CC 2023-11-14_9.c. Fiscal Year 2022_23 Year End Financial Status ReportItem 9.c.
MEMORANDUM
TO: City Council
FROM: Nicole Valentine, Administrative Services Director
SUBJECT: Consideration of Fiscal Year 2022-23 Year End Financial Status Report
DATE: November 14, 2023
SUMMARY OF ACTION:
Consider and file the Fiscal Year (FY) 2022-23 Year End Financial Status Report.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
Preparation of the Year End Financial Status Report requires staff time within the existing
work plan and budget for the Administrative Services Department. At year-end, FY 2022-
23 revenues for the General Fund were $22.4 million, or six percent (6%), higher than the
Adjusted Budget. Actual Expenditures were $21.7 million, and below the Adjusted Budget
by approximately $1.8 million, or eight percent (8%).
RECOMMENDATION:
Receive, consider, and file the FY 2022-23 Year End Financial Status Report.
BACKGROUND:
Each fiscal year the City Council adopts a budget, which commits government resources
and services to accomplish the City’s mission of making Arroyo Grande the best place
possible for everyone who lives, works, and visits here. The fiscal year-end Financial
Status Report is the fourth of four financial performance reports that staff have presented
to Council regarding 2022-23 fiscal year.
The purpose of the FY 2022-23 Year End Financial Status Report is to:
Compare year end revenues received and expenditures incurred to the end of the
prior year and to the Adjusted budget to determine the City’s financial performance;
Provide explanations for key account variances and identify any potential trends
that might impact financial planning; and
Provide other key year end information including headcount statistics, Capital
Improvement Projects status, and completed Budget Adjustment Requests.
Item 9.c.
City Council
Consideration of Fiscal Year 2022-23 Year End Financial Status Report
November 14, 2023
Page 2
ANALYSIS OF ISSUES:
Year End Revenue and Expenditures Compared to Prior Year
The following tables identify the FY 2022-23 Year End revenue and expenditure totals
compared to Year End total for FY 2021-22. Comparing these totals provides information
regarding performance trends between the two years.
Current Year End Actuals Compared to Prior Year Actuals
The General Fund is the primary operating fund of the City and accounts for resources
and services traditionally associated with government. General Fund revenues at year
end were approximately $684,748 higher than at the end of FY 2021-22. Expenditures
were approximately $2.9 million higher through the end of this year compared to the prior
year. A more thorough explanation of year end variances is set forth in the attached
financial report (Attachment 1). The following is a summary of the year end variances
between the two fiscal years.
FY 2022-23 Revenue (approximately $684,748 higher than previous FY)
The majority of the $684,748 variance between the two fiscal years is related to the
increase in Property Taxes received in FY 2022-23 when compared to FY 2021-22.
FY 2022-23 Expenditures (approximately $2.8 million higher than previous FY)
As mentioned, year end expenditures compared to the prior year were higher by $2.8
million. The majority of the variance between the two fiscal quarters is related to increased
costs of one-time payments for Liability and Property Insurance, CalPERS Unfunded
Accrued Liability, and Workers Compensation. Additionally, the Employee Retention
Incentive Program increased expenditures in FY 2022-23 compared to the prior year.
Year End Revenue and Expenditures Compared to Adjusted Budget
FY 2022-23 Compared to Adjusted Budget
Year End
FY 2022-23
Year End
FY 2021-22 Variance
Revenue 22,380,892$ 21,696,144$ 684,748$
Expenditures 21,718,987$ 18,845,646$ 2,873,341$
General Fund
FY 2022-23
Adjusted Budget
FY 2022-23
Year End Actuals Variance
Revenue 21,128,032$ 22,380,892$ 1,252,860$
Expenditures 23,561,390$ 21,718,987$ (1,842,404)$
General Fund
Item 9.c.
City Council
Consideration of Fiscal Year 2022-23 Year End Financial Status Report
November 14, 2023
Page 3
The table above compares year end actual results to the adjusted budget. FY 2022-23
Year End actual revenue was above the Adjusted Budget by $1.3 million. Year End actual
expenditures were lower than the Adjusted Budget by approximately $1.8 million. The
following is a summary of the year end revenue and expenditure variances compared to
the Adjusted Budget. A more thorough explanation of year-end variances is set forth in
the attached financial report.
Revenue ($1.3 million higher)
General Fund revenue for FY 2022-23 is more than the Adjusted Budget by $1.3 million.
