HomeMy WebLinkAbout021820-07.2ADMINISTRATIVE STAFF REPORT 7.2
TO: Mayor and Town Council February 18, 2020
SUBJECT: Resolution No. 15-2020, accepting the mid-year Financial Report, approving
mid-year adjustments to the Fiscal Year 2019/20 Operating Budget and the
2019/20 Master Fee Schedule for User and Cost Recovery Fees.
BACKGROUND
The Operating Budget is the Town’s annual plan for service delivery. The budget focuses on
services, programs and activities that are prioritized by the Town Council to meet the Town’s
mission, which is “To provide superior municipal services that make people’s lives better”.
The Capital Improvement Program (CIP) is the Town’s capital budget. The CIP identifies high
priority current and future capital needs and identifies potential sources of funding.
On June 4, 2019, the Town Council adopted Resolution 38-2019, approving the 2019/20
Operating Budget and setting the 2019/20 Appropriation Limit; and Resolution 39-2019,
approving the 2019/20 through 2023/24 Capital Improvement Program. The purpose of the
mid-year update is to review actual mid-year revenues and expenditures in comparison to the
adopted budget and CIP, and make any necessary mid-year adjustments.
As of the December 31, 2019 mid-point of the fiscal year, revenues are tracking ahead of
approved budget estimates, while expenditures are on track to finish the year lower than
budgeted. The Town’s overall fiscal condition remains strong, and on a course to finish the
fiscal year on a positive note. Mid-year Operating Budget adjustments are recommended to
increase estimated operating revenues and expenditures as described in this report. One mid-
year adjustment is recommended to the Master Fee Schedule to increase cost recovery
associated with operating electric vehicle charging stations in municipal parking lots.
DISCUSSION
As of December 31, 2019, revenues are tracking 1-2% ahead of the approved budget forecast,
while expenditures are on track to finish the fiscal year lower than budgeted. Overall fiscal
condition remains strong and the Town expects to finish the fiscal year on a positive note.
OPERATING BUDGET
Revenues
Total revenues for 2019/20 were forecast to total $38,617,530, including $26,846,684 from the
General Fund, $9,490,271 from Special Revenue and $2,280,575 from the Successor Agency.
Mid-year Financial Report & Adjustments
to FY2019/20 Operating Budget & CIP 2 February 18, 2020
General Fund
The approved 2019/20 Operating Budget forecast total General Fund revenues of $26,846,684.
At mid-year, General Fund revenues are tracking positively in comparison to budget.
Revenue highlights include:
Property Tax - Property tax is the Town’s largest revenue source, accounting for 53.1% of the
total General Fund revenue. For 2018/19, the Town received a total of $14,740,670 in Property
Tax. The 2019/20 budget forecasts $14,260,222 in Property Tax. Mid-year receipts indicate
that actual revenues will equal or exceed 2018/19 actuals. A mid-year adjustment is
recommended to increase Property Tax revenues by $245,000 to offset increased General Fund
expenditures.
Sales Tax - Sales tax is the Town’s second largest revenue source accounting for 20.8% of the
total General Fund revenue. For 2018/19 the Town received a total of $5,947,752 in Sales Tax.
The 2019/20 budget forecasts revenues of $5,577,220. Though mid-year receipts and estimates
indicate that year-end revenues may fall slightly short of the budget forecast, no mid-year
adjustments are recommended.
Recreation Fees and Charges for Service - For 2018/19 the Town received a total of $2,531,713 in
recreation revenues. The 2019/20 budget forecasts revenues of $2,576,145. At mid-year,
revenues are on track to meet the forecast and no mid-year adjustments are recommended.
Franchise Fees - Franchise Fees are received for solid waste and recycling services, cable TV, and
gas and electricity. For 2018/19, the Town received a total of $2,207,090 in Franchise Fees.
The 2019/20 budget forecasts revenues of $2,326,932. At mid-year, revenues are on track to
meet the forecast and no mid-year adjustments are recommended.
Special (Restricted) Revenues
Lighting and Landscape Assessment District (LLAD) - For 2018/19, the Town received $3,205,196
in LLAD assessments. The 2019/20 budget forecasts revenues of $3,120,682. At mid-year,
revenues are on track to meet the forecast and no mid-year adjustments are recommended.
Building and Planning - For 2018/19, the Town collected a total of $2,638,811 in Building and
Planning fees. The 2019/20 budget forecasts Building and Planning revenues of $2,212,200. At
mid-year, revenues are on track to meet the forecast and no mid-year adjustments are
recommended.
