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Home My WebLink About43-Workshop ,;'","'" , \". "", ,III . 1988-89 MID-YEAR BUDGET ANALYSIS JAMES E. ROBBINS Acting City Administrator ANDREW GREEN Director of Finance ~ ~ ~~ f' {{~ 17 :w I N('Ji Nt. \() /'./2 'iJ ,'.''''', 1,.,." " . MID-YEAR REVIEW 1988/89 BUDGET This report was prepared to give an indication of the accuracy of the estimates made in the 1988/89 budget process. This report consists of six sections. Section I contains a summary overview of total operations. This section speaks to mid-year and items which could have effect on future budget processes. City concerns at a potential Section II analyses General Fund revenues at mid-year. Revenues are examined by major class accenting major components of each class. Section III examines General Fund departmental budgets which are in excellent shape at mid-year. These are areas in which less than 40% of their 1988/89 budget appropriation has been expended and/or encumbered at 12-31-88. Section IV examines General Fund departmental budgets which are in poor shape at mid-year. These are areas in which over 50% of their 1988/89 appropriations have been expended and/or encumbered. Section V examines all other General Fund departmental budgets. These budgets are average having expended and/or encumbered from 40% to 50% of their 1988/89 appropriations. Section VI analyses revenues and expenditures of the funds other than the General Fund. r". '-' ,"-.; OVERVIEW Analysis of the City revenue and expenditure totals as of 12-31-88 indicates that the 1988/89 estimates are still on target with the exception of development fees. The information available to date shows that the fund balance in the General Fund will be approximately $100,000 to $150,000 short of the 1988/89 estimate. This is primarily due to the fact that the estimated beginning 1988/89 fund balance amount was high when compared to the actual 1988/89 beginning fund balance amount by approximately $200,000. The City has made good strides so far this year in maintaining its operating reserve. The following are items which should be considered at mid- year and for the 1989/90 budget process. Proposed Norton AFB Phase Down The proposed phase down of Norton AFB in 1990 will definitely effect City operations. The extent of this impact is very difficult to ascertain at this time. The situation will be very closely monitored in this and future budget cycles to help avoid unexpected problems of a major nature. Data Processinq The City is in the process of a Data Processing operations audit. The purpose of this audit is to analyze the City's current Data Processing system and make recommendations of ways to improve overall system efficiency. These recommenda- tions could equate to increased cost to the City. Preliminary indications are that the City could out grow its current Data Processing system within the next 18 months. It is expected that the Data Processing audit report will be completed in July or August. Vehicle Replacement Proaram A program for the replacement of City equipment will be implemented by the end of the 1988/89 fiscal year. This program will include establishing a vehicle pool to help ensure the efficient use of City vehicles. One of the objectives outlined by the Mayor and Council was equipment replacement. The implementation of this program will provide a systematic and efficient method for equipment replacement. Potential Countv Dump Fee Increases The County is in the process of reviewing a proposal to once again increase dump fees. Public Services indicates that this could equate to a 5% to 10% increase in refuse disposal costs to the City. The fund balance in the Refuse Fund has been hit very hard in the past few years due to the fact that 1-1 ,...... v , " Sales Tax Audit The audit performed by Municipal Resource Consultants (MRC) have uncovered approximately $110,000 in City sales tax revenues to date which were allocated incorrectly by the State. This should equate to $70,000 to $80,000 in additional Sales Tax Revenues to the City. As a result of the time that it takes the State to correct these errors it is estimated that the additional revenue will not be received until the 1989/90 fiscal year. Health Plan As of February the City has converted the major part of its Self Insured Health Plan to a premium orientated plan with P.E.R.S. Under this new plan the City will pay set premiums for its health costs. The City will know the new health rates by April every year. This will help tremendously with estimating the next year's budget amount. This will also allow the City to begin to irradicate the multiple year Health Fund operating deficit with the approximatley $100,000 to $150,000 administration cost savings. This administrative cost saving should start to be realized in the 1989/90 fiscal year. Waqe and Benefit Increases As a result of the Police Salary impasse the total cost for wages and benefit increase for 1988/89 cannot be determined at this time. $1.8 million was budgeted in 1988/89 for all wage and benefit increases. The police impasse could result in additional funds being required. Liabilitv Insurance In December 1988 the City entered agreement with the cities of Huntington and Santa Ana for liability insurance. into a joint powers Beach, Oxnard, Pomona The authority which is called Big Independent Cities Excess Pool (BICEP) issued bonds in the amount of $15,055,000. Per the agreement each city is liable for the first $1 million on each incident. The first premium payment of approximately $452,760 has been paid for the first year's coverage. The bonds will be fully amortized by the year 2000. The insurance limit per incident is $25 million less the City's deductible. Ooeratinq Continqencv The Operating Contingency Fund began the 1988/89 fiscal year with a balance of $594,928. Based upon developments in the first six month period the estimated ending fund balance is projected to be $191,895. This is assuming that no addition- al expenditures are made in the second six months of 1988/89. 