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CC 2021-05-25_08e FY 2020-21 Third Quarter Financial Status ReportMEMORANDUM TO: CITY COUNCIL FROM: WHITNEY McDONALD, CITY MANAGER BY: NICOLE VALENTINE, ACCOUNTING MANAGER SUBJECT: CONSIDERATION OF FISCAL YEAR 2020-21 THIRD QUARTER FINANCIAL STATUS REPORT D ATE: MAY 25, 2021 SUMMARY OF ACTION: Consider and file the Fiscal Year (FY) 2020-21 Third Quarter Financial Status Report. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: Preparation of the Third Quarter Financial Status Report requires staff time within the existing work plan and budget for the Administrative Services Department. At the end of the third quarter, FY 2020-21 revenues for the General Fund were $12.3 million, or 89% of the budgeted target amount for the first nine months. Actual third quarter expenditures were $12.6 million, or 91% of the budgeted target amount for the first nine months. RECOMMENDATION: It is recommended that the City Council consider, receive, and file the Fiscal Year (FY) 2020-21 Third Quarter Financial Status Report. BACKGROUND: Third Quarter Financial Report 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 Third Quarter Financial Status Report is the third of four financial performance reports that staff will present to Council during the 2020-21 fiscal year. The purpose of the FY 2020-21 Mid-Year Financial Status Report is to: •Compare third quarter revenues received and expenditures incurred to the third quarter of the prior year and to the budgeted target 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 third quarter information including headcount statistics, completed Capital Improvement Projects, and requests for City Council approval on Budget Adjustment Requests that have not previously been approved. Item 8.e. - Page 1 CITY COUNCIL CONSIDERATION OF FISCAL YEAR 2020-21 THIRD QUARTER FINANCIAL STATUS REPORT MAY 25, 2021 PAGE 2 The City’s actual third quarter financial results will be compared to both the prior year’s third quarter and the budgeted target (“Target”). The Target is calculated as three fourths (75%) of the FY 2020-21 Budget, or basically nine equal months of the budget. ANALYSIS OF ISSUES: Third Quarter (Q3) Revenue and Expenditures Compared to Prior Year Current Year Q3 Actuals Compared to Prior Year Q3 Actuals The General Fund is the primary operating fund of the City and accounts for resources and services traditionally associated with government. General Fund revenue at the third quarter of this year was $485,000 lower than the third quarter of the prior year. Expenditures were also $2.0 million lower at the third quarter of the current fiscal year versus the third quarter of the prior year. A more thorough explanation of third quarter variances is set forth in the attached financial report. The following is a summary of the third quarter variances between the two fiscal years. Revenue ($485,000 lower) The majority of the $485,000 variance between the third quarter of this year and the prior third quarter is related to one-time revenue received in the third quarter of FY 2019-20 that was not received in the third quarter of FY 2020-21. • The majority of the revenue variance can be explained by one-time Senate Bill 1090 – Diablo Canyon Nuclear Power Plant funds of $780,000 that were received in the first half of FY 2019-20 and recognized as revenue, creating an unfavorable variance between the first half of FY 2019-20 and FY 2020-21. • The one-time Coronavirus Relief Funds of $218,000 were recorded as revenue in the first half of FY 2020-21. This created a favorable variance in the current year when compared to the prior year. Expenditures ($2.0 million lower) As mentioned, third quarter expenditures compared to the prior year were lower by $2.0 million. The majority of the variance between the two fiscal quarters is related to timing and payment of the of the City’s Unfunded Accrued Liability (UAL) retirement payment. Third Quarter FY 2020-21 Third Quarter FY 2019-20 Variance Revenue 12,325,351$ 12,810,201$ (484,851)$ Expenditures 12,636,657$ 14,683,101$ (2,046,444)$ General Fund Item 8.e. - Page 2 CITY COUNCIL CONSIDERATION OF FISCAL YEAR 2020-21 THIRD QUARTER FINANCIAL STATUS REPORT MAY 25, 2021 PAGE 3 Third Quarter (Q3) Revenue and Expenditures Compared to Target Current Year Q3 Actuals Compared to Target The table above compares third quarter actual results to the budgeted Target. Third Quarter actual revenue was well short of the Target by $1.47 million. Third Quarter actual expenditures were also short of the Target by $1.3 million. The following is a