Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issu e an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolu te assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may in volve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individu ally or in aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS, we:
Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstat ement of the financial statements, whether due to fraud or error, and design and pe rform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circ umstances, but not for the purpose of expressing an opinion on the effectiveness of [Entity Name]’s internal control. Accordingly, no such opinion is expressed.5 Evaluate the appropriateness of ac
counting polic ies used and the reasonableness of significant accounting estimates made by management, as we ll as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about [ Entity Name]’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant au dit findings, and certain internal control–related matters that we identified during the audit.
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To the Honorable Mayor and Members of the City Council
of the City of Wasco
Wasco, California
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards , we have also issued our re port dated February 13, 2024, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, cont racts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance relating to Measure X and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance relating to Measure X.
Badawi and Associates, CPAs
Berkeley, California
February 13, 2024
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City of Wasco Measure X
Balance Sheeet
June 30, 2023
2023
ASSETS
Cash and investments 6,395,750 $
Total assets 6,395,750$
LIABILITIES
Accounts payable -$
Total current liabilities . -
FUND BALANCE
Restricted - Essencial city services 6,395,750
Total fund balance 6,395,750
Total liabilities and fund balance 6,395,750$
See accompanying Notes to Basic Financial Statements.
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City of Wasco Measure X
Statement of Revenues, Expenditures, and Changes in Fund Balance For the fiscal year ended June 30, 2023
2023
OPERATING REVENUES:
Measure X Sales Tax 3,218,707$
Total operating revenues 3,218,707
OPERATING EXPENSES:
Street and Road Construction and Maintenance:
Palm Avenue Rehab 7,896
Palm Avenue Shoulder Paving 9,149
Street Lighting Post Top Conversion 73,123
Maintenance of Effort Requirement for SB1 Funds 213,313 General and Administrative 14,050
Public Safety:
Police Services 1,500,000
Fire Services 500,000
Total expenditures 2,317,531
Net Change in Fund Balance 901,176
FUND BALANCE:
Beginning of year 5,494,574
End of year 6,395,750$
See accompanying Notes to Basic Financial Statements.
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City of Wasco – Measure X
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
1. SUMMARY OF SIGNIF ICA
NT ACCOUNTING POLICIES
A. Reporting Entity
Measure X – On November 8, 2016, Measure X was approved by the citizens of the City of Wasco.
Measure X created an ordinance establishing a new 1% sales tax. This ordinance stipulated that the additional sales tax proceeds were to provide funding for basic City services which were defined as essential general servic es, including but not limited to police, fire, streets, parks and recreation as well as other general fund services.
The financial statements of Measure X of the City of Wasco (the "City") have been prepared in conformity with U.S. generally accepted accounting principles as prescribed by the Governmental Accounting Standards Board (GASB). The following su mmary of the City’s more significant accounting policies is presented to assist the reader in interpreting the basic financial statements and other data in this report.
The financial statements are intended to reflect the financial position, results of operation, and compliance of the City with the laws, rules, and regulations of Measure X. They do not present fairly the financial position and results of operations of the City in conformity with accounting principles generally accepted in the United States of America.
B. Basis of Presentation
Fund Financial Statements
The accounting system of the City is organized and operat ed on the b asis of separate funds, each of
which is considered to be a separate accounting entity. Each fund is accounted for by providing a separate set of self-balancing acco unts that constitute its assets, lia bilities, fund equity, revenues, and expenditures/expenses. Government resources are a llocated to and accounted for in individual funds based upon the purpose for which they are to be sp ent and the means by which spending activities are controlled. The various funds are grouped, in the fi nancial statements in this report, into one generic fund type and one broad fund category as follows:
Governmental Funds
Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than expendable trusts or major capital projects) that are legally restricted to expenditures for specified purposes. Measure X is a Special Revenue Fund.
C. Measurement Focus and Basis of Accounting
Measurement focus is a term used to describe “w hich” transactions are recorded within the various financial statements. Basis of accounting refers to “when” transactions are recorded regardless of the measurement focus applied.