Gas Tax Fund - For 2018/19, the Town received a total of $1,728,818 in Gas Tax (including SB 1
Funds attributable to the Road Repair and Accountability Act of 2017). The 2019/20 budget
forecasts revenues of $1,919,117. At mid-year, revenues are on track to meet the forecast and
no mid-year adjustments are recommended.
Mid-year Financial Report & Adjustments
to FY2019/20 Operating Budget & CIP 3 February 18, 2020
Measure J Return to Source (RTS) - Measure J revenues are received from the current Contra
Costa County half-cent transportation sales tax which runs through 2034. Eighteen percent of
the tax proceeds are returned to local jurisdictions to help fund local street and road
maintenance. For 2018/19 the Town received a total of $866,743 in Measure J RTS funds. The
2019/20 budget forecasts revenues of $815,217. At mid-year, revenues are on track to meet the
forecast and no mid-year adjustments are recommended.
Solid Waste Vehicle Impact Fees (VIF) - Refuse vehicle traffic accounts for 38.6% of the total
impact absorbed by Danville’s public streets. Through the solid waste franchise, the Town
collects Solid Waste Vehicle Impact Fees which are reinvested in maintaining the Town’s
streets and roads. For 2018/19, the Town collected a total of $317,827 in Solid Waste VIF. The
2019/20 budget forecasts revenues of $482,182. At mid-year, revenues are on track to meet the
forecast and no mid-year adjustments are recommended.
Donations - The Town has received a total of $16,000 in donation from private parties, including
a $6,000 donation for the Police Department to purchase specialized equipment and School
Resource materials, and a $10,000 donation for the Maintenance Department to plant trees. A
mid-year adjustment of $16,000 is recommended to recognize these donations.
Successor Agency Funds
2019/20 Real Property Tax Trust Fund (RPTTF) revenues are budgeted at $2,280,575, to fund
debt service for the 2001 and 2005 Certificates of Participation, the 2001 Taxable Revenue
Bonds, and reimbursement of allowed administrative costs. Mid-year revenues are on track to
meet the forecast and no mid-year adjustments are recommended.
Revenue Summary
Mid-year adjustments are recommended to:
Increase General Fund Property Tax by $245,000.
Increase Special Revenue Donations by $16,000.
Table 1 summarizes the recommended mid-year adjustments.
Table 1
Mid-Year Revenue Summary
Adopted Prior Mid-Year
Budget Amendments Revised
TOTAL $ 38,617,530 $ 38,617,530 $ 38,878,530
General Fund $ 26,846,684 $ 26,846,684 $ 27,091,684
Special Revenue $ 9,490,271 $ 9,490,271 $ 9,506,271
Successor Agency $ 2,280,575 $ 2,280,575 $ 2,280,575
Mid-year Financial Report & Adjustments
to FY2019/20 Operating Budget & CIP 4 February 18, 2020
Expenditures
Approved operating expenditures for 2019/20 total $34,407,646, including $23,559,232 from
the General Fund, $9,667,839 from Special Revenue and $1,180,575 from the Successor Agency.
Expenditure highlights include:
General Government - Expenditures of $1,819,094 are budgeted for 2019/20. Pending legal
claims and ongoing litigation will exceed outside counsel costs budgeted in the City Attorney’s
Office. A mid-year adjustment of $125,000 is required to fund these activities. A citizen
sponsored referendum will necessitate a March 2020 special election at an estimated cost of
$90,000. All other direct and contract costs are tracking within budget. Mid-year adjustments
are recommended to increase the City Attorney budget by $125,000 and the City Clerk budget
by $90,000.
Police Services - Expenditures of $10,261,608 are budgeted for 2019/20. All costs are tracking
within budget. A $6,000 private party donation received will be used to purchase specialized
equipment for patrol officers and materials for the School Resource Program. One mid-year
adjustment is recommended to increase the Patrol Budget by $6,000.
Administrative Services - Expenditures of $4,071,336 are budgeted for 2019/20. All costs are
tracking within budget and no mid-year adjustments are recommended.
Development Services - Expenditures of $4,912,431 are budgeted for 2019/20. A Building staffing
vacancy has required increased use of interim plan check services. All other costs are tracking
within budget. A mid-year adjustment is recommended to increase the Building budget by
$60,000.