Some of the larger revenue variances are explained below.
The largest single source of City revenue is Secured Property Tax. Property tax
ended the year favorable by $429,345, or 7% above the Adjusted Budget.
Property tax collected grew 6% over the previous fiscal year as the housing market
continued to rise during the fiscal year. Property tax represents 29% of the City’s
annual revenue.
Actual sales tax revenue exceeded the Budget by $465,748, or 10% above the
Adjusted Budget. Certain business categories like building and construction,
online shopping, general consumer goods, fuel and service stations, and food and
drugs continued to show strong sales tax receipts and exceeded expectations.
Transient Occupancy Tax (TOT) revenue is reflecting a $219,395 favorable
variance to the Adjusted Budget. TOT continues to exceed Adjusted Budget and
projections reflecting the highest amount of TOT the City has received in a fiscal
year.
Other revenue is made up of Business License Tax, Fines, Intergovernmental
Income, Other Charges for Service, and Other Revenues. The actual revenue in
this category is lower than the Target by $396,424. The largest variance in this
grouping is related to the anticipated revenue from the sale of the police fleet that
did not happen in FY 2022-23 because the new Police Explorers were not outfitted
and ready for use before the fiscal year ended.
Expenditures (approximately $1.8 million lower)
Actual expenditures were $1,842,404 lower than the Budget by 8%. All of the City’s
departments are under their spending Targets. Some of the more significant savings
occurred in the Police, Administrative Services, Public Works, and Community
Development Departments. A more detailed explanation of key expenditure variances by
individual department/division is provided in the attached financial report.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Receive and file the Fiscal Year 2022-23 Year End Financial Status Report; or
2. Provide other direction to staff.
Item 9.c.
City Council
Consideration of Fiscal Year 2022-23 Year End Financial Status Report
November 14, 2023
Page 4
ADVANTAGES:
The financial report presents an updated review of the City’s financial performance in FY
2022-23.
DISADVANTAGES:
No disadvantages have been identified at this time.
ENVIRONMENTAL REVIEW:
Receiving and filing the Fiscal Year 2022-23 Year End Financial Status Report is not a
project subject to the California Environmental Quality Act (“CEQA”) because it has no
potential to result in either a direct, or reasonably foreseeable indirect, physical change
in the environment. (State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.)
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
Attachments:
1. Fiscal Year 2022-23 Year End Financial Status Report
ATTACHMENT 1
Page 1
City of Arroyo Grande
Fiscal Year 2022-23
Year End Financial Status Report
INTRODUCTION
The following report is an overview of the City’s fiscal position at the end of Fiscal Year (FY) 2022-23. The
purpose of this report is to update the public and the City Council on the City’s financial position at the
year end and compare actual results to the Adjusted Budget to determine the City’s performance. The
year end timeframe is July 1, 2022 through June 30, 2023.
The financial report is organized in the following sections:
Section 1 – an overview of City’s financial position after the
end of FY 2022-23. As part of the analysis, brief
explanations of significant revenue and expenditure
variances are included.
Section 2 – a listing of any personnel changes occurring
during the year and a summary of headcount by
department. This section also includes the City’s calculated
vacancy rate.
Section 3 – an update on the Capital Improvement Projects
(CIP) managed by the Public Works and Community
Development Departments. This section includes CIP that
were completed along with their final costs.
Section 4 – a listing of Budget Amendment Requests
previously approved by Council and completed in the
fourth quarter of the fiscal year.
ENSURING FISCAL
STABILITY:
In Fall 2020, the City Council
established a goal to ensure
financial stability for the
organization throughout the
planning, budgeting, and
expenditure process, including
preparation and presentation
of year-end and quarterly
financial reports.
ATTACHMENT 1
Page 2
SECTION 1: OVERVIEW OF FINANCIAL POSITION
CITY FUND STRUCTURE
The overall City budget is comprised of many individual funds, which are categorized below. This financial
report will focus primarily on the General Fund but will also report on all Governmental Funds.
General Fund – The General Fund is the primary operating fund of the City, which accounts for resources
and services traditionally associated with government.
Special Revenue Funds – Special revenue funds are used to account and report the proceeds of specific
revenue sources that are restricted or committed to expenditure for specified purposes other than debt
service or capital projects.
Debt Service Funds – This fund is used to account for the accumulation of resources and payment of long-
term debt principal interest. This includes the USDA loan issued by the City to finance the relocation of
City Hall.
