PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #9.D
Meeting Date: May 7, 2024
TITLE:
Fiscal Year 2024 Third Quarter Financial Status Report
RECOMMENDATION:
No action recommended; for information only.
EXECUTIVE SUMMARY:
This report updates the City Council on the Fiscal Year (FY) 2023-24 ending on June 30, 2024, or FY 2024, financial status based on actual revenues and expenditures during the first nine 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 $5.68 million, which is $10.15 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 $2.87 million for the Public Safety Facility project, $2.50 million for the current Paving project, $2.67 million for the James Way Beautification project, and $1.73 million for the Chumash and Palisades Parks improvements projects, 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.
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 nine months of the fiscal year, the General Fund is projected to end FY 2024 with a $5.68 million unassigned fund balance.
The FY 2024 projected $5.68 million unassigned fund balance is $2.86 million greater than the FY 2024 Revised Budget. This increase is attributable to $2.51 million in additional projected operating expenditure savings compared to the Revised Budget and $716 thousand additional projected operating revenues compared to the Revised Budget, offset by $357 thousand fewer projected one-time revenues compared to the Revised Budget.
The unassigned fund balance is used to pay for future one-time investments included in the FY 2024 and FY 2025 Budgets and in the 10-year Capital Improvement Plan.
9.D-1Council Agenda 05-07-2024
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 Transient Occupancy Tax (TOT) 1% set-aside of $1.00 million. The TOT 1% set-aside represents the amount collected for the additional 1% of gross lodging revenues to be allocated for the Public Safety Facility project.
Table 1 is a summary of the FY 2023 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 actual fund balance is revised to $25.03 million. This includes $19.24 million of unassigned fund balance and $5.80 million of carryforward fund balances.
AB CD = C - B
($ 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 31,724 32,440 716 c Operating Expenditures 24,665 30,210 27,702 (2,507) d = b - c Net Operating Surplus/(Deficit) 7,879 1,514 4,737 3,224 e One-time Revenues 337 709 352 (357) f One-time/Capital Expenditures 8,098 22,824 13,510 (9,314) g =
a+d+e-f Ending Fund Balance 25,845$ 4,433$ 16,613$ 12,181$ Unassigned Fund Balance 15,829$ 2,822$ 5,681$ 2,867$ Committed Fund Balance 5,798 - 9,314 9,314 Contribution to Reserves 811 (1,728) (1,728) - Budget Stabilization Set-Aside 2,000 2,000 2,000 - TOT 1% Set-Aside for PSF 1,407 1,338 1,346 8
9.D-2Council Agenda 05-07-2024
Table 2: FY 2024 General Fund, Beginning Fund Balance
III. General Fund Reserve
The City maintains various General Fund reserves totaling $6.05 million for emergency operations, building depreciation, and risk management. These reserves are crucial to avoid disrupting the City’s operations following unanticipated events. The reserves are shown in Table 3, followed by a summary of each reserve.
Table 3: General Fund Reserves
Reserve Amount ($ thousands)
General Fund 25% Reserve $5,296
City Building Reserve 500
Risk Management Reserve 250
Total $6,046
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 $7.55 million, which is 25% of the total FY 2024 budgeted annual operating expenditures of $30.21 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 $5.28 million, which reflects $2.00 million already allocated to the Public Safety Facility project. Of this $5.28 million, $4.91 million is invested in various securities and $387 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 $272 thousand during FY 2024 to support the additional amount required to meet the 25% of the total FY 2024 budgeted annual operating expenditures. Based on the projected FY 2024 ending unassigned fund balance that is $2.86 million greater than budget, the City Treasurer may reach out to Council to restore all or part of the General Fund 25% Reserve towards the end of FY 2024 or during FY 2025 to get back to fully funding the General Fund Reserve.