1-2 ..- ~ /"". '-" against unexpected problems of a major nature. A 5% reserve would equate to approximately $2.8 million. General Plan The revision of the City's General Plan is due by the end of the 1988/89 fiscal year. As of December 1988 $415,000 remains to be spent on the project. Planning indicates that the entire amount should be expended by the completion of the project. visitor & Convention Bureau The General Fund will be contributing approximately $38,000 to the fund the start of the Visitors and Convention Bureau in 1988/89. Future contributions from the General Fund could become necessary to continue operations. Fixed Assets The City currently has no comprehensive fixed assets system. Accounting for a portion of fixed assets is performed by various departments. The absence of a comprehensive fixed asset system creates a situation where the City does not have a total picture of its investment in fixed assets or what fixed assets it owns. A fixed asset system is currently being tested by Finance on the City's data processing system. Testing will be complete before the end of the fiscal year. However, to implement a fixed asset system for the City of San Bernardino there must be a physical inventory of all fixed assets owned by the City. After this inventory is completed a valuation by an appraiser must be performed. There are firms who specialize in this type of appraisal process for cities for a fee. When examining the entire picture the benefits of knowing the value of the City's fixed assets1 the removal of the "lack of fixed assets1" qualification on the City's financial report1 potential improvement of the City's bond rating and knowing exactly what the City owns in the event of a natural disaster more than justifies the cost of an appraisal. Development Fees The development fee area is showing definite signs of under collection for the 1988/89 fiscal year. In the Building and Safety area alone there is an anticipated $300,000 to $500,000 shortfall in revenue collection for 1988/89. It is believed that this shortfall situation is the residual effect of the building moritorium. 1-3 ,..,."" '""' ......-' ....., SUMMARY OF GENERAL FUND REVENUES 6-Month Percentage Budqet Uncollected Uncollected Property Taxes $ 7,437,000 6,403,781 86% Other Taxes 33,748,885 18,752,537 56% Licenses and Permits 5,069,976 3,468,201 68% Fines and Penalties 258,000 135,811 53% Use of Property 913,547 973,795 <7> Intergovernmental 6,036,433 3,692,419 61% Current Services 2,362,546 1,438,316 61% Miscellaneous Revenues 1.365.600 636.318 47% $57,191,987 $35,501,178 62% 11"'~' -', '-" ......,,1 1988-89 GENERAL FUND REVENUES ANALYSIS AS OF 12-31-88 PROPERTY TAXES 6-Month Uncollected Percentage Uncollected 1988-89 Estimate $7,437,000 $6,403,781 86% As of 12-31-88, 14% of the estimated Property Tax revenue has been collected. Analysis shows that the majority of Property Tax revenues are received in the second half of the fiscal year. When this is taken into account Property Tax revenue collection is consistent with that of prior years. It is anticipated that the estimate will be realized. OTHER TAXES 1988-89 Estimate 6-Month Uncollected Percentage Uncollected $33,748,885 $18,782,537 56% FRANCHISE TAXES 1988-89 Estimate 6-Month Uncollected Percentage Uncollected $1,265,950 $1,209,869 96% Franchise taxes are traditionally received in March. SALES AND USE TAX 1988-89 Estimate 6-Month Uncollected Percentage Uncollected $20,180,935 $11,405,397 57% The amount of $8,775,537 has been collected as of 12-31-88 in Sales Tax revenue. This equates to a 17% increase over the amount collected at this time last year. Revenues received in the first quarter of the 1988/89 fiscal year were 19% over the same period in 1987/88. Based upon prior collection trends approximately 58% of the City's Sales Tax revenue is collected in the second half of the fiscal year. II-l '-' ~." -...i ~-- $100,000 to $300,000. The Sales Tax audit performed by Municipal Resource Consultants (MRCI revealed that approximately $110,000 of Sales Tax credit was incorrectly allocated by the State. The terms of the MRC contract provides that a percentage of these revenues be paid to MRC for fees. This should represent approximately $70,000 to $80,000 net revenues to the City. It is anticipated that these revenues will be realized in the 1989/90 fiscal year. TRANSIENT OCCUPANCY TAX 1988-89 Estimate 6-Month Uncollected Percentage Uncollected $1,050,000 $ 639,401 61% A total of $410,599 has been collected as of 12-31-88. In the prior year 33% of the actual revenues collected were collected in the second half of the fiscal year. The payments that will be received from the Maruko will offset some of the estimated undercollection for the 1988/89 fiscal year. However, based upon the current trend the collection will be short of the estimate by approximately $30,000. PROPERTY TRANSFER TAX 1988-89 Estimate 6-Month Uncollected Percentage Uncollected $ 190,000 $ 75,268 40% Based on the current trend, collections will exceed the estimate. UTILITY USERS TAX 1988-89 Estimate 6-Month Uncollected Percentage Uncollected $11,062,000 $5,452,601 49% Utility Users Tax revenues are 13% ahead of this time last year. In comparison to the estimate at 12-31-88 collections are right on target. In fiscal year 1987/88 48% of the actual Utility Users Tax revenue collected was received in the second half of the fiscal year. Based upon these trends it is estimated that the estimate will be reached in 1988/89. II-2 "'..... ,-,,' ............................... .....