Enterprise Funds - An enterprise fund is a separate accounting and financial reporting mechanism for
which revenues and expenditures are segregated into a fund with financial statements separate from all
other governmental activities. These funds include Water and Sewer services provided to City residents.
Private Purpose Fund – The private-purpose fund was created to hold the assets of the former
Redevelopment Agency of the City of Arroyo Grande until they are distributed.
Agency Funds – Agency funds are funds that the City holds on behalf of another entity. Currently, there
are three Agency funds. One is the Sanitation District fund, which accounts for the receipt and remittance
of wastewater processing fees on behalf of the South San Luis Obispo County Sanitation District. The
second is the Downtown Parking Fund, which collects assessments from Arroyo Grande Village merchants
within the boundaries of the Parking and Business Improvement Area for maintenance of the Village
parking lots. The third is the San Luis Obispo Tourism Marketing District (SLOTMD) Fund, which accounts
for the receipt and remittance of assessments collected from lodging operators on behalf of the SLOTMD.
The following chart below shows an overview of the City’s fund structure.
Legislative & Information Services Fire Protection Impact Fees City Hall Debt Service Sewer Successor Agency to RDA Downtown Parking
Administrative Services Public Access Television Sewer Facility Sanitation Distribution
Community Development Police Protection Impact Water San Luis Obispo Tourism
Police Department Park Development Water Facility Marketing District
Recreation Services Park Improvement Lopez Water (SLOTMD)
Public Works Recreation Community Center
Grace Lane Assessment District
Local Sales Tax Fund
Parkside Assessment District
Street (Gas Tax)
Traffic Signalization
Traffic Circulation
Transportation Facility Impact
Transportation
In-Lieu Water Neutralization
In-Lieu Affordable Housing
Tourism Business Improvement Dist.
Water Availability
CDBG Grant Fund
American Rescue Plan Act (ARPA)
State COPS Block Grant Agency FundsSpecial Revenue FundsFIDUCIARY FUNDSGOVERNMENTAL FUNDS
ALL FUNDS
PROPRIETORY FUNDS
General FundDebt Service FundsEnterprise FundsPrivate Purpose Fund
ATTACHMENT 1
Page 3
CURRENT YEAR ACTUALS COMPARED TO PRIOR YEAR
Table 1 below reflects revenue and expenditure patterns of FY 2022-23 and compares results against the
FY 2021-22 results for all Governmental Funds as well as the City’s General Fund. The totals in the table
reflect the year end actuals for both revenue and expenditures.
Table 1
The following discussion focuses on both the City’s Governmental Funds and the General Fund and
provides a comparison between FY 2022-23 and FY 2021-22 results for both revenue and expenditures.
Governmental Funds and General Fund revenue and expenditures for FY 2022-23 are generally higher
than the prior year. The Governmental Funds category includes Special Revenue Funds, Debt Service
Funds, as well as the General Fund.
Governmental Funds – At the end of FY 2022-23, Governmental Fund revenue was 3.9%, or $1.1
million higher than the prior year, and expenditures were higher by 15.5% or $3.7 million.
The majority of the revenue and expenditure variances in Governmental Funds were attributed to
variances within the General Fund and the newly created American Rescue Plan Act (ARPA) Fund,
which is separate from the General Fund and not otherwise addressed in this report. The
Governmental Funds category includes the General Fund as well as other Special Revenue Funds. The
General Fund and ARPA Fund variances are explained as follows:
General Fund - The General Fund is the primary operating fund of the City and accounts for resources
and services traditionally associated with government. General Fund revenue through the end of FY
2022-23 was 3.2%, or $684,748 higher than the prior year. Expenditures increased by 15.2%, or $2.9
million higher through the end of this year compared to the prior year. The majority of the variance
between the two fiscal years is related to increased costs of one-time payments for Liability and
Property Insurance, CalPERS Unfunded Accrued Liability, and Workers Compensation. Additionally,
the Employee Retention Incentive Program increased expenditures in FY 2022-23 compared to the
prior year.
