CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
4/28/2025
1 SUBJECT:
Quarterly Financial Reports for the quarter ending March 31, 2025 RECOMMENDED ACTION:
Review and accept the Quarterly Financial Report for the quarter ending March 31, 2025.
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's 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 Human Resource systems while simultaneously managing daily operations.
The Financial System successfully went live on July 1, 2024. Since then, staff 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 also navigating staffing challenges, including onboarding new employees. With these competing priorities, the preparation of the first quarter financial report was delayed. However, the Finance Department worked diligently to bring the first two quarters for Council’s review on March 10, 2025.
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April 28, 2025
The FY 2024-25 Mid-Year review went to Council on March 10, 2025, for which Council approved all amendments put forth. Combining previously approved adjustments and mid-year adjustments, this amounted to a $171,367 net increase to General Fund revenues and a $755,000 net increase to General Fund expenditures. The original FY 2024-25 Adopted Budget will now be referenced as the FY 2024-25 Amended Budget, in order to incorporate the MidYear amendments.
This 3Q financial report is to report all financial activities recorded in our Financial System from July 1, 2024 to March 31, 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. It provides an update on the financial status of the City’s General Fund by outlining the revenues and expenditures for the first nine months of the fiscal year FY2025.
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.
It is worth mentioning that this report is prepared on a cash basis, meaning only revenues received by March 31st are reflected in the analysis. Similarly, expenditures are recorded when payments are made, following the cash basis method of accounting.
Summary of the Q3 Financial Report
With the completion of the Third Quarter, General Fund Revenues & Transfers In were $34.7 million (72% of budget), and Expenditures & Transfers Out were $32.9 million (69% of budget).
Attachment 1 provides additional information on the City’s financial condition as of the end of the Third 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, after incorporating the Council approved Mid-Year amendments.
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 mid-year budget review (which already occurred) as well as the fiscal year-end closing for audit purposes, which may result in adjustments to these numbers.
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:
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April 28, 2025
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:
Q3 FY2024-25 Quarterly Financial Report - Attachment 1 (PDF)