CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
8/14/2023
1 SUBJECT:
Quarterly Financial Reports for the quarters ending March 31, 2023 and June 30, 2023.
RECOMMENDED ACTION:
Review and accept the Quarterly Financial Reports for the quarters ending March 31, 2023 and June 30, 2023.
STAFF CONTACT:
Yulia Carter, Assistant City Manager
(650) 738-7402
[email protected] <mailto:[email protected]>
BACKGROUND/DISCUSSION:
Fiscal sustainability remains one of the City Council strategic priorities, which includes planning for and implementing long-term financial health and stability. A key component of this goal includes preparing a quarterly financial report that would provide readers with an executive summary of the City’s current economic conditions related to the annual operating budget.
In FY 2021-22 staff implemented a new financial reporting practice on a quarterly basis to enhance accountability and transparency in managing public funds. This work is especially meaningful as we continue monitoring the post COVID-19 pandemic recovery of the local economy and the City’s financial health.
On June 27, 2022, the City Council adopted the structurally balanced FY 2022-23 Budget.
Finance staff has completed the third and fourth quarter of fiscal year 2022-23, and this report reflects the financial results for those quarters.
The Quarterly Financial Reports 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 operations and fiscal condition. These reports provide an update on the financial status of the City’s General Fund by outlining the revenues and expenditures for the quarters ending March 31, 2023 and June 30, 2023.
The General Fund is the City’s primary operating fund and is used to account for day-to-day activities. It receives unrestricted revenues and provides the City’s general administrative services, law enforcement, fire, public works, parks, beaches and recreation, and community development-related activities such as planning, building, and engineering. Revenue sources include but are not limited to property tax, sales tax, transient occupancy tax (TOT), business registration, and current fees for services such as parking charges, engineering, planning, building permit fees, and recreation services.
Pacifica City Council 2
August 14, 2023
The third and fourth Quarter Financial Reports for the City of Pacifica provide the financial status update of the City’s General Fund by outlining the revenues and expenditures as of March 31, 2023 and June 20, 2023, respectively. The Financial Report is prepared on a cash basis; therefore, only the revenue received by quarter end, are reflected in the analysis.
Likewise, expenditures are recorded when paid using the cash basis method of accounting.
Third Quarter Financial Report
With the completion of the Third Quarter, General Fund Revenues were $34.2 million (69% of budget), and Expenditures were $30.1 million (67% of budget). General Fund Operating expenditures remained on target at the end of the third Quarter.
Additional details on the City’s financial performance as of the end of the third Quarter of the FY 2022-23 are presented in Attachment 1.
Fourth Quarter Financial Report
With the completion of the Fourth Quarter, General Fund Revenues were $49.5 million (94% of budget), and Expenditures were $45.3 million (92% of budget).
General Fund Operating expenditures are on target at the end of the fourth quarter. Overall, staff is pleased to report that the FY 2022-23 Budget is on track with revenues and expenditures performing as expected, validating the assumptions made by staff at the budget adoption.
However, it is important to note again that these are only preliminary numbers, as additional entries will be made as part of closing the fiscal year that will modify these numbers.
Attachment 2 provides additional information on the City’s financial condition as of the end of the Fourth Quarter of the FY 2023-24.
ALTERNATIVE ACTION:
There is no reasonable alternative to this informational item, as not accepting the Quarter Financial Reports will not change the City’s financial condition at the end of each quarter.
RELATION TO CITY COUNCIL GOALS AND WORK PLAN:
This item furthers the City’s efforts toward Enhance Organizational and Fiscal Stability.
FISCAL IMPACT:
There is no fiscal impact associated with the Council’s acceptance of these reports.
ORIGINATED BY:
City Manager's Office
ATTACHMENT LIST:
Attachment 1: Q3 22-23 Quarterly Financial Report(PDF)
Attachment 2: Q4 22-23 Quarterly Financial Report(PDF)