TO: Mayor and City Council
FROM: Philippe Eskandar, City Manager
BY: Hillary Guirola-Leon, Finance Director
Mark Siegfried, Accounting Manager/Controller
DATE: January 8, 2025
SUBJECT: RECEIVE AND FILE FINANCIAL REPORT FOR FIRST
QUARTER (JULY 2024 THROUGH SEPTEMBER 2024)
STRATEGIC PLAN CRITICAL SUCCESS FACTORS
Fiscally Responsible and Transparent City Government
BACKGROUND
The following presents the financial activity of the City for the quarter ended September 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 September 30, 2023, has been included for comparative purposes.
DISCUSSION
During the First Quarter of 2025 (July 2024 through September 2024), General Fund revenues increased by $513k or 29% versus the First Quarter of 2024. Property Tax revenues increased by 3.4% as compared to prior year quarter. In October 2024, staff met with HDL, the city’s property tax consultants, to review FY 2024-25 projections. The total 2024-25 taxable assessed value for San Marino is $8.38 billion, a $352.77 million or 4.4% increase over the prior year. This 4.4% growth compares favorably with the 4% growth projection used for the FY 24-25 budget.
Gretchen Shepherd Romey, Mayor
Tony Chou, Vice Mayor
Hunter Chang, Council Member
John Chou, Council Member
Calvin Lo, Council Member
Utility User Tax revenues increased by $85k (24%) from prior year quarter.
Revenues also increased due to the fluctuations in market value of the City’s investments and an increase in investment returns.
Total General Fund expenses for the quarter increased by $553K or 16% compared to last year. The increase is primarily due to negotiated salary increases and the Unfunded Accrued Liability (UAL) required payment as calculated by the Pension valuation. The General Liability fund expenditures increased by $206K (27%) from prior year due to an increase in insurance premiums. The Workers’ Compensation fund as of September 2024 is at 98% of the budgeted amount for FY 2024-25 and a mid-year adjustment may be needed for this fund.
Additional first quarter details are provided in the tables below.
First Quarter 2025 versus First Quarter 2024 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)
Revenues YTD PY YTD $$$ %
Taxes 1,184,223 1,044,311 139,912 13.4% Note 1
Licenses & Permits 332,018 307,491 24,527 8.0% Note 2
Charges for Service 306,740 269,299 37,441 13.9% Note 3 Intergovernmental - - 0
Fines & Forfeitures 5,810 2,155 3,655 169.6%
Money & Property 422,741 111,619 311,122 278.7% Note 4
Miscellaneous 3,219 6,338 (3,119) -49.2%
General Fund Total Revenues 2,254,752 1,741,214 513,538 29.5% Expenses YTD PY YTD $$$ %
City Council 14,802 14,114 688 4.9%
City Attorney 17,283 18,825 (1,543) -8.2%
Non-Departmental 1,105,415 273,352 832,064 304.4%
City Manager's Office 179,268 205,368 (26,100) -12.7%
Human Resources 128,123 133,411 (5,288) -4.0%
Finance Department 191,429 256,609 (65,180) -25.4%
Community Development 514,163 557,182 (43,019) -7.7%
Emergency Services 14,761 11,973 2,789 23.3%
Parks and Public Works 851,016 950,406 (99,390) -10.5%
Recreation Department 562,413 570,530 (8,117) -1.4%
Library Department 342,562 435,825 (93,263) -21.4%
El Molino Viejo 60,000 - 60,000 0.0%
General Fund Total Expenses 3,981,236 3,427,595 553,642 16.2% Note 5 Net Income-General Fund (1,726,485) (1,686,380) (40,104) -2.4% Public Safety Fund (103)
Revenues YTD PY YTD $$$ %
Taxes 15,225 15,458 (233) -1.5%
Charges for Service 170,500 173,984 (3,485) -2.0%
Intergovernmental 5,053 1,190 3,863 324.5%
Fines & Fees 12,684 11,858 826 7.0%
Miscellaneous 2,365 3,376 (1,011) -30.0%
205,826 205,867 (41) 0.0% Note 6
Expenses YTD PY YTD $$$ %
Police Department 3,141,696 2,723,599 418,097 15.4%
Fire Department 2,724,347 2,493,301 231,046 9.3%
5,866,043 5,216,900 649,143 12.4% Note 7
Net Income-Public Safety Fund (5,660,217) (5,011,033) (649,184) -13.0%
SPECIAL REVENUE FUNDS (RESTRICTED)
YTD PY YTD $$$ %
Revenues 357,666 354,425 3,241 0.9%
Expenses 156,788 20,833 135,955 652.6% Note 8
Net Income-Special Revenue Funds 200,878 333,592 (132,714) -39.8% Total Revenues-All Funds 3,043,238 2,518,495 524,744 20.8% Total Expenses-All Funds 11,995,669 12,177,641 (181,971) -1.5% Net Income-All Funds (8,952,431) (9,659,146) 706,715 7.3% 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 $16k (3.4%).
Utility Users Tax Revenue has also increased as compared to prior year by $85K (24%).
2. Increase in Licenses & Permits is due to Building Permits increasing by $24K compared to last year.
3. Increase in Charges for Service of $37k is due to Plan Check Fees increasing by $30k compared to prior year.
4. Increase in Money & Property is due to fluctuations of the market value of the City’s investments and interest rates increasing. Interest rates were higher for Q1 2025 (approximately 4.5% yield for LAIF) vs Q1 2024 (approximately 3.3% for LAIF), which caused the higher interest revenue for the quarter.
