City of Pacifica
Fiscal Year 2022‐23
Fourth Quarter Financial Report
1 OVERVIEW
This Fourth Quarterly Financial Report is an analysis of the unaudited financial status of the City’s General Fund from July 2022 through June 2023. The City of Pacifica
has completed the Fourth Quarter of the Fiscal Year
2022‐23. The Fourth 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 all of the year
complete, General Fund Expenditures are at 92% of
projections, and revenues are at 94% of the FY2022-23
Budget. These figures exclude budgeted once-a-year
operating and capital transfers, and some routine year
end journal entries and accruals to be posted as part of closing the fiscal year books. Revenue exceeded
expenditures for the Fourth Quarter, which includes the budgeted $4.6m COVID-related ARPA grant funding.
This year’s outlook is better than the prior year with
total revenue coming in at $49.5 million compared to
$39.7 million in the prior year. Both expenditures and
revenues are explained in more detail below.
*Excludes operating and capital transfers
The General Fund Balance as of June 30, 2023, is
$18,678,367 (including net budgeted transfers in and
out). This is based on the audited fund balance as of the end of the fiscal year 2021-22, and includes budgeted
transfers and factors in year‐to‐date revenue and
expenditures.
Expenditures. Departmental operating expenditures
are on target at the end of the Fourth Quarter. The
Fire department is 6% over the budget, due to the
overtime cost being more than was budgeted.
However, the City typically does not budget for
overtime expenses related to regional wildfire services, although they are subject to CalOES reimbursements
from the State each year. The Planning Department’s
expenditures are low due to the timing of the costreimbursable expenses. General Government is lower due to vacancies and Non-Departmental are on target
with 88% spent of the Budget.
The following chart summarizes year-to‐date
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. The first installment of the Property
Tax payment was remitted to the City by the County
of San Mateo in December 2022, which was a healthy
General Fund Qtr 4
FY2021-22
Qtr 4
FY2022-23
FY2022-23
Budget
% Change
Q4 FY22 vs
Q4 FY23
Qtr 4
% Budget
Revenues 46,628,333 49,546,470 18% 94%
Expenditures 36,871,064 41,833,352 45,330,846 13% 92%
General Fund
Expenditures by
Department
Qtr 4
FY2021-22
Qtr 4
FY2022-23
FY2022-23
Budget
% Change
Q4 FY22 vs
Q4 FY23
Qtr 4
% Budget
General Government 6,091,684 6,860,599 7,911,434 13% 87% Police Department 10,352,101 11,452,380 11,506,318 11% 100% Fire Department 7,575,879 8,280,119 7,821,755 9% 106%
Planning & Building 2,953,719 2,916,124 5,394,439 -1% 54% Public Works 4,250,202 4,981,801 5,101,675 17% 98%
PB&R 4,679,330 5,643,867 5,658,925 21% 100%
Non-Departmental 968,148 1,698,463 1,936,300 75% 88%
Total General Fund
Expenditures 36,871,064 41,833,352 45,330,846 13% 92%
General Fund
Revenues by Type
Qtr 4
FY2021-22
Qtr 4
FY2022-23
FY2022-23
Budget
% Change
Q4 FY22 vs
Q4 FY23
Qtr 4
% Budget
Property Tax 13,520,798 15,679,684 15,510,000 16% 101%
Vehicle Lic. Fees in Lieu 1,892,139 5,870,043 6,986,807 210% 84% Measure Y - 84,808 650,000
Sales Tax 2,843,566 2,427,607 3,000,000 -15% 81%
Transient Occupancy Tax 1,610,725 3,028,652 2,643,000 88% 115% Other Taxes 5,006,948 5,330,043 5,556,800 6% 96%
Department/Program 8,656,105 8,508,164 8,446,698 -2% 101% Grants 5,802,301 5,611,332 6,665,165 -3% 84%
ERAF 88,000 88,000 88,000 0% 100%
Total General Fund
Revenues 39,420,582 46,628,333 49,546,470 18% 94%
39,420,582
City of Pacifica
Fiscal Year 2022‐23
Fourth Quarter Financial Report
2 7.14% increase from the prior year first installment. The second large installment was received in April 2023. The City has received roughly 101% of the budgeted Property Tax revenue through June 30, 2023. Property tax was
estimated to increase of 6.4% from the prior year so
current year actual exceeds the budgeted revenue
projections.
Vehicle License Fee (VLF) in Lieu: VLF is a property tax in lieu of VLF. This revenue line includes a one time
backfill payment of $2.0 million from the state for the VLF shortfall in FY 20-21. The City the full allocation for the current year.
Measure Y: Measure Y is a ½ cent Transaction & Use Tax
that was passed by the voters in the City of Pacifica in November 2022. The tax became effective April 1, 2023
and has received $88,808 in the fourth quarter,
which does not include all accruals that will be added as part of the year-end process.
Sales Tax: As of June 30, 2023, the City has received
81% of its budgeted Sales Tax revenues. There is a twomonth lag on the receipt of sales tax revenues, so the 81% only represents ten months of allocation
consistent with the prior year and is on track with the budget.
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 TOT receipts for the months of July through May. The revenues are showing a
substantial increase compared to the prior year,
given the post-COVID recovery of the hotel industry,
a new renovated Hotel reopening, and recent efforts
by HdL, the City’s tax consultant, in identifying shortterm 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 96%
of the Budget has been received as of June 30, 2023.
Utility Users Tax is the largest revenue source in the
Other Taxes category
with a budget of $2.4 million and 125% collected as
of June 2023. Franchise Tax is the second largest
source for this category with a $1.7 million budget,
with only 43% collected to date. An accrual for
the last payment from PG&E will be done as part of
the year-end, making this budget right on target.
Department/Programs: These include
building permits, engineering, and planning fees,
fees related to Parks, Beaches & Recreation
programs, and rentals. As of June 30, 2023, the
City received 101% of the Budget, which is
reasonable and can be considered on budget
with few late payments expected to be collected
in the next quarter. Permits and planning fees
tend to fluctuate based on the timing of projects.
Building and planning permits revenues are coming
significantly below the budget due to the timing of
the cost recovery process. Staff will use this year's
data to further review the expected cost recovery
activity to be accurately reflected in the future
budget work.
Grants: The grant revenues primarily represent
the $4.6 million American Rescue Plan Act
allocation from the State. Grants also includes police
and PB&R grants.
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.
The remainder of the Excess ERAF Allocation is
reported in the Disaster Accounting Fund.
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 92% of the
Budget at the end of the Fourth Quarter. 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. However, it is encouraging that the
budget appears to be on target at the end of the
Fourth Quarter.