ARPA Fund – The ARPA Fund was created to help separately track funding provided pursuant to the
American Rescue Plan Act. This Act is intended to provide financial aid to families, governments,
businesses, schools, non-profits and others impacted by the COVID-19 public health crisis. To date the
Year End
FY 2022-23
Year End
FY 2021-22 Variance
Revenue 29,219,224$ 28,130,767$ 1,088,457$
Expenditures 27,334,118$ 23,675,000$ 3,659,118$
Year End
FY 2022-23
Year End
FY 2021-22 Variance
Revenue 22,380,892$ 21,696,144$ 684,748$
Expenditures 21,718,987$ 18,845,646$ 2,873,341$
Governmental Funds
General Fund
ATTACHMENT 1
Page 4
City has received the full amount allocated totaling $4,300,241. In FY 2021-22 expenditures incurred
totaled $604,246. In FY 2022-23 expenditures incurred totaled $697,722 the remaining $2,998,273 is
currently recognized as revenue in FY 2023-24.
GENERAL FUND IMPACTS
The following discussion focuses on the City’s General Fund performance. Chart 1 starts off with a simple
overview of General Fund performance compared to the budget. Next are expenditures by category (Table
2). This is followed by a summarized look at FY 2022-23 actual expenditures compared to the budget
(Table 3). Lastly, a discussion of General Fund revenue is included, which compares actual results to the
budget (Table 4).
Chart 1
Chart 1 shows a simple comparison of
actual revenue and expenditures to the
budget. General Fund revenue
exceeded the Adjusted Budget by $1.3
million. Property Tax, Sales Tax,
Transient Occupancy Tax, and
Franchise Fees revenues exceeded the
Adjusted Budget. The actual
expenditures totaled $21.7 million, or
92% of the full year’s Budget, and are
under the budget by $1.9 million. A
more detailed discussion on General
Fund revenue and expenditure
variances is included later in this report.
Table 2
Table 2 reflects major expenditure cost
categories within the General Fund. This chart
is intended to explain where the City’s
resources were spent during the fiscal year.
Within the expenditures of $21.7 million, 60.8%
of the City’s costs are associated with
personnel, 33.7% with operating and
maintenance, 1.4% for the City’s debt service,
1.1% for Capital Outlay, and 3.0% with transfers
to other funds.
Table 3 reflects the year end status of all General Fund operating departments. Some departments include
multiple divisions. The divisions are consolidated under their respective department, rather than reflected
individually within the table.
FY 2022-23 % of
Actuals Actuals
Personnel Costs 13,197,956$ 60.8%
Operating Costs 7,315,351 33.7%
Debt Service 307,933 1.4%
Capital Outlay 241,459 1.1%
Transfers Out 656,288 3.0%
Total 21,718,987$
Expenditure Category
ATTACHMENT 1
Page 5
Table 3 – General Fund Expenditures by Department
Overall, expenditures were under the Adjusted Budget by 8%, or $1.8 million. Though all City departments
were under spent, except for the Non-Departmental Annual Payments which reported over budget
related to the CalPERS UAL retirement true-up payment to the Five Cities Fire Authority (FCFA). Some of
the more significant savings occurred in the Administrative Services, Police, Public Works, and Community
Development Departments. A more detailed explanation of key expenditure variances by individual
department/division is provided below.
KEY EXPENDITURE VARIANCES FOR INDIVIDUAL DIVISIONS/DEPARTMENTS FOR
FISCAL YEAR 2022-23
Police Services includes the functions of Administration,
Patrol Services, Support Services and the Office of
Traffic Safety (OTS) Grant for Traffic/DUI Enforcement
Program. For simplicity, Police Services will be analyzed
in total rather than by individual divisions. Some of the
more significant variances include:
The Police Department currently has two vacancies, one medical leave, and has had filled position
vacancies with successive promotions throughout the end of FY 2022-23, resulting in labor savings
of approximately $570,000.
The Police Department purchased four new vehicles, 2 Ford Ranger Crew Cabs, Ford F250, and a
Ford Transit Van the budget for these vehicles totaled $247,300. The actual cost was $189,938
creating savings of $57,362.
