January – March 2023
CURRENT FINANCIAL CONDITION
In FY 2022-23, the City’s is adopted General Fund budget included a positive operating position of $411,000 after mid-year budget adjustments. At the end of the third
quarter, expenditures exceed revenues due to the timing of property and sales tax receipts. Revenues and
expenditures are within budgetary expectations for this time of the year.
GENERAL FUND
General Fund revenues through the third quarter total
$50.6 million, or 64% of the $78.6 million annual budget.
General Fund revenue is $1.5 million higher than last
year’s revenue due to higher property taxes, other taxes, services charges, interest & rents, and interfund
transfers.
General Fund expenditures total $58.6 million for the
third quarter, or 66% of the $89.2 million annual budget, as compared to $54.8 million at this time last year. In total, expenditures ended the quarter $3.8 million higher than the same period mainly due to pension paydown
and General Fund assistance to the Clean Ocean fund.
Additional information on General Fund revenues and
expenditures are discussed further in this report.
GENERAL FUND REVENUES
Revenues by Category Budget YTD Actual %
Property Taxes 41,128,230 26,031,517 63%
Sales Tax 12,995,000 7,474,107 58%
Transient Occ. Tax 3,005,000 2,081,550 69%
Other Taxes 3,524,000 1,679,543 48%
Permits & Fees 1,185,530 1,160,021 98%
Intergovernmental 1,464,830 389,791 27%
Service Charges 6,336,340 5,580,112 88%
Fines 558,300 397,593 71%
Interest, Rents, Other 3,430,790 2,400,982 70%
Interfund Transfers 4,942,990 3,440,619 70%
78,571,010 50,635,835 64%
Property Taxes: Property taxes total $26.0 million,
primarily from secured taxes. The amount is $1.7
million higher than in the prior year due to higher
secured taxes in the current year.
Sales Tax: Sales tax receipts amount to $7.5 million,
which is $443,176 lower than in the prior year. These
are lower due to lower business and county pool
receipts when compared to the prior year.
Transient Occupancy Taxes (TOT): Transient
occupancy taxes total $2.1 million, which is
comparable to the same time last year.
Other Taxes: Other taxes, consisting mostly of
franchise fees and business licenses, total $1,679,543, which is $55,400 higher than prior year. The largest
franchise fees, from SDG&E and Southern California
Gas, are remitted in April of each year.
Permits & Fees: Permits and fees are at $1,160,021.
This is $138,605 less than in the prior year, due to a
decrease in construction and street encroachment
permits from prior year levels.
Intergovernmental: Intergovernmental, which
derives mainly from grant revenues total $389,791,
which is $574,132 lower due the SC Rides program
revenues recorded in the Local Transit fund for FY
2023.
Service Charges: Service charges, from general
government, public safety, parking meter and
recreation, amount to $5.6 million, about $79,500
higher than last year. This increase is the result of an increase in building plan check fees, parking service
charges and recreation service charges as activity
levels increased in the current year.
Fines: Revenues from fines total $397,593, which is
$23,508 lower than the prior year due to lower
administrative fines.
Interest, Rents & Other: Interest, rents and other
reimbursements total $2.4 million, which is a $214,687
increase from the prior year due to an increase in
interest earnings of $86,230 based on higher interest
rates and an increase to rents and site leases of
$94,227 over the prior year.
Interfund transfers: Interfund transfers increased
from the prior year by $635,241 due to funding
provided by the American Rescue Plan funds, which are
being used to offset police and fire cost increases.