summary of the third quarter revenue and expenditure variances compared to the budgeted Target. A more thorough explanation of third quarter variances is set forth in the attached financial report. Revenue ($1.47 million lower) The third quarter revenue shortfall compared to the Target is not unusual. Revenue realization is typically low in the third quarter of the fiscal year due to the time lag involved in billing cycles and the receipt of reimbursements. Some of the larger revenue variances are explained below. • The largest single source of City revenue is Secured Property Tax. Secured Property Tax is billed by the County to property owners and payable in two (2) installments. Property owners typically receive their first property tax bill at the end of September or early October, with a due date of November 1st. The majority of property tax related to the first installment was received in December 2020. The second installment is due on April 1st and will be reflected in the fourth quarter report. • Similar to property tax, sales tax realization in through third quarter is lower due to the time lag involved in billing cycles and the receipt of the City’s sales tax payment from the State. Actual sales tax revenue received in the third quarter report represents seven months of payments (July – January). • Actual first quarter Transient Occupancy Tax (TOT) revenue includes the eight months of July through February, whereas the Target represents six. Lodging facilities have thirty days after the month’s end to make their TOT payment. Fortunately, TOT revenue for the first eight months of the fiscal year is higher than what was budgeted for those eight months. • Property Tax in Lieu of Vehicle License Fees is received in two installments during the fiscal year. Typically, the revenue is received in the months of January (3rd quarter) and June (4th quarter). FY 2020-21 Third Qtr Actuals FY 2020-21 Third Qtr Target Variance Revenue 12,325,351$ 13,794,485$ (1,469,134)$ Expenditures 12,636,657$ 13,941,633$ (1,304,975)$ General Fund Item 8.e. - Page 3 CITY COUNCIL CONSIDERATION OF FISCAL YEAR 2020-21 THIRD QUARTER FINANCIAL STATUS REPORT MAY 25, 2021 PAGE 4 Expenditures ($1.3 million lower) Actual third quarter expenditures were $1.3 million under the Target. Most of the City’s departments are under their spending targets. Some of the more significant savings is occurring in the Police and Community Development Departments. However, offsetting other favorable variances is an unfavorable variance of $608,200 in the Administrative Services Department. • The Administrative Services Department variance is attributed to the timing of the Five Cities Fire Authority (FCFA) payment. In the third quarter, a $513,000 payment to FCFA was paid in full and recorded in the 4145-Non Departmental division, which falls under the Administrative Services Department budget. This payment included the City’s fourth quarter obligation to the FCFA that is due on April 1st but was paid at the end of March, creating an unfavorable variance when compared to target. • Other favorable departmental variances compared to the target include salary savings, lower contractual service spending at mid-year, and the timing of the City’s insurance payments. ALTERNATIVES: 1. Receive and file the Fiscal Year 2020-21 Third Quarter Financial Status Report; or 2. Provide other direction to staff regarding the FY 2020-21 Third Quarter Financial Status Report; or 3. Provide other direction to staff. ADVANTAGES: The financial report presents an updated review of the City’s financial performance in the third quarter of FY 2020-21. Reporting on financial performance is one of the Top 10 Council priorities for FY 2020-21. DISADVANTAGES: No disadvantages have been identified at this time. ENVIRONMENTAL 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. Fiscal Year 2020-21 – Third Quarter Financial Status Report Item 8.e. - Page 4 Page 1 City of Arroyo Grande Fiscal Year 2020-21 Third Quarter Financial Status Report INTRODUCTION The following report is an overview of the City’s fiscal position at the end of the third quarter of Fiscal Year (FY) 2020-21. The purpose of this report is to update the public and the City Council on the City’s financial position at the end of the third quarter of the fiscal year, and compare actual results to the prior year and the budgeted Target, calculated at 75% of the Budget, to determine the City’s performance. The third quarter timeframe is July 1 through March 31, 2021. The financial report is organized in the following sections: Section 1 – an overview of City’s financial position at the end of the third quarter of the FY 2020-21. This includes a comparison of third quarter results between the current and prior year. In addition, third quarter results will be compared to the budgeted Target (75% of budget). 