City of San Ramon
FINANCE COMMITTEE
AGENDA
Scott Perkins, Chair • Sridhar Verose, Vice Chair
City Hall – Large Conference Room, 2nd Floor
7000 Bollinger Canyon Road
Special Meeting
4:00 PM
February 22, 2024
AGENDA QUESTIONS:
PLEASE CALL THE ADMINISTRATIVE SERVICES DIRECTOR AT (925) 973-2576
1. CALL TO ORDER
2. MINUTES APPROVAL
2.1 Finance Committee - Regular Meeting - Jan 16, 2024 4:00 PM
3. NEW BUSINESS
3.1 California Employer’s Benefit Trust (CERBT) for the Period Ending December 31, 2023
Staff Report by Candace Daniels, Finance Division Manager
3.2 PARS Pension Stabilization Trust Statement for the Period Ending December 31, 2023 Staff Report by Candace Daniels, Finance Division Manager
3.3 Mid-Year Financial Report FY 23-24
Staff Report by Kelly Sessions, Administrative Services Director
4. COMMITTEE MEMBER COMMENTS
5. ADJOURNMENT
The next Finance Committee Meeting is scheduled for March 11, 2024.
I hereby certify that the agenda was posted 72 hours before the noted meeting. To make a request for disability-related accommodation to participate in the meeting, please contact the City Clerk’s Office 48 hours in advance of the meeting at 925-973-2539 or [email protected].
Dated: February 20, 2024
2 Finance Committee Meeting – February 22, 2024
ATTENDEE CONDUCT
There will be zero tolerance for any person addressing the Committee making profane, offensive and disruptive remarks, or engaging in loud, boisterous, or other disorderly conduct, that disrupts the orderly conduct of the public meeting. Specifically, it is important for all speakers to adhere to the following guidelines for participation in this meeting:
a. No profanity or obscenity
b. Refrain from personal threats or attacks.
c. Refrain from hateful epithets and demeaning language based on any person’s race, religion, sexual orientation, ethnicity, gender, or disability.
d. Respect all people that are present.
At the discretion of the Committee Chair, a speaker may forfeit speaking time for any of the following reasons:
a. Exceeding the allotted time to speak;
b. Yelling, screaming, or other behavior that renders this Committee unable to continue the meeting;
c. Excessive profanity or slander; Specific threats or “fighting words” that incite violence; or d. Speech that is outside the subject matter jurisdiction of the Committee or the specific agenda item in which you are speaking.
While the City of San Ramon ensures the First Amendment rights of its citizens, we do not accept nor endorse any offensive or hateful comments made during our meetings. The City of San Ramon celebrates the diversity of our community, and we strive to be a welcoming and open community for all.
MINUTES OF THE
CITY OF SAN RAMON FINANCE COMMITTEE
January 16, 2024
1. CALL TO ORDER
The meeting was called to order at 4:41 PM.
Attendee Name Title Status Arrived
Mark Armstrong Councilmember Present
Scott Perkins Chair Absent
Sridhar Verose Vice Chair Present
Debbie Chamberlain, Community Development Director
Candace Daniels, Finance Division Manager
Miaoxia Joe, Finance Analyst
Scott Koll, Deputy City Manager
Diego Munoz, Accountant
Vance Phillips, Chief Building Official
Kelly Sessions, Administrative Services Director
Steven Spedowfski, City Manager
2. PUBLIC COMMENT
None
3. APPROVAL OF MINUTES
3.1 Finance Committee - Regular Meeting - Dec 11, 2023 4:00 PM
4. UNFINISHED BUSINESS
None
5. NEW BUSINESS
5.1 Wavier of Plan Review, Permit, and Development Fees for the San Ramon Valley Fire Protection District Training Facility.
Staff Report by Vance Phillips, Chief Building Official The Finance Committee accepted the report and recommended forwarding to the City Council for approval.
RESULT: APPROVED [UNANIMOUS]
AYES: Armstrong, Verose
5.2 City of San Ramon Quarterly Investment Report (Period Ending December 31, 2023)
2.1 Packet Pg. 3
Minutes Acceptance: Minutes of Jan 16, 2024 4:00 PM (Minutes Approval) 2 Finance Committee Meeting – January 16, 2024
Staff Report by Miaoxia Joe, Finance Analyst
The Finance Committee accepted the report.
RESULT: REPORT RECEIVED
6. COMMITTEE MEMBER COMMENTS
Committee members had nothing additional to report.
7. ADJOURNMENT
The next Finance Committee Meeting is scheduled for February 5, 2024.
2.1 Packet Pg. 4
Minutes Acceptance: Minutes of Jan 16, 2024 4:00 PM (Minutes Approval)
FINANCE COMMITTEE STAFF REPORT
DATE: February 22, 2024
TO: Finance Committee/City Manager
FROM: Kelly Sessions, Administrative Services Director
By: Candace Daniels, Finance Division Manager
SUBJECT: California Employer’s Benefit Trust (CERBT) for the Period Ending December 31, 2023
RECOMMENDED ACTION
Staff recommends that the Finance Committee review and accept the CERBT Statement for the period ending December 31, 2023.
BACKGROUND/DISCUSSION
On November 14, 2014, the City Council approved participation in CERBT for purposes of prefunding the City’s long-term obligation for health benefits accrued to retired City employees.
Assets in this Trust can only be used for payment of these benefits and may not be used for other governmental purposes.
At the start of October 2024, the CERBT had a balance of $32,445,552. During this quarter, the trust had investment gains of $3,332,360, and expenses of $7,107 leaving an ending balance of $35,770,805 as of December 31, 2023. As of the most recent actuarial valuation, which has a measurement date of June 30, 2022, the OPEB liability measured $41,183,558 and was 84% funded. With the current ending balance, the funding status of the OPEB liability is 87%.
FISCAL ANALYSIS
This item is for informational purposes only-there is no fiscal impact.
STEPS FOLLOWING APPROVAL
None.
ATTACHMENT
A: California Employer's Benefit Trust for the Period Ending December 31, 2023
3.1 Packet Pg. 5
City of San Ramon
Please note the Grand Total is your actual fund account balance at the end of the period, including all contributions per GASB 74 paragraph 22 and accrued disbursements. Please review your statement promptly. All information contained in your statement will be considered true and accurate unless you contact us within 30 days of receipt of this statement. If you have questions about the validity of this information, please contact [email protected]. 1,731,976.212 1,731,976.212
$35,770,804.78 $33,992,172.87
Period Ending Unit Value 20.653173 20.653173
Period Beginning Unit Value 18.733255 19.597055
(91,905.819)
0.000
1,823,882.031
0.000
0.000
1,731,976.212
Current Period Year to Date
Ending Units
Unit Sales for Withdrawals
Unit Purchases from Contributions
Beginning Units
Market Value Summary: Unit Value Summary:
Grand Total $35,770,804.78 $35,770,804.78
(1,778,631.91)
(8,282.26)
0.00 1,821,058.01
0.00 $33,964,084.69
0.00 (4,105.54)
0.00 3,332,359.68
0.00 $32,445,552.47
Current Period Year to Date
Ending Balance
Disbursement
Administrative Expenses
Other
Investment Earnings
Contribution
Beginning Balance
QTD Fiscal QTD Fiscal
FY End Contrib per GASB 74 Para 22 0.00 0.00
Transfer In
Transfer Out
0.00 0.00
0.00 0.00
Unit Transfer In
Unit Transfer Out
0.000
0.000
0.000
0.000
Investment Expense (3,001.83) (6,055.66)
CERBT Strategy 2
Entity #: SKB7-4889155551-001
Quarter Ended December 31, 2023
FY End Disbursement Accrual 0.00 1,778,631.91
3.1.a
Packet Pg. 6
Attachment: A: California Employer's Benefit Trust for the Period Ending December 31, 2023 (4250 :
Statement of Transaction Detail for the Quarter Ending 12/31/2023 City of San Ramon
Entity #: SKB7-4889155551-001
Date Description Amount Unit Value Units Check/Wire Notes If you have any questions or comments regarding the new statement format please contact [email protected] Client Contact:
3.1.a
Packet Pg. 7
Attachment: A: California Employer's Benefit Trust for the Period Ending December 31, 2023 (4250 :
FINANCE COMMITTEE STAFF REPORT
DATE: February 22, 2024
TO: Finance Committee/City Manager
FROM: Kelly Sessions, Administrative Services Director
By: Candace Daniels, Finance Division Manager
SUBJECT: PARS Pension Stabilization Trust Statement for the Period Ending December 31, 2023
RECOMMENDED ACTION
Staff recommends that the Finance Committee review and accept the PARS Pension Stabilization Trust Statement for the period ending December 31, 2023.
BACKGROUND/DISCUSSION
Participation in the PARS Pension Stabilization Trust (PARS Trust) was approved by City Council on November 28, 2017 by Resolution No. 2017-128. The purpose of the PARS Trust was to pre-fund pension obligations to address unfunded liabilities and large variances in annual pension contributions. Before the PARS Trust was established, the City’s only option for reducing the unfunded pension liability was to commit additional funds to CalPERS.