$78.6
$89.2
64%
$50.6
66%
$58.6
$-
$20.0
$40.0
$60.0
$80.0
$100.0 Dollars (in millions)
Revenues Expenditures
General Fund -
Current Year Actual to Budget
Budget Actual
Quarterly Financial Report
Third Quarter of FY 2022-23
Quarterly Financial Report Third Quarter of FY 2022-23
GENERAL FUND EXPENDITURES
Expenditure by Type Budget YTD Actual %
Salaries 13,517,490 8,416,161 62%
Benefits 6,625,080 4,839,266 73%
Supplies 1,340,880 808,999 60%
Contractual Services 46,548,235 32,214,182 69%
Other Charges 1,512,320 1,048,554 69%
Capital Outlay 7,759,440 2,111,143 27%
Interdepartmental 5,257,830 3,996,638 76%
Transfers & Debt 6,670,840 5,157,090 77%
Total 89,232,115 58,592,033 66%
Expenditure by Dept Budget YTD Actual %
General Government 5,988,440 3,830,211 64%
City General 8,282,700 5,092,959 61%
Police 21,530,775 16,293,062 76%
Fire 14,137,080 10,871,903 77%
Marine Safety 2,163,410 1,297,175 60%
Comm. Development 7,820,710 4,497,068 58%
Public Works 23,116,530 12,988,761 56%
Beaches, Parks & Rec 6,192,470 3,720,894 60%
Total 89,232,115 58,592,033 66%
Expenditures at the third quarter of FY 2022-23 are
$58.6 million compared to prior year’s $54.8 million. This is an increase of $3.8 million from the prior year. Salaries increase by $433,357 due to the filling of staff vacancies and overtime costs. Benefits decrease $1.0 million
mostly from a $1.7 million pension UAL payment in FY
2022. Contractual services increase $2.0 million. This is due to large increases in public safety ($814,000), higher utility costs ($131,000), Trak-it software costs
($231,000), maintenance ($380,000), and various
contract costs to assist with projects and staffing. Other charges increased by $58,305 from the prior year.
Capital Outlay increased by $818,601, which includes
some payment for sand replenishment. Transfers and
Debt increase from the prior year by $1.2 million due to one-time pension payments offset by a transfer to
support the Clean Ocean Fund in FY 2022-23.
By Department, police and fire increase total $1.2 million due to public safety contract cost increases and the
additional UAL pension payment made in August. Other
department changes are as follows: 1) City General
increased by $866,198 due to transfers to the Clean
Ocean Fund in the current year, 2) Public works costs
increased by $1.4 million due to increases in contractual services and capital outlay costs, 3) Community
Development increases by $368,900 due to increases to
other contractual services 5) Beaches, Parks and
Recreation, Genera Government, and Marine Safety are
relatively flat compared to prior year.
In total, costs are currently within anticipated results at this time of the year based on the budget.
ENTERPRISE FUNDS
The following tables summarize the operating revenues,
operating expenses, and changes in operating fund
working capital for enterprise funds including Water,
Sewer, Golf, and Storm Drain funds.
Revenues
Revenue Budget YTD Actual %
Water Fund 25,485,021 16,105,961 63%
Sewer Fund 11,692,897 7,611,314 65%
Golf Fund 2,627,680 2,446,552 93%
Storm Drain Fund 1,774,598 737,543 42%
Water commodity revenues decrease $571,000 based on
lower water usage due to rains, while $1.1 million was
received under the SMWD agreement. Sewer revenues
are lower than the prior year by $454,000 with service
charges lower by $218,000 and smaller depreciation
reserve transfers of $338,000 to support sewer
operations in the current year.
Golf Course and Storm drain revenues are flat compared
to the prior year at this time.
Expenses
Expenses Budget YTD Actual %
Water Fund 26,524,720 18,022,318 68%
Sewer Fund 11,704,010 7,803,670 67%
Golf Fund 2,928,200 1,968,073 67%
Storm Drain Fund 1,696,180 1,078,263 64%
Water expenses increase by $526,000 when compared to
the prior year due to depreciation reserve transfers from operating funds. Sewer expenses decreased by $244,000
due to a decrease in personnel costs and vacancies. Golf Course operations increased by $118,000 due to
increases in effluent water and other contractual services for staffing assistance. Storm drain operating expenses were lower by $78,000 compared to the previous year
due to lower salaries based on vacancies.
Working Capital
Working Capital Budget YTD Actual
Water Fund 7,775,782 6,879,124
Sewer Fund 537,232 355,989
Golf Fund 627,130 1,406,129
Storm Drain Fund -130,494 -549,632
Working capital levels are negative in the Storm Drain
fund; however, year-end activity will result in a positive position. The Sewer fund and Clean Ocean funds are both undergoing Cost-of-Service studies and fee reviews.
