January-March 2025
CURRENT FINANCIAL CONDITION
In FY 2024-25, the City’s adopted General Fund budget
included a positive operating position. At the end of the Third quarter, while expenditures exceed revenues,
revenues and expenditures are within budgetary
expectations for this time of the year.
GENERAL FUND
General Fund revenues through the third quarter total
$54.3 million, or 61% of the $88.9 million annual budget.
General Fund revenue is $2.7 million higher than the
third quarter of the prior year. Increases were seen in property taxes, permits and fees, services charges and
interest and rents, where as decreases were seen in sales tax, transient occupancy tax, intergovernmental, fines
and interfund transfers.
General Fund expenditures total $67.2 million for the
third quarter, or 65% of the $103.5 million annual
budget, as compared to $62.2 million at this time last
year. In total, expenditures ended the quarter $5 million more than the prior year due to increases in personnel
costs, capital outlay and interfund transfers and debt.
The current budget for General Fund expenditures is
$103.5 million which reflects an increase of $400,000
from the second quarter adjusted budget of $103.1.
The increase is due to the mid-year adjustments
approved by Council in the third quarter of this fiscal 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 46,275,728 28,759,987 62%
Sales Tax 12,803,000 7,528,575 59%
Transient Occ. Tax 3,550,000 1,904,648 54%
Other Taxes 3,402,000 1,472,891 43%
Permits & Fees 1,402,540 1,328,987 95%
Intergovernmental 2,507,750 616,905 25%
Service Charges 7,940,300 6,537,500 82%
Fines 607,500 429,894 71%
Interest, Rents, Other 3,704,190 3,108,814 84%
Interfund Transfers 6,685,100 2,661,304 40%
88,878,108 54,349,505 61%
Property Taxes: Property taxes total $28.8, primarily
from secured taxes. The amount is $1.5 million higher
than the prior year due to the timing of the secured
property tax received in Q2. Property tax revenue is
distributed unevenly throughout the year, with 50%
in Q2, 40% in Q4, and the remainder is spread across
Q1 and Q3.
Sales Tax: Sales tax receipts amount to $7.5 million,
which lower than the $7.7 million from the prior year
by $154,995. The decrease is attributed to reductions
in discretionary consumer spending and fuel prices.
Transient Occupancy Taxes (TOT): Transient
occupancy taxes total $1.9 million, which is $90,533
lower than FY 2024 at this time.
Other Taxes: Other taxes, consisting mostly of
franchise fees and business licenses, total $1.5 million, which is $18,029 higher than prior year due to higher
business license tax receipts. The majority of franchise fees, from SDG&E and Southern California Gas, are
received in April of each year.
Permits & Fees: Permits and fees are at $1.3 million.
This is $197,842 more than in the prior year, due to an increase in building and plumbing permits.
Intergovernmental: Intergovernmental revenue
derives mainly from grant revenues total $616,905,
which is $60,812 lower due to the SB2 planning grant
which was received in the previous year.
Service Charges: Service charges, from general
government, public safety, parking meter and
recreation, amount to $6.5 million, which is higher than prior year totals by $1.1 million mainly due to higher
plan check fees, and public safety service charges
which include ambulance service charges.
Fines: Revenues from fines total $429,894, which is
$76,374 lower than the prior year due to a decrease in
parking violations and vehicle code fines.
$88.9
$103.5
61%
$54.3
65%
$67.2
$-
$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
Third Quarter of FY 2024-25
Attachment 1
Financial Report Third Quarter of FY 2024-25
Interest, Rents & Other: Interest, rents and other
reimbursements total $3.1 million, which is a $465,385
increase from the prior year due to a new lease for City Property.
Interfund transfers: Interfund transfers decreased
from the prior year by $252,995 due to a one-time
transfer from Capital Reserves fund in the prior year.