5. Overall increase in Non-sworn Department expenses of $553k (16.2%) compared to the prior year. Increase is due to cost of living adjustments of 4% related to salaries as stipulated in the various MOUs. The year-to-date actuals are trending in line with the budgeted amounts. The increase is also due to an increase in the pension required unfunded accrued liability (UAL) payment of $158K.
6. Overall, the revenues in the Public Safety Fund 103 are trending similar to prior year.
7. Increase in Sworn Department expenses of $649k (or 12.4%) is due to CPI increases related to materials and supplies as well as cost of living adjustments related to salaries. The increase is also due to an increase in the pension required unfunded accrued liability (UAL) payment of $405K.
8. Increase in expenditures related to Special Revenue Funds is due to the timing of capital expenditures.
All Funds Revenue Summary at September 30, 2024
In the next summary, budgeted revenues are shown against actual revenue at September 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 30,389,888 2,254,752 7% 513,538 1,741,214
Public Safety Fund 4,669,994 205,826 4% (41) 205,867
Fourth ofJuly 75,425 52,965 70% 5,420 47,545
San Marino Center 0 0 0% 0 0
American Rescue Plan 401,406 0 0% 0 0
Donations to City 116,600 10,466 9% (1,318) 11,783
Total General Fund 35,653,313 2,524,008 7% 517,599 2,006,409 Special Revenue Funds
Gas Taxes 674,428 95,492 14% 5,174 90,318
CDBG 227,000 0 0% 0 0
County Park Prop A 0 0 0% 0 0
Prop A Transit 427,314 81,673 19% (2,158) 83,831
Drought 1,000 0 0% 0 0
Air Quality (AQMD) 19,000 7 0% (51) 58
STPL 210 0 0% 0 0
TDA 19,340 0 0% 0 0
Prop C Transit 326,770 67,746 21% (1,855) 69,600
PEG Fees 51,000 6,483 13% 6,483 0
Asset Forfeiture 3,200 0 0% 0 0
Granada Ave. 0 0 0% 0 0
Used Oil Grant 1,200 0 0% 0 0
OTS Gant 20,760 (2,015) -10% (2,015) 0
Recycling 103,000 0 0% 0 0
COPS 236,000 0 0% 0 0
Homeland Security Grant 0 0 0% 0 0
County Measure R 521,077 50,804 10% (1,309) 52,113
Measure W 292,000 0 0% 0 0
County Measure M 296,054 57,477 19% (1,027) 58,504
Total Special Revenue Funds 3,219,353 357,666 11% 3,241 354,425 Capital Project Fund
Capital Projects 25,000 0 0% 0 0
Internal Service Fund
Capital Equipment 658,456 161,564 25% 3,903 157,661
Total Internal Service Funds 658,456 161,564 25% 3,903 157,661 Fiduciary Fund
Agency Fund 0 0 0% 0 0
Total All Revenue 39,556,122 3,043,238 8% 524,744 2,518,495 All Revenue by Fund
For Quarter Ended September 30, 2024 -- 25% of Fiscal Year Complete All Funds Expenditure Summary at September 30, 2024
In the next summary, budgeted expenditures are shown against actual expenditures at September 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 16,509,371 3,981,236 24% 553,641.65 3,427,594.56 Public Safety Fund 16,927,552.00 5,866,043.00 35% 649,143.00 5,216,900.00 Fourth ofJuly 122,594.00 62,843.00 51% (1,496.00) 64,339.00 San Marino Center - - 100% - -
Donations to City 145,241.00 5,494.00 4% 2,967.00 2,527.00 American Rescue Plan - - 0% (6,236.00) 6,236.00
Workers' Compensation 721,135.00 703,203.00 98% 385,281.00 317,922.00 General Liability 976,323.00 973,429.00 100% 206,875.00 766,554.00 Total General Fund 35,402,216 11,592,248 33% 1,790,176 9,802,073 Special Revenue Funds
Gas Taxes 1,231,053.00 - 0% - -
CDBG 227,000.00 2,799.00 1% 2,799.00 -
County Park Prop A - - 100% - -
Prop A Transit 1,471,695.00 47,107.00 3% 45,274.00 1,833.00 Air Quality 43,000.00 19,560.00 45% 19,560.00 -
Drought - - 0% - -
STPL - - 0% - -
TDA 19,000.00 - 0% (19,000.00) 19,000.00
Prop C Transit 650,000.00 - 0% - -
OTS Grant - 8,862.00 0% 8,862.00 -
Used Oil Grant - 8,699.00 0% 8,699.00 -
CADept of Conservation Fund 91,000.00 - 0% - -
COPS 431,168.81 69,761.00 16% 69,761.00 -
Homeland Security Grant - - 0% - -
County Measure R 755,000.00 - 0% - -
Measure W Clean Water Fund 267,418.00 - 0% - -
County Measure M 1,225,000.00 - 100% - -
Total Special Revenue 6,411,335 156,788 2% 135,955 20,833 Capital Projects Funds
Capital Projects 13,844,331.00 73,110.00 1% (1,696,261) 1,769,371 Debt Service Funds
Debt Service - - 0% (574,888) 574,888
Internal Service Funds
Capital Equipment 705,818.00 173,523.00 25% 163,047 10,476 Total Expenditures 56,363,700 11,995,669 21% (181,971) 12,177,641 All Expenditures by Fund
For Quarter Ended September 30, 2024 -- 25% 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 September 30, 2024.”
ATTACHMENTS
1. Revenue Summary Report at September 30, 2024
2. Expenditure Summary Report at September 30, 2024