G\T Y OF
PISMO BEACH CITY COUNCIL STAFF REPORT
A�syoBt Agenda Item #9.D
Meeting Date: August 20, 2024
TITLE:
Fiscal Year 2024 Fourth Quarter Financial Status Report RECOMMENDATION:
No action recommended; for information only.
EXECUTIVE SUMMARY:
This report updates the City Council on the City's financial status for the fiscal year ending on June 30, 2024, based on preliminary actual revenues and expenditures during Fiscal Year (FY) 2024.
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 $6.49 million, which is $9.34 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 $1.62 million for the Chumash and Palisades Parks improvements projects; $1.27 million for the James Way Beautification project; $458 thousand for the Public Safety Facility project; $301 thousand for the current Paving project; and $280 thousand for the Police Parking Annex, 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 preliminary and projected actual revenues and expenditures during FY 2024, the General Fund is projected to end FY 2024 with a $6.49 million unassigned fund balance. The FY 2024 projected $6.49 million unassigned fund balance is $3.46 million greater than the FY 2024 Revised Budget. This increase is attributable to $3.54 million in additional projected operating expenditure savings compared to the Revised Budget and $503 thousand additional projected operating revenues compared to the Revised Budget, offset by $322 thousand fewer projected one-time revenues compared to the Revised Budget and contributing $241 thousand to support the General Fund Reserve.
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.
Council Agenda 8-20-2024 9.13-1
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 $1.37 million. The TOT 1% set-aside represents the amount collected for the additional 1% of gross lodging revenues to be allocated for the Public Safety Facility project.
Table 1 is a summary of the FY 2023 actuals and the FY 2024 General Fund revised budget, projected actuals, and a variance comparing the budget to projected actuals.
Table 1: FY 2024 General Fund Budget Summary
A B C D= C - B
FY 2024 FY 2024 Year- Variance
FY 2023 Revised End Projected (Actuals-
($thousands) Actuals Budget 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 32,510 33,013 503 c Operating Expenditures 24,665 29,375 25,835 (3,541) d = b- c Net Operating Surplus/(Deficit) 7,879 3,135 7,178 4,043 e One-time Revenues 337 709 387 (322) f One-time/Capital Expenditures 8,098 22,505 6,571 (15,935) 9 =
a+d+e-f Ending Fund Balance $ 25,845 $ 6,372 $ 26,028 $ 19,656 Unassigned Fund Balance $ 15,829 $ 3,025 6 4 $ 3,461 Committed Fund Balance 5,798 - 15,935 15,935 Contribution to Reserves 811 8 241 232 Budget Stabilization Set-Aside 2,000 2,000 2,000 - TOT 1% Set-Aside for PSF 1,407 1,338 1,366 29 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 $5.80 million of carryforward fund balances.
Council Agenda 8-20-2024 9.D-2
Table 2: FY 2024 General Fund, Beginning Fund Balance
Adopted Budget
($ thousands) Budget Revisions Actuals
Unassigned Fund Balance $ 12,263 $ 6,973 $ 19,236 Capital Funds Carryforward 5,114 5,114
5,798
Purchase Orders Carryforward 615 615 $
Prepayment Carryforward 69 69 Carryforward Total Fund Balance $ 12,263 $ 12,771 $ 25,034 III. General Fund Reserve
The City maintains various General Fund reserves totaling $8.09 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 $7,335
City Building Reserve 500
Risk Management Reserve 250
Total $8,085
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 $7.34 million, which is 25% of the total FY 2024 budgeted annual operating expenditures of $29.38 million. Currently, there is $7.40 million invested in various securities and $5 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 $241 thousand during FY 2024 to support the additional amount required to meet the 25% of the total FY 2024 and FY 2025 budgeted annual operating expenditures.
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.
Council Agenda 8-20-2024 9.D-3
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 $33.22 million. FY 2024 projected actual revenues are $33.40 million, or $181 thousand greater than budget. Compared to the previous year, FY 2024 projected actual revenues are $519 thousand, or 1.6% greater than FY 2023. This increase over the prior year is largely due to a projected increase of $1.05 million in other revenues to reflect additional overhead charges to other funds and additional interest income compared to the previous fiscal year, offset by a projected decrease of$433 thousand in Transient Occupancy Tax revenues. Table 4 summarizes the General Fund revenue budget and projected actual revenues for FY 2024, which is followed by a brief discussion of the top three FY 2024 projected actual sources of revenues.
