PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #9.E
SUBJECT/TITLE:
FISCAL YEAR 2024 FIRST QUARTER FINANCIAL STATUS REPORT
RECOMMENDATION:
No action recommended; for information only.
EXECUTIVE SUMMARY:
This report updates the City Council on the status of Fiscal Year (FY) 2023-24 ending on June 30, 2024, or FY 2024, financial status based on actual revenues and expenditures during the first three months of the fiscal year.
Overall, the City of Pismo Beach’s funds are projected to be financially stable, with sufficient fund balances. The FY 2024 ending General Fund unassigned fund balance is projected to be $3.93 million, which is $13.05 million less than the FY 2023 ending unassigned fund balance. This decrease is largely due to the projected spending of various large capital projects, including $4.32 million for the Public Safety Facility project and $2.83 million for the current Paving Project, drawing down from the beginning unassigned fund balance.
For most of the City’s other funds, revenues and expenditures are projected to be on budget and the ending fund balances are in line with the FY 2025 Adopted Budget beginning fund balances. In all the funds, there are sufficient fund balances and projected revenues to cover projected expenditures.
It should be noted that the FY 2023 actual revenues and expenditures are not yet final as staff continues to confirm those amounts in the process of completing the City’s FY 2023 financial statements. As such, the FY 2023 projected beginning fund balances in this report are not yet final and may change in future reports to reflect the final minor adjustments.
The following sections provide details of the General Fund financial picture, followed by a summary and highlights of the City’s other funds.
I. General Fund Budget Summary
In summary, based on early projections from the first three months of the fiscal year, the General Fund is projected to end FY 2024 with a $3.93 million unassigned fund balance.
The FY 2024 projected $3.93 million unassigned fund balance is $562 thousand less than the FY 2023 Revised Budget. This decrease is attributable to $462 thousand fewer projected operating revenues compared to the Revised Budget and $100 thousand fewer projected one-time revenues compared to the Revised Budget.
9.E-1Council Agenda 11-7-2023
The unassigned fund balance is used to pay for future one-time investments included in the FY 2024 budget and in the 10-year Capital Improvement Plan.
In addition to the General Fund unassigned fund balance, the General Fund includes the Budget Stabilization Reserve set-aside of $2.00 million and a CalPERS Pre-Payment set- aside of $1.00 million.
Table 1 is a summary of the FY 2023 preliminary actuals and the FY 2024 General Fund revised budget, projected actuals, and a variance comparing the budget to projected actuals.
Table 1: FY 2024 General Fund Budget Summary
II. General Fund Beginning Fund Balance
The General Fund beginning fund balance is comprised of two different components:
The unassigned fund balance, which are funds that are not committed for any specific purpose and could be used for various one-time projects, and The committed or carryforward fund balance, which are funds that are committed for a specific budgeted use.
As illustrated in Table 2, the FY 2024 Adopted Budget General Fund beginning fund balance was projected to be $12.26 million. Based on changes during FY 2023 and carrying forward fund balance to cover previously budgeted but not-yet-spent expenditures, the preliminary estimated fund balance is revised to $25.03 million. This AB CD = C - B
($ thousands)
FY 2023
Actuals
FY 2024
Revised
Budget
FY 2024 Year-
End Projected
Actuals
Variance
(Actuals-
Budget)
Unassigned Fund Balance 8,469$ 19,236$ 19,236$ -$ Committed Fund Balance 17,259 5,798 5,798 - a Beginning Fund Balance 25,727 25,034 25,034 - b Operating Revenues 32,544 32,099 31,637 (462) c Operating Expenditures 24,740 30,149 30,149 - d = b - c Net Operating Surplus/(Deficit) 7,804 1,950 1,488 (462) e One-time Revenues 337 534 434 (100) f One-time/Capital Expenditures 8,098 21,778 15,258 (6,520) g =
a+d+e-f Ending Fund Balance 25,770$ 5,739$ 11,698$ 5,958$ Unassigned Fund Balance 16,976$ 4,489$ 3,928$ (562)$ Committed Fund Balance 5,798 - 6,520 6,520 Contribution to Reserves 996 (1,750) (1,750) - Budget Stabilitation Set-Aside 2,000 2,000 2,000 - CalPERS Pre-Payment Set-Aside 1,000 1,000 -
9.E-2Council Agenda 11-7-2023
includes $19.24 million of unassigned fund balance and $5.80 million of carryforward fund balances.