- .... ................-.... 1988-89 Estimate 6-Month Uncollected Percentage Uncollected $5,069,976 $3,468,201 68% BUSINESS LICENSES 1988-89 Estimate 6-Month Uncollected $1,807,855 Percentage Uncollected $2,695,000 67% 30% to 40% of the receipts are collected in the first half of the year and the remainder in the second half of the year. This is due to the fact that two-thirds of the license renewals are done in January. Actual collections are expected to meet or exceed the estimate. BUILDING PERMITS 1988-89 Estimate 6-Month Uncollected Percentage Uncollected $1,094,441 $ 768,380 70% The rate of construction since the moratorium has not been as high as was anticipated by the Building and Safety Department. Building Permits at mid-year have only been collected to 30% of the annual estimate. It is likely that this revenue source will fall $200,000 to $350,000 short of the estimate. MECHANICAL PERMITS 19 88-89 Estimate 6-Month Uncollected Percentage Uncollected $ 572,664 $ 458,430 80% This account is also affected by the slower building rate, and could fall short of the estimate by as much as $200,000. CULTURAL DEVELOPMENT CONSTRUCTION FEE 1988-89 Estimate 6-Month Uncollected Percentage Uncollected $ 425,142 $ 355,014 84% This account is also affected by the slower building rate, and could fall short of the estimate by as much as $150,000. II-3 -' ., "-./ ......'"' 1988-89 Estimate 6-Month Uncollected Percentage Uncollected $ 251,004 $ 73,374 29% This source includes Public Works construction permits, street cut permits, grading permits, certificates of occupancy, etc. Based on past activity, the 1988-89 estimate will be met. FINES, FORFEITS AND PENALTIES 1988-89 Estimate 6-Month Uncollected Percentage Uncollected $ 258,000 $ 135,811 GENERAL FINES 53% 1988-89 Estimate 6-Month Uncollected Percentage Uncollected $ 24,000 $ 16,655 69% To date we have received $7,346 which is the revenue for only five months. Analysis reveals that receipts from this source are usually at least one month behind. PARKING CITATIONS 1988-89 Estimate 6-Month Uncollected Percentage Uncollected $ 234,000 $ 119,157 51 This revenue from this source should meet the l2-month estimate. REVENUE FROM USE OF MONEY AND PROPERTY 1988-89 Estimate 6-Month Uncollected Percentage Uncollected $ 913,547 $ 973,795 <7%> INTEREST ON IDLE CASH 1988-89 Estimate 6-Month uncollected Percentage Uncollected $ 550,000 $ 822,592 <50%> The allocation of interest is being performed in correct manner this year. This method results in the General Fund corresponding to actual net cash. 1I-4 a different and more interest earnings in Since a majority of - --- ~, '--' year, interest earnings will be realized in the same manner. The account has been charged with $272,600 as an audit adjustment to the prior fiscal year. This results in the 6-month uncollected figure being higher than the annual estimate. The expected interest earnings for the year are projected to be $50,000 to $100,000 short of the annual estimate. LAND & BUILDING RENTAL 1988-89 Estimate 6-Month Uncollected Percentage Uncollected $ 322,068 $ 138,611 43% The prime revenue items are rentals of City Hall space from the Redevelopment Agency and the Water Department. INTERGOVERNMENTAL REVENUES 1988-89 Estimate 6-Month Uncollected Percentage Uncollected $6,036,433 $3,692,420 61% MOTOR VEHICLE IN-LIEU 1988-89 Estimate 6-Month Uncollected Percentage Uncollected $4,857,360 $2,811,796 58% The State apportions and distributes revenue derived from motor vehicle license fees monthly. CIGARETTE TAX 1988-89 Estimate 6-Month Uncollected Percentage Uncollected $ 472,503 239,057 51% The State distributes a percentage of its receipts from State Cigarette Tax to the City monthly. HOMEOWNER EXEMPTION 1988-89 Estimate 6-Month Uncollected Percentage Uncollected $ 260,000 $ 221,022 85% The majority of the receipts from this revenue source are received in the second half of the fiscal year. Il-5 ,..-... -- ....~ COUNTY AID - CROSSING GUARDS 1988-89 Estimate 6-Month Uncollected Percentage Uncollected $ 45,794 $ 23,766 52% The majority of the receipts from this revenue source are received in the second half of the fiscal year, based on the corresponding school year. These figures include crossing guards for Highland, which will be split into a separate account in the future. 1988-89 Estimate REDEVELOPMENT AGENCY REIMBURSEMENT 6-Month Uncollected Percentage Uncollected $ 235,000 $ 188,551 80% Billings to the Redevelopment Agency for 88-89 Council services ($30,000) and Affirmative Action Services ($8,000) will be sent during the second half of the year. Billings for the city Attorney services have been sent for approximately half of the annual amount. The total of billings is projected to be short of the estimate. 