HomeMy WebLinkAboutRPT 5 MID YR FINCL RVW 02-02-87TO:
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WILLI~,~UST~, C I~ I~ANAGER
RONALD ~.I~k~'I~,.__FINANCE OIRECTOR .
SECO,D QUARllER (MID YEA~R) FI~LA,CIAL REVIEW
Attached is a complete current status report of all revenues, expenditures and
projected Fund Balances based on our experience through December 1986.
At this poin{ in time it is appropriate to review for material variances in
Revenues and Expenditures so that fund balance projections can be used for the
1987-88 Budget preparation which will begin in early February. The following
will detail the material variances that are shown in the detail pages.
REVENUES
At this time I am projecting a slight drop, $48,074, in general fund revenues.
This is based, on a slight decrease in new construction tax due to the Irvine
Company credit for Park development.
As reported, previously we have received significant increases in revenues from
the Assessment District, Bond Proceeds, and Redevelopment funds.
EXPENDITURES
Looking at General 'Fund operatiogs you will note a slight over run in the
Legislation and Administrative Departments. These variances are seven and
three percent and are not considered material at this time. Community
Development has had several unfilled positions this year and has covered the
work load by using contract services. They have a savings in personnel
services, $25,000, offset with an over run of $48,000 in operations. They net
each other out for a slight, 1%,'positive variance.
The Public.Works Department is projecting a savings of $235,000, 8%, at year
end primarily due to variances in personnel. We also are correcting the
refuse line item to reflect only that portion to be paid by the City.
The Police Department is' also projecting a modest savings, 2%, based on
personnel vacancies.
Community Services is also indicating a slight, 3%, savings based on changes
in their program usage.
In all areas of operations for the General Fund we are anticipating a savings
of $500,000.
Operations for the various funds all appear to be constant at this time.
Water Enterprise does project a $97,000, 2%, savings due to the capitalization
William A. Huston
January 30, 1987
Page 2
of labor on improvement projects.
CAPITAL IMPROVEMEN¥S
There are various changes to the Capital Improvement projects based on
carryover projects and a more detailed analysis by the Public Works
Department. By far the most significant changes occur in the East Tustin
Assessment District. We had originaly Budgeted the improvements projects
based on our estimate of available resources. As the Bonds were sold in
August we have adjusted the projected amounts based on the final engineers
report as adopted at the time of the bond sale.
Due to the nature of Capitol Improvements and the lead time requi~ed to
initiate actual construction, we will evaluate the projects again at the end
of March.
FUND BALANCE
As shoJld be evident from the report we have projected a relatively stable
financial picture for the City through the balance of fiscal 87. The General
Fund appears to be relatively revenue neutral when expenditures are offset by
transfers in from other funds.
We will be eliminating the Revenue Sharing Fund and the Capital Improvement
Fund at the end of the year.
The East Tustin Assessment District fund balance is quite large and will be
until the infra structure improvements are completed in that area. There are
modest changes in the RDA funds. This is to be expected due to the nature of
tax increment income. And the Water Enterprise fund balance has declined
slightly due to capital improvements and the set aside of reserves for future
Capital Improvements.
We have six months of experience in this year and I feel that we have
maintained a fiscally solid program for this period, and project the same for
the balance of the year. We will again be.taking a close look at these areas
at the end of March and will report to you in April.
RAN:jak
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