October – December 2023
CURRENT FINANCIAL CONDITION
In FY 2023-24, the City’s adopted General Fund budget
included a positive operating position of $153,000. After budget adjustments, the current operating position is
$43,000. At the end of the second 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 second quarter total
$34.0 million, or 38% of the $89.2 million annual budget.
General Fund revenue is higher than prior year by
$449,110 due to increases in Property taxes and interest.
General Fund expenditures total $41.3 million for the
second quarter, or 41% of the $100.7 million annual
budget, as compared to $39.8 million at this time last
year. In total, expenditures ended the quarter $1.5
million more than the prior year due to salaries and
benefits, supplies, contractual services and capital
outlay, while interfund transfers and debt decreased due to one time pension costs and transfers in the prior year.
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 $43,235,230 $18,485,014 43%
Sales Tax 13,345,000 4,451,589 33%
Transient Occ. Tax 3,552,000 1,405,878 40%
Other Taxes 3,666,000 596,904 16%
Permits & Fees 1,259,580 792,266 63%
Intergovernmental 943,960 603,730 64%
Service Charges 6,803,170 3,627,960 53%
Fines 524,300 263,042 50%
Interest, Rents, Other 3,425,170 1,706,814 50%
Interfund Transfers 12,429,690 2,054,336 17%
$89,184,100 $33,987,533 38%
Property Taxes: Property taxes total $18.5 million,
primarily from secured taxes. The amount is $849,295
higher than in the prior year due to higher secured
taxes in the current year with supplemental payments
decreasing and other property tax receipts being flat.
Sales Tax: Sales tax receipts amount to $4.5 million,
which is $47,636 higher than in the prior year.
Transient Occupancy Taxes (TOT): Transient
occupancy taxes total $1.4 million, which is lower by
$48,543 from FY 2023 at this time.
Other Taxes: Other taxes, consisting mostly of
franchise fees and business licenses, total $596,904,
which is $199,452 lower than prior year due to lower
cable franchise fees and parimutuel taxes. 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 $792,266.
This is $35,535 more than in the prior year, due to an
increase in construction permit fees, such as grading,
and mechanical permits along with higher STLU permit
revenues.
Intergovernmental: Intergovernmental revenue
derives mainly from grant revenues total $603,730,
which is $285,590 higher from the State SONGS grant
receipt and the State Planning Grant (SB2)
reimbursement for the Trak-It grant.
Service Charges: Service charges, from general
government, public safety, parking meter and
recreation, amount to $3.6 million, which is lower than prior year totals by $232,174 due to lower plan check
fees and beach recreation program fees.
Fines: Revenues from fines total $263,042 which is the same as prior year at this time.
Interest, Rents & Other: Interest, rents and other
reimbursements total $1.7 million, which is a $163,828
increase from the prior year due to an increase in
interest earnings of $91,200 based on interest rates
along with higher rental and lease revenues of $65,700
from sports field rentals.
Interfund transfers: Interfund transfers decreased
from the prior year by $458,708 due to the timing of
one-time transfers from the Disaster Relief fund in the prior fiscal year.
$89.2 $100.7
38%
$34.0
41%
$41.3
$-
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0 Dollars (in millions)
Revenues Expenditures
General Fund -
Current Year Actual to Budget
Budget Actual
Financial Report
Second Quarter of FY 2023-24
Attachment A
Financial Report Second Quarter of FY 2023-24
GENERAL FUND EXPENDITURES
Expenditure by Type Budget YTD Actual %
Salaries $14,726,370 $6,317,025 43%
Benefits 6,787,440 3,935,672 58%
Supplies 1,496,780 643,025 43%
Contractual Services 57,682,850 24,395,548 42%
Other Charges 1,548,750 752,192 49%
Capital Outlay 9,526,770 1,255,225 13%
Interdepartmental 5,530,010 2,780,505 50%
Transfers & Debt 3,434,580 1,239,875 36%
Total $100,733,550 $41,319,067 41%
Expenditure by Dept Budget YTD Actual %
General Government $6,187,140 $2,597,777 42%
City General 6,834,090 2,701,158 40%
Police 23,027,990 10,864,610 47%
Fire 13,855,630 6,917,960 50%
Marine Safety 2,303,860 976,449 42%
Comm. Development 7,503,710 2,904,555 39%
Public Works 34,575,340 11,365,395 33%
Beaches, Parks & Rec 6,445,790 2,991,163 46%
Total $100,733,550 $41,319,067 41%
Expenditures through FY 2023-24’s second quarter are
$41.3 million compared to prior year’s $39.8 million,
reflecting an increase of $1.5 million from the prior year.
Salaries increase by $515,856 due to the filling of staff vacancies and overtime costs. Benefits are mostly flat
with the prior year at this time. Contractual services
increase $3.6 million due to increases in public safety ($1.0 million) and maintenance costs ($2.5 million),
which includes the slope stabilization. Other charges are flat compared to the prior year. Transfers and Debt
decrease from the prior year by $3.3 million due to
pension payments of $2.6 million and the removal of the transfer to subsidize the Clean Ocean fund.
By Department, police and fire decrease $1.2 million with a decrease to the public safety UAL payments of $2.0
million offsetting the higher police/fire contract costs of $0.8 million. Other department changes are as follows:
1) Public works costs increased by $3.3 million due to
increases in personnel, contractual services, and capital outlay, 3) Beaches, Parks and Recreation costs increase $378,799 from higher personnel costs for operations. 4) City General decreased by $762,600 due to lower
contract costs and the removal of the prior year transfer supporting Clean Ocean operations. 5) Community
Development, General 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 $28,419,613 $10,801,511 38%
Sewer Fund 10,888,321 4,390,194 40%
Golf Fund 3,233,863 2,002,941 62%
Storm Drain Fund 1,927,151 604,021 31%
Water commodity revenues decrease $1.4 million based
on lower effluent water usage and timing of SMWD
Recycled Water System revenue. Sewer revenues are
lower by $611,000 mostly based on a lowering of
transfers from depreciation reserves to fund sewer
operations cost.