Table 2: FY 2024 General Fund, Beginning Fund Balance
(Preliminary Estimate)
III. General Fund Reserve
The City maintains various General Fund reserves totaling $5.95 million for emergency operations, building depreciation, and risk management. These reserves are crucial in order to avoid disrupting the City’s operations following unanticipated events. The reserves are shown in Table 3, followed by a summary of each reserve.
Table 3: General Fund Reserves
Reserve Amount ($ thousands)
General Fund 25% Reserve $5,199
City Building Reserve 500
Risk Management Reserve 250
Total $5,949
General Fund 25% Reserve
The City has adopted a fiscal policy to fund a General Fund Reserve of 25% of General Fund budgeted annual operating expenditures for FY 2024. The General Fund reserve should be equal to $7.36 million, which is 25% of the total FY 2024 budgeted annual operating expenditures of $29.42 million. On October 17, 2023, the City Council adopted Resolution R-2023-081 allocating $2.00 million of the General Fund Reserve to support the Public Safety Facility project. Currently, the General Fund Reserve is $5.20 million, which reflects $2.00 million already allocated to the Public Safety Facility project. Of this $5.20 million, $5.15 million is invested in various securities and $45 thousand is pending investment. This reserve allows the City to maintain its operations for a few months in the event that an emergency or disaster impacts the City’s finances, and can also be used for emerging opportunities. The City Treasurer will be investing an additional $250 thousand during FY 2024 and FY 2025 to get back to fully funding the General Fund Reserve over time.
($ thousands)
Adopted
Budget
Budget
Revisions Actuals
Unassigned Fund Balance 12,263$ 6,973$ 19,236$
Capital Funds Carryforward 5,114 5,114
Purchase Orders Carryforward 615 615
Prepayment Carryforward 69 69
Total Fund Balance 12,263$ 12,771$ 25,034$
$5,798
Carryforward
9.E-3Council Agenda 11-7-2023
City Building Reserve
The City Council created a City Building Reserve of $500 thousand, for the maintenance and upkeep of City facilities and buildings, particularly if funds are not available. This amount is equal to five years of annual depreciation on City-owned buildings.
Risk Management Reserve
The City Council established a Risk Management Reserve, contributing $50 thousand each year to the budget for unanticipated risk management costs. This reserve has a balance of $250 thousand, which is the maximum contribution level.
IV. General Fund Revenues
The FY 2024 Revised Budget revenues total $32.63 million. FY 2024 projected actual revenues are $32.07 million, or $562 thousand less than budget. Compared to the previous year, FY 2024 projected actual revenues are $810 million, or 2.5% less than FY 2023. This decrease over the prior year is largely due to a projected reduction of $775 thousand in Transient Occupancy Tax revenues compared to the previous fiscal year based. Table 4 summarizes the General Fund revenue budget and projected actual revenues for FY 2024, which is followed by a brief discussion of the top three FY 2024 projected actual sources of revenues.