Unfortunately, these additional funds would be subject to the same market volatility risk as the CalPERS investment rate of return. Pre-funding the pension obligations through the PARS Trust verses CalPERS offered the following benefits:
• Provided local control and more flexibility in investment allocations compared to maintaining funds in a City-invested reserve or giving money to CalPERS to pay down unfunded liability
• Offered potential for higher investment returns
• Acted as a reserve fund to help the City pay for increasing CalPERS annual contribution requirements and helped mitigate General Fund budget spiking At the start of October 2023, the PARS Trust had a balance of $1,609,063. During this quarter, investment gains of $149,486 were realized but were offset by expenses of $2,383, which left an ending balance of $1,756,166 as of December 31, 2023.
FISCAL ANALYSIS
This item is for informational purposes only--no fiscal impact.
STEPS FOLLOWING APPROVAL
None
3.2 Packet Pg. 8
ATTACHMENT
A: PARS Pension Stabilization Trust for the Period Ending March 31, 2023
3.2 Packet Pg. 9
CITY OF SAN RAMON
PARS Post-Employment Benefits Trust 3/1/2023 to 3/31/2023 Steven Spedowfski
Interim City Manager
City of San Ramon
7000 Bollinger Canyon Rd.
San Ramon, CA 94583
Account Summary
Source 3/1/2023 Contributions Earnings Expenses Distributions Transfers 3/31/2023 PENSION 1002 $1,588,988.87 $0.00 $25,548.69 $784.02 $0.00 $0.00 $1,613,753.54 Totals $1,588,988.87 $0.00 $25,548.69 $784.02 $0.00 $0.00 $1,613,753.54 Investment Selection
Source
PENSION
Investment Objective
Source
PENSION
Investment Return
Source 1-Month 3-Months 1-Year 3-Years 5-Years 10-Years PENSION 1.61% 4.23% -6.38% 6.54% 3.32% - 3/14/2018
Information as provided by US Bank, Trustee for PARS; Not FDIC Insured; No Bank Guarantee; May Lose Value Headquarters - 4350 Von Karman Ave., Suite 100, Newport Beach, CA 92660 800.540.6369 Fax 949.250.1250 www.pars.org Balance as of
The dual goals of the Moderate Strategy are growth of principal and income. It is expected that dividend and interest income will comprise a significant portion of total return, although growth through capital appreciation is equally important. The portfolio will be allocated between equity and fixed income investments.
Plan's Inception Date
Account balances are inclusive of Trust Administration, Trustee and Investment Management fees Annualized Return
Investment Return: Annualized rate of return is the return on an investment over a period other than one year multiplied or divided to give a comparable one-year return.
Past performance does not guarantee future results. Performance returns may not reflect the deduction of applicable fees, which could reduce returns. Information is deemed reliable but may be subject to change.
Account Report for the Period
Balance as of
Moderate HighMark PLUS
3.2.a
Packet Pg. 10
Attachment: A: PARS Pension Stabilization Trust for the Period Ending March 31, 2023 (4251 : PARS Trust)
FINANCE COMMITTEE STAFF REPORT
DATE: February 22, 2024
TO: Finance Committee/City Manager
FROM: Kelly Sessions, Administrative Services Director
By: Candace Daniels, Finance Division Manager
SUBJECT: Mid-Year Financial Report FY 23-24
RECOMMENDED ACTION
Review the Mid-Year 2023-24 Financial Report and backup documentation, recommend changes if any, and forward the report to City Council for approval by resolution.
BACKGROUND/DISCUSSION
The City conducts an annual Mid-Year Financial Review to assess the financial condition of the City budget. The review includes a comparison of the budget to a projection of full-year financial outcomes, as well as the identification of requests for mid-year budget adjustments.
The Mid-Year Financial Report included the identification of several key items as follows:
• Current Fiscal Year beginning reserves were $26.3 million. Year-end reserves are projected at $20.9 million, a decrease of $5.7 million.
• General Fund revenue collections for the six months ending December 31, 2023 were $25.6 million, which was $1.2 million more than the $24.4 million collected during the same period in the prior year.
• General Fund revenue for FY 2023-24 is projected to end the year at $63.0 million, $0.5 million above budgeted levels.
• Year-end revenues for the combined General Fund and Dougherty Valley Fund are estimated at $84.4 million against a budget of $83.9 million, or $0.5 million above budget. • General Fund expenditures for the six months ending December 31, 2023 were $26.2 million, which was $2.8 million more than the $23.4 million expended during the same period in the prior year.
• General Fund year-end expenditures are projected at $59.1 million, $0.8 million below the budgeted amount.
• Year-end expenditures for the combined General Fund and Dougherty Valley Fund are estimated at $84.1 million against a budget of $85.2 million, or $1.1 million less than budget. • General Fund transfers in is projected at $5.1 million and transfers out at $14.7 million, for a net transfer of -$9.6 million.
• The projected net decrease of the General Fund fund balance is $5.7 million. • There are appropriation actions that are recommended for consideration related to the upcoming budget year.
3.3 Packet Pg. 11
Proposed Mid-Year Adjustments
A number of proposed mid-year adjustments were identified in the report as follows:
General Fund Adjustments Totaling $1,062,633:
• City Manager’s Office - Funding requested to add a Program Manager to manage the City’s grant program and an active sustainability program - $23,606. The cost for this position will be offset by unfunded positions in other departments.
• City Manager’s Office - Funding requested for the revenue measure initial community priorities survey and ongoing annual community survey’s - $70,000. • City Clerk’s Office - Funding requested for an Administrative Coordinator to manage public records requests and the City’s centralized records management program - $40,631. The cost for this position will be offset by unfunded positions in other departments. • Administrative Services (Finance) - Requesting funding for consulting services from Tyler Technology to assist in implementing vendor self-service, electronic vendor payments and eprocurement - $15,000. • Administrative Services (Finance) - Requesting funding for the Matrix fee study - $75,000. • Administrative Services (HR) - Requesting funding to cover higher than anticipated insurance premiums for vehicle, APIP, active shooter and Cyber insurance - $155,000. • Administrative Services (HR) - Requesting funding for consulting services to assist with labor negotiations - $40,000.
• Community Development (Planning Division) - Requesting additional funding for mailing labels with the City logo and business cards - $4,500. • Community Development (Planning Division) - Requesting additional funding for courier service provided by San Ramon Valley Unified School District - $3,700. • Community Development (Planning Division) - Requesting additional funding for the Pitney Bowes postage machine supplies, certified mail cards and tracking labels for passport applications - $1,000.
• Community Development (Planning Division) - Requesting additional funding for the LAFCO fee for the Deerwood Rd. unincorporated island annexation - $5,000. • Public Works/Transportation Division - With the retirement of the Transportation Division’s Senior Administrative Analyst, the Transportation Division is requesting to reclassify the Senior Administrative Analyst to an Associate Planner position. There is no additional cost for this change.
• Public Works/Public Services Division - Requesting funding for park restroom janitorial supplies - $5,000.
• Public Works/Public Services Division - Requesting additional funding for gas and electricity for various City facilities - $165,695.
3.3 Packet Pg. 12
• Public Works/Public Services Division - Requesting additional funding for pool chemicals. - $77,000.
• Public Works/Public Services Division - Requesting additional funding for vehicle and equipment fuel. - $40,000.
• Public Works/Public Services Division - Requesting additional funding for landscape maintenance at the Public Safety Complex - $2,148.
• Public Works/Public Services Division - Requesting funding for the Sunrise Ridge Park acceptance - $291,460:
o Maintenance Supervisor position - $37,500 (portion)
o Maintenance Technician position - $54,000
o Electric Toro - $24,000
o Maintenance Supervisor truck - $42,000
o Maintenance Technician truck - $65,000
o Reactive maintenance - $1,500
o Janitorial services - $2,633
o Landscape maintenance - $17,881
o Gas & electricity - $20,800
o Water - $16,813
o Miscellaneous supplies - $1,333
o Janitorial supplies - $500
o Miscellaneous tools/supplies $7,500
• Public Works/Public Services Division - Requesting additional funding for water at Athan Downs and San Ramon Service Center- $18,723.
• Public Works/Public Services Division - Requesting funding for auto accident repairs - $11,170.
• Public Works/Public Services Division - Requesting funding for landscape maintenance for Crow Canyon Gardens - $18,000.
Proposed changes of $2,064,589 impacting other operating funds include:
• Community Development (Planning Division) - Requesting to transfer revenue collected over the past three years from the Planning Cost Recovery Fund to the Tree Mitigation Fund ($9,406), Microfilm Fund ($9,000), and the San Ramon Specific Plan Fund ($3,643) - $22,049. Fund balance at FYE is projected to be $830,640. • Public Works/Public Services Division - Requesting additional funding for electric utility service for street lighting from the Citywide Lighting Fund (302) - $50,093. Fund balance at FYE is projected to be $752,680.