($ 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.D-3Council Agenda 05-07-2024
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 $32.43 million. FY 2024 projected actual revenues are $32.79 million, or $360 thousand greater than budget. Compared to the previous year, FY 2024 projected actual revenues are $89 thousand, or 0.3% less than FY 2023. This decrease over the prior year is largely due to a projected reduction of $674 thousand in Transient Occupancy Tax revenues compared to the previous fiscal year, offset by a projected increase of $883 thousand in Other Revenues to reflect additional overhead charges to other funds and additional interest income compared to the previous fiscal year. Table 4 summarizes the General Fund revenue budget and projected actual revenues for FY 2024, which is followed by a brief discussion of the top three FY 2024 projected actual sources of revenues.
Table 4: FY 2024 General Fund Revenue Budget and Projected Actuals
A B C D = C - B E = C - A F = C/A-1
($ 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$ 14,715$ 14,807$ 92$ (674)$ -4.4% 45.2% Property Related Taxes 7,046 7,009 7,079 70 32 0.5% 21.6% Sales and Use Tax 4,041 3,835 3,847 12 (195) -4.8% 11.7% Other revenues 2,121 2,615 3,004 389 883 41.7% 9.2% Permits 1,336 1,241 1,316 75 (19) -1.5% 4.0% Departmental Revenues 865 893 857 (36) (8) -0.9% 2.6% Franchise Taxes 800 698 800 103 - 0.0% 2.4% Business Tax 291 244 291 47 - 0.0% 0.9% Transfers In 140 140 140 - - 0.0% 0.4% Other Taxes 170 139 139 - (31) -18.1% 0.4% Other Finan Sources 114 87 87 - (26) -23.1% 0.3% Intergovernmental Revenue 85 70 49 (21) (37) -43.0% 0.1% Grants 54 37 25 (12) (30) -54.7% 0.1% Total Operating Revenues 32,544$ 31,724$ 32,440$ 716$ (104)$ -0.3% 98.9% One-time Revenues 337 709 352 (357) 15 4.5% 1.1% Total Revenues 32,880$ 32,432$ 32,792$ 360$ (89)$ -0.3% 100.0%
9.D-4Council Agenda 05-07-2024
Transient Occupancy Tax (TOT) revenues are projected to be $92 thousand greater than budget, but are projected to be $674 thousand, or 4.4%, 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 less. The decline in TOT revenue is partly attributed to a 4.1% drop observed over the first eight months of the fiscal year, with an anticipated annual decrease of 4.3% by the end of FY 2024 compared to FY 2023. Notably, adverse weather conditions in February contributed to a significant 18.4% reduction in revenue for the month.
Conversely, projections for March show a recovery, with revenues expected to be
17.0% higher than in March of the previous year with a busy spring break. April has also been impacted by rainy weather, leading to an expected 15.0% decline in revenue compared to April 2023. Looking ahead to the final months of the fiscal year, revenue in May and June is projected to be 5.0% lower than the same period last year based on projected occupancy and room rates. Chart 1 provides a detailed comparison of TOT revenues collected in FY 2024 relative to FY 2023, illustrating these trends.
Chart 1. TOT Revenues FY 2024 compared to FY 2023
Analysis from Smith Travel Research Inc., which specializes in providing competitive benchmarking and research services to the hotel industry, reveals that the reduction in Transient Occupancy Tax (TOT) revenues primarily stems from lowered average daily room rates and a slight decrease in occupancy rates during the first eight months of FY 2024. During this period, the average daily rate decreased by 2.0% compared to the same period in FY 2023. However, occupancy rates experienced a slight improvement, increasing by 0.3% compared to the same timeframe in the previous fiscal year. Based on these trends, staff anticipates that TOT revenues will total $14.81 million for FY 2024. This figure not only represents a $92,000 surplus over the $-
$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.D-5Council Agenda 05-07-2024
budgeted amount but also a 4.4% or $674,000 decrease from the previous year's TOT revenues.
Property-related tax revenues are projected to be $70 thousand greater than budget and $32 thousand, or 0.5%, 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. The San Luis Obispo County Auditor-Controller’s office is projecting assessed values to increase by 2.0%.