1988-89 Estimate SPECIAL SUPPLEMENTAL SUBVENTION 6-Month Uncollected Percentage Uncollected $ 26,241 -0- -0- The total amount of revenue from this source is received in the first half of the fiscal year. STATE AID - CIVIL DEFENSE 1988-89 Estimate 6-Month Uncollected Percentage Uncollected $ 42,000 $ 41,359 98% The majority of this revenue source is collected during the second half of the year, but the total is projected to fall short of the estimate. OTHER REVENUE FROM OTHER AGENCIES 1988-89 Estimate 6-Month Uncollected Percentage Uncollected $ 97,535 $ 97,535 II-6 100% ,,"' ""-" - ~ These revenue Vehicle tax. the year. sources include Trailer Coach fees and Off Highway Motor They are both normally received during the last half of CHARGES FOR CURRENT SERVICES 1988-89 Estimate 6-Month Uncollected Percentage Uncollected $2,362,546 $1,438,316 PLAN CHECK FEES 61% 1988-89 Estimate 6-Month Uncollected Percentage Uncollected $ 984,373 $ 686,162 70% This revenue source includes plan check fees from Building and Safety. To date only 30% of revenues have been collected. If this trend continues $300,000 will be uncollected at year-end. SEWER LINE MAINTENANCE 1988-89 Estimate 6-Month Uncollected Percentage Uncollected $ 591,968 $ 373,171 63% The Sewer Line Maintenance Reimbursement is derived from billings to the Water Department for the costs incurred by the Sewer Maintenance Division of the Public Services Department. The $218,796 collected reflects billings to the Water Department for six months. OTHER BUILDING AND SAFETY FEES 1988-89 Estimate 6-Month Uncollected Percentage Uncollected $ 200,000 $ 131,836 65% This revenue source includes building demolition, board up and plan check reimbursement. If the trend continues, this source will be $40,000 to $50,000 short of the estimate. MISCELLANEOUS REVENUES 1988-89 Estimate 6-Month Uncollected Percentage Uncollected $1,365,600 $ 636,318 47% 1I-7 - - ---........ ....,.., 1988-89 Estimate 6-Month Uncollected Percentage Uncollected $ 5,000 $ 24,664 <39%> This account has been charged with $30,000, for an adjustment to prior fiscal years. The amount actually received has exceeded the estimate. WATER FUND CONTRIBUTION 1988-89 Estimate 6-Month Uncollected Percentage Uncollected $ 898,000 $ 431,439 48% This revenue is received from the Water Department and is 10% of their Water Sales Revenue. We have received $466,562 for the first six months of 1988-89 and expect to meet the 12 month estimate. ADMINISTRATIVE SERVICE CHARGE 1988-89 Estimate 6-Month Uncollected Percentage Uncollected $ 100,000 $ 50,000 50% This revenue source is derived from semi-annual billings to the Refuse Fund for services provided by the General Fund. OFF TRACK BETTING 1988-89 Estimate 6-Month Uncollected Percentage Uncollected $ 250,000 $ 129,401 42% Based upon the first half of the year, this account will meet the estimated revenue. 1988-89 Estimate SALE OF EQUIPMENT & SALVAGE MATERIAL 6-Month Uncollected Percentage Uncollected $ 55,500 $ 756 1% These revenues include Sale of Equipment, Sale Equipment and Sale of Salvage Material. These exceeded the twelve month estimate as of mid-year. of Reconditioned sales have almost II-8 ~ - , -...."" 1988-89 Estimate 6-Month Uncollected Percentage Uncollected $ 35,000 <$ 14,999> -0- The total amount billed during the first half of the year exceeds the 12 month estimate by $14,999. II-9 - '-' "-" ,-,,,Jl 1988-89 GENERAL FUND APPROPRIATIONS LIST OF GENERAL FUND DEPARTMENTS BUDGET ACCOUNT 1988-89 *APPROPRIATIONS $550,077 12-31-88 UNENCUMBERED BALANCE 12-31-88 PERCENTAGE REMAINING City Administrator Civil Service/Personnel 336,375 683,917 280,580 891,124 877 ,962 578,225 613,030 $280,827 177,177 405,340 134,850 477,338 51% 53% 59% 48% Mayor Common Couc il City Clerk City Treasurer City Attorney 54% 1,196,312 456,928 323,907 309,305 613,117 613,806 509,381 5,158,987 52% General Government 56% Planning 1,160,975 50% 51% 53% Finance 1,211,198 Building & Safety 42% Fire 11,279,590 46% Public Services 6,968,274 4,933,889 4,374,304 9,021,991 2,811,535 2,473,607 2,688,545 48% 40% 50% 61% Police 18,639,451 Public Works Parks, Rec. & Comm Svcs. Risk Management 332,975 307,503 99-,578 92% Emergency Services 406,760 24% *Not included is the $1.8 million budgeted for wage and benefit increases. When the $1.8 million is included the overall General Fund will show an average of 52% remaining. Traditionally wage and benefit adjustments are made at mid-year and will be made in February. ~. .......'" '....... --. 1988-89 GENERAL FUND APPROPRIATIONS LESS THAN 40% EXPENDED AS OF 12-31-88 The following budget accounts have 6-month unencumbered balances of more than 60%: CITY CLERK-ELECTIONS 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $ 138,107 $ 126,105 91% This division has expended only 9% of the appropriation because the elections are scheduled for the second half of the fiscal year. CITY ADMINISTRATOR-ADMINISTRATION 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $ 326,909 $ 198,293 61% This division has expended only 39% of the appropriation. This is due to the vacancy being held for the City Administrator position. CIVIL SERVICE 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $ 95,342 $ 84,208 88% This division has expended only 12% of the appropriation. The adjustment for personal services will be made in the second half of the fiscal year which will correct the expenses in this department and the personnel department where the expenses were charged in error. , IlI-l ~ -, -- ',., ...........:r,................... ..........,................... .........l..., 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $ 452,171 $ 335,029 74% This division has expended 26% of the appropriation at mid-year. However, a charge by the planning administration division will be applied the second half of the year. If the charge was applied at mid- year this division would have expended 50% of the appropriation. POLICE-ADMINISTRATION 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $ 388,015 $ 293,396 76% This division has expended 24% of the appropriation. This is due to salaries being over budgeted in this division for special pays which will be allocated to the other divisions in the second half of the fiscal year. POLICE-CRIME ANALYSIS 1988-89 Appropriation 12-31-'88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $ 191,046 $ 139,532 73% This division has expended 27% of the appropriation. This is because only 11% of the computer equipment budgeted for has been purchased. PARKS, REC & COMMUNITY SERVICES SECCOMBE LAKE