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 third quarter 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 in the third quarter along with their final costs. Section 4 – a listing of Budget Amendment Requests (BAR) previously approved by Council and completed in the third quarter. CITY COUNCIL PRIORITIES: FISCAL STABILITY One of the Top 10 Council Priorities for FY 2020-21 includes continuing to ensure fiscal stability for the organization throughout the planning, budgeting, and expenditure process. This includes preparing and presenting year-end and quarterly financial reports to Council. Attachment 1 Item 8.e. - Page 5 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 two 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 other 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 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 Police Department Park Development Water Facility Recreation Services Park Improvement Lopez Water Public Works Recreation Community Center Grace Lane Assessment District 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 State COPS Block Grant Agency FundsSpecial Revenue FundsFIDUCIARY FUNDSGOVERNMENTAL FUNDS ALL FUNDS PROPRIETORY FUNDS General FundDebt Service FundsEnterprise FundsPrivate Purpose FundItem 8.e. - Page 6 Page 3 CURRENT YEAR ACTUALS COMPARED TO PRIOR YEAR Table 1 below reflects revenue and expenditure patterns through the end of the third quarter of FY 2020- 21 and compares the current quarter results against the prior year’s results for all Governmental Funds as well as the City’s General Fund. The calculated percentages in the table reflect the third quarter actuals for both revenue and expenditures, divided by that fiscal year’s annual budget. Table 1 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 Target. Next are expenditures by category (Table 2). This is followed by a summarized look at FY 2020-21 third quarter actual expenditures compared to the Target (Table 3). Lastly, a discussion of General Fund revenue is included, which compares third quarter actual results to the Target (Table 4). The Target is calculated as three-fourths (75%) of the FY 2020-21 Budget and represents the 9-month period from July 2020 through March 2021. Using the Target as a comparator against actual results provides a simplified method to evaluate performance for the quarter. Chart 1 Chart 1 shows a simple comparison of actual third quarter revenue and expenditures to the Target. The actual third quarter General Fund revenue is less than the budgeted Target by $1.5 million, which is not unusual because revenue realization is typically lower than the Target through the third quarter due to the time lag involved in billing cycles and the receipt of reimbursements. Likewise, actual expenditures through the third quarter totaled $12.6 million, or 68% of the full year’s Budget, and are under the Target Third Quarter FY 2020-21 Third Quarter FY 2019-20 Variance Revenue 68%71%-3% Expenditures 53%56%-3% Third Quarter FY 2020-21 Third Quarter FY 2019-20 Variance Revenue 67%68%-1% Expenditures 68%71%-3% Governmental Funds General Fund Item 8.e. - Page 7 Page 4 by $1.3 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 third quarter. Within the total expenditures of $12.6 million, 61% of the City’s costs are associated with personnel, 37% with operating and maintenance, and 2% with transfers to other funds. Table 3 reflects the third quarter 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. Table 3 – General Fund Expenditures by Department Overall, third quarter expenditures were $1.3 million under the Target. Most of the City’s departments are under their spending targets. Some of the more significant savings occurred in the Police and Community Development Departments. However, offsetting other favorable variances is an unfavorable variance of $608,200 in the Administrative Services Department, which was expected. A more detailed explanation of key expenditure variances by individual department/division is provided below. KEY EXPENDITURE VARIANCES FOR INDIVIDUAL DIVISIONS/DEPARTMENTS FOR FISCAL YEAR 2020-21 The Non Departmental Division of the Administrative Services Department is set up to capture overhead costs that are general in nature and cannot be linked to any one department or division. For example, this Division includes