TO: Mayor and City Council
FROM: Philippe Eskandar, City Manager
BY: Hillary Guirola-Leon, Finance Director
DATE: October 25, 2024
SUBJECT: RECEIVE AND FILE FINANCIAL REPORT FOR 2ND HALF OF FISCAL YEAR 2023-24 (JANUARY 2024 TO JUNE 2024)
STRATEGIC PLAN CRITICAL SUCCESS FACTORS
Fiscally Responsible and Transparent City Government
BACKGROUND
The following presents the financial activity of the City for the 2nd half of the fiscal year 2023-24 (January 2024 through June 30, 2024) as well as the fiscal year-to-date financial information. These figures are unaudited and have been compiled by the Finance Department. Financial information as noted at March 31, 2023, and June 30, 2023, has been included for comparative purposes.
DISCUSSION
The General Fund ended the Fiscal Year with Year-to-date revenues of $36.42M. General fund revenues increased by $3.3M from prior year actuals.
The majority of this increase is due to $1.8M in one-time American Rescue Plan Act (ARPA) funding recognized in FY 2023-24. Tax revenues overall increased by 3.4% and continue to be the highest revenue source for the City at about 64% of total General fund revenues. Another reason for the revenue increase compared to last year is due to the fluctuations in market value of the City’s investments and an increase of investment returns.
Total General Fund expenditures for the FY 2023-24 increased by $2.7M or
9.3% compared to last year.
Steven W. Huang, DDS, Mayor
Gretchen Shepherd Romey, Vice Mayor
Tony Chou, Council Member
Calvin Lo, Council Member
Steve Talt, Council Member
Below is a table summarizing the General Fund activity for the fiscal year ended June 30, 2024.
Overall, the General fund had a change in Fund Balance of $2.1M and is due to one-time revenue from American Rescue Plan Act (ARPA) funding.
June 30, 2023 YTD versus June 30, 2024 YTD Financial Information Below is a snapshot of the year-to-date revenues and expenditures for the FY 23/24
Actuals
General Funds Group
REVENUES
General Fund 29,589,741
Public Safety Fund 4,710,067
Fourth of July 74,351
American Rescue Plan 1,897,283
Donations to City 154,515
TOTAL REVENUES 36,425,956
EXPENDITURES
General Fund 13,929,980
Public Safety Fund 15,892,474
Fourth of July 98,542
San Marino Center 0
Donations to City 55,809
American Rescue Plan 6,236
Workers' Compensation 1,047,379
General Liability 766,554
TOTAL EXPENDITURES 31,796,974
REVENUES LESS EXPENDITURES 4,628,983
TRANSFERS OUT (2,870,828)
TRANSFERS IN 342,872.00
CHANGE IN FUND BALANCE 2,101,027
GENERAL FUND GROUP SUMMARY
For Year Ended 6/30/24
General Fund (Fund 101), the Public Safety Fund (Fund 103), and all of the Special Revenue Funds.
QUARTERLY FINANCIAL REPORT
GOVERNMENTAL FUNDS (UNRESTRICTED)
General Fund (101)
Revenues YTD PY YTD $$$ %
Taxes 23,607,747 22,824,855 782,891 3.4% Note 1
Licenses & Permits 1,043,196 948,014 95,182 10.0% Note 2 Charges for Service 1,571,549 1,602,050 (30,501) -1.9% Note 3 Intergovernmental 2,047,620 1,968,386 79,234 4.0%
Fines & Forfeitures 6,690 (5,935) 12,625 212.7%
Money & Property 1,232,623 439,950 792,673 180.2% Note 4 Miscellaneous 80,315 29,439 50,877 172.8% Note 5
General Fund Total Revenues 29,589,741 27,806,759 1,782,981 6.4% Expenses YTD PY YTD $$$ %
City Council 25,807 28,029 (2,222) -7.9%
City Attorney 556,050 455,095 100,955 22.2%
Non-Departmental 1,490,857 1,295,926 194,931 15.0%
City Manager's Office 814,077 801,064 13,013 1.6%
Human Resources 584,745 499,615 85,130 17.0%
Finance Department 742,550 840,666 (98,116) -11.7%
Community Development 2,059,686 1,610,372 449,314 27.9% Emergency Services 57,092 35,909 21,183 59.0%
Parks and Public Works 4,006,378 3,503,815 502,563 14.3% Recreation Department 2,041,993 1,755,031 286,962 16.4% Library Department 1,490,745 1,338,150 152,595 11.4%
El Molino Viejo 60,000 60,000 - 0.0%