• Public Works/Public Services Division - Requesting funding from the Citywide Lighting Fund (302) for auto accident repairs - $36,860. Fund balance at FYE is projected to be $752,680.
• Public Works/Public Services Division - Requesting additional funding for gas and electric utility service for street lighting, traffic signal, park, and facility from the Dougherty Valley Fund (343) - $201,587. The General Fund will subsidize any approved appropriations. • Public Works/Public Services Division - Requesting additional funding for pool chemicals from the Dougherty Valley Fund (343) - $60,000. The General Fund will subsidize any approved appropriations.
3.3 Packet Pg. 13
• Public Works/Public Services Division - Requesting funding from the Dougherty Valley Fund (343) for a Maintenance Supervisor - $37,500 (portion). The General Fund will subsidize any approved appropriations.
• Public Works/Public Services Division - Requesting additional funding for water for various City parks from the Dougherty Valley Fund - $49,806. The General Fund will subsidize any approved appropriations.
• Public Works/Public Services Division - Requesting additional funding for floor maintenance at the Amador Rancho Community Center from the Dougherty Valley Fund (343) - $3,500.
The General Fund will subsidize any approved appropriations. • Public Works/Public Services Division - Requesting funding for auto accident repairs from the Dougherty Valley Fund (343) - $54,327. The General Fund will subsidize any approved appropriations.
• Public Works/Public Services Division - Requesting funding for fence replacement at the end of Chilense Court and Alisma Court from the Dougherty Valley fund (343) - $13,750. The General fund will subsidize any approved appropriations. • Public Works/Public Services Division - Requesting funding for park restroom janitorial supplies from the Dougherty Valley fund (343) - $5,000. The General fund will subsidize any approved appropriations.
• Public Works/Engineering Services Division (DV Fund 343) - Additional funding needed to repair damage caused by the 2023 winter storms and to repair any new damage that may occur in 2024. Some of the costs are likely to be reimbursed by FEMA and Cal OES - $300,000. Fund balance at FYE is projected to be $14,238,160. • City Manager’s Office (Street Smarts Fund 346) - Requesting funding for an Administrative Coordinator for the Streets Smarts program - $140,587.
• Public Works/CIP 975526 - Traffic Signal Improvement & Enhancements. Increasing the project budget to replace in-pavement flashing beacons to Rectangular Rapid Flashing Beacons (RRFB). This expenditure will be funded by the Transportation Development Act grant - $87,000.
• Public Works/CIP 955491 - Park Restroom Renovations. Additional funding needed from the Park Development Fund (209) to repair fire damage to the Creekside Park restroom - $80,000.
Fund balance at FYE is projected to be $8,356,589.
• Public Works/CIP 925418 - Forest Home Farms Structures. Additional funding needed to perform the work requested by the San Ramon Historic Foundation to improve the Sheep Barn structure - $31,211. Fund balance at FYE is projected to be $1,430,334. o Infrastructure Maintenance Fund (618) - $15,000
o Historic Foundation - $16,211
• Public Works/CIP 925433 - City Facilities Roof Maintenance and Replacement.
Additional funding needed from the Infrastructure Maintenance Fund (618) to perform any necessary and unforeseen roof repairs during the remainder of the fiscal year - $10,000. Fund balance at FYE is projected to be $1,430,334.
3.3 Packet Pg. 14
• Public Works/CIP 925515 - Interior Amenities Renovation. Additional funding needed from the Infrastructure Maintenance fund (618) to repair the security gate operators at the Dougherty Valley Service Center - budget - $25,000. Fund balance at FYE is projected to be $1,430,334.
• Administrative Services/ HR Division. - Budget allocation needed in the Insurance Liability Fund (610) for the cost of the City’s wellness insurance premium that was inadvertently left out of the budget - $30,192. Fund balance at FYE is projected to be $2,420,470.
• Administrative Services/ HR Division. - Funding needed from the Insurance Liability fund (610) to cover the additional costs of general liability premiums that have exceeded the budgeted amount - $813,000. Fund balance at FYE is projected to be $2,420,470. • Administrative Services/ HR Division. - Funding needed from the Insurance Liability fund (610) to cover the Employee Assistance Program premium that was inadvertently left out of the budget - $13,127. Fund balance at FYE is projected to be $2,420,470.
A resolution has been prepared which authorizes funding for the proposed Mid-Year Budget adjustments, and other fund transfers.
FISCAL ANALYSIS
The proposed action would appropriate $1,488,103 of General Fund reserves to the respective budgets and $1,639,120 from fund balances of other non-General Fund sources to their respective budgets. There are sufficient reserves in all funding sources to fund the additional appropriations. The General Fund Reserves are currently projected at 39% General Reserve Policy. Making this appropriation in full would reduce General Fund Reserves to a level of approximately 36%.
STEPS FOLLOWING APPROVAL
1. Incorporate any changes from tonight’s meeting.
2. Amend the 2023-24 Adopted Budget.
ATTACHMENT
A: MID-YEAR FINANCIAL REPORT FY23-24
3.3 Packet Pg. 15
CITY OF SAN RAMON
MID-YEAR 2023-24
FINANCIAL REVIEW
FEBRUARY 2024
1 3.3.a
Packet Pg. 16
Attachment: A: MID-YEAR FINANCIAL REPORT FY23-24 (4257 : Mid-Year Financial Report FY 23-24) Mid-Year Financial Review 2023-24
Key Highlights:
▪ Current Fiscal Year beginning reserves were $26.3 million. Year-end reserves are projected at $20.9 million, a decrease of $5.7 million. ▪ General Fund revenue collections for the six months ending December 31, 2023 were $25.6 million, which was $1.2 million more than the $24.4 million collected during the same period in the prior year. ▪ General Fund revenue for FY 2023-24 is projected to end the year at $63.0 million, $0.5 million above budgeted levels.
▪ Year-end revenues for the combined General Fund and Dougherty Valley Fund are estimated at $84.4 million against a budget of $83.9 million, or $0.5 million above budget.
▪ General Fund expenditures for the six months ending December 31, 2023 were $26.2 million, which was $2.8 million more than the $23.4 million expended during the same period in the prior year. ▪ General Fund year-end expenditures are projected at $59.1 million, $0.8 million below the budgeted amount.
▪ Year-end expenditures for the combined General Fund and Dougherty Valley Fund are estimated at $84.1 million against a budget of $85.2 million, or $1.1 million less than budget.
▪ General Fund transfers in is projected at $5.1 million and transfers out at $14.7 million, for a net transfer of -$9.6 million.
▪ The projected net decrease of the General Fund fund balance is $5.7 million.
▪ There are appropriation actions that are recommended for consideration related to the upcoming budget year.
City of San Ramon
2 3.3.a
Packet Pg. 17
Attachment: A: MID-YEAR FINANCIAL REPORT FY23-24 (4257 : Mid-Year Financial Report FY 23-24) Overview
This mid-year report provides information pertaining to the financial performance of the City to date, along with estimates for the full 2023-24 fiscal year. Actual financial results through December 31, 2023 have been analyzed, and updated revenue and expenditure projections for the current fiscal year are included in this report.
The 2023-24 Fiscal Year Budget was prepared based on the City’s best assumptions, projections, and estimates of financial impacts as the City continues to recover from the global pandemic, which affected, in one way or another, every government service and related budget provided by the City.
At mid-year, last year’s $57.9 million General Fund revenue budget had received $24.4 million and ended the fiscal year with $64.2 million in actual receipts. This fiscal year’s $62.5 million General Fund revenue budget had received $25.6 million through the first half of the year with year-end receipts projected at $63.0 million. Property taxes are projected to come in at budget as well as sales taxes.
Licenses and permits revenue is projected to end the year above budget by $0.5 million, while charges for service is projected to end the year $0.2 million under budget. Transient occupancy taxes (TOT), projected at $2.2 million, are on budget, but still well below FY 2018-19 pre-pandemic actuals of $3.3 million.
With year-end General Fund revenues projected above budget by $0.5 million and General Fund expenditures projected under budget by $0.8 million, normally this would be a cause for celebration. The City’s General Fund Reserve Policy of 36% is getting more and more difficult to maintain; despite these challenges, the City is still projected to end this fiscal year at 39%, not including any Mid-Year General Fund budget adjustments.
The California State budget is projecting an approximate $31.7 billion shortfall, and trying to avoid extreme program cuts. The total General Fund budget is $226 billion, which is $8.7 million more than the previous year’s budget. Priorities include K-12 education, higher education, healthcare, public safety, and infrastructure.
