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Home My WebLink AboutNB 3 MID-YR BUDGET RVW 02-6-84 NEW BUSINESS A GEN Inter - C om I~T~: eb ua y 1, 1984 SU~J El:T: Bill Huston, City Manager Ron Nault, Finance Director Mid-year Budget Review RECOMMENDATION Through minute action the Council should adopt the projected amounts of both the Operations and Capital Improvement Reports as the revised appropriation levels for the balance of fiscal 1983-84. DISCUSSION Based on the information presented in this Report there are no material variances that will negatively impact the 83-84 budget as adopted last November. By taking formal action on this Report the Council will satisfy the requirement that differ- ences between adopted budgets'and actual expenses be reconciled in the Annual. Financial Report. This action will not preclude the Council from taking additional action at any time during the balance of the fiscal year. RAN:mm attachment 1983-84 MID-YEAR REVIEW REVENUES A~4D EXPENSES REVENUES Overall, the revenue projection for year end is approximately $700,000 above that represented in the adopted budget. The only significant increases are in the Gen- eral Fund and the Gas Tax Fund. General Fund increases include: 1. Sales tax appears to be growing, at roughly 14% this year; some $75,000 above original estimate. 2. New construction taxes and construction permits are exceeding estimates by $90,000. 3. We will recover some $200,000 of East Tustin Specific Plan expenses not previously budgeted. 4. We recovered $170,000 from the Equipment Fund for purchase of equipment in 1982/83. Gas Tax increases included: 1. Moderate increase in Section 2107 income, $17,000. 2. Recovery of $250,000 from City of Irvine for shared project on Moulton Park- way, not previously budgeted. OPERATING EXPENDITURES A review of the Operations portion of this Report shows that there are slight var- iances in all departments with an overall savings in the General Fund of $75,000 or .8% of budget. This is an indication of the accuracy with which the depart- ments prepared their individual operating budgets. This savings is net of the re- cent salary adjustments. Due to the lateness in settling labor issues the budget column has not been adjusted to reflect negotiated increases. The Redevelopment Agency projects a slight overance of $15,000 (about 1%) pri- marily in the area of economic development and architectural and engineering ser- vices. The Water Operating fund, showing a deficit of $130,811, is caused by several fac- tors. A $53 per acre foot increase in the cost of purchased water that became ef- fective January 1 was not anticpated when the budget was prepared. Two wells also had excessive repairs that contributed to increased maintenance costs and in- creased our dependence on purchased water. An increased number of call-outs due to system leaks will cost the Water Fund an additional $6,000 this year in over- time expense. Lease revenue bond issuance costs were not budgeted, but were fully recovered from bond proceeds reflected in revenues. The debt surcharge fund will realize a $254,000 savings, in expenses this year based on the debt restructuring resulting from the sale of the lease revenue bonds. The all funds savings in operating expenses is $182,86[, or roughly i% of the 83-84 appropriations. Details of significant variances follow the operating line summary. CAPITAL IMPROVEMENTS Overall, the Capital Improvement Program of the City is projected to contribute to fund reserves by $700,000 (9.4%) as of 6-30-84. The majority of these resources are in the Gas Tax Fund and the Redevelopment Agency. All of this positive variance is for projects not completed at year end that will require reappropriation for 1984-85. Gas Tax - RDA - 1. Moulton Parkway 90% completed at year end, $93,000 rebudgeted 1984-85. Myford Road from Michelle to ATSF roughly 10% completed, $366,000 rebudgeted 1984-85. New water well construction to be 70% at year end, $90,000 reb~dgeted 1984-85. 2. Nitrate blending lines, to be constructed at completion of wells, $150,000 rebudgeted 1984-85. 1983-84 PROJECTED FUND BALANCE ANALYSIS Fund General Revenue Sharing Gas Tax Park Development Sewer Trust Beautification Park Bonds Civic Center Bonds Tustin RDA-Capital Debt Serv, Water - Operations Debt Service Equipment Health Benefit Risk Management Capital Improvement Audited Balance 7-1-83 $ 2,438,257 289,638 . 