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City of Wasco – Measure X
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
1. SUMMARY OF SIGNIFICANT AC COUNTING POL
ICIES, Continued
C. Measurement Focus and Basis of Accounting, Continued Measurement Focus – All governmental funds utilize a “cu rrent financial resources” measurement focus. Only current financial assets and liabilities ar e generally included on their balance sheets. Their operating statements present sources and uses of av ailable spendable financial resources during a given period. These funds use fund balance as their measure of available spendable financial resources at the end of the period.
Basis of Accounting – In the fund financial statements, governmental funds are presented on the modified accrual basis of accounti ng. Under this modified accrual ba sis of accounting, revenues are recognized when “measurable and available”. Measur able means knowing or being able to reasonably estimate the amount. Available means collectible within the current period or soon enough thereafter to pay current liabilities. Revenues which are suscepti ble to accrual include property taxes and special assessments that are levied for and due for the fiscal year and collected within 60 days after year-end.
Licenses, permits, fines, forfeits, charges for serv ices and miscellaneous revenues are recorded as governmental fund type revenues when received in cash because they are not generally measurable until actually received. Revenue from taxpayer assessed taxes, such as sales taxes, are recognized in the accounting period in which they became both measurable and available to finance expenditures of the fiscal period. Grant funds and reim bursements of expenses under cont ractual agreements are reported in governmental fund types and are recorded as a re ceivable when earned rather than when susceptible to accrual. Generally, this occurs when authorized expenditures ar e made under the grant program or contractual agreement. Expenditures are recognized when the fund lia bility is incurred, if measurable, except for unmatured interest on long-term debt, which is recognized when due.
D. Cash and Investments
Cash and investment balances of each of the City’s f u n d s , e x c e p t f o r f u n d s r e q u i r e d t o b e h e l d b y outside fiscal agents under the provisions of bond in dentures, are pooled in order to take advantage of an effective investment strategy. Income earned from pooled investments is a llocated to each of the funds based on average pooled cash balances during the year. Deficit cash balances are classified as due to other funds and funded by the General Fund or related operating fund.
E. Receivables
All trade and tax
receivables are sh
own net of an a llowance for uncollectible accounts and estimated refunds due.
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City of Wasco – Measure X
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued
F. Fund Balance - Governmental Funds
Fund balances of the governmental funds are presented in the financial statements based on classifications that comprise a hierarchy that is based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the respective governmental funds can be spent. Fund balances are classified as follows:
Nonspendable – Amounts that cannot be spent either because they are not in a spendable form or because they are legally or contractually required to be maintained intact.
Restricted – Amounts restricted by external sources (credi tors, laws of other governments, etc.) or by constitutional provision or enabling legislation.
Committed – Amounts that are obligated to a specific purpose which are internally imposed by the government through formal action (Ordinances and Resolutions) at the highest level of decision making authority (City Council). These commitments can only be overturned by a like action.
Assigned – Amounts that are intended to be used for specific purposes that are considered neither restricted nor committed. Undesignated excess Fund Balances may be assigned by the City Council, City Manager, or Finance Director for specific purposes through the budget process or agenda items.
The assigned designation may be reversed by the City Council at any public meeting.
Unassigned – Residual positive fund balanc es within the General Fund, which have not been classified within the other above mentioned categories. Unassi gned Fund Balances may also include negative balances for any governmental fund if expenditures exceed amounts restricted, committed, or assigned for those specific purposes.
When expenditures are incurred for purposes for which all restricted, committed, assigned, and unassigned fund balances ar e available, the City’s policy is to apply in the following order, except for instances wherein an ordinance specifies the fund balance: Restricted, Committed, Assigned, and Unassigned.
G. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates.
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City of Wasco – Measure X
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
2. CASH AND INVESTMENTS
Cash balances of the City’s Measure X are pooled with those of other funds and invested by the City to maximize investment opportunities and yields. Income earned from pooled investments is allocated to each of the funds based on average pooled cash balances during the year. Deficit cash balances are classified as due to other funds and funded by th e General Fund or related operating fund. Further information regarding the City’s cash and cash equivalents pool may be found in the City’s financial statements.