Table 4: FY 2024 General Fund Revenue Budget and Projected Actuals A B C D= C -B E= C-A F= C/A-1
Variance
(Projected Variance %Variance Proj
FY 2024 FY 2024 Actuals - (FY24 Proj (FY24 Proj Actual ($thousands) FY 2023 Revised Projected Revised Act- FY23 Act v FY23 %of Revenue Category Actuals Budget Actuals Bdgt) Actuals) Actuals) Total Transient Occupancy Tax $ 15,481 $ 14,715 $ 15,049 $ 334 $ (433) -2.8% 45.1% Property-Related Taxes 7,046 7,273 7,273 (0) 226 3.2% 21.8% Sales and Use Tax 4,041 3,835 3,948 113 (93) -2.3% 11.8% Other Revenues 2,121 3,198 3,173 (26) 1,052 49.6% 9.5% Permits 1,336 1,241 1,336 95 0 0.0% 4.0% Departmental Revenues 865 832 850 17 (15) -1.7% 2.5% Franchise Taxes 800 698 720 23 (80) -10.0% 2.2% Business Tax 291 244 282 38 (9) -2.9% 0.8% Transfers In 140 140 140 - - 0.0% 0.4% Other Taxes 170 139 119 (20) (51) -29.8% 0.4% Other Finan Sources 114 87 46 (41) (67) -59.4% 0.1% Intergovernmental Revenue 85 70 53 (17) (32) -37.9% 0.2% Grants 54 37 25 (12) (30) -54.7% 0.1% Total Operating Revenues $ 32,544 $ 32,510 $ 33,013 $ 503 $ 469 1.4% 98.8% One-time Revenues 337 709 387 (322) 50 14.9% 1.2% Total Revenues $ 32,880 $ 33,219 $ 33,400 $ 181 $ 519 1.6% 100.0% • Transient Occupancy Tax (TOT) revenues are projected to be $334 thousand greater than budget, but are projected to be $433 thousand, or 2.8%, 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 2.8% drop observed over the fiscal year. Notably, adverse weather conditions in February contributed to a Council Agenda 8-20-2024 9.D-4
significant 12.5% reduction in revenue for the month. Conversely, March reflected a recovery, with revenues 22.2% higher than in March of the previous year with a busy spring break. April was impacted by rainy weather, leading to an expected 16.4% decline in revenue compared to April 2023. Overall, the room rates were lower with level occupancy, while the more recent months of May and June show signs of growth into FY 2025. 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
$2,500,000
$2,000,000
o $1,500,000 -
E
Q FY 2024
~O $1,000,000 FY 2023
$500,000
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, offset by a slight increase in occupancy rates during FY 2024. During FY 2024, the average daily rate decreased by 2.1% compared to FY 2023. However, occupancy rates experienced a slight improvement, increasing by 0.6% compared to the previous fiscal year.
• Property-related tax revenues are projected to be equal to budget and$226 thousand, or 3.2%, 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%.
Council Agenda 8-20-2024 9.D-5
• Sales and Use Tax revenues are projected to be $113 thousand greater than budget and $93 thousand, or 2.3%, 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 $115 thousand greater than budget, but $88 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 $3.83 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 stations, 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 $500,000
$450,000
$400,000
o $350,000AM ff
Q $300,000
x $250,000
N $200,000 FY 2023
$150,000 FY 2024
Cn $100,000
$50,000
az` opp, pit aet �a6 c�
OG� <0'
The public safety sales tax revenues are budgeted at $125 thousand in FY 2024 and are anticipated to be $3 thousand less than budget. This FY 2024 projected amount is $6 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 $113 thousand greater than budget and $93 thousand, or 2.3%, less than the prior year.
Council Agenda 8-20-2024 9.D-6
V. General Fund Expenditures
The FY 2024 Revised Budget expenditures total $51.88 million and projected actual expenditures total $32.41 million. Operating expenditures are projected to be $3.54 million less than the Revised Budget for FY 2024. One-time capital costs are projected to be $15.94 million less than budget largely attributable to the timing of cash flow for the Public Safety Facility project that is projected to continue into FY 2025 and the Paving project that is anticipated to be completed in FY 2025. These savings will be carried forward to next fiscal year and do not contribute to an increase in fund balance. Table 5 provides details of budget and projected actuals, and the variance by expenditure category.