Table 4: FY 2024 General Fund Revenue Budget and Projected Actuals
Transient Occupancy Tax (TOT) revenues are projected to be $798 thousand less than budget and are projected to be $775 million, or 5.0%, less than the previous year’s TOT revenues. TOT revenues are generated by charging 11% of the rent for all lodging businesses that provide occupancy for a period of 30 consecutive days or A B C D = C - B E = C - A F = C/A-1
($ thousands)
Revenue Category
FY 2023
Actuals
FY 2024
Revised
Budget
FY 2024
Projected
Actuals
Variance
(Projected
Actuals -
Revised
Bdgt)
Variance
(FY24 Proj
Act - FY23
Actuals)
% Variance
(FY24 Proj
Act v FY23
Actuals)
Proj
Actual
% of
Total
Transient Occupancy Tax 15,481$ 15,505$ 14,707$ (798)$ (775)$ -5.0% 45.9% Property Related Taxes 7,046 7,009 7,071 62 25 0.4% 22.0% Sales and Use Tax 4,041 3,835 3,835 - (206) -5.1% 12.0% Other revenues 2,121 2,200 2,200 - 80 3.7% 6.9% Permits 1,336 1,241 1,336 95 - 0.0% 4.2% Departmental Revenues 865 893 893 - 28 3.3% 2.8% Franchise Taxes 800 698 800 103 - 0.0% 2.5% Business Tax 291 244 291 47 - 0.0% 0.9% Transfers In 140 140 140 - - 0.0% 0.4% Other Taxes 170 139 170 31 - 0.0% 0.5% Other Finan Sources 114 87 87 - (26) -23.1% 0.3% Intergovernmental Revenue 85 70 70 - (15) -17.8% 0.2% Grants 54 37 37 - (17) 0.0% 0.1% Total Operating Revenues 32,544$ 32,099$ 31,637$ (462)$ (907)$ -2.8% 98.6% One-time Revenues 337 534 434 (100) 97 28.8% 1.4% Total Revenues 32,880$ 32,632$ 32,071$ (562)$ (810)$ -2.5% 100.0%
9.E-4Council Agenda 11-7-2023
less. This decrease in TOT revenues reflects an average 4.5% decline in TOT revenues received in the first two months of the fiscal year and a projected 5.0% decrease for the year in FY 2024 compared to FY 2023. Staff projects another rainy winter with room rates at reduced rates and level occupancy. Chart 1 further illustrates FY 2024 TOT revenues collected in comparison to FY 2023.
Chart 1. TOT Revenues FY 2024 compared to FY 2023
Data obtained from Smith Travel Research Inc., a provider of competitive benchmarking, information services, and research to the hotel industry, indicates that the decrease in TOT revenues is largely due to a decrease in the average daily room rate and occupancy rates. On average, the average daily rate decreased by 5.8% during the first quarter of FY 2024, compared to the same period in FY 2023.
Additionally, occupancy rates decreased by 2.5% during the first quarter of FY 2024, compared to the same period in the previous fiscal year.
Based on these trends, staff projects that TOT revenues will reach $14.71 million, representing a $798 thousand shortfall from the budgeted amount, and a 5.0% decrease, or $775 thousand decrease, from the previous year's TOT revenues.
Property-related tax revenues are projected to be $62 thousand greater than budget and $25 thousand, or 0.4%, greater than previous year’s property-related tax revenues. There are two sources of property-related tax revenues:
o Property Tax Assessed Value revenues: equivalent to 1% of assessed values o Property Tax In-Lieu of Vehicle License Fees: 1% tax on the market value of a registered vehicle.
Assessed value cannot increase by more than 2.0% per year per Section 2 of Article XIIIA of the California Constitution. However, the San Luis Obispo County Auditor- -
500,000
1,000,000
1,500,000
2,000,000
2,500,000
TO
T
A
m
o
u
n
t
FY 2024
FY 2023
9.E-5Council Agenda 11-7-2023
Controller’s office is projecting assessed values to increase by 1.0%, reflecting a slower rate of increase than in previous fiscal years.
Sales and Use Tax revenues are projected to be equal to budget and $206 thousand, or 5.1%, less than the prior year. Sales and use tax revenues are made up of two sources:
o Bradley-Burns uniform sales and use tax, which is a 1.0% tax on taxable sales within the City.
o Public safety tax, which is a 0.5% tax on taxable sales for specified public safety purposes.
Based on actual sales tax received to date, the Bradley-Burns uniform sales and use tax is expected to be equal to budget, but $206 thousand less than the prior year.
Based on actual revenues received to date and projections from the City’s sales tax consultant, City staff estimates that Bradley-Burns sales and use tax revenues will be $3.71 million. This reflects a decline in both consumers due to projected decline in visitors and a reduction in consumption due to higher prices. Chart 2 illustrates sales tax revenues received in FY 2023 and FY 2024 by the month in which the sales tax was collected.