Maintenance Services - Expenditures of $7,827,415 are budgeted for 2019/20. A private $10,000
donation was received to plant new trees in Town parks and roadsides. Severe windstorms
that occurred October 26 and 27 resulted in significant damage to town facilities and required
extensive use of contractors to perform repair and recovery work. A mid-year adjustment of
$30,000 is required to offset those costs. All other costs are tracking within budget. Mid-year
adjustments are recommended to increase the Maintenance Services Budget by $40,000.
Recreation, Arts and Community Services - Expenditures of $4,335,187 are budgeted for 2019/20.
All costs are tracking within budget and no mid-year adjustments are recommended.
Personnel - Employee costs are budgeted at $12,565,100. With 44% of the budget expended as
of mid-year, total costs will fall within budget and no mid-year adjustments are recommended.
Successor Agency
For 2018/19, Successor Agency operating expenditures total $1,180,575 to fund debt service
costs and Agency administrative costs. Capital transfers of $1,100,000 result from re-payment
of the outstanding balance owed under the Loan between the former CDA and the Town.
Mid-year Financial Report & Adjustments
to FY2019/20 Operating Budget & CIP 5 February 18, 2020
Successor Agency expenditures remain unchanged. No mid-year adjustments are
recommended.
Expenditure Summary
To date in 2019/20, the Town Council has approved the one budget adjustment, Resolution
No. 80-2019, appropriating $48,000 from the General Fund for General Government - grant
coordination and application services.
Mid-year adjustments are recommended to:
increase the City Attorney budget by $125,000 (General Fund)
increase the City Clerk budget by $90,000 (General Fund)
increase Maintenance Services budget by $30,000 (General Fund)
increase Police Patrol budget by $5,000 (Special Revenue)
increase School Resources by $1,000 (Special Revenue)
increase the Building budget by $60,000 (Special Revenue)
increase Maintenance Services budget by $10,000 (Special Revenue)
Table 2 illustrates 2019/20 recommended mid-year adjustments.
Table 2
Mid-Year Expenditure Summary
Adopted Prior Mid-Year
Budget Amendments Revised
TOTAL $ 34,407,646 $ 34,455,646 $ 34,776,646
General Fund $ 23,559,232 $ 23,607,232 $ 23,852,232
Special Revenue $ 9,667,839 $ 9,667,839 $ 9,743,839
Successor Agency $ 1,180,575 $ 1,180,575 $ 1,180,575
Transfers and Designations
The 2019/20 budget includes General Fund transfers of $4,485,005. This includes: $1,000,000
for LLAD operations, $125,000 for Asset Replacement, $2,100,000 for CIP – Project B-626,
$1,235,005 for CIP – General Purpose and $25,000 for CIP Pavement Management. On
November 19, 2019, the Town Council adopted Resolution No. 76-2019, approving the 2018/19
CAFR and transferring $3,700,000 from the General Fund to CIP – Project B-626. This increased
the total 2019/20 transfers and designations to $8,185,005.
Operating Budget Summary
Through mid-year, the Town’s overall financial condition remains positive with revenues and
expenditures tracking closely with the approved 2019/20 Operating Budget. Mid-year
adjustments are recommended to increase revenues by 0.68% and expenditures by 0.93%.
Mid-year Financial Report & Adjustments
to FY2019/20 Operating Budget & CIP 6 February 18, 2020
CAPITAL IMPROVEMENT PROGRAM
The 2019/20 CIP includes appropriation of $12,990,536 to fund 37 separate projects. The Town
Council has subsequently approved one additional funding appropriation, Resolution 61-2019,
appropriating $137,573 in Park Dedication Impact Funds for Project B-400 – Hap Magee Ranch
Park Playground Renovation. Including this change, capital appropriations for 2019/20 total
$13,128,109. At mid-year, no budget adjustments are recommended for CIP.
MASTER FEE SCHEDULE
The Town’s Electric Vehicle (EV) Charging Station Program is currently operating at an
estimated net loss of $8,500 annually. This is attributable to low daily revenues and low
occupancy turn-over. Consistent with direction provided at the January 14, 2020 Town
Council Study Session, the following mid-year adjustments will be made to the adopted
Master Fee Schedule in order to increase cost recovery and offset the current operating loss:
Level 2 Stations: Increase rate from $0.30 per kWh, to $0.45 per kWh with a $1 Access
Fee (regardless of energy used)
Level 3 Stations: Increase rate from $0.30 per kWh, to $0.55 per kWh with a $1 Access
Fee (regardless of energy used)
All fees will be reviewed and adjusted as part of the annual budget process.