Sales and Use Tax revenues are projected to be $12 thousand greater than budget and $195 thousand, or 4.8%, 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 $14 thousand greater than budget, but $189 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 $3.72 million. This reflects a projected decline in sales and use tax receipts compared to FY 2023 for the following industry groups: autos & transportation, fuel & service station, and food & drugs. These declines are offset by growth in sales and use tax receipts from restaurants & hotels and general consumer goods compared to the previous fiscal year. 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
$-
$100,000
$200,000
$300,000
$400,000
$500,000
Sa
l
e
s
T
a
x
A
m
o
u
n
t
FY 2023
FY 2024
9.D-6Council Agenda 05-07-2024
The public safety sales tax revenues are budgeted at $125 thousand in FY 2024 and are anticipated to be $2,500 less than budget. This FY 2024 projected amount is $5 thousand less than the FY 2023 public safety sales tax revenues and follows the same trends as the Bradley Burns uniform sales and use tax revenues.
In summary, sales and use tax revenues are projected to be $12 thousand greater than budget, but are projected to be $195 thousand, or 4.8%, less than the prior year.
V. General Fund Expenditures
The FY 2024 Revised Budget expenditures total $53.03 million and projected actual expenditures total $41.21 million. Operating expenditures are projected to be $2.51 million less than the Revised Budget based on the first three quarters of expenditures.
One-time capital costs are projected to be $9.31 million less than budget largely attributable to the timing of cash flow for the Paving project that is anticipated to be completed in FY 2025 and the Public Safety Facility project that is projected to continue into FY 2025. These savings will be carried forward to next fiscal year and do not contribute to an increase in fund balance.
Total operating expenditures for the first three quarters should be about 75% of the budget, assuming the timing of expenditures is consistent throughout the year. This year, about 64% of the operating budget has been spent in the first three quarters, while only 12% of the one-time capital expenditure budget has been spent in the first three quarters.
These one-time costs are dependent on the timing of construction of these projects. Table 5 provides details of actuals as a percentage of budget by expenditure category, followed by explanations of the large variances from the 75% mark.
Table 5. FY 2024 General Fund Expenditure Budget and Projected Actuals
A B C D = C/B E F = B - E
($ thousands)
Expenditure Category
FY 2023
Actuals
FY 2024
Revised
Budget
FY 2024
Third
Quarter
Actuals to
Date
Third Quarter
Actuals % of
Budget
FY 2024
Projected
Actuals
Variance
(Revised
Bdgt -
Projected
Actuals)
Proj
Actual
% of
Total
Salaries & Wages 8,350$ 10,046$ 6,859$ 68%8,916$ 1,130$ 21.6% Benefits 5,144 5,580 4,242 76%5,140 440 12.5% Professional Services 4,267 4,887 2,368 48%4,354 533 10.6% Contract Services 2,805 3,711 2,400 65%3,381 330 8.2% Operations & Maintenance 1,367 1,647 1,055 64%1,573 74 3.8% Other Expenses 980 1,504 967 64%1,504 - 3.6% Other Financing Uses 143 1,036 114 11%1,036 - 2.5% Transfers Out 717 811 494 61%811 - 2.0% Retiree Medical Insurance 443 431 328 76%431 - 1.0% Debt Service 432 429 305 71%429 - 1.0% Capital Projects 17 127 118 0%127 - 0.3% Total Operating Expenditures 24,665$ 30,210$ 19,248$ 64% 27,702$ 2,507$ 67.2% One-time Capital Costs 8,098 22,824 2,721 12% 13,510 9,314 32.8% Total Expenditures 32,763$ 53,034$ 21,970$ 41% 41,213$ 11,821$ 100.0%
9.D-7Council Agenda 05-07-2024
Some operating costs that do not reflect consistent monthly spending include:
Professional Services, which reflects that 48% was spent in the first three quarters.
These costs are based on the timing of work performed and are not set amounts per month.
