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CC 2017-02-28_12b FY 2016-17 Mid Year Budget Report MEMORANDUM TO: CITY COUNCIL FROM: BOB MCFALL, INTERIM CITY MANAGER DEBBIE MALICOAT, DIRECTOR OF ADMINISTRATIVE SERVICES SUBJECT: CONSIDERATION OF FISCAL YEAR 2016-17 MID-YEAR BUDGET REPORT DATE: FEBRUARY 28, 2017 RECOMMENDATION: It is recommended the City Council: 1. Approve detailed budget adjustments and request for additional appropriations listed in the Mid-Year Budget Report; and 2. Approve Schedule A attached to the Mid-Year Budget Report. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: Additional appropriations or budget adjustments are reflected in the ending fund balances for all funds as detailed in Schedule A attached to the Mid-Year Budget Report. The recommended budget adjustments are anticipated to have a minimal impact on staff workload. BACKGROUND: Each year, the City Council adopts a budget, which commits resources to the accomplishment of its policies. The Administrative Services Department prepares periodic budget updates for the City Council. The purpose of the City's Mid Year Budget Report is to:  Compare revenues received and expenditures made to budgeted amounts to determine appropriate adjustments.  Provide a link between the City budget, the financial records, and the independent financial audit.  Compare current revenues and expenditures against the prior fiscal year. ANALYSIS OF ISSUES: As detailed in the attached Mid-Year Budget Report, the City is currently facing a mixed fiscal picture. Revenues in many General Fund categories are increasing and economic indicators are generally favorable. However, there continue to be revenue challenges in the Water and Sewer enterprise funds, which are projected to be about $535,000 short of budgeted revenues in the current year. Item 12.b. - Page 1 CONSIDERATION OF MID YEAR BUDGET REPORT FEBRUARY 28, 2017 PAGE 2 The current projected available General Fund Balance for June 30, 2017 is $5.6 million, which represents approximately 34% of appropriations; this exceeds the City Council fund balance goal of 20%. The increase in the projected fund balance is largely due to one-time savings in the prior year and higher than expected revenues in the current year. The projected Fund Balance assumes revenues are received exactly as budgeted, all budget expenditures are made, and all capital transfers required by the Capital Improvement Plan Program are completed. Historically, the General Fund has not been required to fund all budgeted capital transfers and expenditures at year-end are traditionally less than budgeted. As described more fully in the Mid-Year Budget Report, staff is recommending several minor adjustments to the FY 2016-17 budget in order to address needs that are unanticipated and necessary. In addition, the Report includes budget adjustments directed by the City Council to-date, including the funding of a replacement fire engine. Historically, the Mid-Year Budget Report has included an update to the General Fund ten year fiscal forecast. This will be presented to the City Council in March, with additional budget preparation and background information. ALTERNATIVES: The following alternatives are provided for City Council consideration: 1. Approve the recommended actions 2. Do not approve the recommended actions; 3. Provide direction to staff. ADVANTAGES: The Mid Year Budget Report provides an updated review of the City finances in the current fiscal year, allocates additional funding to meet unanticipated needs and complete projects, and maintains a fund balance that exceeds the City’s minimum reserve policy amount. DISADVANTAGES: Based on the recommendations, departmental budgets maintain current service levels, no significant new projects or programs are recommended. ENVIROMENTAL REVIEW: No environmental review is required for this item. 