General Fund Total Expenses 13,929,980 12,223,672 1,706,308 14.0% Note 6 Net Income-General Fund 15,659,761 15,583,087 76,673 0.5% Public Safety Fund (103)
Revenues YTD PY YTD $$$ %
Taxes 3,707,821 3,645,285 62,535 1.7%
Charges for Service 864,029 730,577 133,452 18.3% Note 7 Intergovernmental 29,073 61,533 (32,461) -52.8%
Fines & Fees 102,205 76,894 25,311 32.9%
Miscellaneous 6,939 118,675 (111,736) -94.2% Note 8
4,710,067 4,632,966 77,102 1.7%
Expenses YTD PY YTD $$$ %
Police Department 8,745,319 7,998,032 747,287 9.3%
Fire Department 7,147,155 6,783,919 363,236 5.4%
15,892,474 14,781,952 1,110,522 7.5% Note 9
Net Income-Public Safety Fund (11,182,407) (10,148,986) (1,033,420) -10.2%
SPECIAL REVENUE FUNDS (RESTRICTED)
YTD PY YTD $$$ %
Revenues 2,653,303 3,014,357 (361,054) -12.0% Note 10
Expenses 747,306 2,408,674 (1,661,367) -69.0% Note 11
Net Income-Special Revenue Funds 1,905,997 605,683 1,300,314 214.7% Total Revenues-All Funds 40,063,966 36,730,230 3,333,736 9.1% Total Expenses-All Funds 37,482,396 39,064,864 (1,582,468) -4.1% Net Income-All Funds 2,581,570 (2,334,634) 4,916,205 210.6% CY vs PY
CY vs PY
CY vs PY
CY vs PY
CY vs PY
Items of Note:
1. Increase in Taxes is due to property taxes increasing by $691k (4%) compared to last year and is in line with trends. Sales taxes ($56k) and Property Transfer Taxes ($59k) have also increased compared to prior year.
2. Increase in Licenses & Permits is due to Building Permits increasing by $86k compared to last year due to more building permits issued in FY 23/24.
3. Decrease in Charges for Service of about $30k is primarily due to a decrease in Family Life Program fees for the Recreation Department compared to prior year.
4. Increase in Money & Property ($792k) is primarily due to fluctuations of the market value of the City’s investments and interest rates increasing.
5. Miscellaneous revenue increased by $50K from prior year. The variance is primarily due to an insurance settlement check received for damaged city property.
6. General Fund Expenditures increased from prior year by $1.7M. 50% of the increase is due to payroll expenditures. Overall, payroll expenditures have stabilized due to less vacancies. During FY 23/24 there was also a 4% MOU negotiated increase in salaries. Cafeteria benefits also increased by $184K from prior year due to FY 23/24 being the first full year where the City covered insurance premiums up to the rates for the Los Angeles County region of medical coverage.
7. Charges for Services in the Public Safety Fund increased from prior year by $133K. The increase is primarily due to Paramedic Services Revenue increase of $145K from prior year.
8. Miscellaneous Revenue in the Public Safety Fund decreased by $111K from prior year. During FY 22/23 the city received a one-time Officer Wellness and Mental Health Grant of $25K. Also, in FY 22/23 the city received strike team reimbursements due to an incident response in FY 22/23.
9. Public Safety Fund 103 expenditures increased form prior year by $1.1M (7.5%). Payroll expenditures increased from prior year by 7%. The remaining variance is due to workers compensation salaries paid.
10. Special Revenues decreased from prior year by $361K. During FY 22/23, the city received three FY’s allocations from the County for Measure W funding.
The additional allocations received in FY 22/23 were due to the timing of County disbursements for the first year of the program. The City is expected to receive only one allocation moving forward (about $230K a year).
11. Special Revenue Fund Expenditures decreased from prior year by $1.6M.
The variance is due to the timing of the street improvement project in FY 23/24.
Fourth Quarter 2024 versus Fourth Quarter 2023 Financial Information
Below is the revenues and expenditures for the General Fund (Fund 101), the Public Safety Fund (Fund 103), and all of the Special Revenue Funds.