The Public Works Department includes the functions of
Government Buildings, Auto Shop, Administration, Park
Maintenance, and Soto Sports Complex Divisions within
the General Fund. The majority of the favorable
variance in this department can be attributed to salary
savings and lower spending in contractual services. For
City Administration 1,355,056$ 1,347,401$ 7,655$ 1%
Legislative & Information Services 496,875 443,313 53,562 11%
Administration Services 6,239,729 5,566,161 673,568 11%
Non-Departmental Annual Payments 3,218,631 3,572,702 (354,071) -11%
Community Development 2,099,600 1,868,668 230,932 11%
Police Department 6,543,934 5,906,291 637,643 10%
Recreation Services 1,230,500 1,094,865 135,635 11%
Public Works 2,377,065 1,919,585 457,480 19%
TOTAL EXPEDITURES 23,561,390 21,718,987 1,842,405 8%
%
Fav/(Unfav)
General Fund Department Variances - Year End
General Fund Department 2022-23
Adjusted Budget
2022-23
Actuals
Dollar
Fav/(Unfav)
Department: Police Services
Division: Various (4201, 4203, 4204, 4209)
Issue: Overall savings in salaries and
benefits
Impact to General Fund: $637,643 savings
Department: Public Works
Division: Various (4213, 4305, 4307, 4420,
4430)
Issue: Overall savings in salaries and
contractual services
Impact to General Fund: $457,480 savings
ATTACHMENT 1
Page 6
simplicity, Public Works will be analyzed in total rather than by individual divisions. Some of the more
significant variances include:
The Government Buildings Division vehicle replacement payment for the 3/4 Ton Pickup with
Utility Bed will not be paid until the City receives the equipment in FY 2023-24, resulting in a
favorable variance of $61,000.
The Public Works Administration Division currently has a vacant Assistant Capital Projects
Manager position resulting in labor savings of approximately $192,200.
The amount billed by PG&E for electricity charges through the fiscal year was lower than
anticipated, resulting in savings of $21,600.
The vacancy of the Maintenance Worker positions in the Parks Maintenance and Soto Sports
Complex division in the third quarter resulted in labor savings of approximately $87,200.
The Parks Maintenance Division equipment replacement payment for the Riding Lawn Mower is
being delayed due to inventory until FY 2024-25 and a portion of the Wood Chipper will not be
paid until the City receives the equipment later this fiscal year, resulting in a favorable variance of
$95,400.
The Administrative Services Department includes the
City’s Fiscal as well as Information Technology
functions. The annual CalPERS UAL retirement payment
was budgeted at $1,904,700 but the actual expenditure
was $2,206,923 resulting in an unfavorable variance to
the budget of $302,223. This budget included funding
for a one time true-up payment to the Five Cities Fire Authority (FCFA) for the City’s share of accrued
actuarial liability for employees who worked for the City before the FCFA was formed. Additionally,
Workers compensation accounted for approximately $46,300 of the remaining unfavorable variance.
These two items account for the majority of the unfavorable variance in the Non-Departmental Annual
Payments line item reflected in Table 3. The remaining favorable variance is related to CIP Fund Transfers
of approximately $770,000 through the end of the fiscal year related to the approval of using excess
reserve fund balance towards the pavement management program. This project is currently underway
and First Quarter carryover request for the remaining funds will be presented to Council at a future
meeting.
The Community Development Department includes the
functions of Planning, Engineering, and Building &
Safety Divisions. The majority of the favorable variance
in this department can be attributed to salary savings
and lower spending in contractual services. Salary
savings within Community Development is attributed to several staffing variances that occurred through
the third quarter of the fiscal year and include:
The Planning Division filled position vacancies with successive promotions throughout the first
half of the fiscal year, resulting in labor savings of approximately $102,500.
Minimal contractual services for the Planning Division were incurred in FY 2022-23 resulting in
$128,312 of favorability to the Target. The following table will summarize where these savings
occurred:
Department: Administrative Services
Division: 4120-Administrative Services and
4145-Non Departmental
Issue: Overall savings in Contractual Services
and CalPERS prepayment
Impact to General Fund: $442,636 savings
Department: Community Development
Division: Various (4301, 4130, 4212)
Issue: Overall savings in salaries and
contractual services
Impact to General Fund: $230,932 savings
ATTACHMENT 1
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KEY REVENUE VARIANCES BY ACCOUNT FOR THE THIRD QUARTER
Table 4 – General Fund Revenue
As reflected in Table 4, actual revenue exceeded the Adjusted Budget by $1,252,860. Property Tax, Sales
Tax, Transient Occupancy Tax, and Franchise Fees are all showing positive results while Transfers in and
Other Revenue reflect an unfavorable variance. A more detailed discussion is included below to help
explain actual revenue variances.
Property Tax – The majority of the City’s property tax revenue comes from Secured Property Taxes.