SURA MAINTENANCE 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $ 129,182 $ 113,741 88% This division has expended 12% of the appropriation because the interfund credit from the State of California was received in the first half of the fiscal year. IlI-2 - - - ./ '-'" STURGES AUTDTORIUM 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $ 107,087 $ 83,281 78% This division has expended 22% of the appropriations because personal services were not charged to this division. An adjustment will be made in the second half of the fiscal year. PARKS, REC & COMMUNITY SERVICES SURA ACTIVITIES CENTER 1988-89 APpropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $ 39,959 $ 39,452 99% This division has expended 1% of the appropriation because construction of the facility is not complete. However, these funds should be expended in the second half of the fiscal. PARKS, REC & COMMUNITY SERVICES PERRIS HILL SENIOR CENTER 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $ 118,799 $ 103,836 87% This division has expended 13% of the appropriation because the new center will not open until the second half of the fiscal year. PUBLIC SERVICES-STREET-SEWER MAINTENANCE 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $ 594,123 $ 362,386 61% This division has expended 39% of the appropriation because the material, services and supplies are only 27% expended in the first half of the year. IIl-3 ,,- - -"'" -- 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $ 744,254 $ 524,492 70% This division has expended 30% of the appropriation because materials, services, and supplies are only 16% expended at mid-year. RISK MANAGEMENT-ADMINISTRATION 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $ 362,466 $ 293,155 88% This division has expended 12% of the appropriation because the Fire Insurance premium is not due until the second half of the fiscal year. 1II-4 ,...., ,......., - ,."t 1988-89 GENERAL FUND APPROPRIATIONS OVER 50' EXPENDED AS OF 12-31-88 The following budget accounts have 6-month remaining balances of less than 50': MAYOR-CALIFORNIA CONSERVA~ON CORPS. 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $ 30,698 $ 14 ,227 46% This division has expended 54' of the costs are over spent. This is due to for the conservation crew supervisor. appropriation because personnel the under budgeting of the salary TREASURER-ADMINISTRATION 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $ 224,700 $ 108,150 48' This division has expended 52' of the appropriation because equipment items budgeted for have already been encumbered at 12-31-88. TREASURER-UTILITY COLLECTION CENTER 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $ 55,880 $ 26,700 48' This division has expended 52' of the appropriation at mid-year because equipment items budgeted for have already been encumbered. GENERAL GOVERNEMENT-NON-DEPARTMENTAL 1988-89 Appropriation 12-31-88 unencumbered Balance 12-31-88 Percentaqe Remaininq $ 451,263 $ 202,655 45% This division is a cost center for items of City-wide nature that are not allocated to other specific departments. To date this division has expended 55' of the appropriation. One item of concern is the charges to the various departments for copy machine charges. In the past, IV-l ~ "-' ') -- lease payments on the of maintaining these January 1989 is being these machines. new copiers this charge is not covering the cost machines. Therefore, an increase starting in implemented to cover the cost of operations of CITY ADMINSITRATOR-DEVELOPMENT 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $ 117,683 $ 55,250 47% The division has expended 53% of the appropriation is because the departmental credit for the General charged off. This credit will be given in the fiscal year. at 12-31-88. This Plan has not been second half of the PERSONNEL 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $ 517,688 $ 225,098 43% This division has expended 57% of the appropriation. This is due to an over charge for personnel services needed in the Civil Service Department. These charges will be adjusted in the second half of the fiscal year. FINANCE-PRINT SHOP 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $ 70,549 $ 23,322 33% This division has expended 67% 62% of its materials, services budgets have been expended or fiscal year. of the appropriation. This is because and supplies and 91% of its equipment encumbered in the first half of the PLANNING-ADMINISTRATION 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $ 708,804 $ 278,777 39% This division has expended 61% of the appropriation. However, an interfund credit chargeable to the General Plan Division will be done in the second half of the fiscal year. If this credit was applied at 12-31-88, this division would have 54% of its appropriation available at mid-year. IV-2 ....~... - , '-' BUILDING , SAFETY 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 percentaae Remainina $1,196,312 $ 509,381 43% This division has expended 57% of the appropriation. This is because of the building demolition costs being over expended at 12-31-88. At 12-31-88 the expenses for demolition are $83,765 over expended, out of a budget of $100,000. FIRE ADMINISTRATION 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 percentaae Remainina $1,289,031 $ 620,695 48% This division has expended the over expenditure is the the first half of the fiscal 52% of the appropriation. payoff for the retirement year. The reason for of the chief in FIRE-SUPPRESSION 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 percentaae Remaininq $9,050,254 $ 4,081,025 45% This division has expended 55% of the appropriation this was caused by the large number of retirements from this division. Also their overtime is 94% spent at