Chart 2. Bradley Burns Sales Tax Revenues FY 2024 compared to FY 2023
The public safety sales tax revenues are budgeted at $125 thousand in FY 2024 and are anticipated to be equal to budget. This FY 2024 projected amount is $3 thousand less than the FY 2023 public safety sales tax revenues.
In summary, sales and use tax revenues are projected to be equal to budget and $206 thousand, or 5.1%, less than the prior year.
$‐
$100,000
$200,000
$300,000
$400,000
$500,000
Sa
l
e
s
Ta
x
Am
o
u
n
t
Sales Tax 1.0% of taxable sales
FY 2023
FY 2024
9.E-6Council Agenda 11-7-2023
V. General Fund Expenditures
The FY 2024 Revised Budget expenditures total $51.93 million and projected actual expenditures total $45.41 million. Operating expenditures are projected to be equal to the Revised Budget based on first quarter expenditures. One-time capital costs are projected to be $6.52 million less than budget largely attributable to the timing of cash flow for the Paving project and the Public Safety Facility project that is anticipated to continue beyond FY 2024. These savings will be carried forward to next fiscal year and do not contribute to an increase in fund balance.
Total operating expenditures for the first quarter total should be about 25% of the budget, assuming the timing of expenditures is consistent throughout the year. This year, about 22% of the operating budget has been spent in the first quarter, while only 2% of the one- time capital expenditure budget has been spent in the first quarter. These one-time costs are dependent on the timing of construction of these projects. Table 5 provides details of actuals as a percentage of budget by expenditure category, followed by explanations of the large variances from the 25% mark.
Table 5. FY 2024 General Fund Expenditure Budget and Projected Actuals
Some operating costs that do not reflect consistent monthly spending include:
Benefits, which includes retirement, health, and other benefits for employees. In order to take advantage of a 3% savings in CalPERS pension costs, the City prepaid the full year of its projected normal CalPERS pension costs. As such, the Benefits expenditure category reflects that 28% of the budget spent in the first quarter. Contract Services, which reflects that 33% was spent in the first quarter. These costs reflect the prepayment of insurance costs in the first quarter. Professional Services, which reflects that 16% was spent in the first quarter. These costs are based on the timing of work performed and are not set amounts per month.
A B C D = C/B E F = B - E
($ thousands)
Expenditure Category
FY 2022
Actuals
FY 2023
Revised
Budget
FY 2023
First Quarter
Actuals
First Quarter
Actuals % of
Budget
FY 2023
Projected
Actuals
Variance
(Revised
Bdgt -
Projected
Actuals)
Proj
Actual
% of
Total
Salaries & Wages 8,350$ 10,046$ 2,107$ 21% 10,046$ -$ 22.1% Benefits 5,144 5,580 1,559 28%5,580 - 12.3% Professional Services 4,342 4,834 765 16%4,834 - 10.6% Contract Services 2,805 3,735 1,219 33%3,735 - 8.2% Operations & Maintenance 1,367 1,577 290 18%1,577 - 3.5% Other Expenses 980 1,450 325 22%1,450 - 3.2% Other Financing Uses 143 1,128 87 8%1,128 - 2.5% Transfers Out 717 811 151 19%811 - 1.8% Retiree Medical Insurance 443 431 49 11%431 - 0.9% Debt Service 432 429 - 0%429 - 0.9% Total Operating Expenditures 24,740$ 30,149$ 6,552$ 22% 30,149$ -$ 66.4% One-time Capital Costs 8,098 21,778 336 2% 15,258 6,520 33.6% Total Expenditures 32,838$ 51,927$ 6,888$ 13% 45,407$ 6,520$ 100.0%
9.E-7Council Agenda 11-7-2023
Other Financing Uses, which includes a $1.00 million general contingency budget and reflects that only 8% of the budget has been spent in the first quarter. This budget is allocated over time based on unanticipated costs that come up throughout the year and are not a consistent allocation of expenditures.
Retiree Medical Insurance costs, which reflects that 11% of budget was spent in the first quarter. The monthly costs are payments to Retirees, but the majority of these payments are contributions to CalPERS for the actuarially determined contribution and are paid toward the end of the fiscal year.