Property tax revenues ended the year in a favorable position by $429,345, or 7% above the Adjusted
Budget. Property tax collected grew 6% over the previous fiscal year, as the housing market continues to
rise. Property tax represents 29% of the City’s annual revenue.
Sales Tax – Actual sales tax revenue exceeded the Adjusted Budget by $465,748, or 10% above the
Adjusted Budget. Certain business categories like building and construction, online shopping, general
consumer goods, fuel and service stations, and food and drugs continued to show strong sales tax receipts
and exceeded expectations.
Budget Expenditures Variance
100,000 30,229 69,771
50,000 - 50,000
30,000 21,460 8,540
180,000 51,688 128,312
On-Call Planning Services and Misc. Planning Studies
On-Call Environmental Review Services
Comprehensive General Plan Update
Planning Contractual Services
Property Tax 6,079,509$ 6,508,854 429,345$ 7%
Sales Tax 4,730,375 5,196,123 465,748 10%
Transient Occ. Tax 1,300,000 1,519,395 219,395 17%
Property Tax in Lieu of VLF 1,933,600 2,014,752 81,152 4%
Franchise Fees 703,900 940,060 236,160 34%
License & Permit Fees 431,100 542,981 111,881 26%
User Fees 536,800 662,516 125,716 23%
Planning Fees 353,700 390,331 36,631 10%
Recreation Fees 822,610 823,866 1,256 0%
Transfers In 3,012,700 2,954,700 (58,000) -2%
Other Revenue 1,223,738 827,314 (396,424) -32%
TOTAL 21,128,032 22,380,892 1,252,860 6%
%
Fav/(Unfav)
General Fund Revenue Variances - Year End
REVENUE BY CATEGORY FY 2022-23
Adjusted Budget
FY 2022-23
Actuals
Dollar
(Unfav)/Fav
ATTACHMENT 1
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Transient Occupancy Tax (TOT) – TOT revenue is reflecting a $219,395 favorable variance to the Adjusted
Budget. TOT continues to exceed Adjusted Budget and projections reflecting the highest amount of TOT
the City has received in a fiscal year.
Property Tax in Lieu of Vehicle License Fees (VLF) – Actual Property tax in lieu of VLF revenue exceeded
the Adjusted Budget by $81,152, or 4% above the Adjusted Budget.
Franchise Fees – The City received Franchise Fees from Charter Communication, Waste Connections,
College Towning, Southern California Gas, PG& E, and Phillips 66. Franchise Fee revenues ended the year
in a favorable position by $236,160, or 34% above the Adjusted Budget.
License & Permit Fees and Planning Fees – License and permit revenue is above the Adjusted Budget by
$111,881. Planning revenue exceeded the Target by $36,631. Revenue in this category is customer driven
and fluctuates over the course of a year as well as year over year based on demand.
Other Revenues – This revenue category includes business license tax, fines, revenue from other
government agencies, charges for services and any other revenues accounts received in the general fund.
The largest variance in this category is related to three revenue accounts. The expense recovery for police
vehicles revenue related to the sale of surplus Police Patrol vehicles has not taken place since the new
leased vehicles have not yet been received. This results in a revenue shortfall of approximately $396,400.
The revenue from other government agencies accounts for the SB 1090 funds earmarked for use of the
general plan update totaling $150,000 and Retraining Scholarship Program totaling $25,000. Once these
funds are spent for this project, the revenue will be recognized at that time. The remainder of the variance
is related to the Expense Recovery budget for the sale of the Police Fleet vehicles. The City has not yet
sold these vehicles due to the long lead time of receiving the new fleet vehicles.
FUND BALANCE
The actual Fund Balance for the General Fund ended the year at $15.3 million. Fund Balance increased
this year from $11.8 million at Fiscal Year End 2021-22 because actual revenue exceeded expenditures by
approximately $662,000. The City’s auditors are working with Staff to complete the Annual
Comprehensive Financial Report, which will confirm the Fiscal Year End 2022-23 Fund Balance. When this
report is finalized, staff will report the final Fund Balance for General Fund. At this time, the year-end
reserve fund balance is computed to be 57.5% and exceeds the City’s Fund Balance reserve goal of 20%.
ATTACHMENT 1
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SECTION 2: POSITION CHANGES AND HEADCOUNT NUMBERS
POSITION ALLOCATION CHANGES MADE BY THE CITY COUNCIL (Year End)
None made during this quarter.
