HomeMy WebLinkAbout29A - FY 14-15 3RD QRTR UPDATEREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
MAY 5, 2015
TITLE:
FISCAL YEAR 2014 -15 THIRD QUARTER
GENERAL FUND UPDATE — REVENUES
AND EXPENDITURES (ACTUALS VERSUS
PROJECTIONS) {STRATEGIC PLAN NO. 4,
2 b}
CITY MA AGER
RECOMMENDED ACTION
Receive and file.
DISCUSSION
CLERK OF COUNCIL USE ONLY:
APPROVED
❑
As Recommended
❑
As Amended
❑
Ordinance on 1 at Reading
❑
Ordinance on 2nd Reading
❑
Implementing Resolution
❑
Set Public Hearing For
CONTINUED TO
FILE NUMBER
The City continues to receive positive news regarding its revenue and management of General
Fund expenditures. For the third quarter period (July 2014 — March 2015), total General Fund
revenues exceeded budgeted projections by approximately $3.9 million or 3 %. This is largely due
to increases in the City's top six revenue sources: Sales Tax, Property Tax, Utility Users Tax,
Property Tax In -Lieu of VLF, Business License and Hotel Visitors Tax.
We are confident that the City is on target to meet Sales Tax projections due to strong growth in
various economic segments such as restaurants /dining and the sale of new automobiles. In
addition, Santa Ana continues to experience growth in property values which has translated into
higher median home pricing. As a result, the City is in receipt of higher than projected property
tax receipts by approximately $1.0 million or 5.4 %. The positive economic climate is reflected in
higher than projected Business License Tax by approximately $0.6 million or 7.5% as well as
increased occupancy rates for the City's hotels resulting in the City receiving higher than
projected Hotel Visitors Tax by approximately $0.7 million or 13.2 %.
The largest contributor to the City's positive performance is the City's Utility Users Tax. The
overwhelming voter approved measure that was passed with a 75% approval rating included
lowering the tax from 6% to 5.5 %, eliminating the annual $11,000 cap, and modernizing the Utility
Users Tax language. The City is experiencing a resurgence in Utility Users Tax revenue due to
increased demand for utility services. Additionally, Utility Users Tax revenues have now
exceeded third quarter estimates by $1.2 million or 7.6 %.
29A -1
FY 2014 -15 Third Quarter Projections versus
Actuals of General Fund Revenues and Expenditures
May 5, 2015
Page 2
Furthermore, City Departments continue to implement elements of innovation and efficiency.
These efforts have allowed departments to evaluate their respective operations in order to
streamline existing processes through technology and as a result lower than projected general
fund expenditures have been incurred totaling approximately $3.3 million or 2.2 %. It is important
to emphasize that all budgeted expenditures are allowed and no department has been asked to
reduce services or budgeted expenditures. The combination of these positive revenue and
expenditure trends indicate the City is on target to achieve a projected year -end surplus totaling
approximately $10 - $12 million.
STRATEGIC PLAN ALIGNMENT
Approval of this item supports the City's efforts to meet Goal #4, City Financial Stability, Objective
#2 (Provide a reliable five -year financial forecast that ensures financial stability in accordance
with the strategic plan), Strategy B (Provide quarterly updates on the City's financial forecast to
ensure revenues and expenditures reflect the most up -to -date information and analysis).
FISCAL IMPACT
There is no fiscal impact associated with this item.
Exhibit 1.Third Quarter Projections vs. Actuals of General Fund Revenues and Expenditures
29A -2
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