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. Attachment: 1. Mid-Year Budget Report Item 12.b. - Page 2 City of Arroyo Grande Administrative Services Department MID-YEAR BUDGET REPORT FISCAL YEAR 2016-2017 ATTACHMENT 1 Item 12.b. - Page 3 City of Arroyo Grande Mid-Year Budget Report – 2016/17 February 28, 2017 2 Table of Contents Overview ........................................................................................................................................................................3 Summary of Key Points................................................................................................................................................3 Budget Changes Approved To-Date ..........................................................................................................................4 Mid Year Budget Changes ...........................................................................................................................................5 General Fund Expenditures: ...................................................................................................................................5 General Fund Revenues:..........................................................................................................................................7 Other Funds: ..............................................................................................................................................................7 General Fund Overview ...............................................................................................................................................9 General Fund Revenues ...............................................................................................................................................9 General Fund Expenditures ........................................................................................................................................11 Other Funds ...................................................................................................................................................................12 Attachments ...................................................................................................................................................................13 Item 12.b. - Page 4 City of Arroyo Grande Mid-Year Budget Report – 2016/17 February 28, 2016 3 Overview The City’s Mid-Year Report is prepared to compare the revenues and expenditures occurring during the first six months of the fiscal year against budgeted amounts to determine appropriate adjustments; to provide links between the City budget, the financial records, and the independent financial audit and; to compare revenues earned and expenses made during the first six months of the Fiscal Year (FY) 2016-17 against the FY 2015-16 figures. This information is provided in the following format: Schedule A: The starting point is the audited FY 2015-16 ending fund balances, which is also the beginning Available Fund Balance for the FY 2016-17. Combining the beginning Available Fund Balances with the estimated revenues, transfers, and appropriations adopted in the Biennial Budget and this report, provides the estimated ending fund balances. As a result of a comprehensive review, adjustments are recommended where actual receipts and disbursements are materially different from the budgeted amounts. Although budget adjustments are recommended across several City funds, typically the emphasis of the Mid-Year Budget Report is directed at the General Fund. The General Fund is deemed to be the most critical as it provides most services commonly associated with government (i.e., public safety, recreation, parks, building, public works, planning, etc.) and is limited primarily by tax-generated revenues. However, in this fiscal year, significant financial vulnerabilities continue to exist in the Water and Sewer funds and will be discussed in this report. Summary of Key Points  The City is currently facing a mixed fiscal picture. Revenues in many General Fund categories are increasing and economic indicators are generally favorable. However, revenue challenges remain in the Water and Sewer enterprise funds, which are projected to be about $535,000 short of budgeted revenues in the current year. The City has strong reserves and a diverse revenue stream, which will be important in facing the upcoming challenges associated with increasing retirement costs, deferred infrastructure maintenance, and other unmet needs.  The audited Fund Balances reported in the Comprehensive Annual Financial Report (CAFR) have been incorporated into the beginning fund balances on Schedule A. There are a couple of adjustments to the beginning fund balances that are different from the CAFR. There is an adjustment to subtract the fixed asset balances from the Water Fund and Item 12.b. - Page 5 City of Arroyo Grande Mid-Year Budget Report – 2016/17 February 28, 2016 4 Sewer Fund in order to reflect a more accurate expendable fund balance.  