Table 5. FY 2024 General Fund Expenditure Budget and Projected Actuals A B C D = B -C E
Variance Proj
FY 2024 FY 2024 (Revised Bdgt- Actual
($ thousands) FY 2023 Revised Projected Projected % of Expenditure Category Actuals Budget Actuals Actuals) Total Salaries & Wages $ 8,350 $ 9,899 $ 8,643 $ 1,256 26.7% Benefits 5,144 5,607 5,041 565 15.6% Professional Services 4,267 5,222 4,655 567 14.4% Contract Services 2,805 3,458 2,954 504 9.1% Operations & Maintenance 1,367 1,748 1,517 232 4.7% Other Expenses 980 1,504 1,292 212 4.0% Transfers Out 717 811 674 137 2.1% Retiree Medical Insurance 443 431 376 55 1.2% Debt Service 432 429 428 1 1.3%
Capital Projects 17 138 133 5 0.4%
Other Financing Uses 143 128 122 6 0.4% Total Operating Expenditures $ 24,665 $ 29,375 $ 25,835 $ 3,535 79.7% One-time Capital Costs 8,098 22,505 6,571 15,935 20.3% Total Expenditures $ 32,763 $ 51,881 $ 32,406 $ 19,470 100.0% 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.
Council Agenda 8-20-2024 9.D-7
Table 6: FY 2024 General Fund General Contingency
Beginning Balance July 1 , 2023 $ 1 ,000,000
Appropriations
Planning Services (91 ,200)
Total Appropriations (91 ,200)
Ending Balance as of June 30, 2024 $ 908,800
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, $250,668 of this budget has been allocated during FY 2024. This includes $165,000 to support enhancements of various services, including additional cleaning of sidewalks, restrooms, and other facilities managed by the Public Works Facilities Division; $40,000 to equip Public Works trucks with essential tools, enhancing their capacity for maintaining government buildings, parks, and streets; and finally, $45,668 for a new transit van to be added to the replacement fleet to support Recreation events. The total of these estimated allocations is $250,668, leaving $149,332 remaining as illustrated in Table 7.
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 (165,000)
Tools for Public Works trucks (40,000)
Recreation transit van (45,668)
Total Estimated Appropriations (250,668)
Ending Balance as of June 30, 2024 $ 149,332 Council Agenda 8-20-2024 9.D-8
Vill. 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
A B C D=B-C E=A+D F G=E-F
Projected Projected
Fund Beginning Actual Projected Actual Ending Fund Unrestricted Type Fund Fund Title Fund Balance Revenue Expenditure Net Rev-Exp Balance Carryforward Fund Balance General Operating Funds
1001 General Fund 25,033,776 33,399,684 32,405,594 994,091 26,027,866 15,934,769 9,852,497 1002 Half-Cent Sales Tax Fund 3,205,576 2,039,601 1,552,888 486,712 3,692,288 689,000 3,003,288 Special Revenue Funds
2001 Gas Tax Fund 300,722 364,610 460,732 (96,122) 204,600 5 204,595 2002 Local Transportation 415,770 191,700 305,476 (113,776) 301,994 59 301,935 2003 PEG Fund 73,720 29,907 3,852 26,055 99,775 37,884 61,891 2004 Grants-NonCapital 62,847 188,343 151,145 37,199 100,045 - 100,045 2005 Housing In Lieu Fee 4,047,150 50,844 2,539,191 (2,488,347) 1,558,803 113,939 1,444,864 2006 LBID Operations 719,530 1,388,702 1,461,384 (72,682) 646,848 16,000 630,848 2006 LBID Improvements 495,132 1,388,702 15,083 1,373,619 1,868,751 1,200,000 668,751 2007 Chapman Estate 78,323 910,817 947,393 (36,576) 41,747 23,193 18,554 Capital Project Funds
3001 Capital Projects 738,719 11,821,167 12,224,224 (403,057) 335,662 335,662 - 3002 Public Facilities Fund 844 17 - 17 862 - 862 3003 Park Development Fund 336,724 106,209 85,436 20,773 357,498 145,030 212,468 3101 Circulation Fees 556,181 72,498 66,011 6,487 562,668 23,988 538,680 3102 Impact Fees 491,986 125,012 250,876 (125,864) 366,022 3 366,019 3103 Developer Impact Fee 56,352 3,329 - 3,329 59,681 - 59,681 3201 Underground Utility Fnd 15,890 329 - 329 16,219 16,219 Debt Service Funds
4001 PFA Debt Service - 48,380 48,380 - - - 4002 PF Agency Debt 893 704,225 704,530 (305) 588 588 4101 Reass 92-1 Fwy Fthl Is 735 15 - 15 750 750 4102 Spyglass 92-4 12,239 254 - 254 12,493 - 12,493 Enterprise Funds
6101 Water Enterprise 8,492,793 6,119,820 4,683,869 1,435,951 9,928,744 9,928,744 - 6102 Water Tax(Lopez/State) 296,671 2,112,362 2,076,448 35,914 332,585 332,585 6103 Water Construction Fund 1,257,703 193,624 166,543 27,081 1,284,783 1,284,783 6104 Water Expansion Fund 805,404 118,388 - 118,388 923,792 923,792 Water Enterprise Funds 10,852,570 8,544,195 6,926,860 1,617,334 12,469,904 r 12,469,904 r 6201 Wastewater Treatment 9,219,597 6,375,282 9,947,145 (3,571,862) 5,647,735 5,647,735 6202 Wastewater Capital Proj 1,349,394 3,428,870 5,063 3,423,807 4,773,200 4,773,200 6203 Wastewater Expansion 1,863,327 204,868 - 204,868 2,068,195 2,068,195 Wastewater EnterpriseFul' 12,432,318 10,009,021 9,952,208 56,813 12,489,131 12,489,131 6301 Local Trans Transit 27,158 - - - 27,158 27,158 6401 Pier Enterprise 97,885 108,780 126,862 (18,082) 79,802 79,802 6501 Parking Enterprise 5,846,885 3,352,819 7,127,550 (3,774,731) 2,072,153 2,072,153 Internal Service Funds