VI. General Fund Contingency Budgets
General Contingency
The FY 2024 Adopted Budget included $1.00 million in the General Fund general contingency account that may be used for various one-time items that come up during the year. None of this contingency has been allocated in the first quarter of FY 2024.
Council Contingency
The FY 2024 Adopted Budget also includes a $5 thousand City Council contingency appropriation that may be used for various one-time items that come up during the year.
None of this contingency has been allocated in the first quarter of FY 2024.
VII. Next Level Budget
The FY 2024 Adopted Budget includes $400 thousand in the General Fund non- department contract services account that may be used for various “next-level” contract services. None of this budget has been allocated in the first quarter of FY 2024.
9.E-8Council Agenda 11-7-2023
VIII. Other Funds
Table 6 reflects fund balance, projected revenue, and projected expenditure activity in the City’s other funds. For most funds, revenues and expenditures are projected to be on budget and the ending fund balances are in line with the FY 2025 Adopted Budget beginning fund balances.
Table 6. Other Funds
AB CD = B ‐ CE = A + DFG = E ‐ F
Fund
Type Fund Fund Title
Beginning
Fund Balance
Projected
Actual Revenue
Projected Actual
Expenditure Net Rev ‐ Exp
Projected
Ending Fund
Balance Carryforward
Unrestricted
Fund Balance
General Operating Funds
1001 General Fund 25,033,776 32,070,764 45,406,719 (13,335,955) 11,697,820 6,519,909 3,427,911 1002 Half‐Cent Sales Tax Fund 3,205,576 2,018,396 1,852,888 165,508 3,371,084 1,389,000 1,982,084 Special Revenue Funds
2001 Gas Tax Fund 300,722 439,829 442,201 (2,372) 298,350 ‐ 298,350 2002 Local Transportation 415,770 278,240 305,535 (27,295) 388,475 ‐ 388,475 2003 PEG Fund 73,720 40,187 41,736 (1,549) 72,171 ‐ 72,171 2004 Grants‐NonCapital 62,847 101,911 137,888 (35,977) 26,870 ‐ 26,870 2005 Housing In Lieu Fee 4,047,150 91,162 2,653,130 (2,561,968) 1,485,183 ‐ 1,485,183 2006 LBID Operations 970,078 1,418,096 1,734,347 (316,251) 653,827 ‐ 653,827 2006 LBID Improvements 834,712 1,418,096 1,222,084 196,012 1,030,724 ‐ 1,030,724 2007 Chapman Estate 78,323 998,225 1,013,964 (15,739) 62,584 ‐ 62,584 Capital Project Funds
3001 Capital Projects 738,719 73,654,274 71,742,658 1,911,615 2,650,334 2,650,334 ‐ 3002 Public Facilities Fund 844 ‐ ‐ ‐ 844 ‐ 844 3003 Park Development Fund 336,724 32,270 230,466 (198,196) 138,528 ‐ 138,528 3101 Circulation Fees 289,386 4,440 250,039 (245,599) 43,787 ‐ 43,787 3102 Impact Fees 758,681 12,345 879 11,466 770,147 ‐ 770,147 3103 Developer Impact Fee 56,352 ‐ ‐ ‐ 56,352 ‐ 56,352 3201 Underground Utility Fnd 15,890 ‐ ‐ ‐ 15,890 ‐ 15,890 Debt Service Funds
4001 PFA Debt Service ‐ 3,757,225 3,757,225 ‐ ‐ ‐ ‐ 4002 PF Agency Debt 893 704,530 704,530 ‐ 893 ‐ 893 4101 Reass 92‐1 Fwy Fthlls 735 ‐ ‐ ‐ 735 ‐ 735 4102 Spyglass 92‐4 12,239 ‐ ‐ ‐ 12,239 ‐ 12,239 Enterprise Funds
6101 Water Enterprise 8,492,793 7,161,882 9,651,318 (2,489,436) 6,003,357 6,003,357 ‐ 6102 Water Tax (Lopez/State) 296,671 2,385,732 2,395,720 (9,988) 286,683 286,683 ‐ 6103 Water Construction Fund 1,257,703 4,099,301 4,150,039 (50,738) 1,206,965 1,206,965 ‐ 6104 Water Expansion Fund 805,404 8,697 ‐ 8,697 814,101 814,101 ‐ Water Enterprise Funds 10,852,570 13,655,612 16,197,077 (2,541,465) 8,311,105 8,311,105 ‐ 6201 Wastewater Treatment 9,219,597 5,805,610 13,402,670 (7,597,060) 1,622,537 1,622,537 ‐ 6202 Wastewater Capital Proj 1,349,394 2,371,215 2,711,647 (340,432) 1,008,962 1,008,962 ‐ 6203 Wastewater Expansion 1,863,327 828,327 ‐ 828,327 2,691,654 2,691,654 ‐ Wastewater Enterprise Fund 12,432,318 9,005,152 16,114,317 (7,109,165) 5,323,153 5,323,153 ‐ 6301 Local Trans Transit 27,158 ‐ ‐ ‐ 27,158 27,158 ‐ 6401 Pier Enterprise 97,885 111,151 158,822 (47,671) 50,214 50,214 ‐ 6501 Parking Enterprise 5,846,885 2,583,604 7,833,699 (5,250,095) 596,790 596,790 ‐ Internal Service Funds