all of the City’s insurance costs, utilities costs, City Administration 1,012,300$ 759,225$ 548,404$ 210,821$ Legislative & Information Services 1,030,652 772,989 651,422 121,567 Administration Services 5,956,529 4,467,397 5,075,578 (608,182) Community Development 1,990,866 1,493,149 938,689 554,460 Police Department 5,666,843 4,250,132 3,523,305 726,827 Recreation Services 961,620 721,215 583,348 137,867 Public Works 1,970,034 1,477,526 1,315,911 161,614 TOTAL EXPEDITURES 18,588,844 13,941,633 12,636,658 1,304,974 General Fund Department General Fund Department Variances - Third Quarter 2020-21 Adjusted Budget 2020-21 Q3 Actuals Dollar Fav/(Unfav) 2020-21 Q3 Target Department: Administrative Services Division: 4145-Non Departmental Issue: Timing differences in quarterly payments for Five Cities Fire Authority Impact to General Fund: $608,200 overage FY 2020-21 % of Q3 Acutals Actuals Personnel Costs 7,712,276$ 61.0% Operating Costs 4,712,244 37.3% Debt Service 53,023 0.4% Captial Outlay 12,639 0.1% Transfers Out 146,475 1.2% Total 12,636,657$ Expenditure Category Item 8.e. - Page 8 Page 5 and payment to the Five Cities Fire Authority (FCFA). As mentioned earlier, the Department is reflecting a $608,200 unfavorable variance through the third quarter. The variance is attributed to the timing of the Five Cities Fire Authority (FCFA) payment. The City’s fourth quarter obligation to the FCFA is due on April 1st but was paid at the end of March creating an unfavorable variance when compared to target, which was expected. 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 a number of staffing variances that occurred through the third quarter of the fiscal year and include: • The Community Development Director position remained vacant for five months when the former Community Development Director was appointed as the City Manager in early September 2020. The savings amounted to roughly $86,000 through February when the position was filled. • One of the recommendations approved in the FY 2020-21 Adopted Budget was to delay the hiring of the Permit Technician position through the first quarter. The vacancy of the Permit Technician positon in the Engineering division continued through the end of the second quarter resulting in labor savings of approximately $55,000 compared to the Target. The Permit Technician position was filled in early January 2021. • One Community Development Department staff member was on maternity leave for a portion of the first quarter and returned to work at less than full-time, saving approximately $35,000. • The part-time CDD Intern position remained vacant through third quarter. • Contractual services were budgeted for on-call engineering services; however, none of the budgeted services were incurred through third quarter resulting in a favorable variance of $60,000 to the Target. • Contractual services for plan check and inspection costs were lower than the Target by approximately $65,000. • Minimal contractual services for the Planning Division were incurred through third quarter resulting in $143,000 of favorability to the Target; however, it is anticipated that payments for consulting services for projects such as updates to the Housing and Circulation Elements will occur in the remainder of the fiscal year. For simplicity, Police Services will be analyzed in total rather than by individual divisions. The majority of the Police Department’s favorable variance is attributed to salary savings resulting from vacant permanent Police Officer positions through third quarter. Some of the more significant variances include: • The Police Patrol Division experienced vacancies in three of its Police Officer positions. The costs were lower than the Target by approximately $339,000. • Other labor costs including health benefits and retirement costs were under the Target by $63,000 and $83,000 respectively. Department: Community Development Division: Various (4301, 4130, 4212) Issue: Overall savings in salaries and contractual services Impact to General Fund: $554,500 savings Department: Police Services Division: Various (4201,4203,4204) Issue: Overall savings in salaries and benefits Impact to General Fund: $727,000 savings Item 8.e. - Page 9 Page 6 KEY REVENUE VARIANCES BY ACCOUNT FOR THE THIRD QUARTER Table 4 – General Fund Revenue As reflected in Table 4, third quarter actual revenue was short of the Target by $1.4 million, which is also not unusual. Revenue realization is typically low at the end of the third quarter of the fiscal year due to the time lag involved in billing cycles and the receipt of reimbursements. A more