Other Financing Uses, which includes a $1.00 million general contingency budget and reflects that only 11% of the budget has been spent in the first three quarters. This budget is allocated over time based on unanticipated costs that come up throughout the year and are not a consistent allocation of expenditures. Transfer Out to other funds, which includes support for the Chapman Estate Fund and Pier Enterprise Fund and reflects that only 61% of the budget has been spent in the first three quarters. The majority of these transfers are scheduled for the end of FY 2024, pending the need for General Fund support in those funds.
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. Of this amount, $91,200 thousand of this appropriation was allocated. Details of the allocation are provided in Table 6.
Table 6: FY 2024 General Fund General Contingency
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 three quarters 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. To date, none of this budget has been formally allocated during the first three quarters of FY 2024. However, staff plans to allocate approximately $160,000 to support enhancements of various services, including additional cleaning of sidewalks, restrooms, and other facilities managed by the Public Works Facilities Division. Additionally, staff plans to allocate approximately $40,000 to equip Public Works trucks with essential tools, Beginning Balance July 1, 2023 1,000,000$
Appropriations
Planning Services 91,200
Total Appropriations 91,200
Ending Balance as of March 31, 2024 1,091,200$
9.D-8Council Agenda 05-07-2024
enhancing their capacity for maintaining government buildings, parks, and streets. And finally, staff is proposing to add a transit van to the replacement fleet to support Recreation events, for an estimated one-time cost of $60,000 and ongoing financial contributions for a future replacement starting in FY 2026. The total of these estimated allocations is $260,000, leaving $140,000 remaining as illustrated in Table 7. Staff will appropriate these funds in the mid-cycle budget adjustments currently scheduled for August 6, 2024.
Table 7: FY 2024 Next Level Service
Beginning Balance July 1, 2023 400,000$
Estimated Appropriations
Additional cost and expansion of sidewalk cleanings, restrooms, and other facilities (160,000)
Tools for Public Works trucks (approximate)(40,000)
Recreation transit van (estimate)(60,000)
Total Estimated Appropriations (260,000)
Ending Balance as of March 31, 2024 140,000$
9.D-9Council Agenda 05-07-2024
VIII. Other Funds
Table 8 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 8. 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 32,791,918 41,212,601 (8,420,683) 16,613,093 9,313,703 9,026,965 1002 Half‐Cent Sales Tax Fund 3,205,576 1,998,765 1,827,888 170,876 3,376,452 1,414,000 1,962,452 Special Revenue Funds
2001 Gas Tax Fund 300,722 423,509 460,737 (37,228) 263,493 ‐ 263,493 2002 Local Transportation 415,770 196,658 305,535 (108,877) 306,893 ‐ 306,893 2003 PEG Fund 73,720 29,534 3,849 25,685 99,405 37,887 61,518 2004 Grants‐NonCapital 62,847 187,233 231,452 (44,219) 18,627 ‐ 18,627 2005 Housing In Lieu Fee 4,047,150 60,132 2,653,130 (2,592,998) 1,454,153 ‐ 1,454,153 2006 LBID Operations 719,530 1,362,593 1,507,896 (145,302) 574,228 16,000 558,228 2006 LBID Improvements 495,132 1,362,593 15,083 1,347,511 1,842,642 1,200,000 642,642 2007 Chapman Estate 78,323 973,429 1,018,369 (44,940) 33,383 (4,405) 37,788 Capital Project Funds