Cash and investments of the Measure X at June 30, 2023 consisted of the following:
Cash in the City of Wasco pooled cash $6,395,750
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REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE
AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
Independent Auditor’s Report
To the Honorable Mayor and Members of the city Council
of the City of Wasco
Wasco, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of Measure X of the City of Wasco, (City), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s Measure X’s basic financial statements and have i ssued our report thereon dated February 13, 2024
Internal Control over Financial Reporting
In planning and performing our audit of t h
e financial statements, we considered the City’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City ’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their a ssigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or dete cted and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limit ed purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and theref ore, material weaknesses or signific ant deficiencies may exist that have not been identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
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To the Honorable Mayor and Members of the City Council
of the City of Wasco
Wasco, California
Compliance and Other Matters
As part of obtaining reasonable assurance about whet her the Measure X financial statements are free from material misstatement, we performed tests of its complia nce with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with wh ich could have a direct an d material effect on the determination of financial statement amounts. Howeve r, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are req uired to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Badawi and Associates, CPA’s
Berkeley, California
February 13, 2024
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STAFF REPORT
CITY OF WASCO
TO: Honorable Mayor and Council Members
FROM: M. Scott Hurlbert, City Manager
Isarel Perez-Hernandez, Finance Director
DATE: February 20, 2024
SUBJECT: Adopt a Resolution approving the mid-year operating budget adjustments totaling $163,650 in the General Fund and $85,500 in other funds. _____________________________________________________________________________________
Recommendation:
Staff recommends that the City Council:
1) Adopt a resolution approving the mid -year operating budget adjustments totaling $163,650 in the General Fund and $85,500 in other funds.
2) Find that this action is not a project as defined under the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3), no environmental review is required.
Environmental Review:
The staff has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA guidelines because the proposed activity consists of a governmental fiscal/administrative activity which does not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required.
Background:
The purpose of this report is to present the financial condition of the General Fund at the mid-point of the fiscal year and revised projections at year -end (Attachment 1) , and propose budget adjustments as needed based on issues that have surfaced since budget adoption.
The following Mid-Year Budget Review covers the first six months of the 2023-24 fiscal year from July 1, 202 3 through December 31, 202 3. Most attention is paid to major operating funds, such as the General Fund, Water, Sanitation, and Wastewater Enterprise funds. The four largest and most vital revenue sources for the General Fund are Property Tax, Sales Tax, Measure X, and Motor Vehicle License Fees In Lieu of Property tax.
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The major takeaway s are that the City remains on good financial footing at mid -year, with a continued focus on strategic one -time uses of higher-than-anticipated sales tax, and ARPA funds, however, impacts from inflation are beginning to be felt in every operation of the City, including utility enterprise operations, that will put pressure on budgets for the remainder of the fiscal year and planning for next year. It is worth noting that City staff recognizes the economic environment, and it is reflected in the minimal budget adjustments.
Discussion:
Key Findings. On a positive note, key General Fund revenues are performing on target with projections included in the adopted 2023-24 Budget. The fund balance of $13 million at the end of the year, which is 75% of operating expenditures compared with the City’s minimum policy of 35% is an indicator that the city is able to meet operating costs for the three months.
The Road Ahead. While the General Fund is in satisfactory fiscal condition in the short term, significant fiscal challenges are ahead like staffing shortages, investments in aged facilities, and the startup of the Wasco Police Department coupled with other cost pressures due to unfunded pension , persistent high in flation rates and likely higher fire contract cost increases from Kern County due to these same pressures.
General Fund Fiscal Review
Attachment 1 presents an analysis of General Fund revenues (“Top 10,” which exclud es one-time grants, which account for 90% of total revenues), expenditures, and changes in fund balance. It presents actual results for the last two completed fiscal years (20 21-22 and 2022-23) and year-to-date for 2023-24 through December 31, 2023. It then shows the current budget, revised year-end projections, and the variance.
Revenues. The following is a summary of key variances.
• Property tax (general and VLF in Lieu). Based on apportionment factors set by the State, both of these revenues are collected on the property tax and driven based on assessed valuation. Typically, changes in assessed value are slow to react to economic factors, up or down. The first major apportionment of 202 3-24 taxes occurred in December 202 3, and thus far collections are on target with our projections.
• Sales tax (general and Measure X) . Based on year -to-date results, General and Measure X sales tax revenues appear to be performing slightly below estimates; however, the City has yet to receive the December monthly payment from the State of California. We anticipate that our revenues will b e on target once these payments are received.
