HomeMy WebLinkAboutCC AG PKT 2014-02-24 #G AGENDA STAFF REPORT
DATE: February 24, 2014 QM_
TO: Honorable Mayor and City Council
THRU: Jill R. Ingram, City Manager
FROM: Victoria L. Beatley, Director of Finance/City Treasurer
SUBJECT: FISCAL YEAR 2014 MID-YEAR BUDGET REVIEW
SUMMARY OF REQUEST:
That the City Council receive and file the Fiscal Year 2014 Mid-Year Budget
Review presentation.
BACKGROUND AND ANALYSIS:
Staff has completed a mid-year budget review ending December 31, 2013. The
following are the highlights of the review of the first six months of the current
fiscal year.
The largest sources of General Fund revenues for Seal Beach are Property
Taxes (all components), Utility Users Tax, Sales Taxes (all components),
Property Tax in Lieu of Vehicle License Fees, and Transient Occupancy Taxes.
Together these top five revenue sources are expected to produce approximately
71%, or$20.4 million, of all General Fund revenues.
The combination of these revenue sources has generated approximately $7.0
million for the period ended December 31, 2013 which is $472,000 less than the
same period last year. The primary reason for the decline is the result of less
sales tax revenue. The decline was expected and was discussed during the
budget presentation.
All of the other General Fund revenues combined are less than the same period
last year by approximately $62,000. The primary reason is that all of the revenue
from the beach parking lots was shifted to the Tidelands Fund.
General Fund expenditures are approximately 46% of budget, slightly below
where they are expected to be for the period ended December 31, 2013.
Additionally compared to the same period, total general fund expenditures are
more than the same period last year by approximately $712,000. The primary
reasons are increased legal fees and the timing of payments for various vendors.
Agenda Item Q
In summary, revenues are below expectations and expenses are also lower than
expected for the period ended December 31, 2013. The presentation will provide
financial highlights and will go into greater detail regarding the year-end
projections.
ENVIRONMENTAL IMPACT:
This action is exempt from the California Environmental Quality Act, because it is
not defined as a "project" under CEQA.
LEGAL ANALYSIS:
Legal Counsel has reviewed and approved as to form.
FINANCIAL IMPACT:
Based upon the mid-year review, it is expected that both revenues and expenses
will be in line with the adopted budget. Under the direction of the City Manager,
Department Heads will continue to operate within the budget and provide
programs and services that meet the community's needs and service level
expectations.
RECOMMENDATION:
That the City Council receive and file the Fiscal Year 2014 Mid-Year Budget
Review presentation.
SOUBM;ITTE NOTED AND APPROVED:
Victoria L. Beatley J' Ingram,1 . City M"n g e r
Director of Finance/City)reasurer
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