City of Pacifica
Fiscal Year 2022‐23
First Quarter Financial Report
1 OVERVIEW
This First Quarterly Financial Report is an analysis of the unaudited financial status of the City’s General Fund
from July 2022 through September 2022. The City of
Pacifica has completed the First Quarter of the Fiscal Year 2022‐23. The First Quarterly Financial Report will
summarize the City’s General Fund and is not meant to
be inclusive of all finance and accounting transactions.
This report intends to provide the Council and the public with 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.
Information presented in this report is unaudited, and
additional adjustments may occur during the year-end
process.
GENERAL FUND
General Fund Financial Condition: With one quarter of
the year complete, General Fund Expenditures are at
22% of projections, and revenues are at 21% of the
FY2022-23 Budget. These figures exclude budgeted oncea-year operating and capital transfers, and some routine journal entries will be posted later in the year that may change these numbers. Some expenditures that occurred
in Q1 were recorded in Q2, which will result in some
adjustments later. Revenues are typically less than 25% during the first quarter due to the timing of certain key revenues such as property tax, franchise fees, and sales tax. However, the City received $4.6 of COVID-related
grant funding in this first quarter. This year’s outlook is similar to the prior year, when the City collected 18% of budgeted revenues at the end of Q1. Both expenditures
and revenues are explained in more detail below.
*Excludes operating and capital transfers
The General Fund Balance as of September 30, 2022, is
$16,753,284. This is based on the unaudited fund balance as of the end of the fiscal year 2021-22, 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 First Quarter. The
General Government, Police, Fire, and NonDepartmental expenditures are lower in the salaries and benefits category due to a significant number of
vacancies and the timing of payments for contractual
services. The Planning Department’s expenditures are
low due to the delay in processing and reconciling the
cost-reimbursable expenses. Public Works and PB&R
Departments are on target with the Budget. The
following chart summarizes year‐to‐date combined
expenditures by department as of the First Quarter:
Revenues: The following is a summary of revenues as
of the end of the First Quarter:
Property Tax: Property Tax is the City’s largest
revenue source. The first installment of the Property
Tax payment will be remitted to the City by the
County of San Mateo in December 2022; hence it is
predetermined no property tax revenue will be
General Fund Qtr 1
FY2021-22
Qtr 1
FY2022-23
FY2022-23
Budget
% Change
Q1 FY22 vs
Q1 FY23
Qtr 1
% Budget
Revenues 7,037,551 9,832,793 46,144,363 40% 21%
Expenditures 9,423,226 9,371,733 43,447,008 -1% 22%
General Fund Expenditures
by Department
Qtr 1
FY2021-22
Qtr 1
FY2022-23
FY2022-23
Budget
% Change
Q1 FY22 vs
Q1 FY23
Qtr 1
% Budget
Expended
General Government 1,290,920 1,623,575 7,264,434 26% 22% Police Department 2,700,313 2,569,655 11,506,318 -5% 22% Fire Department 2,428,456 2,104,959 7,821,755 -13% 27%
Planning & Building 328,827 384,437 5,394,439 17% 7%
Public Works 984,064 1,021,055 4,582,746 4% 22%
PB&R 1,331,977 1,332,319 5,453,016 0% 24%
Non-Departmental 358,670 335,734 1,424,300 -6% 24%
Total General Fund
Expenditures 9,423,226 9,371,733 43,447,008 -1% 22%
General Fund
Revenues by Type
Qtr 1
FY2021-22
Qtr 1
FY2022-23
FY2022-23
Budget
% Change
Q1 FY22 vs
Q1 FY23
Qtr 1
% Budget
Received
Property Tax - - 14,837,200 0%
Sales Tax 215,679 219,992 2,775,000 2% 8%
Transient Occupancy Tax 199,661 444,613 2,100,000 123% 21% Other Taxes 694,404 788,761 5,406,200 14% 15%
Department/Program 1,229,296 3,610,493 14,272,798 194% 25% Grants 4,610,511 4,680,934 6,665,165 2% 70%
ERAF 88,000 88,000 88,000 0% 100%
Total General Fund
Revenues 7,037,551 9,832,793 46,144,363 40% 21%
City of Pacifica
Fiscal Year 2022‐23
First Quarter Financial Report
2 accounted for in the first quarter of each fiscal year.
Sales Tax: As of September 30, 2022, the City has
received 8% of its budgeted Sales Tax revenues. There is a two-month lag on the receipt of sales tax revenues, so the 8% only represents one month of allocation
consistent with the prior year.
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 first quarter reflects the TOT receipts for the months of July and
August. The revenues are showing a healthy increase
compared to the prior year, given the post-COVID
recovery of the hotel industry and recent efforts by HdL, the City’s tax consultant, in identifying short-term
rentals and bringing them to compliance.
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, only 15% of the Budget has been received as of September 30, 2022.
Department/Programs: These include building permits,
engineering, and planning fees, fees related to Parks,
Beaches & Recreation programs, and rentals. As of
September 30, 2022, the City received 25% of the
Budget, primarily due to the budgeted $2.1m vehicle
license fee payment backfill received in Q1. Permits and planning fees tend to fluctuate based on the timing of
projects.
Grants: These include police grants and all COVID-19-
related grants. The grant revenues primarily represent
the $4.6 million American Rescue Plan Act allocation
from the State.
Excess ERAF: (Excess Educational Revenue
Augmentation Fund). The FY 2022-23 General Fund
Budget only included $88,000 to fund the community
grant program to local non-profit organizations as
previously directed by the Council.
SUMMARY
Overall, staff is pleased to report that the FY2022-23
Budget is on track, with revenues and expenditures
performing as expected. The City’s operating
expenditures are at 22% of the Budget at the end of
the first quarter. Due to the nature and timing of tax
collection receipts, it is difficult to fully analyze
revenue based on projections after the first quarter
alone. It is also important to understand that these
are only preliminary numbers as additional booking
entries may occur throughout the year and during the
fiscal year-end that may modify some figures
presented in this report.
Future reports for this fiscal year, including the mid‐ year budget review, will provide a better
understanding of the City’s revenue and expenditure
transactions and their fiscal impact on the City. Staff will continue monitoring the City’s economic
conditions and report to City Council any new
information as it becomes available.