• Transient occupancy tax (TOT). Visitors to Wasco who stay in the City’s hotels, motels , and inns for a period of less than thirty consecutive calendar days pay TOT. Quarterly TOT payments are due within 30 day s after the end of the quarter. Based on year -to- date results, TOT appears to be performing slightly below estimates; however, we have yet to receive any second -quarter payments as of the date of this report. We anticipate that our revenues will be on target once these payments are received.
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• Development review fees and permits. This revenue is mainly comprised of fees for planning and engineering services and building permits. We will continue to monitor these revenues as they appear to be performing above projections. It is worth noting that the driving factor has been an increase in building permits.
E
xpenditures. These are based on the current budget plus the proposed budget adjustments. The basis for these adjustments is discussed below.
O
ther Sources and Uses. This category reflects transfers from other funds, E
nding Fund Balance. After assigning $9.3 million for the labor housing complex grant revenue contingency, the ending unassigned fund balance is $ 13 million at the end of the year, which is 75 % of operating expenditures compared with the City’s minimum policy of 35%.
Mi
d-Year Appropriations
O
perating Budget. Proposed mid-year budget adjustments are detailed below:
DEPARTMENT DESCRIPTION TYPE ACTION AMOUNT
GEN
ERAL GOVERNMENT BUSI NESS LI CENSE REVENUE INCREASE 2,000$ GENERAL GOVERNMENT INTEREST EARNED REVENUE INCREASE 160,000 GENERAL GOVERNMENT BUILDING RENTAL INCOME REVENUE INCREASE 550 CITY COUNCIL ELECTIONS EXPENSE INCREASE 1,000
PLANNING GENERAL PLAN MAINT. FEES REVENUE DECREASE (11,400) PLANNING TECHNOLOGY FEES REVENUE DECREASE (8,000)
ENGINEERING ENCROACHMENT PERMITS REVENUE INCREASE 8,000 ENGINEERING ENGINEERING IMPROVE PLAN CHEC REVENUE INCREASE 4,000 ENG
INEERING TUITION REIMBURSEMENT EXPENSE INCREASE 1,200
ANIMAL CONTROL ANIMAL LICENSE REVENUE DECREASE (700)
ANIMAL CONTROL ANIMAL CITATIONS REVENUE INCREASE 500
BUILDING PROFESSI ONAL SERVI CES EXPENSE INCREASE 3,500 CODE ENFORCEMENT OVERTI M E EXPENSE INCREASE 3,000
ADJUSTMENT TOTAL 163,650$
DEPARTMENT DESCRIPTION TYPE ACTION AMOUNT
W ATER CONSTRUCTION WATER SALES REVENUE INCREASE 7,000$ SANITATION ROLL-OFF REVENUE REVENUE INCREASE 7,500
CNG FUILING STATION ENTERPRISE REVENUE REVENUE DECREASE (100,000) ADJUSTMENT TOTAL (85,500)$
PROPOSED OPERATI NG BU DGET ADJU STM ENTS
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ENTERPRISE FUNDS
W
ASTEWATER
T
he table above displays a comparison between the actual to budget figures as of 12/31/2023 for the Wastewater Fund as well as a percentage difference between revised budget and the actual. At the bottom, the anticipated Surplus or Deficit is displayed as a positive (favorable) or negative (unfavorable).
E
xpenses are tracking at 41% thus far through the year , which is about where staff anticipates this should be given the filling of vacant positions. Revenues are roughly 39% which is slight ly below where the Wastewater Fund is at this time of the year. This slight decrease is likely due to delayed utility payments due to the holidays , grant reimbursements not yet received . Another reason wastewater revenues are trending slightly lower than anticipated may have to do with the current inflation environment that may be changing customer payment patterns. A customer under financial pressure may be tempted to delay payment to put food on their table. If inflation continues to increase and the economic situation worsens the enterprise funds can be a a greater risk which is why we will continue to monitor these revenues as they appear to be performing slightly below projections.
T
his fund is, h owever, anticipated to be in an operational deficit (spending more than it earns) as capital projects commence . The last utility rates occurred in 200 7. The Wastewater Fund appears to have healthy reserves at the moment to offset the cost of needed capital improvement for current user demands. On January 17 th, the City Council approved the new utility rate schedule which will play a vital role as the City continues to grow and possibly the City expanding its commercial and industrial footprint.