Golf Course is higher by $300,000 compared to the prior year due to green fee and concession revenues. Storm
drain revenues are higher by $217,000 based on
transfers from depreciation reserves in the current year to support operations.
Expenses
Expenses Budget YTD Actual %
Water Fund $28,286,118 $12,259,039 43%
Sewer Fund 11,951,150 5,521,606 46%
Golf Fund 3,069,240 1,374,325 45%
Storm Drain Fund 1,667,740 780,205 47%
Water expenses increase by $323,000 when compared to
the prior year due mainly to increases in electricity and maintenance of facilities primarily in the recycled water program. Sewer expenses increased by $260,000 due to
increases in personnel, supplies and contractual services.
Golf Course operations remained flat compared to the
prior year. Storm drain operating expenses increased by $60,000 compared to the prior year.
Working Capital
Working Capital Budget YTD Actual
Water Fund $8,066,367 $6,475,344
Sewer Fund 34,830 (33,753)
Golf Fund 1,699,326 2,163,319
Storm Drain Fund 458,283 22,688
Working capital levels are negative in Sewer at the
second quarter of FY 2023-24. The Sewer fund recently
completed a Cost-of Service study to improve the
working capital balance. The Clean Ocean fund is
undergoing a study and fee review, this funding source
will provide assistance to the Storm Drain fund.
ADDITIONAL INFORMATION
General Fund comparative information for the prior year is provided in Table 1 (see attachment).
Attachment A
Table 1
General Fund Revenues - By Category
Month Ending December 31, 2023
FY 2023 FY 2023 % of FY 2024 FY 2024 % of
Budget Actual Budget Budget Actual Budget
Property Tax $ 40,993,230 $ 17,635,719 43% 43,235,230 $ $ 18,485,014 43% Sales Tax $ 12,995,000 $ 4,403,953 34% 13,345,000 $ $ 4,451,589 33% Transient Occ. Tax $ 3,005,000 $ 1,454,521 48% $ 3,552,000 $ 1,405,878 40% Other Taxes $ 3,504,000 $ 796,356 23% $ 3,666,000 $ 596,904 16% Permits and Fees $ 1,165,530 $ 756,731 65% $ 1,259,580 $ 792,266 63% Intergovernmental $ 1,324,830 $ 318,140 24% $ 943,960 $ 603,730 64% Service Charges $ 6,258,340 $ 3,860,134 62% $ 6,803,170 $ 3,627,960 53% Fines $ 518,300 $ 256,839 50% $ 524,300 $ 263,042 50%
Interest & Rents $ 3,287,990 $ 1,542,986 47% $ 3,425,170 $ 1,706,814 50% Interfund Transfers $ 4,942,990 $ 2,513,044 51% 12,429,690 $ $ 2,054,336 17% Gen. Fund Total $ 77,995,210 $ 33,538,423 43% 89,184,100 $ $ 33,987,533 38% General Fund Expenditures - By Category
FY 2023 FY 2023 % of FY 2024 FY 2024 % of
Budget Actual Budget Budget Actual Budget
Salaries $ 13,701,490 $ 5,801,169 42% 14,726,370 $ $ 6,317,025 43% Benefits $ 6,625,080 $ 3,862,839 58% $ 6,787,440 $ 3,935,672 58% Supplies $ 1,252,330 $ 558,677 45% $ 1,496,780 $ 643,025 43% Contractual Services $ 46,138,235 $ 20,785,720 45% 57,682,850 $ $ 24,395,548 42% Other Charges $ 1,507,820 $ 769,056 51% $ 1,548,750 $ 752,192 49% Capital Outlay $ 7,759,440 $ 841,872 11% $ 9,526,770 $ 1,255,225 13% Inter Dept Charges $ 5,257,830 $ 2,664,430 51% $ 5,530,010 $ 2,780,505 50% Interfund Transfers & Debt 6,590,840 $ $ 4,536,769 69% $ 3,434,580 $ 1,239,875 36% Gen. Fund Total $ 88,833,065 $ 39,820,532 45% 100,733,550 $ $ 41,319,067 41% General Fund Expenditures - By Department
FY 2023 FY 2023 % of FY 2024 FY 2024 % of
Budget Actual Budget Budget Actual Budget
General Government $ 5,972,440 $ 2,632,821 44% $ 6,187,140 $ 2,597,777 42% City General $ 8,180,850 $ 3,463,758 42% $ 6,834,090 $ 2,701,158 40% Police $ 21,529,275 $ 11,416,800 53% 23,027,990 $ $ 10,864,610 47% Fire $ 14,125,080 $ 7,600,437 54% 13,855,630 $ $ 6,917,960 50% Marine Safety $ 2,163,410 $ 987,132 46% $ 2,303,860 $ 976,449 42% Comm. Development $ 7,819,910 $ 3,047,878 39% $ 7,503,710 $ 2,904,555 39% Public Works $ 22,913,630 $ 8,059,342 35% 34,575,340 $ $ 11,365,395 33% Beaches, Pks & Rec $ 6,128,470 $ 2,612,364 43% $ 6,445,790 $ 2,991,163 46% Gen. Fund Total $ 88,833,065 $ 39,820,532 45% 100,733,550 $ $ 41,319,067 41% Attachment A