CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
3/10/2025
1 SUBJECT:
Quarterly Financial Reports for the quarters ending September 30, 2024 and December 31, 2024
RECOMMENDED ACTION:
Review and accept the Quarterly Financial Reports for the quarters ending September 30, 2024 and December 31, 2024
STAFF CONTACT:
Marisol Gómez, Director of Finance and Administrative Services (650) 501-0257
[email protected]
Lucy Xie, Deputy Finance Director
(650) 501-6014
[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 24, 2024, the City Council adopted the FY2024-2025 Budget.
In September 2023, the Finance Department began implementing a new ERP system for the City’s Financial and HRM systems while simultaneously managing daily operations. The Financial System successfully went live on July 1, 2024. Since then, our team has been actively engaged in system training, addressing system adjustments, and completing conversion entries from the GEMS legacy system to the new financial system.
Additionally, Finance has been conducting the year-end audit, which went to Council while navigating staffing challenges, which included onboarding new employees. Given these competing priorities, the preparation of the first quarter financial report has been delayed.
The Finance Department has worked diligently in order to bring both quarters forward for Council’s review.
Pacifica City Council 2
March 10, 2025
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 September 30, 2024 and December 31, 2024.
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 First and Second Quarter Financial Reports provide an update on the financial status of the City’s General Fund, outlining revenues and expenditures as of September 30, 2024, and December 31, 2024, respectively.
These reports are prepared on a cash basis, meaning only revenues received by the end of each quarter are reflected in the analysis. Similarly, expenditures are recorded when payments are made, following the cash basis method of accounting.
First Quarter Financial Report
With the completion of the First Quarter (9/30/2024), General Fund Revenues and Transfers In were $6.8 million (14% of budget), and Expenditures & Transfers Out were $9.4 million (20% of budget).
Additional details on the City’s financial performance as of the end of the First Quarter of the FY 2024-25 are presented in Attachment 1.
Second Quarter Financial Report
With the completion of the Second Quarter, General Fund Revenues & Transfers In were $25.1 million (52% of budget), and Expenditures & Transfers Out were $20.8 million (44% of budget).
Attachment 2 provides additional information on the City’s financial condition as of the end of the Second Quarter of the FY 2024-25.
Overall, staff is pleased to report that the FY 2024-25 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 figures are preliminary. Additional entries will be made as part of the routine review and analysis process, particularly during the midyear budget review as well as the fiscal year-end closing for audit purposes, which may result in adjustments to these numbers.
Pacifica City Council 3
March 10, 2025
Staff are working to bring the Mid-Year Budget Review to Council in March.
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:
Finance Department
ATTACHMENT LIST:
Q1 FY2024-25 Quarterly Financial Report - Attachment 1 (PDF) Q2 FY2024-25 Quarterly Financial Report - Attachment 2 (PDF)