The City’s governmental funds reported a combined fund balance of $17.0 million at June 30, 2016, an increase of $1.2 million in comparison with June 30, 2015. The beginning General Fund balance was $6.9 million, which was an increase of $930,000 from the prior year and represents nearly 45% of General Fund expenditures.  The City Council has established an Undesignated General Fund Balance goal of 20 % of annual appropriation with a minimum goal of 15%. The City’s Undesignated General Fund Balance represents the available r esources to provide funding for future contingencies such as earthquakes, civil unrest, economic fluctuations, major infrastructure repairs and investment in capital for improved productivity and efficiencies. Inadequate reserves increase financial risk, negatively impact cash flow, and reduce the City’s ability to attract and sustain economic development and growth. The current projected available General Fund Balance for June 30, 2017 is $5.8 million. This projected fund balance represents 34% of appropriations, which exceeds the City Council fund balance goal of 20%. The increase in the projected fund balance is largely due to one-time savings in the prior year and higher than expected revenues in the current year. The projected Fund Balance assumes revenues are received exactly as budgeted, all budget expenditures are made, and all capital transfers required by the Capital Improvement Plan Program are completed. Historically, the General Fund has not been required to fund all budgeted capital transfers and expenditures at year-end are traditionally less than budgeted. Budget Changes Approved To-Date Various budget changes have been approved by the Council or City Manager, as appropriate, since the adoption of the original Budget in June 2016 and, with two exemptions, reflect changes made through December 31, 2016. The two exceptions are the inclusion of the cost of the fire engine replacement, which was approved at the January 24, 2017 City Council meeting and the inclusion of funding for homeless services, which was directed at the February 14, 2017 City Council meeting. The list on the following page summarizes these changes, which are included in the Adjustments to Appropriations column of Schedule A. Item 12.b. - Page 6 City of Arroyo Grande Mid-Year Budget Report – 2016/17 February 28, 2016 5 General Fund Water Fund Fire Engine Replacement 260,500$ NCMA Consultant 10,000$ Council Chambers Roof Repair 25,000$ Council Chambers ADA/AV Project 176,871 Park Development Fund Total General Fund 462,371$ Heritage Square Park Play Structure 40,000$ Approved budget changes to-date Mid Year Budget Changes As part of the mid-year process, departments were asked to review their current budgets and determine if any adjustments should be proposed in this report. Departments have been asked to closely monitor their budgets and spend only what is necessary. At this time, only minor adjustments are recommended to the General Fund departmental budgets that are necessary due to timing considerations, increases that are supported by additional revenues, and one-time project funding. General Fund Expenditures: Summary of Requests City Attorney services $35,000 Inspection & Plan check contractual services 30,000 * Planning Commissioner Training 8,100 Bank Charges 14,000 * Building maintenance 11,200 Accrued leave pay for unanticipated retirements 55,000 Overfill PW Director position 17,000 Homeless services/warming shelter 5,000 Other adjustments 18,300 Winter storm damage 50,000 Total General Fund $243,600 Item 12.b. - Page 7 City of Arroyo Grande Mid-Year Budget Report – 2016/17 February 28, 2016 6 As summarized on the previous page, additional expenditures for FY 2016-17 totaling $243,600 in the General Fund are recommended. Additional information is provided for each request below.  City Attorney Services –An increase of $35,000 is required to reflect additional legal services expected in the current fiscal year. These additional services are a reflection of significant work efforts related to medical and recreational marijuana issues, water conservation and drought issues and public records requests. It is not anticipated that this same level of service will be required in future years.  