W
ATER
T
he table above displays a comparison between the actual to budget figures as of 12/31/2023 for the Water Fund as well as a percentage difference between the revised budget and the actual. At the bottom, the anticipated Surplus or Deficit is displayed as a 276 of 280
positive (favorable) or negative (unfavorable) . The table above includes any adjustments.
Expenses are tracking at 47% thus far through the year , which is about where staff anticipates this should be given the filling of vacant positions and efforts to have shovel ready projects.
Revenues are roughly 40 % which is below where the Water Fund is at this time of the year. A common trend amongst all three enterprise funds has been that they are all three under the 50% benchmark which can mean several things. Customers likely paid their utility bills after the holidays which is resulting in a timing difference, or the impacts of the current inflation environment is changing customer payment patterns as a customer under financial pressure may be tempted to delay payment to put food on their table . If inflation continues to increase and the economic situation worsens the enterp rise funds can be at a greater risk which is why we will continue to monitor these revenues as they appear to be performing slightly below projections.
Solid Waste (Sanitation)
The table above displays a comparison between the actual to revised budget figures as of 12/31/2023 for the Sanitation Fund as well as a percentage difference between the revised budget and the actual. At the bottom, the anticipated Surplus or Deficit is displayed as positive (favorable) or negative (unfavorable) . The table above includes any adjustments.
Expenses are tracking at 3 9% thus far through the year , which is about where staff anticipates this should be given staffing vacancies . Even though the analysis above excludes capital acquisitions it is worth noting that the Sanitation fund currently owns 10 trash trucks. The industry average is 10 years for the use of these heavy -duty trash trucks.
The city has six trucks that have far exceeded their useful life ranging from 15 – 22 years.
The current fiscal year capital investments include the purchase a replacement refuse truck
Revenues are roughly 40% which is below where the SolidWaste Fund is at this time of the year. A common trend amongst all three enterprise funds has been that they are all three under t he 50% benchmark which can mean several things. Customers likely paid their utility bills after the holidays which results in a timing difference, or the impacts of the current inflation environment is changing customer payment patterns as a customer under financial pressure may be tempted to delay payment to put food on their table. If inflation continues to increase and the economic situation worsens the enterprise funds can be at a greater risk which is why we will continue to monitor these revenues as t hey appear to be performing slightly below projections.
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This fund is, however, anticipated to be in a slight operational surplus (earning more than it spends). The City Council approved the new rates in April of 2022. The City recently approved a franchise agreement with American Refuse to provide State Mandated recycling services.
I
ts worth highlighting that the States efforts to reduce carbon may mean additional unfunded mandates such as SB1383 for Californians which means that the Sanitation fund will be directly impacted if the mandates are unfunded. The SB1383 Mandate is an attempt to reduce Landfill Organic Waste by 20% by 2020, reduce Landfill Organic Waste by 75% by 2025, and also increase 20% of edible food recovery by 2025.
FIS
CAL IMPACT
There will be a fiscal impact of $502,127.66 to the fund balances of the funds mentioned above.
T
he major takeaway s are that the City remains on good financial footing at mid -year, with a continued focus on strategic one -time uses of higher -than-anticipated sales tax, and ARPA funds, however, impacts from inflation are beginning to be felt in every operation of the City, including utility enterprise operations, that will put pressure on budgets for the remainder of the fiscal year and planning for next year. Its is worth noting that staff recognizes the economic pressures and it is reflected in the minimal budget adjustments.
A
TTACHMENTS
1. General Fund Mid-Year Budget Review Summary
2. Resolution and Proposed Budget Adjustments
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RESOLUTION NO. 2024 -_________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WASCO APPROVING THE FY 2023-24
MID-YEAR BUDGET ADJUSTMENTS
WHEREAS, the City of Wasco adopted the FY 20 23-24 Budget on June 20, 202 3 with resolution number 2023-3916; and
WHEREAS, the Finance Department of the City of Wasco has prepared the Mid -Year Budget Review for the fiscal year 2023-2024 and identified any needed adjustments to the budget document totaling $163,650 in the General Fund and $85,500 in other funds.