3001 Capital Projects 738,719 18,548,451 18,519,265 29,185 767,904 767,904 ‐ 3002 Public Facilities Fund 844 ‐ ‐ ‐ 844 ‐ 844 3003 Park Development Fund 336,724 44,738 85,437 (40,699) 296,025 145,029 150,996 3101 Circulation Fees 556,181 35,886 89,999 (54,112) 502,069 ‐ 502,069 3102 Impact Fees 491,886 62,210 250,879 (188,669) 303,217 ‐ 303,217 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 ‐ 3,368,380 3,368,380 ‐ ‐ ‐ ‐ 4002 PF Agency Debt 893 704,530 704,530 ‐ 893 ‐ 893 4101 Reass 92‐1 Fwy Fthlls 735 9 ‐ 9 744 ‐ 744 4102 Spyglass 92‐412,239 147 ‐ 147 12,386 ‐ 12,386 Enterprise Funds
6101 Water Enterprise 8,492,793 6,159,606 5,967,560 192,047 8,684,840 8,684,840 ‐ 6102 Water Tax (Lopez/State) 296,671 2,127,000 2,395,720 (268,720) 27,951 27,951 ‐ 6103 Water Construction Fund 1,257,703 431,400 482,138 (50,738) 1,206,965 1,206,965 ‐ 6104 Water Expansion Fund 805,404 51,941 ‐ 51,941 857,344 857,344 ‐ Water Enterprise Funds 10,852,570 8,769,947 8,845,417 (75,470) 10,777,100 10,777,100 ‐ 6201 Wastewater Treatment 9,219,597 6,227,248 14,182,383 (7,955,135) 1,264,462 1,264,462 ‐ 6202 Wastewater Capital Proj 1,349,394 3,634,263 341,413 3,292,850 4,642,244 4,642,244 ‐ 6203 Wastewater Expansion 1,863,327 93,861 ‐ 93,861 1,957,188 1,957,188 ‐ Wastewater Enterprise Fund 12,432,318 9,955,372 14,523,796 (4,568,424) 7,863,894 7,863,894 ‐ 6301 Local Trans Transit 27,158 325 ‐ 325 27,483 27,483 ‐ 6401 Pier Enterprise 97,885 81,151 146,857 (65,706) 32,178 32,178 ‐ 6501 Parking Enterprise 5,846,885 3,130,276 7,430,587 (4,300,310) 1,546,575 1,546,575 ‐ Internal Service Funds
7101 Technology Service Fund 114,799 1,717,313 1,784,948 (67,636) 47,163 ‐ 47,163 7201 Motor Vehicle Fund 4,681,754 1,590,957 3,109,109 (1,518,152) 3,163,602 ‐ 3,163,602
9.D-10Council Agenda 05-07-2024
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 $2.00 million. Projected actual expenditures are $1.83 million. After accounting for a $1.41 million carryforward of project budgets, there is a projected $1.96 million projected ending fund balance in this fund. Table 9 lists the budgeted projects and projected actual expenditures in this fund for FY 2024.
Table 9: 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 $424 thousand and projected actual expenditures are $461 thousand, including $319 thousand for the Paving project and $140 thousand for General Fund street light electricity costs.
Based on the projected revenues and expenditures for the current year, there is a $263 thousand projected ending fund balance in this fund that could be used for future street paving projects.
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 $197 thousand and projected actual expenditures are $306 thousand, primarily for the Paving Project. Based on the projected revenues and 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 - Total $ 3,241,888 $ 1,827,888
9.D-11Council Agenda 05-07-2024
expenditures for the current year, there is $307 thousand projected ending fund balance for this fund that could be used for future street paving projects.
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 $30 thousand, projected expenditures of $4 thousand and accounting for a carryforward of $38 thousand, the PEG Fund is expected to end the year with a $62 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 $1.45 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 $720 thousand beginning fund balance. City staff projects that LBID assessment revenues and interest earnings will be $1.36 million. Operating expenditures are projected at $1.51 million. The fund is expected to end the year with a $558 thousand unrestricted fund balance.