The Governor’s budget will be updated in May when the May Revision comes out. 3 3.3.a
Packet Pg. 18
Attachment: A: MID-YEAR FINANCIAL REPORT FY23-24 (4257 : Mid-Year Financial Report FY 23-24) Economic Outlook
While the City continues its recovery from the severe revenue losses at the height of the COVID-19 global pandemic, National and State levels have seen recovery as well. Below are some indicators of improvement:
▪ The Bureau of Economic Analysis reported the US economy—as measured by changes in Gross Domestic Product (GDP)—increased 3.2% in the third quarter of 2022 and 2.9% in the fourth quarter. The 2022 annual rate of real GDP growth was 2.1% from 2021 levels. During this period, prices in the US rose sharply due to inflationary pressures, resulting in significant increases in Federal Reserve rate hikes, which have slowed the economy. While some economic forecasts are mixed, most project a relatively soft landing. ▪ The Bureau of Labor Statistics (BLS) reported employment—as measured by nonfarm payroll—was up by 467,000 jobs in January 2024 from the previous month. Employment in professional and business services saw increases of 74,000 jobs in January, which was significantly higher than January of 2023.
Gains were also seen in the scientific sector and the tech industry; additionally, temporary help jobs had minimal change, but were down by 408,000 since March 2002.
▪ BLS estimates the national unemployment rate at 3.7%, which has been consistent for the past three months. While California is showing an unemployment rate of 5.1%, Contra Costa County maintains a lower unemployment rate of 4.5%. San Ramon had an even lower rate of 4.2%. ▪ In 2023, U.S. housing starts increased 7.6% over 2022, helped by mortgage rates which have decreased since the fall of 2023. Experts are predicting mortgage rates to continue to decrease as we move forward into 2024. The Case Shiller Home Price Index reports that annual growth in home prices slowed to 6.3% over the past year.
Growth in the local economy continues to affect revenue that is closely tied to economic trends and development projects within the City. The most significantly impacted revenue sources have been development fees, transient occupancy tax, and recreation program revenue, which fall under the charges for services and miscellaneous revenue categories. Sales tax spiked in FY 2022-23 due to rampant national inflation and large increases in the cost of gasoline and diesel fuel, but these numbers are declining in the current fiscal year. Staff will continue to monitor all revenue sources and adjust future revenue estimates accordingly. 4 3.3.a
Packet Pg. 19
Attachment: A: MID-YEAR FINANCIAL REPORT FY23-24 (4257 : Mid-Year Financial Report FY 23-24) Financial Results – General Fund
General Fund Revenue by Source (000’s)
December
2023-2024
To Date
December
2022-2023
To Date Difference
Annual
2023-2024
Estimate
Annual
2023-2024
Budget
Annual
2022-2023
Actuals
Property Tax 11,264$ 10,798$ $ 466 $ 25,114 25,114$ $ 24,550 Sales and Use Tax 4,461 4,475 (14) 13,262 13,262 14,329 Property Transfer Tax 207 420 (213) 1,318 1,318 709
Transient Occupancy Taxes (TOT) 823 847 (24) 2,249 2,249 2,134 Franchise Fees 1,426 1,278 148 5,688 5,688 5,727
Licenses and Permits 1,993 1,290 703 3,783 3,283 3,312
Intergovernmental 265 292 (27) 526 526 692
Charges for Services 3,308 3,182 126 6,588 6,766 5,950
Fines and Forfeitures 70 65 5 263 263 173
Investment Income 270 106 164 333 333 381
Miscellaneous Revenue 1,529 1,639 (109) 3,885 3,671 2,840 Total 25,616$ 24,390$ 1,226$ $ 63,010 62,474$ $ 60,797
Revenue Results:
Based on six months’ worth of financial data, General Fund revenue exceeds last year’s amount by $1.2 million or 5.0%.
Revenue Estimates:
After analysis of year-to-date revenue and consideration of the projected economic environment, 2023-24 General Fund revenue estimates for the year have been increased to $63.0 million, or $0.5 million (0.9%) above the adopted budget amount.
This increase is due primarily to an increase in licenses and permits and miscellaneous revenue, and offset by decreases in charges for services.
Property Tax – (at budget) – Revenue during the first half of the year is $11.3 million or $0.5 million (4.3%) above last year during the same period. The full-year estimate is $25.1 million, which is $0.6 million more than actuals from the previous fiscal year.
San Ramon’s assessed property values increased 4.1% during FY 2023-24, the second lowest increase in the County, which experienced increases in assessed value of 8.5%.
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Attachment: A: MID-YEAR FINANCIAL REPORT FY23-24 (4257 : Mid-Year Financial Report FY 23-24) Property Tax Revenue Estimates (in 000’s)
Sales Tax – (at budget) – Revenue during the first half of the year is $4.5 million or $0.01 million (0.3%) below last year during the same period. The full-year estimate of $13.3 million is $1.1 million (8.1%) lower than actuals from the previous fiscal year.
Receipts and reporting of sales tax revenue lags by several months. As a result, the most recent actual sales tax results reported to the City by the CDTFA was for the period ending September 30, 2023. In this report, the City uses the sales tax projection produced by the City’s sales tax consultant who has much more sophisticated tools at hand. In mid-March, the City will receive actual results for the quarter ending December 31, 2023. When this information is available, staff will again review the full-year sales tax estimate to ensure the projection tracks with actuals.
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Attachment: A: MID-YEAR FINANCIAL REPORT FY23-24 (4257 : Mid-Year Financial Report FY 23-24) Sales Tax Revenue Estimate (in 000's)
Property Transfer Tax – (at budget) – Revenue during the first half of the year is $.02 million or $0.2 million (-5.1%) below last year during the same period. The fullyear estimate of $1.3 million is $0.8 million (-6.8%) less than last year’s actual collections. Higher mortgage interest rates and fewer homes on the market are hampering home sales, leading to an overall decline in real estate transactions.
Transient Occupancy Taxes – (at budget) – Revenue during the first half of the year is $0.8 million, slightly below last year during the same period. The full-year revenue is projected at $2.2 million or $0.1 million (5%) above last year’s actual collections. The hotel industry in San Ramon is experiencing gradual but steady progress as it continues to recover from the devastating impacts of the COVID-19 pandemic.
Franchise Fees – (at budget) – During the first half of the year, the City received revenues $1.4 million (11.6%) above last year’s levels during the same period. The full-year estimate is $5.7 million, which is $0.03 million (0.6%) above last year’s actual collections; thus, the revenue reductions experienced earlier in the fiscal year are expected to be made whole by year end. Growth of this revenue source is impacted by annexations, in-fill redevelopment, and rates.
Licenses and Permits – ($0.5 million above budget) – Revenue during the first half of the year is $2.0 million (54%) above last year’s receipts during the same period.
The full-year estimate is $3.8 million, which is $0.5 million (14.0%) above last year’s actual total. This revenue source is subject to the timing of development projects. The departments performing the services estimated the revenue in this category. 7 3.3.a
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Attachment: A: MID-YEAR FINANCIAL REPORT FY23-24 (4257 : Mid-Year Financial Report FY 23-24) Intergovernmental – (at budget) – Revenue during the first half of the year is $0.3 million above last year during the same period. The full-year estimate is $0.5 million, which is $0.2 million above last year’s actual total. This revenue source comes from grants provided through Federal, State, and local government agencies.
Charges for Services – ($0.2 million below budget) – Revenue during the first half of the year is $0.1 million above last year’s receipts during the same period. The fullyear estimate is $6.6 million, which is $0.6 million above last year’s actual total. This revenue source is subject to the timing of development projects and recreation offerings. The departments providing the services estimated the revenue in this category.
Fines and Forfeitures – (at budget) – Revenue during the first half of the year is slightly above last year during the same period. The full-year estimate is $0.3 million, which is $0.1 million above last year’s actual total.
Investment Income – (at budget) – Revenue during the first half of the year is $0.1 million above last year during the same period. The full-year estimate for this revenue source is $0.3 million. This revenue source is subject to market value fluctuations.
Miscellaneous Revenue – ($0.2 million above budget) – Revenue during the first half of the year is $-0.1 million below last year during the same period. The full year estimate is $3.9 million, which is $1.0 million above actuals from last fiscal year. The departments receiving fees for facility rentals and cell site leases estimated the revenue in this category.
General Fund Expenditures
Expenditure Results:
Year-to-date General Fund expenditures are $2.8 million (12.1%) higher than the previous year during the same period. The increase in expenditures reflects higher costs for salaries, general benefits, the reinstatement of pension expenditures, and service contracts offset by savings due to vacant positions, and reductions to the General Fund in ongoing retiree medical costs, which were expensed to their “rainy day” reserve fund as approved in the FY 2023-24 Adopted Budget.
Expenditure Estimate:
General Fund full-year expenditures are projected to be $59.1 million, which is $0.8 million below budget, and represents an increase of $0.01 million above the prior year’s total.