detailed discussion is included below to help explain actual revenue variances through mid-year compared to the Target. Property Tax –The majority of the City’s property tax revenue comes from Secured Property Taxes. This tax is billed on a fiscal year (July 1- June 30) basis and is payable in two (2) annual installments. Property owners typically receive their first property tax bill at the end of September or early October, with a due date of November 1st. The majority of property tax related to the first installment was received in December 2020. The second property tax bill installment is received in April 2021 and will be included in the fourth quarter report. Property tax typically represents around 31% of the City’s annual revenue. Sales Tax – Sales tax realization through third quarter is lower due to the time lag involved in billing cycles and the receipt of the City’s sales tax payment from the State. Actual sales tax revenue received through third quarter was $2.6 million and represents seven months of payments (Jul – Jan). Transient Occupancy Tax (TOT) – TOT revenue is reflecting an $111,000 unfavorable variance to the Target. The actual TOT revenue represents only eight months of TOT receipts due to the timing of payments. Lodging facilities have thirty days after the month’s end to make their TOT payments. TOT revenue is expected to exceed the current Adopted Budget by year’s end. Property Tax in Lieu of Vehicle License Fees (VLF) – Property tax in lieu of VLF is received in two installments during the fiscal year. Typically, the revenue is received in the months of January (3rd quarter) and June (4th quarter). The first installment was received in January 2021; the second installment will be reflected in the fourth quarter. Property Tax 5,456,521$ 4,092,391$ 4,060,823$ (31,568)$ Sales Tax 4,401,649 3,301,237 2,603,695 (697,542) Transient Occ. Tax 900,000 675,000 564,388 (110,612) Property Tax in Lieu of VLF 1,822,740 1,367,055 911,370 (455,685) Franchise Fees 690,000 517,500 367,225 (150,275) License & Permit Fees 441,300 330,975 307,846 (23,129) User Fees 443,800 332,850 326,313 (6,537) Planning Fees 360,500 270,375 283,377 13,002 Recreation Fees 410,700 308,025 345,086 37,061 Transfers In 2,737,100 2,052,825 2,033,928 (18,897) Other Revenue 728,336 546,252 521,301 (24,951) TOTAL 18,392,646 13,794,485 12,325,351 (1,469,134) General Fund Revenue Variances - Third Quarter REVENUE BY CATEGORY 2020-21 Adjusted Budget FY 2020-21 Q3 Actual Target vs Actual (Unfav)/Fav FY 2020-21 Q3 Target Item 8.e. - Page 10 Page 7 License & Permit Fees – License and permit revenue fell short of the Target by $23,000. The majority of the variance is due to fewer building permits being issued through third quarter than estimated to the Target. Franchise Fees – Only eight months of Waste Water Connection franchise fees were received through third quarter. In addition, Charter Communications franchise fees earned in the third quarter will not be paid and received until the fourth quarter. Due to the timing of these franchise fee collections, actual revenue at the end of the third quarter is lower than the Target by $150,000. Item 8.e. - Page 11 Page 8 SECTION 2: POSITION CHANGES AND HEADCOUNT NUMBERS POSITION ALLOCATION CHANGES MADE BY THE CITY COUNCIL (3rd Quarter) Division 4204 – Police Department – Support Services Delete 1.4 FTE Neighborhood Services Technician Division 4130 – Community Development Department – Planning Add 1.4 FTE Neighborhood Services Technician 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. Department Adopted Budget Headcount (FTE’s) Vacancies (Third Quarter) % of Total Staffing Vacant Positions City Manager 1.00 0.00 6.4% Administrative Services 6.00 1.00 7.7% Director of Administrative Services Community Development 10.00 2.00 12.8% Permit Tech, Program Analyst Legislative & Info Services 4.00 1.00 5.1% Deputy City Clerk Police Services 29.00 3.00 37.2% Police Officers (3) Public Works 21.00 1.00 27.0% Maintenance Worker I Recreation Services 3.00 0.00 3.8% Total 74.00 8.00 100% EMPLOYEE VACANCY RATE The City’s employee vacancy rate at the end of the third quarter of FY 2020-21 was 10.8%. This equates to eight (8) 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. In the FY 2020-21 Budget, it was agreed that the City Manager, Permit Tech, and Maintenance Worker positions were to remain vacant until after the first quarter. These positions, other than the City Manager position which was appointed prior to the end of the first quarter, remained vacant through the second quarter. In addition, a Police Officer position