Community Development – Recent development activity has increased and a commensurate demand for inspection and plan check services has resulted. In order to meet these needs in engineering, building and stormwater compliance, additional contractual services totaling $30,000 is required. These additional costs are expected to be fully offset by fee revenues. An analysis of the possibility of providing inspection services in-house, rather than through contractual services is currently underway, the results of which will be addressed in the upcoming 2017-18 budget. Second, as supported by the City Council, an increase of $8,100 in order to provide for all Planning Commissioners to attend the League of California Cities Planning Commissioners Academy is requested. Having an appropriately trained commission is vital to the proper functioning of the City.  Bank Charges – Increased online registration for recreation classes and activities has resulted in increased credit card processing fees of approximately $14,000. These fees are fully recovered through the revenues generated by the activities.  Building Maintenance – Unanticipated building repairs and/or equipment replacement at City facilities will require an additional $11,200 in one-time appropriations.  Accrued Leave Payout – The City’s Public Works Director and Recreation Services Director have announced their intent to retire in the coming months. Upon separation with the City, all employees are paid for earned leave time and typically a vacancy is created that offsets the amount of the leave pay. However, in this case, a long term vacancy is not anticipated in these positions and program budgets will need to be augmented for this one-time event.  Overfill Public Works Director Position – As mentioned, the Public Works Director has announced his intent to retire. Given the critical nature of this position and the numerous ongoing projects currently underway, it is recommended that the City pursue the replacement of this position immediately. Funding of $17,000 would provide for an overlap between the outgoing director and the incoming director from April 1st through May 1st, ensuring the best possible transition in this key role. During the recruitment of the City Engineer position, a strong candidate for Item 12.b. - Page 8 City of Arroyo Grande Mid-Year Budget Report – 2016/17 February 28, 2016 7 the Public Works Director vacancy emerged and is being considered for the appointment, following successful completion of a due diligence process. In accordance with the Arroyo Grande Municipal Code, the appointment would be made by the Interim City Manager if found to be suitable. Such a transition would provide many operational benefits, particularly in light of the number of initiatives underway by Public Works at this time and other anticipated organizational changes.  Homeless services/warming shelter – As directed by the City Council on February 14, 2017, a one-time appropriation of $5,000 is provided to assist with homeless services and warming shelter needs.  Other Adjustments – Various other minor adjustments to operating budgets to account for unanticipated needs such as increased postage costs, software licensing fees and an increase in cablecasting costs due to extended City Council meetings will require an additional $18,300. General Fund Revenues: Additional budgeted revenues are proposed totaling $128,400 for FY 2016-17 in the General Fund. Significant variances are described below.  Property Tax – Based on the most recent assessments and property tax estimates from the County, an increase of $60,100 is projected.  Building & Planning Permits and Fees – Due to the increase in fees adopted by the Council following the recent User Fee Study, an increase of $46,800 in revenue is anticipated. Approximately $30,000 of which is a direct offset for additional contractual services required, as mentioned previously in this report.  