City of Pacifica
Fiscal Year 2024‐25
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 1, 2024 through June 30, 2025. The City of Pacifica has completed the Fourth Quarter of the Fiscal Year 2024‐25.
The Fourth Quarter Financial Report will summarize the City’s General Fund and is not meant to be inclusive of all finance and accounting transactions that are yet to come subject to final audit. 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 City’s primary operating fund and is used to account for most operational activities. Information presented in this report is unaudited, and additional adjustments may occur during year-end process.
GENERAL FUND
General Fund Financial Condition: This first table provides a snapshot of General Fund Expenditures by department for Q4 FY2023-24 and Q4 FY2024-25, comparing the quarter-over-quarter changes and the percentage of the FY2024- 25 Amended Budget spent as of Q4.
With twelves months data in, General Fund Revenues & Transfers In are at 107% of the FY2024-25 Budget. General Fund Expenditures & Transfers Out are at 99% of projections. Actual revenues exceeded Actual expenditures by $4,452,192, which is really good news for the moment considering the amended budgeted net change in Fund is $568,596. This quarter’s revenues showed an 8% increase compared to the prior year’s fourth quarter revenues. This quarter’s expenditures showed a 10% increase compared to the prior year’s Fourth quarter.
Table 1: General Fund Quarterly Summary as of June 30, 2025
The General Fund Balance as of June 30, 2025, is estimated to be $23,192,642, based on the audited General Fund balance of $18,740,450 as of the end of FY 2023-24 and factoring in year-to-date net change of $4,452,192 as of the end of the fourth quarter.
Expenditures Highlights: Table 2 presents General Fund Expenditures by Department for Quarter 4 (Q4) of Fiscal Year (FY) 2023-24 and FY 2024-25, alongside the amended budget for FY 2024-25. It also includes the percentage change in expenditures between Q4 of both fiscal years and the percentage of the budget spent in Q4 of FY 2024-25.
City of Pacifica
Fiscal Year 2024‐25
Fourth Quarter Financial Report
2 Table 2: General Fund Quarterly Expenditures as of June 30, 2025
General Fund expenditures increased slightly from $45.93 M in Q4 FY23-24 to $47.39M in Q4 FY24-25. At the end of June 30, 2025, 99% of the Amended Budget has been spent suggesting that departments are on track or slightly under budget for the year except Police Department, Fire Department and Public Works Department. At the end of the Fourth Quarter, there is an increase of 3% quarter over quarter for expenditures and transfer out.
General government is about 78% of the budget at Q4 review, a 4% increase from quarter over quarter. This is mostly due to lower expenditures from the legal category and election expenses than the amended budget.
Police Department spend is at 107% of the budget, an 8% increase quarter over quarter, the main reason for the increase is salaries charged to Patrol related services.
Fire Department spend is at 114% of the budget, a little more than what is budgeted for and a 13% increase from quarter over quarter. The main reason being overtime charged for the OES services more than budgeded for about $835K that will be reimbursed. About $243K increase in other expenditures for Fire Department budget are partially also due to the salaries increase from Fire Emergency staffing even though supplies and professional services for Fire in general are under budget.
Community Development spend is currently at 85% of the amended budget. We have been working with the department to develop a mechanism to better budget for the revenue and expenditures regarding the cost reimbursable projects. The quarter over quarter actual is a better measurement, it shows a 17% increase which reflects the increase mainly in Professional services for outside planning consultants.
Public Works has currently spent about 102% of the amended budget: Actual amount is $83K more than the budget and a 4% quarter over quarter increase from salaries and benefits due to some filled positions.
City of Pacifica
Fiscal Year 2024‐25
Fourth Quarter Financial Report
3 PB&R is on budget with 100% of the amended budget spent and a 8% quarter over quarter expenditure increase that is mainly from salaries and benefits .
Non-Departmental is 109% of the budget, and an increase of 61%. About $600K is due to legal litigation.
Transfer Out shows a decrease year over year due to a temporary pause of the transfer out for debt services since the Debt Service fund had enough available cash balance to cover the current years payments.
Overall, the expenditures in General Fund at this time represent 99% of the amended budget, information presented in this report is unaudited, and additional adjustments may occur during year-end process.
Revenues Highlights: Table 3 outlines General Fund Revenues by Type for Q4 FY2023-24 and Q4 FY2024-25, alongside the FY2024-25 Amended Budget and percentage changes.
Table 3: General Fund Quarterly Revenues as of June 30, 2025
The following is a summary of revenues as of the end of the 4th Quarter:
General Fund revenues (including transfers in) increased from $47.79M in Q4 FY23-24 to $51.85M in Q4 FY24-25, an 8% increase quarter over quarter. 107% of the Amended Budget has been collected or accrued, indicating strong revenue performance. Information presented in this report is unaudited, and additional adjustments may occur during year-end process.