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Attachment: A: MID-YEAR FINANCIAL REPORT FY23-24 (4257 : Mid-Year Financial Report FY 23-24) General Fund Expenditures by Department (in 000’s)
December
2023-2024
To Date
December
2022-2023
To Date Difference
Annual
2023-2024
Estimate
Annual
2022-2023
Budget*
Annual
2022-2023
Actuals
General Government 1,579$ 1,400$ $ 179 $ 3,759 3,677$ $ 3,140 Administrative Services 3,182 2,752 430 6,077 6,109 5,396 Community Development 2,111 2,054 57 5,318 5,413 5,036
Police Services 7,909 6,506 1,403 17,730 18,170 14,347
Public Works 7,426 6,925 501 16,983 17,153 15,722
Parks & Community Services 3,994 3,727 267 9,180 9,312 8,108 Non-Departmental - 5 (5) 50 50 5
Total Expenditures 26,202$ 23,369$ 2,834$ $ 59,098 59,883$ $ 51,754 * Includes carry-over encumbrances
The current year estimate includes actual expenditures over the first six months, which were higher than the same period last year by $2.8 million (12.1%). The expenditure estimate is projected to be $0.8 million under budget and reflects higher costs for salaries, general benefits, pension expenditures and service contracts, offset by vacancy savings and reductions to the General Fund in ongoing retiree medical costs, which were expensed to their respective “rainy day” reserve funds. Each department has estimated expenditures through the balance of the year.
General Government – ($0.1 million over budget) – The full-year expenditure estimate is $3.8 million against a budget of $3.7 million. This category includes the City Council, City Manager, City Clerk and City Attorney budgets. Spending over the first half of the year was 42% of the budget and 43% of the projection.
Administrative Services – (at budget) – The full-year expenditure estimate is $6.1 million. This category includes Finance, Information Technology, and Human Resources. Spending over the first half of the year was 52% of budget and the projection. The Information Technology Division currently has salary savings due to a position vacancy.
Community Development – ($0.1 million under budget) – The full-year expenditure estimate is $5.3 million and encompasses division budgets for Planning and Building.
Spending over the first half of the year was 39% of budget and the projection. 9 3.3.a
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Attachment: A: MID-YEAR FINANCIAL REPORT FY23-24 (4257 : Mid-Year Financial Report FY 23-24) General Fund Expenditures Citywide (in 000’s)
Police Services – ($0.5 below budget) – The full-year expenditure estimate is $17.7 million (General Fund only). Spending over the first half of the year was 44% of budget and 45% of the current projection. It should be noted that the remainder of the Police Department expenditures are part of the Dougherty Valley Fund.
Public Works – ($0.2 million below budget) – The full-year expenditure estimate is $17.0 million (General Fund only), and includes the Engineering, Transportation and Public Services divisional budgets. Spending over the first half of the year was 43% of budget and 44% of the current projection. It should be noted that the remainder of the Public Works Department expenditures are part of the Dougherty Valley and other Special Revenue funds.
Parks and Community Services – ($0.1 million under budget) – The full-year expenditure estimate is $9.2 million. Spending over the first half of the year was 43% of budget and 44% of the current projection.
Non-Departmental – (at budget) – The full-year expenditure estimate is $0.05 million. The non-department area is used to cover expenditures for the City Manager’s contingency reserve.
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Attachment: A: MID-YEAR FINANCIAL REPORT FY23-24 (4257 : Mid-Year Financial Report FY 23-24) Policy Reserves
Estimate (in 000’s)
Actual Policy Reserves - June 30, 2023
2023-24
Estimate
2023-24
Budget**
General Fund Unreserved 26,299$ 26,299$
Dougherty Valley Fund 17 17
Total 26,316$ 26,316$
General Fund & Dougherty Fund Financial Summary:
Revenues 84,416 83,881
Expenditures (84,104) (85,164)
Net Transfers in (5,742) (3,242)
Net Increase/(Decrease) in Fund Balance (5,430) (4,525) General Fund Unreserved 20,887$ 21,791$
Estimated Policy Reserves - June 30, 2024 20,887$ 21,791$ **Budget as adjusted during the year plus carry-over encumbrances Policy reserves are projected to finish the year at $20.9 million. This represents 39% of the prior fiscal year’s audited actual General Fund expenditures and the transfer to the Dougherty Valley Fund.
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Attachment: A: MID-YEAR FINANCIAL REPORT FY23-24 (4257 : Mid-Year Financial Report FY 23-24) Other City Funds:
The Other City Funds include:
• Special Revenue funds that primarily fund CIP projects, GHAD, and Stormwater Management
• Assessment District funds that fund lighting and landscaping, and special zones maintenance
• Dougherty Valley Fund which pays for services covered by the CSA assessment • San Ramon Housing Fund, which is used to fund housing projects and programs • Debt Service funds which account for the accumulation of resources for payment of principal and interest on general long-term debt obligations • Internal Service funds which accumulate funds for equipment replacement, insurance costs, healthcare and building maintenance
The timing of revenue received by these funds varies depending on the funding source. One other City fund is currently projected to have financial results that are significantly different from the budget; this is discussed below.
Street Maintenance and Improvement: ($0.1 million above budget) – The full year estimate is $0.1 million, which is $0.1 million less than last year’s actual totals. This revenue source varies annually based on the timing of development projects, some of which were delayed this fiscal year.
All City Expenditures by Category
As shown on the table below, the total of all City expenditures by category is $2.5 million below last year’s spending during the first six months of the year. The biggest decreases are in Capital Outlay at $4.2 million and CIP spending of $4.0 million, offset by increases in Personnel Services at $1.2 million and Contract Services of $2.6 million.
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Attachment: A: MID-YEAR FINANCIAL REPORT FY23-24 (4257 : Mid-Year Financial Report FY 23-24) All City Expenditures by Category (in 000’s)
(All City Funds)
December
2023-2024
To Date
December
2022-2023
To Date Difference
Annual
2023-2024
Estimate
Annual
2022-2023
Budget* Difference
Personnel Services 28,539$ 27,361$ 1,178$ $ 61,173 62,430 $ (1,257) Contract Services 11,283 8,732 2,551 26,086 25,998 89
Material & Supplies 986 974 12 2,524 2,528 (4)
Other Costs 9,461 7,823 1,638 16,846 16,826 20
Capital Outlay 301 4,492 (4,191) 6,740 6,740 0
Capital Improvement Program (CIP) 8,097 12,066 (3,970) 10,700 10,538 163 Debt Service 2,041 1,777 264 5,896 5,896 -
Total 60,708$ 63,227$ (2,518)$ $ 129,965 $ 130,954 $ (990) *Includes City Council approved budget adjustments and carry-over encumbrances 13 3.3.a
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Attachment: A: MID-YEAR FINANCIAL REPORT FY23-24 (4257 : Mid-Year Financial Report FY 23-24) Mid-Year Budget Adjustments
There are a number of budgetary needs that have been identified since the budget was adopted last June. These proposed adjustments total $1,062,633 in the General Fund and $2,064,589 in Other Funds, and are recommended as follows:
Proposed changes impacting the General Fund:
• City Manager’s Office – Funding requested to add a Program Manager to manage the City’s grant program and an active sustainability program - $23,606. The cost for this position will be offset by unfunded positions in other departments.
• City Manager’s Office – Funding requested for the revenue measure initial community priorities survey and ongoing annual community survey’s - $70,000.
• City Clerk’s Office – Funding requested for an Administrative Coordinator to manage public records requests and the City’s centralized records management program - $40,631. The cost for this position will be offset by unfunded positions in other departments.
• Administrative Services (Finance) – Requesting funding for consulting services from Tyler Technology to assist in implementing vendor self-service, electronic vendor payments and e-procurement - $15,000. • Administrative Services (Finance) – Requesting funding for the Matrix fee study - $75,000.
• Administrative Services (HR) – Requesting funding to cover higher than anticipated insurance premiums for vehicle, APIP, active shooter and Cyber insurance - $155,000.
• Administrative Services (HR) – Requesting funding for consulting services to assist with labor negotiations - $40,000.
• Community Development (Planning Division) – Requesting additional funding for mailing labels with the City logo and business cards - $4,500. • Community Development (Planning Division) – Requesting additional funding for courier service provided by San Ramon Valley Unified School District - $3,700.
• Community Development (Planning Division) – Requesting additional funding for the Pitney Bowes postage machine supplies, certified mail cards and tracking labels for passport applications - $1,000. 14 3.3.a
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Attachment: A: MID-YEAR FINANCIAL REPORT FY23-24 (4257 : Mid-Year Financial Report FY 23-24) • Community Development (Planning Division) – Requesting additional funding for the LAFCO fee for the Deerwood Rd. unincorporated island annexation - $5,000.
• Public Works/Transportation Division – With the retirement of the Transportation Division’s Senior Administrative Analyst, the Transportation Division is requesting to reclassify the Senior Administrative Analyst to an Associate Planner position. There is no additional cost increase for this change.
• Public Works/Engineering Division – Requesting funding for park restroom janitorial supplies - $5,000.
• Public Works/Public Services Division – Requesting additional funding for gas and electricity for various City facilities – $165,695. • Public Works/Public Services Division – Requesting additional funding for pool chemicals. - $77,000.
• Public Works/Public Services Division – Requesting additional funding for vehicle and equipment fuel. – $40,000.