NOW THEREFORE BE IT RESOLVED, by the City Council of the City of Wasco as follows:
SEC
TION 1: A pprove the FY 20 23-24 proposed Mid-Year operating budget adjustments totaling $163,650 in the General Fund and $85,500 in other funds.
SEC
TION 2: The City Council of the City of Wasco accepts the mid-year financial report and directs the Finance Director to incorporate these amendments into the 2023-2024 annual operating budget.
-o0o-
I H
EREBY CERTIFY that the foregoing Resolution No. 2024- was passed and adopted by the Council of the City of Wasco at a regular meeting thereof held on February 20, 2024, by the following vote:
C
OUNCIL MEMBERS: GARCIA, MEDINA, MARTINEZ, REYNA, SALDAÑA AYES:
NOES:
ABSTAIN:
ABSENT:
__________________________________
ALEXANDRO GARCIA,
MAYOR of the City of Wasco
Attest:
_________________
_________
MARIA O. MARTINEZ
CITY CLERK and Ex Officio Clerk of
the Council of the City of Wasco
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City of Wasco
2023-24 Mid-Year Budget Review
GENERAL FUND
YTD Current Budget Variance
2021-22 2022-23 2023-24 Budget Revised Fav(Unfav)
Revenues
Property tax
General 1,018,767 853,461 518,316 1,071,399 1,071,399 - In Lieu of VLF 3,335,911 3,580,314 1,990,384 3,545,000 3,545,000 - Sales Tax -
General 2,190,541 2,133,038 919,239 2,138,000 2,138,000 - Measure X 3,333,089 3,218,707 1,548,183 3,125,000 3,125,000 - Franchise Tax & Fees 400,756 533,757 62,021 409,500 409,500 - Transient Occupancy Tax 216,564 172,174 84,537 185,000 185,000 - Business License 87,467 88,551 33,965 93,000 95,000 2,000 Permit & Service Charges -
Development Review 511,997 856,070 185,075 681,250 684,250 3,000 Other Charges 21,867 22,151 8,346 19,000 186,350 167,350 G&A Allocations 1,398,449 1,510,143 625,333 1,876,000 1,876,000 - Internal Service Fees 884,214 910,378 500,040 1,250,100 1,250,100 - Grants 359,148 1,076,204 906,914 3,988,500 3,988,500 - Other Revenues 6,767 1,488,226 1,952,630 581,930 581,930 Total 13,765,537 16,443,174 9,334,984 18,963,679 19,136,029 172,350 -
Expenditures -
Operating -
General Government 1,638,871 1,609,712 795,414 2,858,625 2,867,325 (8,700) Community Development 1,295,744 1,463,554 647,042 1,844,179 1,844,179 - Public Safety 5,555,226 5,818,796 2,496,103 10,196,166 10,196,166 - Public Works 1,195,219 1,508,477 614,118 1,700,274 1,700,274 - Internal Service 889,901 936,227 464,800 1,496,017 1,496,017 - Total Operating 10,574,961 11,336,766 5,017,476 18,095,260 18,103,960 (8,700) Capital Outlay 2,149,332 1,403,654 5,317,065 1,107,598 1,107,598 - Total 12,724,292 12,740,419 10,334,541 19,202,858 19,211,558 (8,700) -
Other Sources (Uses) -
Transfers In 5,163,107 4,331,336 2,653,104 6,740,633 6,740,633 - Transfers Out (3,021,285) (2,555,834) (2,482,725) (10,155,503) (10,155,503) - Total 2,141,822 1,775,502 170,379 (3,414,870) (3,414,870) - -
Sources Over (Under) Uses 3,183,067 5,478,257 (829,178) (3,654,050) (3,490,400) 163,650 -
Fund Balance -
Beginning of Year 17,743,412 20,926,478 26,404,736 26,404,736 26,404,736 End of Year -
Assigned: Labor Camp Demo 9,300,000 9,300,000 9,300,000 9,300,000 9,300,000 Unassigned 11,626,480 17,104,736 16,275,558 13,450,687 13,614,337 End of Year Including Measure X 20,926,478 26,404,736 25,575,558 22,750,687 22,914,337 Actual Mid-Year Budget Review
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