QUARTERLY FINANCIAL REPORT
GOVERNMENTAL FUNDS (UNRESTRICTED)
General Fund (101) Fourth Quarter Fourth Quarter
Revenues 2024 2023 $$$ %
Taxes 10,031,029 9,579,026 452,003 4.7% Note 1
Licenses & Permits 305,721 324,381 (18,660) -5.8%
Charges for Service 616,757 543,901 72,856 13.4% Note 2 Intergovernmental 1,021,116 972,482 48,634 5.0%
Fines & Forfeitures 450 200 250 125.0%
Money & Property 724,875 80,288 644,586 802.8%
Miscellaneous 18,281 1,860 16,421 882.9% Note 3
General Fund Total Revenues 12,718,229 11,502,137 1,216,092 10.6% Fourth Quarter Fourth Quarter
Expenses 2024 2023 $$$ %
City Council 3,274 400 2,874 717.7%
City Attorney 129,901 216,048 (86,148) -39.9%
Non-Departmental 373,068 294,471 78,598 26.7%
City Manager's Office 210,014 153,597 56,417 36.7%
Human Resources 234,906 113,390 121,516 107.2%
Finance Department 175,297 204,301 (29,005) -14.2%
Community Development 643,442 507,501 135,940 26.8%
Emergency Services 25,427 14,349 11,078 77.2%
Parks and Public Works 1,075,345 1,048,571 26,774 2.6%
Recreation Department 617,970 510,898 107,072 21.0%
Library Department 397,064 345,599 51,465 14.9%
El Molino Viejo - - 0 0.0%
General Fund Total Expenses 3,885,709 3,409,127 476,582 14.0% Note 4 Net Income-General Fund 8,832,520 8,093,011 739,509 9.1% Public Safety Fund (103) Fourth Quarter Fourth Quarter
Revenues 2024 2023 $$$ %
Taxes 1,387,272 1,352,305 34,966 2.6%
Charges for Service 241,385 229,821 11,564 5.0%
Intergovernmental 1,440 14,169 (12,729) -89.8%
Fines & Fees 37,001 28,688 8,313 29.0%
Miscellaneous 1,250 2,298 (1,048) -45.6%
1,668,348 1,627,282 41,066 2.5%
Fourth Quarter Fourth Quarter
Expenses 2024 2023 $$$ %
Police Department 2,171,425 2,001,532 169,893 8.5%
Fire Department 1,714,123 1,781,563 (67,440) -3.8%
3,885,548 3,783,096 102,452 2.7%
Net Income-Public Safety Fund (2,217,200) (2,155,814) (61,386) -2.8%
SPECIAL REVENUE FUNDS (RESTRICTED)
Fourth Quarter Fourth Quarter
2024 2023 $$$ %
Revenues 750,829 618,821 132,008 21.3%
Expenses 405,722 1,476,407 (1,070,686) -72.5% Note 5
Net Income-Special Revenue Funds 345,108 (857,586) 1,202,694 140.2% Total Revenues-All Funds 15,522,722 14,452,108 1,070,614 7.4% Total Expenses-All Funds 9,862,881 12,446,079 (2,583,198) -20.8% Net Income-All Funds 5,659,841 2,006,029 3,653,812 182.1% CY vs PY
CY vs PY
CY vs PY
CY vs PY
CY vs PY
Items of Note:
1. Increase in Taxes is due to Property Taxes increasing by $378k (5%) as well as Sales Taxes increasing by $18k (7%). The City has also seen an increase in Property Transfer Taxes of $37k compared to the prior year.
2. 4th quarter Charges for services activity was trending higher than prior year due to more activity in Planning and Building revenues. Overall, the Year-todate charges for services decreased in FY 23/24 due to a decrease in Family Life Program fees for the Recreation Department
3. Miscellaneous revenue increase quarter to quarter due to insurance settlement for damaged city property.
4. Overall increase in Non-sworn Department expenses of $476k (14%) compared to the prior year. Increase is due to cost-of-living adjustments of 4% related to salaries as stipulated in the various MOUs with city employees.
Year-to date figures are tracking below budget.
5. Expenditures for Special Revenue funds decreased from prior year due to the timing of the street project expenditures.
Third Quarter 2024 versus Third Quarter 2023 Financial Information Below are the revenues and expenditures for the General Fund (Fund 101), the Public Safety Fund (Fund 103), and all of the Special Revenue Funds.