mid-year. Excessive overtime use is due to extraordinary illness. FIRE-PREVENTION 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $ 387,693 $ 174,397 45% This division has expended 55% of the appropriation at mid-year. This is because 95% of the equipment items budgeted have been purchased. FIRE-VEHICLE MAINTENANCE 1988-89 APpropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $ 153,883 $ 75,409 49% IV-3 -, ~ --. I -- 83% of the equipment budgeted has been encumbered. POLICE-STATION COMMAND 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $ 662,691 $ 322,427 49% This division has expended 51% of the appropriation. This is because 73% of the equipment items purchased have been expended. POLICE-AREA A 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $1,555,355 $ 737,324 47% This division has expanded 53% of the appropriation. This is because 100% of the equipment items budgeted have been expended. POLICE-AREA B 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $1,489,900 $ 680,331 46% This division has expended 54% of the appropriation. This is because salaries in this division are 54% expended at mid-year. POLICE-AREA C 1988-89 APpropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $1,270,801 $ 599,179 47% This division has expended 53% of the appropriation. This is because 52% of the salaries in this division has been expended at mid-year. POICE-AREA D 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $1,080,870 $ 465,644 43% This division has expended 57% of the appropriation. This is because personal services are 57% expended at mid-year. IV-4 """~.... ......., " ...",' POLICE-AREA E 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $1,553,018 $ 680,828 44% This division has expended 56% of the appropriation. This is because the equipment budgeted has been 15% over expended at mid-year. POLICE-AREA F 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $1,118,784 $ 524,610 47% This division has expended 53% of the appropriation. This is because personal services have been 52% expended at mid-year. 1988-89 Appropriation POLICE-VICE/NARCATICS 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $1,372,169 $ 665,103 48% This division has expended 52% of the appropriation. personal services have been 52% expended at mid-year. This is because POLICE-M.E.T. 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $ 495,504 $ 224,591 45% This division has expended 55% of the appropriation. This is because 56% of personal services have been expended at mid-year. POLICE-INVESTIGATIONS 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $2,012,259 $ 946,984 47% This division has expended 53% of the appropriation. This is because 54% of the personal services have been expended at mid-year. IV-5 - ......, -...-. , J POLICE-IDENTIFICATION/PROPERTY 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $ 645,232 $ 267,578 41% This division has their materials, year. expended 59% of the appropriation. This is because services and supplies have been 91% expended at mid- POLICE-DISPATCH 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $ 841,583 $ 410,251 49% This division has expended 51% of the appropriation. This is because 53% of the personal services have been expended at mid-year. POLICE-RECORDS 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $ 397,906 $ 194,379 49% This division has expended 51% of the appropriation. This is because materials services and supplies have been 86% encumbered or spent at mid-year. POLICE-COMMUNITY PROGRAMS 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $ 397,906 $ 194,379 49% This division has expended 51% of the appropriation. salaries have been 54% spent at mid-year. This is because POLICE-CENTRAL CITY MALL SECURITY 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $ 104,214 $ 42,336 41% This division has expended 59% of the appropriation. personal services is 59% spent at mid-year. This is because IV-6 ,'-'" ~" ......... c ' _J PUBLIC WORKS-ENGINEERING ADMINISTRATION 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $ 333,451 $ 163,235 49% This division has expended 51% of their departmental credits will be fiscal year. the appropriation. This is because charged in the second half of the PUBLIC WORKS-ENGINEERING DESIGN 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $ 406,929 $ 177,773 44% This division has the departmental fiscal year. expended 56% of the appropriation. This is because credits will be charged in the second half of the PUBLIC WORKS-ENGINEERING-FIELD 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $ 397,200 $ 163,928 41% This division has expended 59% of the appropriation. This is because the departmental credits will be charged in the second half of the fiscal year. PUBLIC WORKS-ENGINEERING-SIGNALS 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $ 602,895 $ 259,037 43% This division has expended 57% of the appropriation. This is because to date we have expens~d 56% of the materials, services, and supplies. Also we have not shown any billable items for traffic signal knock downs. PUBLIC WORKS-PUBLIC BUILDINGS-CITY HALL 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $1,339,664 $ 246,144 18% This division has expended 82% of the appropriation because the land and building rental charges of $562,000 were incurred in the first half IV-7 " ", ........... -- .-.../ ""'.... ......__ ........~__.... .J. ---. ~...................~~ ..._.........'-.......~....'- ........... o;,;;;....'-..................Iool.... ....v.,;)<- .......'