• Public Works/Public Services Division – Requesting additional funding for landscape maintenance at the Public Safety Complex - $2,148. • Public Works/Public Services Division – Requesting funding for the Sunrise Ridge Park acceptance - $291,460:
o Maintenance Supervisor position - $37,500 (portion)
o Maintenance Technician position - $54,000
o Electric Toro - $24,000
o Maintenance Supervisor truck - $42,000
o Maintenance Technician truck - $65,000
o Reactive maintenance - $1,500
o Janitorial services - $2,633
o Landscape maintenance - $17,881
o Gas & electricity - $20,800
o Water - $16,813
o Miscellaneous supplies - $1,333
o Janitorial supplies - $500
o Miscellaneous tools/supplies $7,500
• Public Works/Public Services Division – Requesting additional funding for water at Athan Downs and San Ramon Service Center- $18,723. • Public Works/Public Services Division – Requesting funding for auto accident repairs - $11,170.
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Attachment: A: MID-YEAR FINANCIAL REPORT FY23-24 (4257 : Mid-Year Financial Report FY 23-24) • Public Works/Public Services Division – Requesting funding for landscape maintenance for Crow Canyon Gardens - $18,000.
Proposed changes of $2,064,589 impacting other operating funds include:
• Community Development (Planning Division) – Requesting to transfer revenue collected over the past three years from the Planning Cost Recovery Fund to the Tree Mitigation Fund ($9,406), Microfilm Fund ($9,000), and the San Ramon Specific Plan Fund ($3,643) - $22,049. Fund balance at FYE is projected to be $830,640.
• Public Works/Public Services Division – Requesting additional funding for electric utility service for street lighting from the Citywide Lighting Fund (302) - $50,093. Fund balance at FYE is projected to be $752,680. • Public Works/Public Services Division – Requesting funding from the Citywide Lighting Fund (302) for auto accident repairs - $36,860. Fund balance at FYE is projected to be $752,680.
• Public Works/Public Services Division – Requesting additional funding for gas and electric utility service for street lighting, traffic signal, park, and facility from the Dougherty Valley Fund (343) – $201,587. The General Fund will subsidize any approved appropriations.
• Public Works/Public Services Division – Requesting additional funding for pool chemicals from the Dougherty Valley Fund (343) – $60,000. The General Fund will subsidize any approved appropriations.
• Public Works/Public Services Division – Requesting funding from the Dougherty Valley Fund (343) for a Maintenance Supervisor - $37,500 (portion). The General Fund will subsidize any approved appropriations. • Public Works/Public Services Division – Requesting additional funding for water for various City parks from the Dougherty Valley Fund - $49,806. The General Fund will subsidize any approved appropriations. • Public Works/Public Services Division – Requesting additional funding for floor maintenance at the Amador Rancho Community Center from the Dougherty Valley Fund (343) - $3,500. The General Fund will subsidize any approved appropriations.
• Public Works/Public Services Division – Requesting funding for auto accident repairs from the Dougherty Valley Fund (343) - $54,327. The General Fund will subsidize any approved appropriations.
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Attachment: A: MID-YEAR FINANCIAL REPORT FY23-24 (4257 : Mid-Year Financial Report FY 23-24) • Public Works/Public Services Division – Requesting funding for fence replacement at the end of Chilense Court and Alisma Court from the Dougherty Valley fund (343) - $13,750. The General fund will subsidize any approved appropriations.
• Public Works/Public Services Division – Requesting funding for park restroom janitorial supplies from the Dougherty Valley fund (343) - $5,000. The General fund will subsidize any approved appropriations.
• Public Works/Engineering Services Division (DV Fund 343) – Additional funding needed to repair damage caused by the 2023 winter storms and to repair any new damage that may occur in 2024. Some of the costs are likely to be reimbursed by FEMA and Cal OES - $300,000. Fund balance at FYE is projected to be $14,238,160.
• City Manager’s Office (Street Smarts Fund 346) – Requesting funding for an Administrative Coordinator for the Streets Smarts program - $140,587. • Public Works/CIP 975526 – Traffic Signal Improvement & Enhancements.
Increasing the project budget to replace in-pavement flashing beacons to Rectangular Rapid Flashing Beacons (RRFB). This expenditure will be funded by the Transportation Development Act grant - $87,000.
• Public Works/CIP 955491 – Park Restroom Renovations. Additional funding needed from the Park Development Fund (209) to repair fire damage to the Creekside Park restroom - $80,000. Fund balance at FYE is projected to be $8,356,589.
• Public Works/CIP 925418 – Forest Home Farms Structures. Additional funding needed to perform the work requested by the San Ramon Historic Foundation to improve the Sheep Barn structure - $31,211. Fund balance at FYE is projected to be $1,430,334.
o Infrastructure Maintenance Fund (618) - $15,000
o Historic Foundation - $16,211
• Public Works/CIP 925433 – City Facilities Roof Maintenance and Replacement. Additional funding needed from the Infrastructure Maintenance Fund (618) to perform any necessary and unforeseen roof repairs during the remainder of the fiscal year - $10,000. Fund balance at FYE is projected to be $1,430,334.
• Public Works/CIP 925515 – Interior Amenities Renovation. Additional funding needed from the Infrastructure Maintenance fund (618) to repair the security gate operators at the Dougherty Valley Service Center – budget - $25,000. Fund balance at FYE is projected to be $1,430,334. 17 3.3.a
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Attachment: A: MID-YEAR FINANCIAL REPORT FY23-24 (4257 : Mid-Year Financial Report FY 23-24) • Administrative Services/ HR Division. – Budget allocation needed in the Insurance Liability Fund (610) for the cost of the City’s wellness insurance premium that was inadvertently left out of the budget - $30,192. Fund balance at FYE is projected to be $2,420,470.
• Administrative Services/ HR Division. – Funding needed from the Insurance Liability fund (610) to cover the additional costs of general liability premiums that have exceeded the budgeted amount - $813,000.
Fund balance at FYE is projected to be $2,420,470.
• Administrative Services/ HR Division. – Funding needed from the Insurance Liability fund (610) to cover the Employee Assistance Program premium that was inadvertently left out of the budget - $13,127. Fund balance at FYE is projected to be $2,420,470.
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Attachment: A: MID-YEAR FINANCIAL REPORT FY23-24 (4257 : Mid-Year Financial Report FY 23-24) Looking Forward to FY 2024-25:
The budget development process for fiscal year 2024-25 is underway. The foundation of that budget will depend on year-end outcomes of the FY 2023-24 budget. The return of sales tax to pre-pandemic levels is a good start, but other major sources, such as transient occupancy tax resulting from business travel, may never fully recover. The FY 2023-24 budget is projected to end the fiscal year at 39% in General Fund reserves; if additional General Fund appropriations of $1.5 million are made, General Fund reserves will drop to approximately 36%.
Other key issues in developing the budget include:
❖ Strategic cost reduction
❖ Identification of new sources of revenue
❖ Rising costs of employee benefits and inflationary costs ❖ Maintaining service levels with resource constraints
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Attachment: A: MID-YEAR FINANCIAL REPORT FY23-24 (4257 : Mid-Year Financial Report FY 23-24) Conclusion:
Projections indicate that the General Fund will end fiscal year 2023-24 with a net decrease to fund balance of approximately $5.7 million. Although the General Fund had significant savings due to position vacancies, expenditures still exceeded revenues when including transfers in and out.
General Fund revenue is estimated to be $0.5 million above budget, while expenditures are projected to be $0.8 million below budget, excluding transfers in and out. The projected ending policy reserves before mid-year adjustments are $20.9 million or 39% of the prior fiscal year’s audited General Fund expenditures, plus the General Fund transfer to the Dougherty Valley Fund. If Council approves the $1.6 million of General Fund and Dougherty Valley mid-year requests, the projected ending reserves would be at $19.4 million or 36% of the prior fiscal year’s audited General Fund expenditures, plus the General Fund transfer to the Dougherty Valley Fund. The remaining $1.6 million of mid-year requests will be funded by other dedicated sources.
Staff will continue to monitor revenue receipts and will update the estimates as part of the upcoming budget process for 2024-25.