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 on December 14, 2024. The second installment of the property tax payment was remitted in April. We saw a 2% increase for property tax revenue in quarter over quarter comparison City of Pacifica
Fiscal Year 2024‐25
Fourth Quarter Financial Report
4 that is in line with the estimate.
Sales Tax and Measure Y: The City has received/accrued respectively 92% and 96% of the budgeted Sales and Measure Y sales Tax revenues. There is a two-month lag on the receipt of sales tax revenues. As of this report, we have accrued July cash receipts back in FY2025 revenue. After August 31, the City could will accrue revenue from August receipts, and there could be some catch-up receipts for the sales tax category.
Transient Occupancy Taxes (TOT): TOT revenue saw a 12% increase quarter over quarter. TOT revenues are remitted approximately 30 days after the end of each month. As we have accrued the July receipts back to FY 2025, the Fourth Quarter reflects the TOT receipts for the whole year. Economy-driven revenues like TOT are very sensitive to the market and economy, however both the STR and Hotel categories have exceeded the budget for the year.
Other Taxes: These include five categories: Franchise tax, Business License, Utility Users Tax, Vehicle License Fee, and Cannabis Operations Tax. Payments for most of these taxes are remitted 30 days after the end of the month. 92% of the Budget has been received as of June 30, 2025.
Franchise Tax seems to see a decline of 4% quarter over quarter and needs to be monitored/researched, and only 98% of budet is collected.
Business License Tax is on target with 103% of the budget and 1% increase for quarter over quarter comparison.
Utility Users Tax is the second largest revenue source in the Other Taxes category with a budget of $2.8 million and is already 129% collected. The 35% quarter over quarter increase of UUT from mainly PG&E is in line with the increase of city wide for the gas and electricity invoice payments as PG&E increases their rates.
Vehicle License Fee (VLF) in Lieu (property tax in lieu of VLF) is the largest in the other tax catgory. It is 105% of the budget and sees a 25% increase quarter over quarter. It includes revenue includes a one-time backfill payment of $1,450,027 from the state for the VLF shortfall in FY 22-23 received in August 2024, FY2024-2025 distribution of $1,635,643 in December 2024 and FY2025 distribution of $1,685,486 in April 2025. The next remittance is likely to happen around August 2025 for the backfill of the FY2024 VLF.
Cannabis Tax has only received 88% of the budgeted revenues and there is a decrease of 17% quarter over quarter comparison. The Amended Budget included some reductions to this revenue category given current economic trends.
Excess ERAF: (Excess Educational Revenue Augmentation Fund). The FY2024-25 General Fund Budget only included $145,000 to fund the community grant program to local non-profit organizations as previously directed by the Council.
It was recorded when the first payment of ERAF came in January. The remainder of the FY2024-25 Excess ERAF Allocation is shared equally in the Disaster Accounting and Housing Funds as per Council approval for respective uses.
Grants: These include police grants, fire OES reimbursements, as well as PBR child care and senior grants. The grant revenues showed a 171% collection and a 37% increase for quarter over quarter comparison, mostly because of prior years disbursements from FY2022 and FY2023 for the child care program in the amount of $1,455,620 after filing the child care audit reports with the State.
Investment Earnings: Investment earnings such as interest income continue to be doing well, with favorable interest rate returns on bank deposits strategically managed by staff. However, the interest shown here will be reallocated through a year end interest allocation journal to other funds to give all funds a fair share of the earnings from the pooled cash investment. This interest allocation entry will be analyzed and booked in early September.
City of Pacifica
Fiscal Year 2024‐25
Fourth Quarter Financial Report
5 Department/Programs: These include building permits, engineering and planning fees, fees related to Parks, Beaches & Recreation programs, and rentals, and the first two quarterly transfer-ins from other funds for cost recovery needs.
As of June 30, 2025, the City received 99% of the budget. The quarter over quarter sees a decrease of 3% revenues.
Overall, permits and planning fees tend to fluctuate based on the timing of projects.
SUMMARY
The City’s total General Fund expenditures are at 99% of the budget at the end of the fourth quarter, and the City’s total General Fund revenues are at 107% of the budget at the end of the fourth quarter. Overall, staff is pleased to report that the FY2024-25 budget is on track, with revenues and expenditures performing as expected and, in certain cases, a little better than expected, leading to a positive estimated net change of $4,452,192.
It is important to note that the figures presented in this report are preliminary, as additional booking entries may be recorded during year-end closing. Nonetheless, it is encouraging to observe that the budget remains on track as of the end of the fourth quarter.