CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
6/10/2024
1 SUBJECT:
Financial Report for the Quarter Ending March 31, 2024
RECOMMENDED ACTION:
Review and accept the Quarterly Financial Report for the Quarter ending March 31, 2024.
STAFF CONTACT:
Yulia Carter, Assistant City Manager
(650) 738-7402
[email protected] <mailto:[email protected]>
Lucy Xie, Deputy Finance Director
(650) 501-6014
[email protected]
BACKGROUND/DISCUSSION:
Organizational and Fiscal Stability remains one of the City Council’s Strategic Goals. This goal includes planning for and implementing long-term financial health and stability. A key component of this goal is preparing quarterly financial reports that would 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 Third Quarter of the Fiscal Year 2023-24, and this report reflects the financial results for the Quarter.
The Third Quarter Financial Report summarizes the City’s General Fund and is not meant to be inclusive of all finance and accounting transactions. It 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 March 31, 2024.
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.
The Financial Report is prepared on a cash basis; therefore, only the revenue received by March 31, 2024, is reflected in the analysis. Likewise, expenditures are recorded when paid Pacifica City Council 2
June 10, 2024
using the cash basis method of accounting.
With the completion of the Third Quarter, General Fund Revenues were $30,015,832 (66% of budget), and Expenditures were $31,064,179 (64% of budget). Compared to the same quarter, last year’s revenues were almost $4.4 million more due to the one-time $4.6 million ARPA funding received in July 2022 for FY2022-23. Compared with the same quarter in FY 2022-23, expenditures were about $2 million higher last year, primarily due to the upfront one-time booking of all budgeted transfers in and out for the entire year. In contrast, in FY2023-24, transfers are now being booked quarterly, and the current report reflects only three-quarters of annual transfers.
The General Fund Operating expenditures are on target at the end of the third quarter, with 64% of the amended budget recorded.
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 third-quarter figures.
ALTERNATIVE ACTION:
There is no reasonable alternative to this informational item, as not accepting the Third Quarter Financial Report will not change the City’s financial condition as of the end of the Quarter ending March 31, 2024.
RELATION TO CITY COUNCIL GOALS AND WORK PLAN:
This item furthers the City’s efforts toward Organizational and Fiscal Stability.
FISCAL IMPACT:
There is no fiscal impact associated with the Council’s acceptance of this report.
ORIGINATED BY:
City Manager's Office
ATTACHMENT LIST:
Attachment 1: Q3 FY23-24 Quarterly Financial Report (PDF)