12A Action Items (SM to ADJ) - Laserfiche WebLink

Home

File Number: 22-165 Enterprise, Internal Service Funds, and Parking Fund Four Enterprise Funds make up the City's business-type operations. The Water Pollution Control Plant Fund, the Environmental Services Fund, the Shoreline Enterprise Fund, and the Storm Water Fund are City municipal operations designed to fully recover costs through user fees. Internal Service Funds also operate as business activities, exclusively supporting the City's internal operations. Facilities Maintenance, Information Technology, Insurance Services, and Equipment Maintenance comprise the Internal Service Funds. The Parking Fund provides for parking meter and parking lot operations and maintenance at the Downtown Parking Structure. ·Shoreline Enterprise Expenditures-(30% of budget compared to 9% in 2020-2021). Actual Shoreline Enterprise expenditures (and revenues) increased related to a significant increase in play at the Monarch Bay golf courses and transition to the golf management agreement. ·Insurance Services, Expenditures-(85% of budget compared to 41% in 2020-2021). Insurance Services impacted by higher general liability and workers compensation insurance premiums. ·Parking Revenue-(28% of budget compared to 18% in 2020-21). Parking revenues continue to be impacted by the COVID-19 pandemic. Current year revenues are expected to be lower than budgeted. The proposed budget amendment decreases appropriations for parking revenues and reflects a $550,000 contribution from the General Fund to support the program. DISCUSSION-Budget Amendment Analysis The City Council approves annual budgets based on the best revenue and expenditure data available prior to adoption of the budget appropriations. As a result, budget adjustments are periodically necessary for changes that arise requiring changes in revenue or expenditure budget appropriations or re-appropriations between budget line items. Overall, the financial outlook is positive. General Fund revenues are expected to be higher than originally budgeted, mainly due to projected increases in sales tax and real property transfer tax revenues. General Fund expenditures are expected to be lower than originally budgeted, primarily due to vacancy savings, less recreation programming, and reclassification of expenditures to the newly established American Rescue Plan Act (ARPA) Fund. While revenue decreased in some line-items, overall revenues have increased. The total proposed budget amendment for General Fund revenue appropriations amounts to $4,464,100. The appropriation amendment decreases expenditures by a total of $2,632,600. Based on this mid-year budget adjustment, amended revenues are projected less than expenditures by $3,536,000. Page 4 City of San Leandro Printed on 3/9/2022