FULL TIME EQUIVALENT (FTE) BY DEPARTMENT – PERMANENT STAFF ONLY
The following table reflects FTE staffing by department. The table only includes permanent staff and does
not include part-time or temporary staffing. While departments may hire part-time staff on a regular or
seasonal basis, they are not included in the analysis below.
EMPLOYEE VACANCY RATE
The City’s employee vacancy rate at the end of FY 2022-23 was 5.1%. This equates to four (4) vacant
positions. The vacancy rate tracks the number of permanent vacant positions at the end of the quarter in
comparison to the total number of permanent positions available. Unlike a turnover rate, which tracks
employees that separated during the period, the vacancy rate only looks at vacancies at the end of period.
The costs associated with turnover includes the cost of advertising new positions, training, overtime,
lowered productivity, and workload balance.
Department Adopted Budget
Headcount (FTE’s)
Vacancies
(Year End)
% of Total
Staffing Vacant Positions
City Manager & Human Resources 3 - 4%
Administrative Services 7 - 9%
Community Development 10 - 13%
Legislative & Info Services 2 - 3%
Police Services 29 3 37%Police Officer (3), Cadet
Public Works 24 1 31%Maintenance Worker
Recreation Services 3 - 4%
Total 78 4 100%
ATTACHMENT 1
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SECTION 3: UPDATE ON COMPLETED CAPITAL PROJECTS
This information is provided to keep the Council apprised of the status of the City’s Capital Improvement
Projects (CIP).
Project
Number Project Fund
Budget
FY 2022-23
Current
Status
Project Budget
Expended
350-5564 Elm St. Park Playground Structure
State
Grant/Donations/Park
Improvement/Sales Tax 280,703$ Completed 250,372$
350-5607 Pedestrian Crossing Enhancements HSIP/RSHA 370,977$ Completed 345,824$
350-5795
Oak Park Boulevard / El Camino Real
Storm Drain System ARPA 384,570$ Completed 371,965$
612-5821
Trenchless Sewer Rehabilitation - Wood,
Sandalwood, Cameron, Woodland
Backyards ARPA 246,777$ Completed 145,111$
350-5797
Storm Drain System at 251 East Grand
Avenue ARPA 14,731$ Completed 3,176$
350-5612
Systematic Safety Analysis Report
Program (SSARP)General 2,664$ Completed -$
350-5463 Woman's Club Improvements Sales Tax/Donations 4,367$ Completed 1,345$
350-5474
Fuel Management System/Dispenser
Replacement
General/Sewer/Water/
Sales Tax 64,350$ Completed 55,686$
350-5515 Various Park Renovations Park Improvement 43,418$ In Progress 37,646$
350-5563
Citywide Trash/Recycle Receptacle
Replacement Park Improvement 1,582$ In Progress -$
350-5565 Soto Sports Complex Fencing Repairs Park Improvement 17,952$ In Progress 11,250$
350-5614 Bridge Street Bridge Habitat Mitigation HBP 48,628$ In Progress 49,971$
350-5620 Swinging Bridge Rehabilitation Sales Tax 1,160,474$ In Progress 60,182$
350-5658 Sidewalk Repairs and Improvements Sales Tax/CDBG 205,924$ In Progress 73,686$
350-5679 Traffic Way Bridge Replacement HBP/Sales Tax 629,030$ In Progress 181,436$
350-5473 Replacement Generator at Station 1
Other Gov
Agencies/General/Sales
Tax 660,911$ In Progress 50,197$
350-5540 Central Irrigation Controls Park Improvement 15,000$ In Progress 5,253$
350-5559 ADA Drinking Fountains Park Improvement 12,484$ In Progress -$
350-5681
Fair Oaks/Halcyon Road Traffic Signal
Update Traffic Signalization 40,000$ In Progress 31,074$
640-5944 Water Well #11 Facilities Water Availability 42,771$ In Progress -$
640-5946 Galvanized Service Replacements Water 88,093$ In Progress 24,438$
640-5975 Central Coast Blue Water Availability/Water 1,774,574$ In Progress 1,600,217$
350-5638 Pavement Management Program
USHA/General/SB1/Sale
s Tax 5,407,698$ In Progress 793,718$
612-5852 The Pike Sewer Line Replacement Sewer 24,977$ In Progress -$
350-5621 Arroyo Grande Creek Stabilization Sales Tax 40,000$ In Progress 24,200$