7101 Technology Service Fund 114,799 1,446,331 1,362,335 83,996 198,795 - 198,795 7201 Motor Vehicle Fund 4,681,754 1,529,135 1,332,866 196,269 4,878,023 - 4,878,023 Council Agenda 8-20-2024 9.1011-9
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 $2.04 million. Projected actual expenditures are $1.55 million. After accounting for a $0.69 million carryforward of project budgets, there is a projected $3.00 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 FY 2024 Projected
Projects FY 2024 Budget Actuals
Paving Project $ 1,527,888 $ 1,527,888 Signalize Bello/Price Canyon Rd 389,000 - FY2025 Paving project 300,000 -
City Hall Parking Lot 25,000 25,000
Total $ 2,241,888 $ 1,552,888
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 $365 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 $205 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 $192 thousand and projected actual expenditures are $305 thousand, primarily for the Paving Project. Based on the projected revenues and expenditures for the current year, there is $302 thousand projected ending fund balance for this fund that could be used for future street paving projects.
Council Agenda 8-20-2024 9.D-10
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 $1.44 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 $1.39 million. Operating expenditures are projected at $1.46 million. The fund is expected to end the year with a $631 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 $1.39 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 $1.87 million 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 $669 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 is expected to receive $911 thousand in revenues, including $873 thousand from the General Fund for Chapman Estate Improvements project, $21 thousand from the General Fund for a Chapman Estate condition assessment, and $16 thousand from private event revenues and interest earnings. Projected actual expenditures are $947 thousand, Council Agenda 8-20-2024 9.D-11
including $873 thousand for the Chapman Estate Improvements project, $53 thousand for operating costs of the home and grounds and monthly maintenance costs for utilities and gardening, and $22 for a condition assessment and appraisal of the property. The remaining projected ending balance of this fund is $19 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 $106 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 FY 2024 FY 2024 Projected
Projects Budget Actuals
Price Historic Park/ Meherin House $ 85,029 $ - Palisades and Chumash Park Improvements 80,000 80,000 South Palisades Outdoor fitness equipment/tra 60,000 - Overhead costs 5,437 5,436
Total $ 230,466 $ 85,436
The fund is expected to end the year with a $212 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 $6.12 million and expenditures are projected to be $4.68 million.
The projected ending fund balance for the Water Enterprise Fund is $9.93 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 $12.47 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 Council Agenda 8-20-2024 9.D-12
system operations meet City, federal, and state laws and requirements. Wastewater revenues are projected to be $6.38 million and expenditures are projected to be $9.95 million. The ending fund balance is $5.65 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 $12.49 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 $109 thousand, including $79 thousand of revenues from the Pier Airstreams and $30 thousand from a transfer from the General Fund. Projected expenditures include $127 thousand for Pier and Pier Plaza operating costs. The Pier Enterprise Fund is expected to end the year with a $80 thousand ending fund balance.
Parking Enterprise Fund (65011
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 $3.35 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 $517 for other projects. Of these projects, staff projects $6.45 million will be spent during FY 2024 while the other projects are delayed. The FY 2024 projected ending fund balance is $2.07 million.
Table 11: Parking Enterprise Fund FY 2024 Budgeted Projects FY 2024 FY 2024 Projected
Projects Budget Actuals
Public Safety Facility $ 4,000,000 $ 3,700,000 Parking Property 1,305,496 1,305,496
Police Parking Substation 1,159,056 1,159,056
Parking Kiosk Machines 291,884 260,407
Addie St Parking & Access Impr 88,398 25,810
Radio System Reliability Upgrd 4,000 -
Other projects 517 517
Total $ 6,849,351 $ 6,451,286
Council Agenda 8-20-2024 9.D-13
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 $4.88 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:
Council Agenda 8-20-2024 9.D-14