City of Pacifica
Fiscal Year 2021‐22
Fourth Quarter Financial Report
1 OVERVIEW
This Fourth Quarter Financial Report is an analysis of the unaudited financial status of the City’s General Fund
from July 2021 through June 2022. The City of Pacifica
has completed the Fourth Quarter of the Fiscal Year
2021‐22. The Fourth Quarter Financial Report will
summarize the City’s General Fund, and is not meant to
be inclusive of all finance and accounting transactions.
The intent of this report is to provide the Council and the public a broad overview of the City’s fiscal condition, as the General Fund is the primary operating fund of the
City and is used to account for most operational
activities. The information presented in this report is unaudited and additional adjustments may occur during
the year-end process.
GENERAL FUND
General Fund Financial Condition: With the fiscal year
completed, General Fund Expenditures are at 96% of
projections, and revenues are at 109% of the Revised
FY2021-22 Budget. These figures exclude budgeted oncea-year operating and capital transfers. Revenue exceeded expenditures for the Fourth Quarter with this
year’s results more positive compared to the prior year when the City collected 104% of budgeted revenues at
the end of the Q4. Both expenditures and revenues are
explained in more detail below. The 20% increase in
revenues over the Fourth Quarter from the prior year is due to the receipt of one-time ARPA funds in July, 2021. *Excludes operating and capital transfers
The General Fund Balance as of June 30, 2022 is $17.7
million. This is based on the audited fund balance as of the end of fiscal year 2020-21, excluding transfers and factoring in year‐to‐date revenue, expenditure, and
encumbrance activity.
Expenditures. Departmental operating expenditures are
on target at the end of the Fourth Quarter.
The Planning department show lower expenditures in
salaries and benefits category due to vacancies and
timing of payments for contractual services.
Additional year-end entries related to costreimbursable transactions will likely occure during the year-end process. The General Government, Police,
Public Works, and PB&R Departments are on target
with the budget. The Fire Department costs are
slightly ahead of budget as a result of overtime costs
exceeding budet. All departments have an increase
from the same quarter in prior year, which are mostly
attributed to increases in salaries and benefits as per new MOU provisions and filling vacancies. The
following chart summarizes year‐to‐date combined
expenditures by department as of the Fourth Quarter:
Revenues: The following is a summary of revenues as
of the end of the Fourth Quarter:
Property Tax: Property Tax is the City’s largest revenue source. All the installments of the Property Tax
payment were remitted to the City by the County of San
Mateo.
General Fund Qtr 4
FY2020-21
Qtr 4
FY2021-22
FY2021-22
Budget
% Change
Q4 FY21 vs
Q4 FY22
Qtr 4
% Budget
Revenues 35,687,916 43,343,228 39,720,145 21% 109%
Expenditures 33,979,022 36,871,064 38,308,363 9% 96%
General Fund
Expenditures by
Department
Qtr 4
FY2020-21
Qtr 4
FY2021-22
FY2021-22
Budget
% Change
Q4 FY21 vs
Q4 FY22
Qtr 4
% Budget
Expende
d
General Government 5,024,509 6,091,684 6,188,551 21% 98% Police Department 10,114,604 10,352,101 10,611,060 2% 98% Fire Department 6,983,578 7,575,879 7,101,477 8% 107%
Planning & Building 2,409,539 2,953,719 3,832,577 23% 77% Public Works 3,946,616 4,250,202 4,673,066 8% 91%
PB&R 4,384,857 4,679,330 4,861,545 7% 96%
Non-Departmental 1,115,320 968,148 1,040,087 -13% 93%
Total General Fund
Expenditures 33,979,022 36,871,064 38,308,363 9% 96%
General Fund
Revenues by Type
Qtr 4
FY2020-21
Qtr 4
FY2021-22
FY2021-22
Budget
% Change
Q4 FY21 vs
Q4 FY22
Qtr 4
% Budget
Received
Property Tax 14,744,238 15,804,449 13,924,864 7% 113%
Sales Tax 2,544,002 2,843,566 2,559,413 12% 111%
Transient Occupancy Tax 1,531,550 1,610,725 1,750,423 5% 92% Other Taxes 5,577,966 5,006,948 5,454,306 -10% 92%
Department/Program 8,655,007 10,548,244 10,179,827 22% 104% Grants 1,897,553 5,802,301 5,763,312 206% 101%
ERAF 737,600 1,726,995 88,000 134% 1962%
Total General Fund
Revenues 35,687,916 43,343,228 39,720,145 21% 109%
City of Pacifica
Fiscal Year 2021‐22
Fourth Quarter Financial Report
The City has received roughly 113% of the budgeted
Property Tax revenue as of June 30, 2022. Although, some adjusting entries may occur during the year-end, the
increase from the prior year 4
th quarter reflects on a high
appreciation in property values.