350-5453 Financial Management Software Sewer/Water/Sales Tax 225,000$ In Progress -$
350-5468 Public Safety Video Cameras COPS/Sales Tax 125,000$ In Progress -$
350-5472 Network Switch Replacement Sales Tax 24,000$ In Progress
640-5953 SCADA Software/Electronics Upgrade Water 229,900$ In Progress -$
350-5450 Corporation Yard Renovations
General/Sewer/Water/
Sales Tax 80,502$ In Progress -$
350-5476 City Hall Front Door ADA (CDBG)CDBG 53,341$ In Progress -$
350-5422 Le Point Street Parking Lot Expansion Sales Tax 85,000$ In Progress 2,699$
ATTACHMENT 1
Page 11
Project
Number Project Fund
Budget
FY 2022-23
Current
Status
Project Budget
Expended
350-5695 Active Transportation Plan ATP/Sales Tax 125,000$ In Progress -$
350-5794 Corrugated Metal Pipe (CMP) Lining Sales Tax/ARPA 500,000$ In Progress -$
640-5911
Phased Mains Replacement - South
Halcyon Road, Cornwall Street to Fair
Oaks Avenue Water Facility/ARPA 719,474$ In Progress 5,581$
350-5566
Various Open Space Fire / Fuel
Management Sales Tax 100,000$ In Progress 4,100$
350-5601
Fair Oaks/Orchard Avenue Intersection
Improvements Developer 50,000$ In Progress -$
350-5470
Report Management System (RMS)
Upgrade at PD COPS 150,000$ In Progress -$
350-5556
Recreation Services / Community Center
Building Sales Tax 46,195$ In Progress 1,450$
350-5796
Storm Water Master Plan Update /
Watershed Management Plan ARPA 222,500$ In Progress -$
350-5642 Brisco Road / US 101 Interchange
RSHA/STIP/MPDG/
Traffic Signalization
/Transportation Facility 1,407,468$
This Project
is No Longer
Happening -$
612-5849 Maintenance Hole Rehabilitation Developer/Sewer 69,842$ Not Started -$
350-5629 Guardrail Replacement Sales Tax 55,000$ Not Started -$
350-5430 Short Street Plaza General 30,000$ Not Started -$
350-5554 Soto Sports Complex ADA Bleachers Park Improvement 15,000$ Not Started -$
640-5973
Phased Main Replacement - Highway
101 Crossing Upgrade, El Camino Real
to West Branch Street ARPA 291,200$ Not Started -$
612-5826
Trenchless Sewer Rehabilitation -
Woodland Drive and Ash Street Developer/Sewer 132,200$ Not Started -$
ATTACHMENT 1
Page 12
SECTION 4: APPROPRIATION TRANSFERS AND BUDGET ADJUSTMENTS
Administrative and Previously-Approved Year End Budget Adjustments
The following year end budget adjustments were previously approved by Council or are classified as
administrative and not requiring Council approval.
Administrative Services Department: Appropriate funds for 4 budget adjustments reviewed in the Third
Quarter Financial Status Report. The request includes three budget adjustments for the General fund
related to a true-up payment to the Five Cities Fire Authority (FCFA) for the City’s share of accrued
actuarial liability for employees who worked for the City before the FCFA was formed, increased costs to
outfit a Public Works Utility Bed of the Pickup Truck, and increased costs related to the November 2022
election. The remaining request for the Water Availability fund is related to continuing to offer the Cash
for Grass program to residents. The overall impact to the budget is an increase in General Fund
expenditures of $337,401 and Water Availability expenditures of $20,000 as reflected in the following
table:
Water Facility Fund: Appropriated Water Facility Fund balance of $71,998.05 for Construction of the Fair
Oaks Avenue Water Line Replacement Project. Approved on 05/23/2023 Council meeting, Item 9.h.
No other adjustments are required at this time.
Request
Original
Budget
Q3 BA
Requested
Updated
Budgeted Total
General
Fund Impact
Water Availability
Fund Impact
FCFA UAL Payment 550,000 337,401 887,401 337,401
Utility Bed increased Cost for PW Truck 61,000 18,433 79,433 18,433 -
Cash for Grass Program 100,000 20,000 120,000 - 20,000
November 2022 Election Increased Cost 30,000 22,830 52,830 22,900 -
Totals 741,000 398,664 1,139,664 378,734 20,000