIPs 3,580,634 410,643 11%Capital Income (Loss) - Use of reserves (2,494,711) (523,727)Working Capital, Start of Year 13,077,767 13,077,767Working Capital, Year to Date 10,809,920 15,963,680 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.