7101 Technology Service Fund 114,799 2,056,243 2,125,899 (69,655) 45,144 ‐ 45,144 7201 Motor Vehicle Fund 4,681,754 1,401,231 2,858,609 (1,457,378) 3,224,376 ‐ 3,224,376
9.E-9Council Agenda 11-7-2023
Highlights of Other Funds
Half-Cent Sales Tax Fund (1002)
The Half-Cent Sales Tax Fund is part of the General Fund which includes a 0.50% transaction sales and use tax. This tax was approved by Pismo Beach voters in June 2008, effective October 1, 2008, and renewed in November 2014, which extends the tax to March 31, 2027. The tax proceeds are used exclusively for infrastructure projects. This fund started the year with a $3.21 million beginning fund balance (after including carryforward fund balances). Projected actual revenues are $2.02 million. Projected actual expenditures are $2.24 million. After accounting for a $1.00 million carryforward of project budgets, there is a projected $1.98 million projected ending fund balance in this fund. Table 7 lists the budgeted projects in this fund for FY 2024.
Table 7: Half-Cent Sales Tax Fund FY 2024 Budgeted Projects and Projected Actuals
Gas Tax Fund (2001)
The Gas Tax Fund is a Special Revenue Fund whose revenues include State gas tax funds based on the State’s apportionment formula. These funds are used for City street light costs, City traffic signal maintenance costs, and street repairs and/or capital improvements. This fund started the year with a $301 thousand beginning fund balance (after including carryforward fund balances). Projected actual revenues are $440 thousand and projected actual expenditures are $442 thousand for the Paving project.
Based on the projected revenues and expenditures for the current year, there is a $298 thousand projected ending fund balance in this fund.
Local Transportation Fund (2002)
The Local Transportation Fund is a Special Revenue Fund whose funds are used for construction and maintenance of streets, bluff protection, and beach access. Revenues for this fund consist of State Transportation Development Act funds, which remain after funds are allocated for regional transit, local transit, and Ride-on services. Projected actual revenues are $278 thousand and projected actual expenditures are $306 thousand, primarily for the Paving Project. Based on the projected revenues and expenditures for the current year, there is $388 thousand projected ending fund balance for this fund.
Projects FY 2024 Budget
FY 2024 Projected
Actuals
Paving Project $ 1,527,888 $ 1,527,888 Shell Beach Parking Lot 1,000,000 - Signalize Bello/Price Canyon Rd 389,000 - FY 2025 Paving project 300,000 300,000 City Hall Parking Lot 25,000 25,000 Total $ 3,241,888 $ 1,852,888
9.E-10Council Agenda 11-7-2023
Public Education Government Fund (2003)
The Public, Educational, and Governmental (PEG) Access Fee Fund includes revenues from a PEG Access Fee collected from cable television providers (i.e. Charter Communications) with franchise operations within city limits. Expenditures include capital costs related to governmental cable broadcasting and equipment. Based on projected revenues of $40 thousand and projected expenditures of $42 thousand, the PEG Fund is expected to end the year with a $72 thousand fund balance.