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Attachment: A: MID-YEAR FINANCIAL REPORT FY23-24 (4257 : Mid-Year Financial Report FY 23-24) DESCRIPTION 12/31/2023 12/31/2022 DIFFERENCE ESTIMATE BUDGET DIFFERENCE FUND BALANCE, JULY 1 $ 26,299,302 $ 26,299,302 $ -
REVENUES
Property Tax $ 11,263,875 $ 10,797,509 $ 466,366 $ 25,114,068 $ 25,114,068 $ - Sales and Use Tax 4,460,599 4,474,978 (14,379) 13,262,289 13,262,289 - Property Transfer Tax 206,629 419,537 (212,907) 1,317,992 1,317,992 - Transient Occupancy Taxes (TOT) 823,464 847,245 (23,781) 2,248,541 2,248,541 - Franchise Fees 1,425,916 1,277,877 148,039 5,688,497 5,688,497 - Licenses and Permits 1,992,752 1,289,935 702,818 3,783,250 3,283,250 500,000 Intergovernmental 264,538 291,903 (27,365) 526,220 526,220 - Charges for Services 3,308,368 3,181,893 126,475 6,588,192 6,766,228 (178,036) Fines and Forfeitures 70,156 64,921 5,234 263,000 263,000 - Investment Income 270,269 105,981 164,288 333,167 333,167 - Miscellaneous Revenue 1,529,409 1,638,585 (109,177) 3,884,690 3,670,772 213,918 Total Revenues 25,615,975 24,390,363 1,225,611 63,009,906 62,474,024 535,882
EXPENDITURES
General Government 1,579,259 1,400,157 179,102 3,758,812 3,676,646 82,166 Administrative Services 3,182,049 2,751,593 430,456 6,077,040 6,108,672 (31,632) Community Development 2,111,306 2,053,930 57,376 5,318,490 5,412,638 (94,148) Police Services 7,909,317 6,505,907 1,403,409 17,729,771 18,170,314 (440,543) Public Works 7,426,171 6,925,373 500,798 16,983,286 17,153,016 (169,730) Parks & Community Services 3,994,358 3,727,171 267,187 9,180,198 9,311,640 (131,442) Non-Departmental - 4,773 (4,773) 50,000 50,000 -
Total Expenditures 26,202,460 23,368,905 2,833,555 59,097,597 59,882,926 (785,329)
OTHER FINANCING SOURCES (USES)
Operating Transfers In 5,099,457 5,099,457 -
Operating Transfers Out (14,716,021) (12,216,021) (2,500,000) Total Other Financing Sources (9,616,564) (7,116,564) (2,500,000) Net Increase (Decrease) in Fund Balance $ (5,704,255) $ (4,525,466) $ (1,178,789) FUND BALANCE:
Unreserved Fund Balance in General Fund $ 20,595,047 $ 21,773,836 TOTAL FUND BALANCE, JUNE 30 $ 20,595,047 $ 21,773,836
GENERAL FUND
REVENUE - EXPENDITURE - FUND BALANCE
6 MONTHS ENDING FULL YEAR 23/24
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Attachment: A: MID-YEAR FINANCIAL REPORT FY23-24 (4257 : Mid-Year Financial Report FY 23-24) DESCRIPTION 12/31/2023 12/31/2022 DIFFERENCE ESTIMATE BUDGET DIFFERENCE FUND BALANCE, JULY 1 $ 26,316,381 $ 26,316,381 $ -
REVENUES
Property Tax $ 11,263,875 $ 10,797,509 $ 466,366 $ 25,114,068 $ 25,114,068 $ - Sales and Use Tax 4,460,599 4,474,978 (14,379) 13,262,289 13,262,289 - Property Transfer Tax 206,629 419,537 (212,907) 1,317,992 1,317,992 - Transient Occupancy Taxes (TOT) 823,464 847,245 (23,781) 2,248,541 2,248,541 - Franchise Fees 1,425,916 1,277,877 148,039 5,688,497 5,688,497 - Licenses and Permits 1,992,752 1,289,935 702,818 3,783,250 3,283,250 500,000 Intergovernmental 264,538 291,903 (27,365) 21,932,125 21,932,125 - Charges for Services 3,308,712 3,181,893 126,819 6,588,192 6,766,878 (178,686) Fines and Forfeitures 70,156 64,921 5,234 263,000 263,000 - Investment Income 287,597 105,981 181,615 333,167 333,167 - Miscellaneous Revenue 1,529,409 1,663,237 (133,829) 3,884,690 3,670,772 213,918 Total Revenues 25,633,646 24,415,015 1,218,631 84,415,811 83,880,579 535,232
EXPENDITURES
General Government 1,579,259 1,400,157 179,102 3,758,812 3,676,646 82,166 Administrative Services 3,182,049 2,751,593 430,456 6,077,040 6,108,672 (31,632) Community Development 2,111,306 2,053,930 57,376 5,318,490 5,412,638 (94,148) Police Services 12,434,605 10,188,651 2,245,954 28,168,049 28,842,256 (674,207) Public Works 13,609,357 12,538,836 1,070,520 30,595,626 30,806,943 (211,317) Parks & Community Services 3,994,358 3,727,171 267,187 9,180,198 9,311,640 (131,442) Non-Departmental - 4,773 (4,773) 1,005,560 1,005,560 -
Total Expenditures 36,910,934 32,665,112 4,245,822 84,103,775 85,164,355 (1,060,580)
OTHER FINANCING SOURCES (USES)
Operating Transfers In 8,974,331 8,974,331 -
Operating Transfers Out (14,716,021) (12,216,021) (2,500,000) Total Other Financing Sources (5,741,690) (3,241,690) (2,500,000) Net Increase (Decrease) in Fund Balance $ (5,429,654) $ (4,525,466) $ (904,188) TOTAL FUND BALANCE, JUNE 30 $ 20,886,727 $ 21,790,915
GENERAL FUND AND DOUGHERTY VALLEY FUND
REVENUE - EXPENDITURE - FUND BALANCE
6 MONTHS ENDING FULL YEAR 23/24
22 3.3.a
Packet Pg. 37
Attachment: A: MID-YEAR FINANCIAL REPORT FY23-24 (4257 : Mid-Year Financial Report FY 23-24) FUND # FUND DESCRIPTION 12/31/2023 12/31/2022 DIFF ESTIMATE BUDGET DIFF 101 General Fund $ 25,615,975 $ 24,390,363 $ 1,225,611 $ 63,009,906 $ 62,474,024 $ 535,882 201 Planning Cost Recovery 129,296 358,158 (228,862) 594,093 594,093 0 202 Geographic Information Systems 158,003 53,219 104,784 164,568 125,000 39,568 203-207 Development Mitigation 846,732 322,839 523,893 2,397,481 2,397,481 0 208 Gas Tax 1,728,371 1,539,670 188,701 4,493,792 4,493,792 - 209-210 Park Development 952,736 175,489 777,248 5,610,611 5,610,611 0 212 SCCJEPA 78,330 1,099,676 (1,021,346) 2,822,259 2,822,259 0 213 Street Maintenance & Improvement 73,599 163,950 (90,351) 73,599 - 73,599 214 Traffic Improvement 8,272 290,609 (282,337) 881,852 881,852 - 215 Tri-Valley Transportation Fund (148,889) (105,618) (43,271) 487,724 487,724 0 216 Public Education & Governement 52,474 58,249 (5,774) 195,000 195,000 - 217 Vehicle Refuse Impact Fees 604,524 590,421 14,102 1,615,220 1,615,220 - 218 Open Space Development 43,005 47,318 (4,313) 595,821 595,821 - 220 Tree Mitigation Fee 36,000 - 36,000 36,000 - 36,000 221 Microfilm Laserfiche Fee 200 - 200 500 - 500
251/252 CFD 2014-1 Acres/Faria 281,591 245,513 36,078 655,419 655,419 - 301 Citywide Landscaping 1,064,648 995,868 68,779 1,793,280 1,793,280 - 302 Citywide Lighting 436,854 313,781 123,074 801,478 799,175 2,303 303-319 Landscaping & Lighting Special Districts 643,437 632,789 10,647 1,130,320 1,130,320 - 330 The Preserve Faria 56,850 53,372 3,478 114,522 114,522 - 341 Canyon Park 2,442 1,271 1,171 10,990 10,990 -
342 Village Center Common Area 1,000 441 559 6,006 6,006 - 343 Dougherty Valley 17,671 24,652 (6,981) 21,406,555 21,406,555 - 344 Solid Waste 436,001 420,843 15,158 1,322,938 1,322,938 - 345 Non Point Drainage 776 20,418 (19,642) 1,226,000 1,226,000 - 346 Streets Smarts Program 66,312 81,171 (14,859) 207,750 207,750 - 347 TDM Programs 29,352 40,132 (10,780) 656,420 656,420 - 348 Local Law Enforcement Block Grant 64 33 31 - - -
349 Police Services Donations 96 300 (203) - - -