was to remain vacant for the full year. The higher than normal vacancy rate can be attributed to the delay in hiring these positions at the end of the third quarter. Please note not reflected in this table or graph are a number of individuals out on Family Medical Leave Act (FMLA) or Family First Coronavirus Response Act (FFCRA) leave during the third quarter creating Item 8.e. - Page 12 Page 9 operational deficiencies being currently filled by temporary, consulting, or interim staff. This affected the Administrative Services, Legislative & Information Services, Community Development, and Police Departments during the third quarter. Additionally, throughout this fiscal year, every department has experienced extended absences due to quarantine requirements following possible COVID-19 exposures that have occurred largely outside of the workplace. Item 8.e. - Page 13 Page 10 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). The projects listed below represent projects that were completed in the third quarter of FY 2020-21. Project Title Comments Total Amount Budgeted for Project Total Final Project Costs % Expended Funding Sources Vard Loomis Erosion Repair Repair of an area where erosion had created a cavity within a slope behind homes 31,500 31,432 100%Sales Tax Chevron Service Station Corrugated Metal Pipe (CMP) Repair Stabilization of the CMP outlet area where erosion and base failure had occurred 28,774 28,774 100% Sales Tax, General Fund, Sewer Fund Bridge Street Bridge Rehabilitation Project Rehabilitation of the 112-year old two lane bridge over Arroyo Grand Creek 8,719,310 8,052,630 92% Federal Highway Bridge P rogram (HBR) Bridge Street Bridge Habitat Mitigation Mitigation planting for the Rehabilitation project and initiation of the five-year monitoring and reporting 426,000 249,284 59% Federal Highway Bridge P rogram (HBR) Five Cities Fire Authority (FCFA) Security Gate and Fencing Construction of fencing to secure the rear area of the FCFA Station 1 25,509 23,190 91%Fire Impact Fees FY 2020-21 Third Quarter - Completed Capital Improvement Projects Item 8.e. - Page 14 Page 11 SECTION 4: APPROPRIATION TRANSFERS AND BUDGET ADJUSTMENTS The following third quarter budget adjustments were previously approved by Council or are classified as administrative and not requiring Council approval. $55,228 Capital Improvement Castillo Del Mar Extension Project: Increased the Revenue from Other Government Agencies account by $31,125 to account for the additional contribution from Lucia Mar Unified School District, and transferred $24,103 of Local Sales Tax funds from the Annual Pavement Management Program budget for construction of Construction of the Castillo Del Mar Extension project. Approved on 01/12/2021 Council meeting, item 8.l. $31,981 Capital Improvement Ikeda Field Barrier Removal Project: Transferred $31,981 in Park Improvement Fees to increase appropriations in the amount of $31,981 for the Ikeda Field Barrier Removal Project. Approved on 01/26/2021 Council meeting, item 8.f. No change to fund balance Capital Improvement Ikeda Field Barrier Removal: Reallocated $3,609 of budgeted expenditures to better reflect anticipated actuals, including the Agreement for Consultant Services with R. Burke Corporation for the Ikeda Field Barrier Removal Project. Approved on 03/09/2021 Council meeting, 8.e. $124,000 Administrative Services Department: Appropriated funding for the Agreement for Consultant Services with Management Partners for Human Resources and Financial Consultant Services from fund balance in the amount of $124,000. Approved on 03/09/2021 Council meeting, item 8.d. No change to fund balance Community Development Department: Reallocated $73,430 of budgeted expenditures within the General Fund from the Police Department to the Community Development Department to transfer the existing 1.4 full-time equivalent Neighborhood Services Technician position and the associated costs. Approved on 02/23/2021 Council meeting, item 8.e. $150,000 City Council: Appropriated $110,000 the SB 1090 funds for the COVID Resiliency Grant Program, including the Business Assistance Grant Program and administration fees to the South County Chambers of Commerce, and an appropriation of $40,000 from the SB 1090 funds for the Retraining Scholarship Program, to be administered by the South County Chambers of Commerce in Partnership with SLO Partners, including administration fees. Approved on 03/09/2021 Council meeting, item 10.a. 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 8.e. - Page 15 THIS PAGE INTENTIONALLY LEFT BLANK Item 8.e. - Page 16