FY 2022-23
Annual
Comprehensive
Financial Report
City Council Meeting
January 24, 2024
Government Code Section 54957.5 SB
343 Agenda: 01/24/2024
Reg CC Item # 9
FY 2022-23 ACFR Overview
2 Annually audited by Maze & Associates – the City’s
independent audit firm
Prepared following the guidelines recommended
by:
• Government Finance Officers Association (GFOA) of the United States and Canada
• Standards adopted by the Governmental Accounting
Standards Board (GASB)
FY 2022/23
ACFR Layout
Introductory Section
• Letter of Transmittal
• Provides the formal transmittal of the
ACFR from management
• Provides information useful in assessing an
entity’s economic condition
• GFOA Certificate of Achievement
• Organization Chart
• City Council & Principal Officers
FY 2022-23
ACFR Layout
• Financial Section:
• Independent Auditor’s Report (Opinion)
• Maze
• Unmodified Opinion
• Management’s Discussion and Analysis
• Overview of the entity’s basic financial
statements
• Provides comparative data from prior years
• Provides the results of the entity’s overall
financial position and results of operations
• Discussion of capital assets and long-term debt
activity
• Basic Financial Statements of the City
• Government-wide financial statements, fund
financial statements, notes to the financial
statements, and supplementary information
4 FY 2022/23
ACFR Layout
• Financial Section (continued):
• Notes to the Financial Statements
• Presents detailed information as a context
for understanding the information in the
financial statements
• Statistical Section:
• Presents supplementary information
about the City’s overall Fiscal condition.
General Fund Highlights
Revenues* (excluding
transfers)
$146.5 million
Expenditures
(excluding transfers) -
$133.6 million
General Fund
Operating Surplus $12.9
million
• Special Items = -$9.8 million
• Net Transfers = $3.9 million
General Fund Surplus
$7.0 million
Encumbrance rollover
-$8.7 million
FY 2022-23 General Fund Revenue
Favorable/
(Unfavorable) % Variance
Property Taxes $ 49,779,284 $ 43,804,769 $ 45,804,769 $ 54,041,117 $ 8,236,348 18.0% Sales Tax 22,361,011 20,991,018 22,391,018 21,735,087 (655,931) -2.9% Transient Occupancy Tax 12,135,638 11,160,752 14,160,752 16,357,104 2,196,352 15.5% Other Taxes 6,537,423 4,893,252 5,693,252 8,059,817 2,366,565 41.6% Franchise Fees 4,863,076 4,600,000 4,600,000 5,240,637 640,637 13.9% Building and Fire Permits 14,062,474 15,500,000 19,425,400 20,467,644 1,042,244 5.4% Fines and Forfeitures 700,961 710,824 710,824 757,019 46,195 6.5% Intergovernmental 3,196,346 2,844,618 4,337,199 3,558,742 (778,457) -17.9% Charges for Services 9,747,605 8,799,097 8,265,097 11,673,187 3,408,090 41.2% Use of Money & Property 1,553,209 5,453,469 4,556,469 4,247,107 (309,362) -6.8% Other Revenues 515,004 259,383 278,903 353,378 74,475 26.7% Total Revenues $ 125,452,031 $ 119,017,182 $ 130,223,682 $ 146,490,839 $ 16,267,157 12.5% Add Prior Year Committed reserves - 7,469,764 - -
Total Available Resources $ 125,452,031 $ 119,017,182 $ 137,693,446 $ 146,490,839 $ 16,267,157 Variance from 2022-23 Adjusted
budget
Revenues
Actual
2021-22
Adopted
2022-23
Adjusted