QUARTERLY FINANCIAL REPORT
GOVERNMENTAL FUNDS (UNRESTRICTED)
General Fund (101) Third Quarter Third Quarter
Revenues 2024 2023 $$$ %
Taxes 3,868,160 3,939,056 (70,896) -1.8%
Licenses & Permits 239,738 240,270 (531) -0.2%
Charges for Service 385,412 430,140 (44,729) -10.4%
Intergovernmental 1,026,504 995,904 30,600 3.1%
Fines & Forfeitures 5,865 (1,870) 7,735 413.6%
Money & Property 240,574 89,166 151,408 169.8%
Miscellaneous 13,447 7,364 6,083 82.6%
General Fund Total Revenues 5,779,701 5,700,031 79,671 1.4% Third Quarter Third Quarter
Expenses 2024 2023 $$$ %
City Council 7,684 9,082 (1,398) -15.4%
City Attorney 359,270 100,973 258,297 255.8%
Non-Departmental 314,549 248,512 66,037 26.6%
City Manager's Office 213,682 105,637 108,046 102.3%
Human Resources 110,987 155,797 (44,810) -28.8%
Finance Department 142,939 153,750 (10,811) -7.0%
Community Development 424,345 405,366 18,979 4.7%
Emergency Services 10,457 7,719 2,738 35.5%
Parks and Public Works 983,239 776,498 206,741 26.6%
Recreation Department 430,264 355,324 74,940 21.1%
Library Department 331,754 296,278 35,475 12.0%
El Molino Viejo 60,000 - 60,000 0.0%
General Fund Total Expenses 3,389,168 2,614,935 774,233 29.6% Net Income-General Fund 2,390,534 3,085,096 (694,562) -22.5% Public Safety Fund (103) Third Quarter Third Quarter
Revenues 2024 2023 $$$ %
Taxes 832,875 838,497 (5,622) -0.7%
Charges for Service 196,392 156,603 39,789 25.4%
Intergovernmental 6,439 15,728 (9,289) -59.1%
Fines & Fees 19,680 22,623 (2,943) -13.0%
Miscellaneous 1,205 113,713 (112,508) -98.9%
1,056,591 1,147,165 (90,573) -7.9%
Third Quarter Third Quarter
Expenses 2024 2023 $$$ %
Police Department 2,072,062 1,783,729 288,333 16.2%
Fire Department 1,612,155 1,418,993 193,161 13.6%
3,684,216 3,202,722 481,494 15.0%
Net Income-Public Safety Fund (2,627,625) (2,055,558) (572,067) -27.8%
SPECIAL REVENUE FUNDS (RESTRICTED)
Third Quarter Third Quarter
2024 2023 $$$ %
Revenues 836,458 874,558 (38,100) -4.4%
Expenses 65,626 467,257 (401,631) -86.0%
Net Income-Special Revenue Funds 770,832 407,301 363,531 89.3% Total Revenues-All Funds 9,832,863 7,878,645 1,954,218 24.8% Total Expenses-All Funds 7,875,537 8,425,942 (550,405) -6.5% Net Income-All Funds 1,957,326 (547,297) 2,504,623 457.6% CY vs PY
CY vs PY
CY vs PY
CY vs PY
CY vs PY
All Funds Revenue Summary at June 30, 2024
In the next summary, budgeted revenues are shown against actual revenue at June 30, 2024, and in comparison to the prior year at this same time period.