ADDITIONAL INFORMATION
General Fund comparative information for the prior year is provided in Table 1 (see attachment).
Table 1
General Fund Revenues - By Category
Month Ending March 31, 2023
FY 2022 FY 2022 % of FY 2023 FY 2023 % of
Budget Actual Budget Budget Actual Budget
Property Tax 38,697,220 $ 24,365,240 $ 63% 41,128,230 $ 26,031,517 $ 63% Sales Tax 12,181,000 $ 7,917,283 $ 65% 12,995,000 $ 7,474,107 $ 58% Transient Occ. Tax 2,290,000 $ 2,082,935 $ 91% 3,005,000 $ 2,081,550 $ 69% Other Taxes 3,454,000 $ 1,624,143 $ 47% 3,524,000 $ 1,679,543 $ 48% Permits and Fees 1,361,170 $ 1,298,626 $ 95% 1,185,530 $ 1,160,021 $ 98% Intergovernmental 1,381,840 $ 963,923 $ 70% 1,464,830 $ 389,791 $ 27% Service Charges 5,890,830 $ 5,500,610 $ 93% 6,336,340 $ 5,580,112 $ 88% Fines 569,750 $ 421,101 $ 74% 558,300 $ 397,593 $ 71%
Interest & Rents 3,465,990 $ 2,186,295 $ 63% 3,430,790 $ 2,400,982 $ 70% Interfund Transfers 4,587,570 $ 2,805,378 $ 61% 4,942,990 $ 3,440,619 $ 70% Gen. Fund Total 73,879,370 $ 49,165,534 $ 67% 78,571,010 $ 50,635,835 $ 64% General Fund Expenditures - By Category
FY 2022 FY 2022 % of FY 2023 FY 2023 % of
Budget Actual Budget Budget Actual Budget
Salaries 12,790,940 $ 7,982,804 $ 62% 13,517,490 $ 8,416,161 $ 62% Benefits 7,458,860 $ 5,850,125 $ 78% 6,625,080 $ 4,839,266 $ 73% Supplies 1,175,220 $ 652,402 $ 56% 1,340,880 $ 808,999 $ 60% Contractual Services 43,446,595 $ 30,232,666 $ 70% 46,548,235 $ 32,214,182 $ 69% Other Charges 1,274,010 $ 990,249 $ 78% 1,512,320 $ 1,048,554 $ 69% Capital Outlay 5,885,300 $ 1,292,542 $ 22% 7,759,440 $ 2,111,143 $ 27% Inter Dept Charges 4,973,190 $ 3,847,643 $ 77% 5,257,830 $ 3,996,638 $ 76% Interfund Transfers & Debt 4,275,100 $ 3,938,034 $ 92% 6,670,840 $ 5,157,090 $ 77% Gen. Fund Total 81,279,215 $ 54,786,465 $ 67% 89,232,115 $ 58,592,033 $ 66% General Fund Expenditures - By Department
FY 2022 FY 2022 % of FY 2023 FY 2023 % of
Budget Actual Budget Budget Actual Budget
General Government 5,652,480 $ 3,870,251 $ 68% 5,988,440 $ 3,830,211 $ 64% City General 6,034,990 $ 4,226,761 $ 70% 8,282,700 $ 5,092,959 $ 61% Police 20,477,510 $ 15,612,282 $ 76% 21,530,775 $ 16,293,062 $ 76% Fire 13,368,680 $ 10,385,050 $ 78% 14,137,080 $ 10,871,903 $ 77% Marine Safety 1,998,810 $ 1,264,734 $ 63% 2,163,410 $ 1,297,175 $ 60% Comm. Development 7,295,180 $ 4,128,163 $ 57% 7,820,710 $ 4,497,068 $ 58% Public Works 20,687,955 $ 11,636,342 $ 56% 23,116,530 $ 12,988,761 $ 56% Beaches, Pks & Rec 5,763,610 $ 3,662,882 $ 64% 6,192,470 $ 3,720,894 $ 60% Gen. Fund Total 81,279,215 $ 54,786,465 $ 67% 89,232,115 $ 58,592,033 $ 66%