Sales Tax: As of June 30, 2022, the City has received about 112% of our budgeted Sales Tax revenues. The Sales Tax
revenue are recorded about 12% higher than prior year
Fourth Quarter. Some year-end adjusting entries may
slightly reduce this number, but it is a good sign that the Sales Tax is performing above the budget estimates
showing the City’s recovery from the effects of COVID.
Transient Occupancy Taxes (TOT): TOT revenues are
remitted approximately 30 days after the end of each
month, and revenues are not accrued at quarter‐end (as
they are at the end of the fiscal year), the Fourth Quarter reflects the months of July to May of TOT receipts. The TOT revenues show a nice increase of 5% compared to the Fourth Quarter of the prior year as hotels continue to
rebound from COVID pandemic but the overall decline in
occupancy rates of business and international travelers may still cause a lag in the hotel industry compared to the pre-COVID level.
Other Taxes: These include franchise tax, business
license, utility users tax, ½ cent public safety sales tax and cannabis operations tax. Payments for most of these
taxes are remitted 30 days after the end of the month.
As such, 92% of the budget has been received as of June 30, 2022, representing only ten months of the reporting.
The total revenue is less than the prior year with 10% less received as the Fourth Quarter due to payment delays.
Department/Programs: These include building permits,
engineering and planning fees, charges related to Parks, Beaches & Recreation programs and rentals. The City
received 104% of budget at the end of the Fourth Quarter.
Permits and planning fees tend to fluctuate based on the timing of projects, but the overall budget appears to be on track.
Grants: These include Police and all COVID-19 related
grants. The increase in grant revenues reflects the $4.6 million American Rescue Plan Act allocation from the
State which was conservatively budgeted at $4.2
million based on the initial estimate. Last fiscal year’s Fourth Quarter revenue were from the CARES Act
funding.
Excess ERAF: Although, the overall projection for
the Excess Educational Revenue Augmentation
Fund (ERAF) revenue of $2.5 million is consistent
with the prior allocations, the FY 2021-22 General
Fund Budget only included $88,000 of it to fund the
community grant program to local non-profit
organizations as previously directed by the Council.
The $1.5 million were allocated towards the Civic
Center CIP and the remainder of $0.9 million was
budgeted in the Disaster Recovery Fund, which
explains the budget variance over the prior year.
Based on the Fourth Quarter’s distribution, the
Excess ERAF allocation exceeded the Budget,
however all additional funds in excess of the budget
will be transfered to the Disaster Recovery fund per
City policy. The proper journal entries will take place at the year-end to reflect this transaction.
SUMMARY
Overall, staff is pleased to report that the mid-year
budget projections were pretty accurate, and
FY2021-22 Budget appears to be ending the year on
track with revenues and expenditures performing as
expected. The City’s operating expenditures are at
96% of the budget at the end of the Fourth Quarter.
The slight increase in expenditures from prior year
quarter is mainly attributable to salaries and
benefits, including MOU increases and overtime.
These are only preliminary numbers as additional
booking entries may occur during the fiscal year-end
that may modify some figures presented in this
report. However, overall it is encouraging that the
budget appears to be on target.
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