Adopted Year-to-Date Increase/(Decrease) Prior Year
Budget Actual % v. Prior Year Actual
General Funds Group
General Fund 29,384,411 29,589,741 101% 1,782,981 27,806,759 Public Safety Fund 4,627,794 4,710,067 102% 77,102 4,632,966 Fourth ofJuly 58,160 74,351 128% 4,077 70,274
San Marino Center 0 0 0% 0 0
American Rescue Plan 1,973,747 1,897,283 96% 1,450,868 446,415 Donations to City 154,250 154,515 100% 28,518 125,997
Total General Fund 36,198,362 36,425,956 101% 3,343,545 33,082,411 Special Revenue Funds
Gas Taxes 672,921 698,211 104% 98,835 599,377
CDBG 9,131 7,866 86% 6,073 1,793
County Park Prop A 0 0 0% 9 (9)
Prop A Transit 356,741 432,791 121% 9,886 422,905
Drought 200 2,669 1335% 601 2,068
Air Quality (AQMD) 19,050 19,768 104% (2,712) 22,480
STPL 500 3,233 647% (8,734) 11,967
TDA 19,100 19,324 101% (401) 19,725
Prop C Transit 296,833 330,562 111% (23,674) 354,236
PEG Fees 31,800 49,603 156% (1,910) 51,513
Asset Forfeiture 200 4,381 2191% 987 3,394
Granada Ave. 0 0 0% 0 0
Used Oil Grant 100 5,135 5135% 4,117 1,018
OTS Gant 83,040 19,526 24% (47,036) 66,563
Recycling 91,500 16,639 18% 3,748 12,891
COPS 205,000 232,716 114% 30,918 201,798
Homeland Security Grant 0 0 0% 0 0
County Measure R 557,375 216,601 39% (1,264) 217,865
Measure W 235,000 296,867 126% (440,756) 737,623
County Measure M 254,758 297,410 117% 10,260 287,150
Total Special Revenue Funds 2,833,249 2,653,303 94% (361,054) 3,014,357 Capital Project Fund
Capital Projects 175,000 313,837 179% 246,596 67,241
Internal Service Fund
Capital Equipment 630,643 652,485 103% 104,732 547,753
Total Internal Service Funds 630,643 652,485 103% 104,732 547,753 Fiduciary Fund
Agency Fund 0 18,385 0% (83) 18,468
Total All Revenue 39,837,254 40,063,966 101% 3,333,736 36,730,230 All Revenue by Fund
For Quarter Ended June 30, 2024 -- 100% of Fiscal Year Complete All Funds Expenditure Summary at June 30, 2024
In the next summary, budgeted expenditures are shown against actual expenditures at June 30, 2024, and in comparison to the prior year at this same time period.
Adopted Year-to-Date Increase/(Decrease) Prior Year
Budget Actual % v. Prior Year Actual
General Funds Group
General Fund 15,903,051 13,929,980 88% 1,706,308 12,223,672 Public Safety Fund 15,951,317 15,892,474 100% 1,110,522 14,781,952 Fourth ofJuly 111,327 98,542 89% 9,980 88,562
San Marino Center 0 0 100% 0 0
Donations to City 144,790 55,809 39% (33,687) 89,496
American Rescue Plan 401,783 6,236 2% (295,522) 301,758 Workers' Compensation 664,300 1,047,379 158% 148,288 899,091 General Liability 766,174 766,554 100% 72,048 694,506
Total General Fund 33,942,742 31,796,974 94% 2,717,937 29,079,036 Special Revenue Funds
Gas Taxes 675,000 43,947 7% (606,053) 650,000
CDBG 9,000 7,864 87% 6,155 1,709
County Park Prop A 0 0 100% 0 0
Prop A Transit 319,430 262,431 82% 108,948 153,482
Air Quality 58,790 58,782 100% (48,008) 106,790
Drought 0 0 0% 0 0
STPL 0 0 0% (270,626) 270,626
TDA 38,000 38,000 100% 38,000 0
Prop C Transit 402,500 0 0% (815,796) 815,796
OTS Grant 83,040 19,642 24% (46,858) 66,500
Used Oil Grant 0 3,482 0% 3,482 0
CADept of Conservation Fund 91,000 0 0% 0 0
COPS 156,202 205,350 131% 36,580 168,770
Homeland Security Grant 0 0 0% 0 0
County Measure R 555,000 0 0% (175,000) 175,000
Measure W Clean Water Fund 217,218 107,809 50% 107,809 0 County Measure M 1,000,000 0 100% 0 0
Total Special Revenue 3,605,180 747,306 21% (1,661,367) 2,408,674 Capital Projects Funds
Capital Projects 14,775,585 3,896,409 26% (2,793,780) 6,690,189 Debt Service Funds
Debt Service 574,888 574,888 100% 22,854 552,034
Internal Service Funds
Capital Equipment 986,662 466,819 47% 131,888 334,932
Total Expenditures 53,885,057 37,482,396 70% (1,582,468) 39,064,864 All Expenditures by Fund
For Quarter Ended June 30, 2024 -- 100% of Fiscal Year Complete
FISCAL IMPACT & PROCUREMENT REVIEW
This report has no fiscal impact and requires no procurement review.
LEGAL REVIEW
The City Attorney's office has reviewed and approved as to form.
RECOMMENDATION
Staff recommends that Council receive and file this report. If the City Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to receive and file the financial report reflecting the City’s revenues and expenditures as of June 30, 2024.”
ATTACHMENTS
1. Revenue Summary Report at June 30, 2024
2. Expenditure Summary Report at June 30, 2024