- greater than anticipated in the first half of the fiscal year. PUBLIC WORKS-PUBLIC BUILDINGS-CUSTODIAL MAINTENANCE 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $ 654,901 $ 286,489 44% This division has expended 56% of the appropriation because personal services are 61% expended at mid-year. PUBLIC WORKS-PUBLIC BUILDINGS-PARKING CONTROL 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $ 201,384 $ 92,183 46% This division has expended 54% of the appropriation because personal services are 54% expended at mid-year. PUBLIC WORKS-PUBLIC BUILDINGS-CITY YARDS 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $ 27,720 $ 4,031 15% This division has expended 85% of the appropriation because the build- ing maintenance expense is overspent at mid-year by 97% over budget. PARKS, REC & COMMUNITY SERVICES PARK MAINTENANCE 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $2,140,117 $ 957,523 45% This division has expended 55% of the appropriation because the equip- ment items budgeted have been 96% expended or encumbered. Also inter- fund credits will be charged in the second half of the fiscal year. IV-8 ,1"''''.... - '--~ '-' 1988-89 GENERAL FUND APPROPRIATIONS 40% TO 50% EXPENDED AS OF 12-31-88 The following budget accounts are considered to correspond with their budgeted appropriations. The exceptions were noted in Sections III and IV. 1988-89 BUDGET ACCOUNT APPROPRIATIONS 12-31-88 UNENCUMBERED BALANCE $212,960 53,640 177,177 140,015 139,220 Mayor -Administration $425,539 Mayor - Affirmative Action 93,840 Common Council 336,275 City Clerk - Administration 271,081 City Clerk - Business License 891,124 City Attorney 274,729 477 ,338 General Government Promotion & Publicity 426,699 City Administration Special Projects 133,633 254,274 70,364 344,409 245,387 207,460 Finance - Administration 677,893 Finance - Purchasing & Stores 462,756 Fire - Dispatch 398,729 Police - Traffic 839,168 450,255 police - Crossing Guards 415,467 police - Services 680,381 230,897 police - Personnel & Training 555,366 353,048 319,903 Public Works - Engineering Real Property 121,154 67,017 Public Works - Engineering Traffic 190,687 105,570 Public Works - Engineering Signing & Stripping 479,992 Public Works - Garage 2,536,411 285,661 1,302,049 V-l 12-31-88 PERCENTAGE REMAINING 50% 57% 53% 52% 51% 54% 59% 53% 51% 53% 52% 54% 56% 52% 58% 55% 55% 59% 51% "'.", -." ......... ) 12-31-88 12-31-88 1988-89 UNENCUMBERED PERCENTAGE BUDGET ACCOUNT APPROPRIATIONS BALANCE REMAINING Public Works - Public Bldgs. Administration 265,372 139,433 53% Public Works - Public B1dgs. City Hall 1,098,232 546,863 50% Public Works - Public B1dgs. Building Maintenance 796,558 430,063 54% PUblic Works - Public Bldgs. Central City West 10,863 5,751 53% Public Works - Public B1dgs Street Lights 1,485,716 793,911 53% Parks, Rec. & Community Svcs. Administration 463,766 233,012 50% Parks, Rec & Community Svcs. CID 124,627 71,941 58% Public Services-Street Admin. 141,351 82,567 58% Public Services-Street Street-Maintenance 2,286,399 1,357,916 59% Public Services-Street Street Tree Maintenance 608,177 361,185 59% Emergency Services 147,005 74,696 51% V-2 ~-, .~ ,.j ........., 1988-89 APPROPRIATIONS AND REVENUES FOR OTHER FUNDS AS OF 12-31-88 TRAINING FUND This fund was established in fiscal Officer State Training (POST) reimbursement activity. year 1987/88 to isolate the Peace reimbursable expenditure and Expenditures for the first six months of fiscal year 1988/89 total $72,046, of which $58,809 has been reimbursed by the State. PUBLIC'S FACILITIES RENOVATION FUND This fund was established in fiscal year 1987/88 to trace the costs associated with the renovation of city Hall. The funding sources were a loan from the Association of Bay Area Governments (AGAG) and increased rent to the Water, Redevelopment Agency and Community Development departments, which would be used for loan retirement. The fund will become solvent during the 1993/94 fiscal year. OPERATING CONTINGENCY FUND The estimated beginning 1988/89 fund balance is $594,928. The current budget contains a transfer of $275,000 to the General Fund for general use and a transfer of $64,333 to the Street Construction Fund. Subsequent to the adoption of the budget, additional funding was appro- priated from the Operating Contingency Fund for the Police Cruising Program and the Vehicle Abatement Program. It is generally recommended that a reserve of at least 5% of the General Fund appropriation be maintained in order to provide a margin of safety if sudden revenue shortfalls or expenditure upsurges are encountered because of natural disasters. In the City'S case, the minimum reserve would be approximately 2.8 million. The current balance in the fund is anticipated to be $191,895 at June 30, 1989. LIBRARY FUND APPROPRIATION 1988-89 Appropriations 12-31-88 Unencumbered Balance 12-31-88 Percentaae Remainina $ 2,726,451 $ 1 , 411 , 867 52% VI-l ,....<<" '""'" ......1 ~ 1988-89 Estimate 6-Month Uncollected Percentage Uncollected $ 233,600 $ 198,753 25% Library revenues are only 15% collected at December 31, that is anticipated from other agencies (primarily expected in the last half of the fiscal year. Also the Library operating funds, $2,442,625 or approximately transferred from the City's General Fund. 1988. $198,600 the State) is remainder of 90%, will be CEMETERY FUND APPROPRIATION 1988-89 12-31-88 Appropriations Unencumbe red Balance $ 224,678 $ 103,306 REVENUE 1988-89 6-Month Estimate Uncollected $ 200,200 $ 129,823 12-31-88 Percentaqe Remaininq 46% Percentage Uncollected 65% Revenues of $70,377 had been collected as of 12-31-88. Charges for current services, the category which includes burial fees, sale of vases, concrete boxes, cemetery plots, and markers, has 45% of its revenue collected through December 31, 1988. It is anticipated that revenue estimates will be met. Expended appropriations for this fund amount to $121,372, of which $5,282 is encumbered. All indications are that the Cemetery Fund will be self supporting in fiscal year 1988-89. 