CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
2/26/2024
1 SUBJECT:
Quarterly Financial Report for the Quarter ending December 31, 2023 RECOMMENDED ACTION:
Review and accept the Quarterly Financial Report for the Quarter ending December 31, 2023.
STAFF CONTACT:
Yulia Carter, Assistant City Manager
(650) 738-7402
[email protected]
Lucy Xie, Deputy Finance Director
(650) 501-6014
[email protected]
BACKGROUND/DISCUSSION:
Fiscal Sustainability remains one of the City Council’s Strategic Goals, which includes planning for and implementing long-term financial health and stability. A key component of this goal includes preparing a quarterly financial report to provide readers with an executive summary of the City’s current economic conditions related to the annual operating budget.
On June 26, 2023, the City Council adopted the structurally balanced FY 2023-24 Budget.
Finance staff has completed the second Quarter of the Fiscal Year 2023-24, and this report reflects the financial results for the Quarter.
The Second Quarter Financial Report summarizes 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. This report provides an update on the financial status of the City’s General Fund by outlining the revenues and expenditures for the Quarter ending December 31, 2023. The Financial Report is prepared on a cash basis; therefore, only the revenue received by December 31, 2023, is reflected in the analysis. Likewise, expenditures are recorded when paid using the cash basis method of accounting.
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
February 26, 2024
With the completion of the Second Quarter, General Fund Revenues were $21,065,657 (43% of budget), and Expenditures were $20,627,353 (42% of budget). Compared with the same quarter, last year’s revenue was almost $5.2 million higher due to the one-time $4.6 million ARPA funding received in FY2022-23.
General Fund Operating expenditures are on target at the end of the second Quarter. All departments are within 50% of the budget.
Overall, staff is pleased to report that the FY 2023-24 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 that these are only preliminary numbers, as additional booking entries may occur throughout the year and during the fiscal year-end, which may modify some of the second quarter figures. Staff will continue monitoring the City’s economic conditions and will use the data presented in this quarter for a more in-depth FY 2023-24 MidYear Budget review that is currently underway and will be presented to Council in March.
ALTERNATIVE ACTION:
There is no reasonable alternative to this informational item, as not accepting the Second Quarter Financial Report will not change the City’s financial condition as of the end of the Quarter ending December 31, 2023.
RELATION TO CITY COUNCIL GOALS AND WORK PLAN:
This item furthers the City’s efforts toward Organizational and Fiscal Stability.
ORIGINATED BY:
City Manager's Office
ATTACHMENT LIST:
Q2 23-24 Quarterly Financial Report - Attachment 1(DOCX)