Rent – With the recent purchase of the Le Point Street parking lot, the City acquired a small residence that is currently leased. An adjustment of $6,000 in additional rental revenue is anticipated for the remainder of the fiscal year. Other Funds: Streets Fund (General Fund Transfer): Due to damage caused by winter storms, an additional $50,000 is required in order to pay for cleanup and repairs. The Governor has declared a disaster for the County during some of the storms, so there may be an opportunity to recover some of these costs through emergency relief funding or from private property owners, where applicable. Staff will pursue cost recovery options. Item 12.b. - Page 9 City of Arroyo Grande Mid-Year Budget Report – 2016/17 February 28, 2016 8 Parkside Landscape Maintenance Fund: Additional maintenance work in this specific landscape maintenance assessment area is required and will cost $6,000. These funds are restricted for use within the assessment area. Traffic Signal Improvement Fund: Minor additional costs associated with the Oak Park/West Branch intersection improvement project will require a $1,700 appropriation from this fund. Water Fund: The litigation associated with the Santa Maria Valley water basin is estimated to require an additional $25,000 in legal fees. In addition, amending the City’s Urban Water Management Plan required the unanticipated use of consultant services for $8,000. Fire Protection Impact Fee Fund: These funds are restricted in use for expansion or improvements to fire related facilities. The City’s fire station does not have a diesel exhaust removal system and ventilation of diesel vehicle exhaust is accomplished only by the apparatus bay doors. Diesel vehicle exhaust emissions pose a significant cancer health risk to both employees and members of the public. Most fire stations, including the other two stations operated by the Five Cities Fire Authority, have installed diesel exhaust removal systems. Past attempts to secure grant funding for the purchase and installation of the system at this location have been unsuccessful. An appropriation of $71,000 is recommended from the restricted Fire Protection Impact Fee Fund as these revenues have limited ability to be utilized in other ways and this use is consistent with the intent of the impact fee program. Downtown Parking Fund: The Council had previously allocated $60,000 for the purchase of the Le Point Street parking lot. However, revenues in the prior year were insufficient to accommodate this. It is recommended that the project be reduced by $18,700 to reflect funds available. This will not have an impact on the project as the project was completed under budget. In general, revenues and expenditures in all other funds are on target with projections and prior year trends. No other adjustments are required at this time. Item 12.b. - Page 10 City of Arroyo Grande Mid-Year Budget Report – 2016/17 February 28, 2016 9 General Fund Overview Revenues are currently 41% collected and expenditures are 46% spent. This reflects the fact that not all revenues and expenditures occur evenly throughout the fiscal year. Significant variances are discussed later in the report, but in general, this trend is consistent with prior years. After Mid-Year adjustments are recorded, the June 30, 2017 fund balance in the General Fund will be approximately $5.8 million, if all budget projections are fulfilled. However, at June 30, 2017, the City may find that revenues have not met the budgeted projections and not all budgeted appropriations will be spent as year-end actual expenditures are traditionally less than budgeted amounts. Shown below is an overview of the revenues, expenses, and transfers for Fiscal Years 20 16-17 and 2015-16 as of the mid- point of each fiscal year. As reflected, both revenues and expenditures are lower in the current fiscal year than they were at the same point in time last year. General Fund FY 2016-17 FY 2015-16 Variance Revenues: Mid-Year Actual $5,255,433 $5,161,630 $93,803 Mid-Year Transfers 1,271,952 1,444,966 (173,014) Total 6,527,385 6,606,596 (79,211) Expenditures: Mid-Year Actual 7,729,287 7,975,890 (246,603) Total 7,729,287 7,975,890 (246,603) Impact on Fund Balance (1,201,902)$ (1,369,294)$ 167,392$ General Fund Revenues Total General Fund revenue collections are at 41% with half of the year complete. This is below 50% because certain revenues have a delay in when they are received by the City; specifically, it only represents four months of Sales Tax revenue, five months of Transient Occupancy Tax (TOT) revenue and four months of Franchise Fee revenue. The table on the