615,218 (15,084) {24,086) 80,545 271,541 112,403 5,180,091 2,121,713 97,355 323,500 473,264 177,790 512,321 104,117 Estimated Revenue $ 8,942,000 383,000 5,856,000 7,000 l,O00 60,000 73,000 56,000 426,000 1,596,000 3,484,000 897,000 176,000~ 343,000 234,000 25,000 Estimated Expenditures $ 8,170,390 592,100 5,728,378 -0- -0- 92,780 111,000 67,000 1,602,500 890,000 3,229,659 481,500 263,000 320,000 151,000 Projected Balance 6-30-84 $3,209,867 80,538 742,840 (8,084) (23,086) 47,765 233,541 101,403 4,003,591 2,827,713 351,696 739,000 386,264 200,790 595,321 129,117 $12,758,583 $22,559,000 $21,699,307 $13,618,276 1983-84MID-YEAR REVENUE PROJECTIONS Fund General Revenue Sharing Gas Tax Park Development Capital Improvement Sewer trust Beautification Park Bonds Civic Center Bonds Redevelopment Agency Water Equipment Health Benefit Risk Management 1983-84 Budge~ $ 8,521,349 383;000 5,588,857 -0-- 24,883 5O0 30,000 72,912 55,590 2,021,400 4,380,000 .176,000 343,263 234,260 6-30-84 Projection $ 8,942,000 383,000 5,856,000 7,000 25,000 1,000 60,000 73,000 56,000 2,022,00 4,381,000 176,000 343,263 234,260 Variance Over/(Under) $420,651 -0- 267,143 7,000 117 500 30,000 88 410 6O0 1,000 -OL -0- -0- $21,832,014 $22,559,523 $727,509 o o --4 C) 0 b.I ~ O0 0 ~ FOOTNOTES (2) (3) (4) (5) (6) (7) (g) (lo) Increase cost of contractual plan check services, offset by increased revenue. Last years' excessive rainfall has caused street and alley repair and maintenance to increase. The anticipated savings is in utiity costs. Edison projected increases that have not yet materialized. County landfill gate fees have caused this area to run over. Vacant positions resulted in personal savings and some operations savings in both Police Investigations and Services. Slight increase in Community Services tied to the salary increases and increased usage of programs offset by revenues. Based on increased marketing and other economic studies in the Town Center Project area. Lease revenue bond issuance costs were not previously budgeted, butwere fully recovered from bond proceeds reflected in revenues. Water Operations has experienced a $53 per acre foot increase in purchased water. This has been partially .offset by decreases in estimated energy costs and a vacant maintenance worker position. There has been an increased number of call-outs due to leaks, which will cost the City some $6,000 more than anticipated. The restructuring of the Water Department debt resulting from the bond sale has saved the debt surcharge fund $254,000 for lg83-84. 1983-84 CAPITAL IMPROVEMENT PROJECTIONS SUMMARY Fund General Revenue Sharing Gas Tax Beautification RDA Water 1983-84 6-30-84 Variance Budget Projection (Over)/Under $ 85,000 $ 92,000 590,600 592,100 6,006,100 5~547,378 75,280 62,780 578,900 338,900 162,500 162,500 $ (7,000) (1,500) 458,722 12,500 240,000 -0- $7,498,380 $6,795,658 $702,722 ! ,Bi 1983-84 WATER OPERATIONS PROJECTIONS Accounting Detail Personnel 1983-84 6-30-84 Variance ..~udget Projected (Over)/Under Salaries $389,274 $367,503 $ 21,771 Retirement Insurance 105,819 130,333 (24,514) TOTAL PERSONNEL Supplies & Services Contractual Services Auditing Services City Attorney Other Legal Services Engineering Services Personnel Services Refuse Facilities Expense $495,093 $497,836 $( 2,743) $ 1,500 $ -0- $ 1,500 3,000 5,400 ( 2,400) 6,000 3,300 2,700 1,500 11,900 (10,400) 10,000 10,000 -0- -0- 9,800 ( 9,800) 15,600 1,000 14,600 $. 37,600 $ 41,400 $(3,~00) Building Maint./Repair $ 2,500 $ 4,000 $ (1,500) Custodial Supplies 325 500 (175) Electric 8,075 5,000 3,075 Natural Gas 1,700 1,500 200 Telephdne 1,725 1,500 225 Office Expense Office Supplies Postage $ 14,325 $ 12,500 $ 65O $ 65O 15,500 10,000 1,825 5,500 $ 16,100 $ 10,650 $ 5,500 1983-84 WATER OPERATIONS PROJECTIONS Accounting Detail Departmental Expense Department Supplies Small Tools Uniforms Safety Equipment Spec. Equip. Maintenance Spec. Equip. Rental Printing Purchased Water City of Orange Electric-Pumping Telemetering Structures & Improve- ments Equipment Maintenance Vehicle Maintenance Pump Tax Property Tax Equip. Maintenance-Other Water Quality Testing Reservoir Maintenance Main Line Maintenance Lateral Maintenance Meter Maintenance Hydrant Maintenance Computer Operations Computer Maintenance Computer Supplies Transportation Expenses Vehicle Operations Vehicle Repairs Spec. Equip. Repairs Vehicle Lease 1983-84 6-30-84 Variance Budget Projected (Over)/Under 2,500 $ 2,000 3,225 4,000 2,640 2,640 3,500 3,500 1,800 1,150 2,000 2,000 1,500 700 1,420,400 1,588,552 49,400 55,498 324,720 260,800 5,500 5,500 2,000 3,000 20,000 30,000 5,000 5,000 126,720 50,700 30,000 27,762 1,050 1,050 8,500 10,000 5,800 5,000 32,950 60,000 19,800 19,800 24,775 20,000 5,225 5,000 10,000 10,000 6,800 5,000 5,000 2,000 $2,120,806 $2,180,652 $ 24,000 $ 24,000 10,000 10,000 13,500 13,500 63,075 63,075 $ 500 (775) -0- -0- 65O -0- 80O (168,152) (6,098) 63,920 --0- (1,000) (lO,OOO) 76,O2O 2,238. (1,500) 8oo (27,050) 4,775 225 1,800 3,000 $(59,847) $ 110,575 $ 110,575 $ -0- 1983-84 WATER OPERATIONS PROJECTIONS Accounting Detail Training & Development Meetings Training Memberships/Sub- criptions Other Expenses Interest Expense-TWW Bonds Bond Issuance Cost Debt Service-Lease Bonds Developer Advances Expense Reimbursement Capital Outlay Departmental Equip. Capital Improvements FUND TOTAL 1983-84 6-30-84 Variance Budget Projected (Over)/Under $ 1,700 $ 3,700 300 300 200 200 $ 2,200 $ 4,200 191,500 $ 191,500 -0- 68,446 458,900 205,000 85,000 85,000 125,000 125,000 $ 860,400' $ Q74,946 $ 14,600 $ 15,900 162,500 162,500 $ (2,000) $ (2,000) $ -0- (68,446) 253,900 -0- -0- $185,450 $ (1,300) -0- $3,834,248 $3,711,159 $123,089