350 Narcotics Asset Forfeiture 24,863 1,501 23,362 22,983 - 22,983 351 TRAFFIX Program 109,079 89,880 19,199 211,868 211,868 - 352 Abandoned Veh Abatement Fund 1,929 3,401 (1,471) 12,064 - 12,064 361 GHAD-Dougherty Valley 1,386,718 1,290,113 96,605 2,285,226 2,285,226 0 362 GHAD-NW San Ramon 242,754 285,313 (42,558) 570,642 570,642 - 371 San Ramon Housing 2,807,524 2,131 2,805,393 4,015,500 4,015,500 (0) 401 Capital Projects 925,771 3,402,239 (2,476,468) 4,639,313 4,639,313 - 501-521 Debt Service Funds 1,841,523 1,058,642 782,881 3,485,778 3,485,778 - 601-618 Internal Service Funds 5,372,696 3,187,359 2,185,338 14,833,628 14,845,628 (12,000) Total Revenues Excluding Transfers $ 45,928,580 $ 41,135,506 $ 4,793,074 $ 142,387,107 $ 141,676,207 $ 710,900 All City Revenue by Fund
6 MONTHS ENDING FULL YEAR 23/24
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Packet Pg. 38
Attachment: A: MID-YEAR FINANCIAL REPORT FY23-24 (4257 : Mid-Year Financial Report FY 23-24) FUND # FUND DESCRIPTION 12/31/2023 12/31/2022 DIFF ESTIMATE BUDGET * DIFF 101 General Fund $ 26,202,460 $ 23,368,905 $ 2,833,555 $ 59,097,597 $ 59,882,926 $ (785,329) 201 Planning Cost Recovery 66,200 74,908 (8,708) 203,504 203,504 - 202 Geographic Information Systems 35,485 74,701 (39,216) 102,732 102,732 - 203-207 Development Mitigation - - - - -
216 Public Education & Government 1,572 36,969 (35,397) 250,000 250,000 - 301 Citywide Landscaping 530,252 482,614 47,638 1,264,851 1,274,675 (9,824) 302 Citywide Lighting 347,267 298,742 48,525 689,871 689,871 - 303-319 Landscaping & Lighting Special Districts 514,235 490,503 23,732 1,313,230 1,336,022 (22,792) 330 The Preserve Faria 24,768 18,816 5,952 97,968 97,968 - 341 Canyon Park 16,871 26,183 (9,312) 59,096 59,096 -
342 Village Center Common Area 1,924 766 1,158 6,318 6,318 - 343 Dougherty Valley 10,708,474 9,296,207 1,412,267 24,050,618 24,325,869 (275,251) 344 Solid Waste 521,105 368,644 152,461 1,355,642 1,355,642 - 345 Non Point Drainage 407,004 264,279 142,725 1,264,551 1,264,551 - 346 Street Smarts Program 91,028 80,439 10,589 239,144 234,144 5,000 347 TDM Programs 132,857 126,455 6,402 586,488 650,896 (64,408) 350 Narcotics Asset Forfeiture 122,474 (122,474) - -
351 TRAFFIX Program 80,377 69,777 10,600 186,141 186,141 - 361 GHAD - Dougherty Valley 881,787 208,351 673,437 1,063,900 1,063,900 - 362 GHAD - NWSR (2,605) (2,605) 145,596 145,596 -
371 San Ramon Housing 98,801 4,068,635 (3,969,834) 4,948,387 4,948,387 0 401 Capital Projects 7,934,014 12,066,321 (4,132,308) 10,600,371 10,437,626 162,745 501-521 Debt Service Funds 2,041,498 1,777,487 264,011 5,895,543 5,895,543 - 601-611 Internal Service Funds 10,073,015 9,904,530 168,485 16,543,014 16,543,014 - Total Expenditures Excluding Transfers $ 60,708,390 $ 63,226,705 $ (2,518,315) $ 129,964,562 $ 130,954,421 $ (989,859) * Includes Council approved budget adjustments and carry-over encumbrances All City Expenditures by Fund
6 MONTHS ENDING FULL YEAR 23/24
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Packet Pg. 39
Attachment: A: MID-YEAR FINANCIAL REPORT FY23-24 (4257 : Mid-Year Financial Report FY 23-24) CATEGORY 12/31/2023 12/31/2022 DIFF ESTIMATE BUDGET * DIFF Personnel Services $ 28,539,022 $ 27,361,364 $ 1,177,658 $ 61,172,615 $ 62,429,831 (1,257,216) Contract Services 11,282,739 8,732,178 2,550,561 26,086,135 25,997,591 88,544 Material & Supplies 986,311 974,160 12,151 2,523,957 2,527,889 (3,932) Other Costs 9,461,089 7,823,268 1,637,821 16,845,729 16,825,729 20,000 Capital Outlay 300,971 4,491,927 (4,190,956) 6,740,212 6,740,212 0 Capital Improvement Program (CIP) 8,096,759 12,066,321 (3,969,563) 10,700,371 10,537,626 162,745 Debt Service 2,041,498 1,777,487 264,011 5,895,543 5,895,543 - Total Expenditures Excluding Transfers $ 60,708,390 $ 63,226,705 $ (2,518,315) $ 129,964,562 $ 130,954,421 $ (989,859) * Includes Council approved budget adjustments and carry-over encumbrances All City Expenditures by Category
6 MONTHS ENDING FULL YEAR 23/24
25 3.3.a
Packet Pg. 40
Attachment: A: MID-YEAR FINANCIAL REPORT FY23-24 (4257 : Mid-Year Financial Report FY 23-24)
DEPARTMENT AUTHORIZED FUNDED
ACTUAL
12/31/23
VACANT
(Funded)
General Government 11.00 11.00 10.00 1.00
Administrative Services 19.00 19.00 18.00 1.00
Community Development 22.00 22.00 20.00 2.00
Police Services 94.00 94.00 81.00 13.00
Public Works 106.75 106.75 99.75 7.00
Parks and Community Services 34.00 34.00 33.00 1.00
Total FTE Personnel 286.75 286.75 261.75 25.00
Vacancy Rate: 9%
FULL-TIME EQUIVALENTS (FTE) BY DEPARTMENT
STAFFING LEVELS
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Packet Pg. 41
Attachment: A: MID-YEAR FINANCIAL REPORT FY23-24 (4257 : Mid-Year Financial Report FY 23-24) FY 23/24 Mid-Year Requests
DEPT YTD Budget GF DV
All Other
Funds Total
Adjusted
Budget Purpose
GG/CMO 23,606 23,606 Program Manager
GG/CMO 30,000 30,000 Revenue measure initial community survey GG/CMO 40,000 40,000 Revenue measure ongoing annual community survey GG/CMO 140,587 140,587 Admin Coordinator
1,758,150 93,606 - 140,587 234,193 1,992,343
GG/CC 40,631 40,631 Admin Coordinator
560,828 40,631 - - 40,631 601,459
CDD/PLNG 22,049 22,049 Transfers between funds to segregate fundings for special projects CDD/PLNG 4,500 4,500 Stationary and business cards
CDD/PLNG 3,700 3,700 SRVUSD mail courier service
CDD/PLNG 1,000 1,000 Postage machine supplies
CDD/PLNG 5,000 5,000 LAFCO county fee for Deerwood road 1,699,949 14,200 - 22,049 36,249 1,736,198
-
ASD/FIN 15,000 15,000 Funding for Munis vendor self-service / ACH implementation ASD/FIN 75,000 75,000 Matrix fee study
ASD/HR 30,192 30,192 Wellness program insurance premium increase ASD/HR 813,000 813,000 General Liability insurance premium increase ASD/HR 13,127 13,127 EAP insurnace premium increase
ASD/HR 40,000 40,000 Labor relation consulting services ASD/HR 155,000 155,000 Unemployment, vehicle, active shoorter, cyber premium increase 6,108,672 285,000 - 856,319 1,141,319 7,249,991
PW/ENGR 80,000 80,000 Funding CIP 955491 Park Restroom Reno from Park Dev Fund PW/ENGR 31,211 31,211 Funding CIP 925418 FHF Structures from Infras. Maint. Fund PW/ENGR 10,000 10,000 Funding CIP 925433 City Facilities Roof from Infras. Maint. Fund PW/ENGR 87,000 87,000 Funding CIP 975526 Traffic Signals Impv from TDA grant PW/ENGR 25,000 25,000 Funding CIP 92515 Interior Amenities Reno from Infras. Maint. Fund PW/ENGR 300,000 300,000 GHAD maintenance
5,910,621 - - 533,211 533,211 6,443,832
PW/TRNSP - Reclassifying a Senior Administrative Analyst to an Associate Planner 1,620,311 - 1,620,311
PW/PS 5,000 5,000 10,000 Park janitorial supplies
PW/PS 165,695 201,587 50,093 417,375 Gas & electric
PW/PS 77,000 60,000 137,000 Pool chemicals
PW/PS 40,000 40,000 Fuel
PW/PS 2,148 2,148 Public Safety complex landscape maint.
PW/PS 291,460 37,500 328,960 Sunrise Ridge Park Acceptance PW/PS 18,723 49,806 68,529 Increased rate and water usage PW/PS 3,500 3,500 ARCC floor maint.
PW/PS 11,170 54,327 36,860 102,357 Auto accident repairs PW/PS 18,000 18,000 Crow canyon gardens maint.
PW/PS 13,750 13,750 Fence replacement
PW/PS
PW/PS
31,543,985 629,196 425,470 86,953 1,141,619 32,685,604
Grand Total 49,202,516 1,062,633 425,470 1,639,119 3,127,223 52,329,739 27 3.3.a
Packet Pg. 42
Attachment: A: MID-YEAR FINANCIAL REPORT FY23-24 (4257 : Mid-Year Financial Report FY 23-24)