following page presents a comparison of the top revenue accounts. Because the top revenue sources account for Item 12.b. - Page 11 City of Arroyo Grande Mid-Year Budget Report – 2016/17 February 28, 2016 10 approximately 75% of total General Fund revenues, changes here can have profound impacts. The mid-year budget includes additional revenues of $128,400 for FY 2016-17 discussed previously. Actual Title Budget Actual % Budget Actual % Change Property Tax 5,985,100$ 2,455,518$ 41% 5,658,300$ 2,483,517$ 44%($27,999) Sales & Use Tax 3,632,400 959,707 26% 3,488,200 928,906 27% 30,801 Transient Occupancy Tax 1,000,200 453,227 45% 959,100 431,266 45% 21,961 Franchise Fees 593,000 148,589 25% 581,000 143,139 25% 5,450 Children in Motion 350,000 186,863 53% 350,000 182,058 52% 4,805 Telecommunication Site Leases 235,000 105,738 45% 230,000 111,061 48%(5,323) Building Permits 214,700 127,510 59% 165,000 64,117 39% 63,393 Planning Fees 247,300 133,413 54% 239,200 100,810 42% 32,603 Total 12,257,700$ 4,570,565$ 37% 11,670,800$ 4,444,874$ 38% 125,691$ Mid-Year Current Fiscal Year Mid-Year Prior Fiscal Year  Sales Tax – Sales tax is lower than projected and lower than the same period last fiscal year, however in consultation with the City’s sales tax advisor, projections are anticipated to be met. Staff will continue to monitor this closely.  Property Tax – Property tax trends are consistent with the same period last year and budgeted revenues are expected to be met.  Transient Occupancy Tax – Revenues are consistent with the prior fiscal year.  Building Permits & Planning Fees – The increase in these revenue sources reflect activity in the construction industry as well as the fee increases adopted by the City Council. These revenues are difficult to predict and staff will continue to closely monitor them.  All other variances are within normal ranges. Item 12.b. - Page 12 City of Arroyo Grande Mid-Year Budget Report – 2016/17 February 28, 2016 11 General Fund Expenditures Most departmental expenses are under the 50% budget mark with total FY 2016-17 expenses at 46% of budget. Individual department/division differences between the current and prior fiscal year are highlighted in the table shown on the next page. This fiscal year, there is an increase of approximately $889,000 in General Fund expenditures over the original budget. A portion of this increase reflects carryovers of $182,900 from unspent expenditure and project budgets in the prior fiscal year, $462,400 in appropriations previously approved during the course of the first half of the current fiscal year and $243,600 in mid-year requests included in this report. Actual Title Budget Actual % Budget Actual % Change City Manager 395,715$ 189,847$ 48% 389,640$ 190,312$ 49% (465)$ Legislative & Info Svcs 449,300 197,183 44% 414,440 192,219 46% 4,964 Retirees 205,000 57,806 28% 205,000 68,448 33% (10,642) City Attorney 283,200 118,550 42% 248,200 98,775 40% 19,775 Administrative Services 864,800 339,035 39% 787,640 371,549 47% (32,514) Community Development 943,640 366,722 39% 805,140 300,434 37% 66,288 Information Technology 554,915 203,407 37% 533,615 211,458 40% (8,051) Non Departmental 3,243,271 1,836,324 57% 2,667,694 2,074,138 78% (237,814) Police 6,302,700 2,732,794 43% 6,109,240 2,834,104 46% (101,310) Building & Life Safety 292,300 126,005 43% 265,040 114,513 43% 11,492 Engineering 496,400 249,326 50% 472,900 206,170 44% 43,156 Recreation Services 1,029,900 451,061 44% 1,001,565 433,004 43% 18,057 Public Works 1,922,400 861,227 45% 1,916,475 880,766 46% (19,539) Total 16,983,541$ 7,729,287$ 46% 15,816,589$ 7,975,890$ 50% (246,603)$ Mid-Year Current Fiscal Year Mid-Year Prior Fiscal Year City Attorney – the increase is primarily due to one-time expenses in the current year as discussed previously in the summary of mid-year adjustments.  Community Development – the majority of this increase reflects staffing vacancies in the prior fiscal year that are now filled. Item 12.b. - Page 13 City of Arroyo Grande Mid-Year Budget Report – 2016/17 February 28, 2016 12  Non Departmental – the variance from the prior year reflects timing of payments made for the City’s contribution to the Five Cities Fire Authority as well as an increase in the budget for the City’s share of the purchase of a new fire engine, which was approved by the City Council on January 24, 2017.  