2022-23
Actual
2022-23
FY 2022-23 Expenditure Summary
(Favorable)/
Unfavorable % Variance
City Council $ 252,677 $ 258,749 $ 260,650 $ 241,596 $ (19,054) -7.3% City Clerk $ 887,678 $ 1,143,342 $ 1,154,449 $ 1,027,822 $ (126,627) -11.0% City Treasurer $ 39,852 $ 167,292 $ 167,904 $ 35,279 $ (132,625) -79.0% City Attorney $ 1,138,457 $ 940,290 $ 940,291 $ 1,220,059 $ 279,768 29.8% City Manager $ 3,911,694 $ 4,527,997 $ 5,324,596 $ 3,819,858 90,051 $ (1,414,687) -26.6% Finance $ 3,148,914 $ 3,892,875 $ 4,405,085 $ 3,089,869 527,453 $ (787,763) -17.9% Non-Departmental $ 2,580,748 $ 2,044,367 $ 2,152,699 $ 3,625,264 2,782 $ 1,475,347 68.5% Human Resources $ 2,065,927 $ 2,518,004 $ 2,684,109 $ 2,221,160 110,827 $ (352,122) -13.1% Economic & Community Development $ 11,006,922 $ 8,907,770 $ 15,609,631 $ 11,770,931 4,139,032 $ 300,332 1.9% Fire $ 32,560,468 $ 31,313,293 $ 33,424,718 $ 35,512,513 887,974 $ 2,975,769 8.9% Police $ 33,281,487 $ 32,957,662 $ 34,511,302 $ 36,282,832 277 $ 1,771,807 5.1% Public Works $ 6,294,564 $ 7,120,654 $ 8,603,705 $ 7,936,326 995,569 $ 328,190 3.8% Library $ 6,495,279 $ 6,706,110 $ 7,273,745 $ 6,475,274 43,708 $ (754,763) -10.4% Parks & Recreation $ 18,092,526 $ 19,608,365 $ 22,873,152 $ 20,362,073 1,863,866 $ (647,213) -2.8% Total Expenditures $ 121,757,193 $ 122,106,770 $ 139,386,036 $ 133,620,856 $ 8,661,539 $ 2,896,359 2.1% Variance from 2022-23 Adjusted
budget
Expenditures
Actual
2021-22
Adopted
2022-23
Adjusted
2022-23
Actual
2022-23
Carryover
Purchase
Orders
FY 2022-23 Surplus/(Deficit)
(Favorable)/
Unfavorable % Variance
Net Operating Surplus/ (Deficit) $ 3,694,838 $ (3,089,588) $ (1,692,590) $ 12,869,983 Other Financing Sources / (Uses)
Transfers in $ 4,763,729 $ 3,245,000 $ 6,151,400 $ 5,283,682 $ - $ (867,718) -14.1% Transfers out (10,033,749) (100,000) (4,533,270) (1,388,940) - 3,144,330 -69.4% Other Accounting Adjustments (1,455,282) - 897,000 (9,761,156) Total Other Financing Sources/ (Uses) $ (6,725,302) $ 3,145,000 $ 2,515,130 $ (5,866,414) $ - $ (4,012,048) 55.3% Net Change in Fund Balance $ (3,030,464) $ 55,412 $ 822,540 $ 7,003,569 Variance from 2022-23 Adjusted
budget
Actual
2021-22
Adopted
2022-23
Adjusted
2022-23
Actual
2022-23
Carryover
Purchase
Orders
General
Fund
Highlights
General Fund’s fund balance* = $71.8M
• $7M Surplus in FY 2022-23**
• $55K per Adopted budget
* Excludes Measure W Sales Tax
** Excludes deferred encumbrances $8.7M
1 0
General Fund – Reserves as of 6-30-2023
Total Fund balance $ 71,798,386
Designated for:
CIP $ (3,775,873)
Encumbrances (PO) (8,661,539)
Land Held for Red. (3,718,818)
ERP Replacement (6,000,000)
20% Reserve per GFOA (29,298,168) $ (51,454,398)
Unassigned F/B $ 20,343,988
FY2022-23 City Reserve & GF Unassigned Fund Balance
12 * Per GFOA best practices. Represents approx. 2-3 months operating needs **Approx. $4M has been assigned for projects in FY2023-24 adopted budget General Reserves
(City Policy)
$ 29,298,000*
Pension Reserves
$ 5,596,000
Infrastructure
Reserves
$ 8,194,000**
TOTAL Reserve
$ 43,088,000
Available
Unassigned GF
Fund Balance
$20,344,000
Total Combined
Balance
$63,432,000
QUESTIONS?
Q&A
13