RECOMMENDATION
Adopt Resolution No. 15-2020, accepting the mid-year Financial Report, approving mid-year
adjustments to the Fiscal Year 2019/20 Operating Budget and the 2019/20 Master Fee Schedule
for User and Cost Recovery Fees.
Prepared by:
Joseph Calabrigo
Town Manager
Lani Ha
Finance Manager/Treasurer
Attachments: A - Resolution No. 15-2020
Exhibit 1 – Town Fee Schedule
RESOLUTION NO. 15-2020
ACCEPTING THE MID-YEAR FINANCIAL REPORT, APPROVING MID-YEAR
ADJUSTMENTS TO THE FISCAL YEAR 2019/20 OPERATING BUDGET AND THE
2019/20 MASTER FEE SCHEDULE FOR USER AND COST RECOVERY FEES
WHEREAS, all revenue and expenditure projections, which were made in preparing the
Fiscal Year 2019/20 Operating Budget, have been reviewed; and
WHEREAS, the following mid-year adjustments to the Fiscal Year 2019/20 Operating
Budget are recommended to reflect increased revenues received and expenditure needs:
General Fund - Revenues
Increase Property Tax Revenues by $245,000; increasing total General Fund revenues
from $26,845,684 to $27,091,684.
General Fund – Expenditures
Increase General Fund expenditures – General Government - City Attorney by
$125,000;
Increase General Fund expenditures – General Government - City Clerk by $90,000;
Increase General Fund expenditures - Maintenance Services - Parks by $30,000;
increasing total General Fund expenditures from $23,607,232 to $23,852,232.
Special (Restricted) Revenue - Revenues
Increase Donations/Contributions revenues by $16,000; increasing total Special
Revenue revenues from $9,490,271 to $9,506,271.
Special (Restricted) Revenue - Expenditures
Increase Donations/Contributions expenditures – Police Services - Patrol by $5,000,
School Resources Program by $1,000;
Increase Donations/Contributions expenditures – Maintenance Services – Parks by
$10,000;
Increase Building/Planning expenditures – Development Services – Building by
$60,000; increasing total Special Revenue expenditures from $9,667,839 to $9,743,839.
WHEREAS, a change to the Town’s Master Fee Schedule has been recommended to
change the fees charged for the use of Town-owned Electric Vehicle Charging Stations;
and
WHEREAS, sufficient funding is available in the Town’s funds; now, therefore, be it
DocuSign Envelope ID: 9ABCC983-7046-4180-9747-08B64757CF89
ATTACHMENT A
PAGE 2 OF RESOLUTION NO. 15-2020
RESOLVED, that the Danville Town Council hereby approves the mid-year adjustments
to the Fiscal Year 2019/20 Operating Budget; and, be it further
RESOLVED, that the Electrical Vehicle (EV) Charging Station Fee found in Town’s
Master Fee Schedule for User and Cost Recovery Fees is amended as follows:
Level 2 Stations: $0.45 per kwh + $1.00 access fee
Level 3 Stations: $0.55 per kwh + $1.00 access fee
APPROVED, by the Danville Town Council at a regular meeting held on February 18,
2020, by the following vote:
AYES:
NOES:
ABSTAINED:
ABSENT:
_________________________________
MAYOR
APPROVED AS TO FORM: ATTEST:
________________________________ _________________________________
CITY ATTORNEY CITY CLERK
DocuSign Envelope ID: 9ABCC983-7046-4180-9747-08B64757CF89
Master Fee Schedule 2019/20
Fee For Service
Photo Copies $0.20 per sheet
Records Search $50 per hour
Plan Size Copies $2 per sheet
Off-Site Document Retrieval Fee $90 per document
Administrative Citation Late Fee $25
Hartz Avenue Banner Permit $225
Street Light Pole Banner Permit $100
Electrical Vehicle (EV) Charging Station Fee $0.30 per kwh
CITY CLERK
Fee For Service
City Clerk Certification $15/document
Certified Copy $5 first page, $3 each additional page
Records on Flash Drive $1
Agenda Subscription - Mail $30
FINANCE
Fee For Service
Town Financial Plan1 $25
Town Comprehensive Annual Financial Report1 $25
Business License Name Listing $25
Business License Verification Letter $25
Returned Payment Item $25
Returned Payment Item (second time)$35
Other Business License fees per Ordinance 93-3
Credit Card Processing Fee 2.99%, $2.00 Minimum
1The Town Financial Plan, the Town Comprehensive Annual Financial Report and the Town's Municipal Code
are available on the Town’s web site at www.danville.ca.gov
MISCELLANEOUS