GENERAL FUND EXPENDITURES
Expenditure by Type Budget YTD Actual %
Salaries 15,597,715 10,355,240 66%
Benefits 7,188,730 5,517,804 77%
Supplies 1,647,850 923,792 56%
Contractual Services 54,236,070 36,031,854 66%
Other Charges 1,732,447 1,047,582 60%
Capital Outlay 13,031,750 6,155,415 47%
Interdepartmental 5,697,340 4,296,255 75%
Transfers & Debt 4,358,330 2,850,124 65%
Total 103,490,232 67,178,066 65%
Expenditure by Dept Budget YTD Actual %
General Government 6,786,150 4,565,725 67%
City General 7,236,810 4,573,184 63%
Police 23,079,250 17,656,390 77%
Fire 14,749,320 11,089,356 75%
Marine Safety 2,376,290 1,489,779 63%
Comm. Development 9,569,400 4,921,093 51%
Public Works 33,013,210 18,501,069 56%
Beaches, Parks & Rec 6,679,802 4,381,470 66%
Total 103,490,232 67,178,066 65%
Expenditures for the third quarter of FY 2024-25 are
$67.2 million compared to prior year’s $62.2 million. This is an increase of $5 million from the prior year. Filled vacancies from the prior fiscal year and a 3.5% COLA
increase contributed to an increase in personnel costs.
Benefits increased by $506,234. Contractual services
decreased by $2.2 million due to the Casa Romantical
slope stabilization project the previous year. Capital
Outlay increased by $4.3 million, which is due to the
timing of project costs and the sand replenishment
project. Transfers and Debt increased from the prior year by $1.0 million due to unfunded liability pension
payments and a transfer to the Local Transit fund to
subsidize operations in the current year.
As anticipated, police and fire show an increase of $2.0 million. Other department changes are as follows: 1)
Public works costs increased by $534,738 due to capital outlay costs related to sand replenishment, 2)
Community Development increased by $800,605 from
the prior year due to higher personnel and contractual
service costs. 3) City General increased by $405,915 due to one-time transfers in the current fiscal year, including reserve transfers and a subsidy to the Transit operations for the trolley. 4) General Government increased by
$768,780 due to the filling of several staff vacancies 5) Beaches, Parks and Recreation and Marine Safety are
slightly higher compared to prior year due to activity
levels.
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 28,244,230 16,800,661 59%
Sewer Fund 11,935,246 8,003,859 67%
Golf Fund 3,642,400 2,964,656 81%
Storm Drain Fund 3,084,725 1,527,461 50%
Water commodity revenues increase $1.8 million based
on higher metered water sales, higher effluent water
sales and higher reclaimed water credit. Sewer revenues are higher by $836,356 due to an increase in service rate charges.
Golf Course is higher by $138,323 compared to the prior year due to increases to green fee revenues. Storm drain revenues are higher by $58,952, not necessarily due to
the collection of fees, rather due to deprecation transfers in the current year to support operations.
Expenses
Expenses Budget YTD Actual %
Water Fund 29,458,458 19,248,587 65%
Sewer Fund 12,910,025 8,646,880 67%
Golf Fund 3,452,760 2,312,710 67%
Storm Drain Fund 1,728,000 1,100,364 64%
Water expenses increase by $21,041 when compared to
the prior year. Sewer expenses increased by $544,787
due to increases in personnel costs and an increase in
prices for chemical supplies. Golf Course operations
increased by $315,835 due to personnel, effluent water
purchases, and interdepartmental charges. Storm drain
operating expenses decreased by $80,961 compared to
the prior year due mostly to lower personnel costs.
Working Capital
Working Capital Budget YTD Actual
Water Fund 6,718,644 5,484,946
Sewer Fund 122,880 454,638
Golf Fund 1,724,343 2,186,649
Storm Drain Fund 1,555,597 625,969
It is recommended that the Storm Drain fund undergo a
Cost-of-Service study and fee review, to assist in
sustaining the projects and expenditures within the Clean Ocean fund.
ADDITIONAL INFORMATION
General Fund comparative information for the prior year is provided in Table 1 (see attachment).