Police – The majority of this decrease reflects staffing vacancies in the current fiscal year.  All other variances are within a normal range. Other Funds Local Use Tax Fund (Fund 218) This fund has been established to account for the ½ cent sales tax increase that was approved in November 2006. With four months of sales, this revenue source is at 35%. Based on past trends, revenues are on track to meet estimates. The estimated fund balance at the end of FY 2016-17 in this fund is $194,400. Water and Sewer Funds The City continues to operate under a Stage 1 Water Emergency, which has required the community to reduce water usage to meet the State mandated 28% reduction. The good news is that the community has continued to meet this challenge; the bad news is that reduced water consumption has a direct impact on the revenue generated in the Water and Sewer funds. As previously shared with the City Council, water billing revenues have decreased from approximately $6.8 million in FY 2013-14 to $5.6 million in FY 2015-16. Year to date revenues for the current fiscal year continue to be lower than the prior year, despite the rate increases approved by the City Council. Sewer revenues also follow this same general pattern. Based on current consumption levels, it is anticipated that the Water Fund will collect about $500,000 less revenue in FY 2016-17 than originally budgeted. The Sewer Fund will collect about $35,000 less in the current year. Since the Water and Sewer funds are enterprise funds, they are fully supported by the fees generated by providing services to the community, and are not funded through general tax revenues. Staff continues to closely monitor revenue needs and is performing additional analysis on the Water Fund and Sewer Fund financial conditions. Item 12.b. - Page 14 City of Arroyo Grande Mid-Year Budget Report – 2016/17 February 28, 2016 13 Streets Fund (Gas Tax Revenues) The City’s share of Gas Tax revenues continues to decline, with the most recent estimates indicating that there will be a shortfall of $16,300 in the current fiscal year. The Governor’s proposed budget calls for new transportation revenues, which would provide additional resources to local agencies for maintenance and repair of streets, bridges, and other transportation systems. This is not the first time that the Governor’s proposed budget included such plans and, while the City supports additional transportation funding statewide, it would be prudent to wait and see what occurs in Sacramento. Currently, the City uses all Gas Tax revenue in addition to some transportation (TDA) revenue and Local Sales Tax revenue to provide for the maintenance of streets, bridges, drainage and sidewalks. It is recommended that the Local Sales Tax allocation for streets be augmented by $16,300 for FY 2016-17. The actual amount transferred from the Local Sales Tax Fund will depend on final expenditures in the Streets Fund and City staff will continue to provide fiscally prudent services; however significant savings in the Streets Fund would only be achieved through service level reductions to programs such as street sweeping and drainage maintenance, which are not recommended at this time. Attachments A brief overview of the attached schedules is provided to inform the reader of the purpose of each schedule.  Schedule A - Fund Balance. This schedule is provided to incorporate prior year fund balance into the current year and to summarize the FY 2016-17 budget adopted by the City Council. This schedule includes adjustments that have previously been approved by the City Council and includes the current requested adjustments in total.  General Fund Summary. This schedule provides a summary of the revenues, expenditures and fund balance with actual results for the prior fiscal year as well as the current FY 2016-17 Budget and proposed amended balances for FY 2016-17. Item 12.b. - Page 15 Fund Balance All Funds Operating Budget 2016-17 Mid-Year Budget Update Schedule A Estimated Estimated Total Total Available Available Fund Balance Original Adjustment Operating Operating FY 2015-16 Budgeted Adjustments to Fund Balance July 1, 2016 Revenues to Revenues Transfer In Transfer Out Carryovers Appropriations Appropriations June 30, 2017 General Fund 010 General Fund:$6,876,831 $13,362,700 $128,400 $2,348,800 $281,871 $182,915 $16,074,655 $444,100 $5,733,190 Special Revenue Funds: 210 Fire Protection Impact Fees $183,659 $20,500 $22,200 $0 $0 $0 $0 $71,000 $155,359 211 Public Access Television 1,132 0 0 0 0 0 0 0 1,132 212 Police Protection Impact Fees 24,928 3,300 1,900 0 0 422 0 0 29,706 213 Park Development Fees 830,773 63,200 37,800 0 40,000 0 0 0 891,773 214 Park Improvement Fees 152,774 25,700 29,000 0 20,000 709 0 0 186,765 215 Recreation Community Center (1,710)3,800 0 0 0 49 0 0 2,041 216 Grace Lane Assessment District 64,316 10,600 0 0 3,500 0 13,330 0 58,086 217 Landscape Maintenance District 12,741 5,900 0 0 2,400 0 5,700 0 10,541 218 Local Use Tax Fund 238,185 2,241,900 0 0 2,040,100 0 229,300 16,300 194,385 219 Parkside Assessment District 416,381 44,500 0 0 4,600 0 20,700 6,000 429,581 220 Streets 0 364,100 (16,300)532,300 92,100 0 738,000 50,000 0 222 Traffic Signal 739,703 33,000 3,000 0 0 363 0 0 775,340 223 Traffic Circulation 131,595 400 0 0 0 0 0 0 131,995 224 Transportation Facility Impact 302,809 160,500 0 0 400,000 2,705 0 0 60,604 225 Transportation (20)405,000 0 0 384,980 0 20,000 0 0 226 Water Neutralization Impact 32,843 42,000 16,000 50,000 0 0 102,350 0 38,493 230 Construction Tax 29 0 0 0 0 0 0 0 29 231 Drainage Facility 209 0 0 0 0 0 0 0 209 232 In-Lieu Affordable Housing 296,120 100,400 18,000 0 0 0 75,000 0 339,520 233 In-Lieu Underground Utility 4,034 0 0 0 0 0 0 0 4,034 240 Tourism Business Improvement District 147,215 200,000 0 5,000 3,000 0 248,000 0 101,215 241 Water Availability Fund 1,571,381 28,000 29,000 0 0 595,600 0 0 1,032,781 250 CDBG Grant Funds (133,308)66,610 148,668 0 0 5,180 76,050 0 740 271 State COPS Block Grant 150,997 100,800 0 0 19,200 0 130,000 0 102,597 Total Special Revenue Funds $5,166,786 $3,920,210 289,268 $587,300 $3,009,880 $605,028 1,658,430 $143,300 $4,546,926 City of Arroyo Grande 14 Item 12.b. - Page 16 Fund Balance All Funds Operating Budget 2016-17 Mid-Year Budget Update Schedule A Estimated Estimated Total Total Available Available Fund Balance Original Adjustment Operating Operating FY 2015-16 Budgeted Adjustments to Fund Balance July 1, 2016 Revenues to Revenues Transfer In Transfer Out Carryovers Appropriations Appropriations June 30, 2017 City of Arroyo Grande Capital Project Funds: 350 Capital Improvement Fund $3,520,302 $20,191,583 $50,472 $0 $0 $5,136,986 $18,540,020 $50,472 $34,879 Total Capital Project Funds $3,520,302 $20,191,583 $50,472 $0 $0 $5,136,986 $18,540,020 $50,472 $34,879 Enterprise Funds: 612 Sewer $1,265,430 $920,000 ($38,000)$0 $340,700 $0 $912,918 $0 $893,812 634 Sewer Facility 417,434 33,700 8,300 0 0 0 0 0 459,434 640 Water Fund 4,747,825 6,650,900 (568,400)304,050 5,191,360 867,471 2,041,900 43,000 2,990,644 641 Lopez Water 1,703,375 0 0 3,403,860 0 0 3,403,860 0 1,703,375 642 Water Facility 607,451 60,000 0 0 304,050 0 0 0 363,401 Total Enterprise Funds $8,741,515 $7,664,600 ($598,100)$3,707,910 $5,836,110 $867,471 $6,358,678 $43,000 $6,410,666 Trust and Agency Fund: 751 Downtown Parking 38,243 11,000 0 0 63,600 0 4,325 (18,700)18 Total Trust & Agency Fund $38,243 $11,000 $0 $0 $63,600 $0 $4,325 ($18,700)$18 Grand Total All Funds $24,343,677 $45,150,093 ($129,960)$6,644,010 $9,191,461 $6,792,400 $42,636,108 $662,172 $16,725,679 15 Item 12.b. - Page 17 FUND: 010 GENERAL FUND 2014-15 2015-16 CURRENT REVISED ITEM ACTUAL ACTUAL BUDGET BUDGET Beginning Fund Balance 4,942,735$ 5,946,521$ 5,572,382$ 6,876,831$ Revenues: Revenues 13,926,223 13,951,297 13,362,700 13,491,100 Transfers In 2,539,503 2,579,125 2,348,800 2,348,800 Prior Year Unexpended Balance 250,000 250,000 Total Revenues 16,465,726 16,530,422 15,961,500 16,089,900 Expenditures: Salaries and Benefits 8,707,086 9,630,928 10,462,740 10,534,740 Current Expenses 4,801,378 5,018,369 5,497,115 5,869,215 Debt Service 141,076 201,391 206,215 206,215 Capital Outlay 97,077 344,807 91,500 91,500 Transfers Out 1,715,323 221,702 221,871 281,871 Contingency - - - - Total Expenditures 15,461,940 15,417,197 16,479,441 16,983,541 Total Operating Increases (Decreases)1,003,786 1,113,225 (517,941) (893,641) Reserved for carryover - (182,915) - - Prior Year Unexpended Balance - - (250,000) (250,000) Total Adjustments to Fund Balance 1,003,786 930,310 (767,941) (1,143,641) Available Fund Balance 5,946,521$ 6,876,831$ 4,804,441$ 5,733,190$ GENERAL FUND SUMMARY 2016-17 16 Item 12.b. - Page 18