Housing In-Lieu Fund (2005)
The Housing In-Lieu Fund is a Special Revenue Fund with revenues from a development impact fee paid to the City as an alternative to the production of affordable housing (housing in-lieu fee). These funds are used for the acquisition, construction, or rehabilitation of affordable housing. The fund is projected to have $1.49 million of funds available by the end of the year for this purpose.
Lodging Business Improvement District Fund (2006) Operations The Pismo Beach Lodging Business Improvement District (LBID) Fund for operations reflects a 1% assessment on transient rents at transient lodging providers as revenues and budgeted expenditures to promote Pismo Beach lodging businesses. The LBID Fund started the year with a $970 thousand beginning fund balance. City staff projects that LBID assessment revenues and interest earnings will be $1.42 million. Operating expenditures are projected at $1.73 million. The fund is expected to end the year with a $654 thousand unrestricted fund balance.
LBID Fund (2006) Improvements
The LBID Fund for improvements includes a 1% assessment for physical improvements, in particular the Pier Plaza project. The LBID Fund started the year with a $835 thousand beginning fund balance. City staff projects that LBID assessment revenues and interest earnings will be $1.42 million. Expenditures include $1.20 million for the Addie Street Restroom Improvement project, $15 thousand for replacement beach wheelchairs, and $7 thousand for the beach swing replacement project. The fund is expected to end the year with a $1.05 million unrestricted fund balance. This amount, plus FY 2025 projected assessment revenues are anticipated to support future visitor-serving physical improvements.
Chapman Estate Fund (2007)
The Chapman Estate Fund reflects donations or other contributions for the Chapman Estate as revenues and ongoing maintenance and one-time infrastructure improvements to the Chapman Estate as expenditures. The fund started the year with $78 thousand and is expected to receive $998 thousand of revenues, including $882 thousand from the General Fund for Chapman Estate improvements and the Chapman Inventory projects and $100 thousand from the General Fund to support operations, and $16 thousand from private event revenues. Projected actual expenditures are $1.01 million, including $881 thousand for the Chapman Estate improvements and the Chapman Inventory projects and $133 thousand for operating costs of the home and grounds and monthly
9.E-11Council Agenda 11-7-2023
maintenance costs for utilities and gardening. The remaining projected ending balance of this fund is $63 thousand.
Park Development Fund (3003)
The Park Development Fund is a Capital Project Fund with Quimby Act (park development in-lieu) fees and Impact Fees as funding sources to support construction costs of new parks and park lands, and the enhancement of existing parks to serve new development. The fund started the year with $337 thousand and is projected to receive $32 thousand in impact fee and permit revenues. Projected actual expenditures total $230 thousand and include the project in the following table. The table lists the budgeted projects in this fund for FY 2024.
Table 8: Park Development Fund FY 2024 Budgeted Projects
The fund is expected to end the year with a $139 thousand ending fund balance.
Water Enterprise Fund (6101)
The Water Enterprise Fund is an Enterprise Fund consisting of revenues from water billings and expenditures for: contract meter reading; direct water services and supplies; on-going inspection, repair, and maintenance of the City’s wells, tanks, booster stations, hydro-pneumatic system, and water distribution system components; water conservation efforts; and ensuring that a safe, drinkable supply of water is provided to Pismo Beach.
Water revenues are projected to be $7.16 million, including $1.41 million in one-time revenues for the Central Coast Blue project and expenditures are projected to be $9.65 million, including $669 thousand for the Central Coast Blue project.
The projected ending fund balance for the Water Enterprise Fund is $6.00 million, which is allocated for future water system capital costs, including the Central Coast Blue project.
Note that the Water Enterprise Fund also includes the Water Tax, Water Construction, and Water Expansion Funds and the ending fund balance across all these funds is $8.31 million.