LBID Fund (2006) Improvements
The LBID Fund for improvements includes a 1% assessment to support visitor-serving physical improvements. The LBID Fund started the year with a $495 thousand beginning fund balance. City staff projects that LBID assessment revenues and interest earnings will be $1.36 million. Budgeted expenditures include $1.20 million for the Addie Street Restroom Improvement project, $15 thousand for replacement beach wheelchairs and beach swing replacement projects. Projected actual expenditures are $15 thousand for the beach wheelchairs and swings. The fund is expected to end the year with a $1.84 million unrestricted fund balance. Of this amount, the $1.20 million for the Addie Street Restroom Improvement project will be carried forward to next year, leaving a projected $643 thousand ending available balance. This amount plus the 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
9.D-12Council Agenda 05-07-2024
is expected to receive $973 thousand in revenues, including $857 thousand from the General Fund for Chapman Estate improvements project and $100 thousand from the General Fund to support operations, and $15 thousand from private event revenues.
Projected actual expenditures are $1.02 million, including $857 thousand for the Chapman Estate improvements project, $119 thousand for operating costs of the home and grounds and monthly maintenance costs for utilities and gardening, and $42,500 for a condition assessment and appraisal of the property. Staff plans to come back to Council at the mid-cycle budget update in August 2024 to appropriate the funds for the condition assessment and appraisal. The remaining projected ending balance of this fund is $38 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 $45 thousand in impact fee and permit revenues. Projected actual expenditures total $85 thousand and include the projects in the following table. Table 10 lists the budgeted projects in this fund for FY 2024.
Table 10: Park Development Fund FY 2024 Budgeted Projects
The fund is expected to end the year with a $151 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 $6.16 million and expenditures are projected to be $5.97 million.
The projected ending fund balance for the Water Enterprise Fund is $8.68 million, which is allocated for future water system capital costs. Note that the Water Enterprise Fund also includes the Water Tax, Water Construction, and Water Expansion Funds and the projected ending fund balance across all these funds is $10.78 million.
Projects
FY 2024
Budget
FY 2024
Projected
Actuals
Price Historic Park/ Meherin House 85,029$ -$
Palisades and Chumash Park Improvements 80,000 80,000 South Palisades Outdoor fitness equipment/trail 60,000 - Overhead costs 5,437 5,437
Total 230,466$ 85,437$
9.D-13Council Agenda 05-07-2024
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 revenues are projected to be $6.23 million and expenditures are projected to be $14.18 million. The ending fund balance is $1.26 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 projected ending fund balance across all these funds is $7.86 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 $81 thousand, from revenues from the Pier Airstreams. Projected expenditures include $147 thousand for Pier and Pier Plaza operating costs. The Pier Enterprise Fund is expected to end the year with a $32 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 $3.13 million.
As shown in Table 11, in addition to operating expenditures, the budget includes $6.85 million for one-time projects, including $4.00 million for the Public Safety Facility project, $1.31 million for the purchase of property to increase the City’s parking inventory, $1.16 million for the Police Department Parking Division Substation, $292 thousand for additional parking meters on Price Street, $88 thousand for Addie Street Parking and Access Improvements, $4 thousand for a radio system upgrade and reliability project, and $1 thousand for other projects. Of these projects, staff projects $6.54 million will be spent during FY 2024 while the other projects are delayed. The FY 2024 projected ending fund balance is $1.55 million.
9.D-14Council Agenda 05-07-2024
Table 11: 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 $3.16 million, which are accumulated funds necessary to fund future replacements.
Conclusion and Recommendation
Staff recommends that Council receive this report as information only.
FISCAL IMPACT:
There is no fiscal impact from receiving this report as it is information only.
ATTACHMENTS:
None
Submitted by: Nadia Feeser, Administrative Services Director City Manager Approval:
Projects
FY 2024
Budget
FY 2024 Projected
Actuals
Public Safety Facility 4,000,000$ 4,000,000$
Parking Property 1,305,496 1,305,496
Police Dept/Parking Substation 1,159,056 849,528
Parking Kiosk Machines 291,884 291,884
Addie St Parking & Access Impr 88,398 88,398
Radio System Reliability Upgrd 4,000 4,000
Other projects 1,097 1,097
Total 6,849,931$ 6,540,403$
9.D-15Council Agenda 05-07-2024