Wastewater Treatment Fund (6201)
The Wastewater Treatment Fund is an Enterprise Fund consisting of revenues from wastewater billings and expenditures for direct services and supplies; operation and maintenance of the City’s wastewater treatment plant and the wastewater collection facilities including pumps and pipelines; and ensuring the City’s treatment and collection system operations meet City, federal, and state laws and requirements. Wastewater Projects
FY 2024
Budget
Price Historic Park/ Meherin House 85,029$
Palisades and Chumash Park Improvements 80,000
South Palisades Outdoor fitness equipment/trail 60,000
Overhead costs 5,437
Total 230,466$
9.E-12Council Agenda 11-7-2023
revenues are projected to be $5.81 million and expenditures are projected to be $13.40 million, including $2.52 million for the Central Coast Blue project. The ending fund balance is $1.62 million which is already allocated for other wastewater capital projects. Note that the Wastewater Treatment Funds also include the Wastewater Capital Fund and the Wastewater Expansion Fund. The total combined ending fund balance across all these funds is $5.32 million.
Pier Enterprise Fund (6401)
The Pier Enterprise Fund includes revenues from a concession lease on the Pier and expenditures for repair and maintenance of the Pier, Promenade, and nearby facilities.
The beginning fund balance is $98 thousand and projected revenues are $111 thousand, from revenues from the Pier Airstreams. Projected expenditures include $159 thousand for Pier and Pier Plaza operating costs. The Pier Enterprise Fund is expected to end the year with a $50 thousand ending fund balance.
Parking Enterprise Fund (6501)
The Parking Enterprise Fund is an Enterprise Fund consisting of revenues from parking kiosks, parking citations, and parking permits to support a Parking Supervisor and Parking Enforcement Officer, implement the goals of the Pismo Beach Parking Management Plan, to administer existing parking more efficiently, provide more downtown parking, improve enforcement and parking management, and provide funds for future parking structures.
Revenues are projected to reach $2.92 million.
As shown in Table 9, addition to operating expenditures, the budget includes $8.77 million for one-time projects, including $4.00 million for the Public Safety Facility project, $2.50 million for the purchase of property to increase the City’s parking inventory, $1.16 million for the Police Department Parking Division Substation, $750 thousand for paving the City’s parking lots, $261 thousand for additional parking meters, $101 thousand for the Secure Communication Radio project, $100 thousand for Addie Street Parking and Access Improvements, $4 thousand for a radio system upgrade and reliability project, and $6 thousand for other projects. Of these projects, staff projects $6.82 million will be spent while the other projects are delayed. Staff anticipates coming back to the Council in December 2023 to de-appropriate the remaining Parking Garage/Parking Inventory, Parking property paving, and the Parking Management Plan remaining budgets. The FY 2024 projected ending fund balance is $597 thousand.
9.E-13Council Agenda 11-7-2023
Table 9: Parking Enterprise Fund FY 2024 Budgeted Projects Motor Vehicle Replacement Fund (7201)
The Motor Vehicle Replacement (MVR) Fund is an Internal Service Fund that funds the City’s motor vehicle operations and maintenance and motor vehicle replacements for various City departments. These costs are funded by accumulated fund balance, transfers from other funds, and motor vehicle rental charges to other funds. The MVR Fund started the year with a $4.68 million beginning fund balance. The FY 2024 projected ending fund balance is $3.22 million, which are accumulated funds necessary to fund future replacements.
Conclusion and Recommendation
Staff recommends that Council receive this report as information only.
FISCAL IMPACT:
There is no fiscal impact from receiving this report as it is information only.
ALTERNATIVES:
1. Request additional information from staff.
ATTACHMENTS:
None
Prepared by: Meeting Date: November 7, 2023
Nadia Feeser, Administrative Services Director
City Manager Approval:
Projects
FY 2024
Budget
FY 2024
Projected
Actuals
Public Safety Facility 4,000,000$ 4,000,000$
Parking Garage/Parking Inventory 2,504,412 1,305,496 Police Dept/Parking Substation 1,159,056 1,159,056
Parking property paving 750,000 -
Parking Kiosk Machines 260,884 260,884
Addie St Parking & Access Impr 88,398 88,398
Radio System Reliability Upgrd 4,000 4,000
Other projects 6,182 1,097
Total 8,772,932$ 6,818,931$
9.E-14Council Agenda 11-7-2023