1988-89 Appropriation CABLE TV FUND 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $ 387,166 $ 159,443 41% Revenues from this fund are derived from 75% (3% of the 4% franchise fee) of franchise fees from cable television operators within the City. Expenditures are over 50% at mid-year due to higher than anticipated charges in professional and contractual services and audio visual accessories. VI-2 ....- ""._, v '- J' ... .............. ............ ......... ............. ..............,.... ....... .,..... . ................... APPROPRIATION 1988-89 12-31-88 Appropriations Unencumbered Balance $ 44,898 $ 31,427 REVENUE 1988-89 6-Month Estimate Uncollected $ 188,738 $ 144,669 12-31-88 Percentaqe Remaininq 70' Percentage Uncollected 7H Revenues for this activity are derived from 25' of the Area Tax collected. The remaining 75' of these revenues are transferred to the Parking District Fund. The Business License renewal cycle is on a calendar-year basis. This has resulted in 77' of the anticipated revenues remaining uncollected as of December 31, 1988. This fund should achieve the 1988-89 revenue estimate. Services provided by this fund include security for outside Central City Mall and 3-Level Parking Structure and custodial services for downtown bus stops and sidewalks. PARKING DISTRICT FUND APPROPRIATION 1988-89 Appropriations 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $ 281,847 $ 276,235 REVENUE 98' 1988-89 Estimate 6-Month Uncollected Percentage Uncollected $ 194,386 $ 153,562 79' The majority of revenue for this assessments, most of which will not of the fiscal year. In addition Revenue will be transferred from the Fund. Appropriations for the Parking District expended as of 12-31-88 were 2'. The reason for this is that payment to the Redevelopment Agency for rental of property within the District is made in the last half of the year. A transfer of $30,300 to the Operating Contingency will be made in the second half of the fiscal year. fund is derived from special be received until the second half to this revenue, 75' of Area Tax Parking and Business Improvement VI-3 ,............ ,'~ ""'''-,~ '-" LOCAL TRANSPORTATION FUND REVENUES 1988-89 Estimate $ 231,908 6-Month Uncollected pe rcentage Uncollected $ 172,385 98% Local Transportation Funds are used in the Street Construction finance local street projects as matching funds for Federal Aid funding. These revenues are State funded and are collected second half of the fiscal year. fund to Urban in the ANIMAL CONTROL FUND APPROPRIATION 1988-89 12-31-88 Appropriation Unencumbered Balance $ 645,677 $ 352,087 REVENUE 1988-89 6-Month Estimate Uncollected $ 336,800 $ 172,385 12-31-88 Percentaqe Remaininq 55% Percentage Uncollected 51% Revenues should increase slightly in the second half of the fiscal year because animal license renewal begins in May. Also the Owner Release Fees and Field Service Fees, which were eliminated in prior years, were reinstated in fiscal year 1988/89. Based on this information and the current revenue collection trend, estimates will be met. A transfer from General Fund of $275,000 was budgeted for the 1988/89 fiscal year projecting a deficit of $398,600. This deficit was caused by elimination of research sales and reduction of contract shelter fee revenue by council action during 1986/87 fiscal year. SPECIAL GAS TAX FUND REVENUES 1988-89 Estimate 6-Month Uncollected 1,268,595 Percentage Uncollected $2,031,329 $ 58% Gas Tax revenues received as of 12-31-88 payments. Current year funds are transferred street and road maintenance. This is a State represent to General revenue. six months of Fund for local VI-4 """""' l..." /' '-.... _.J REFUSE FUND APPROPRIATION 1988-89 Appropriations 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $ 7,548,440 $ 3,116,995 REVENUE 41% 1988-89 Estimate 6-Month Uncollected percentage Uncollected $5,867,500 $ 2,897,971 49% The 1987-88 ending fund balance was $1,315,904. If present trends continue, the revenue and expenditure estimates will be met. TRAFFIC SAFETY FUND REVENUE 1988-89 Estimate 6-Month Uncollected Percentage Uncollected $ 227,000 $ 152,703 67% Budgeted revenues for this fund are below the Revenues are derived from California Vehicle collected by the County. The proceeds of this transfer into the General Fund. estimate at 12-31-88. Code violation fines fund are budgeted for PROFESSIONAL BASEBALL TEAM FUND This fund was established to isolate the revenues and expenditures involved with the operation of Fiscalini Field as a result of the Spirit Professional Baseball Team. Revenues are derived from the lease of Fiscalini Field by the Spirit and from the rental of the clubhouse. All expenditures relate to maintaining the field and the clubhouse. SPECIAL CONSTRUCTION FUND This fund has a balance of $439,593. This capital construction projects in 1988/89. zero at the end of the 1988/89 fiscal year. balance will be used for The ending balance will be VI-5 -, \,-".;' 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaae Remainina $ 272,131 $ 237,129 87% $81,000 is budgeted to be transferred from the General Fund to supple- ment current year activities. The majority of expenditures in this fund will be made during the last half of the year. STREET CONSTRUCTION PUND APPROPRIATION 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 percentaae Remainina $9,849,440 $ 9,425,246 95% REVENUE 1988-89 Estimate 6-Month Uncollected Percentage Uncollected $4,134,900 $ 3,514,992 85% Revenue in this fund is derived from Federal Aid-Urban, State (Local Transportation Funds), Federal Bridge Replacement Punds, Federal Section 203 Funds (Grade Xings), County Funds, City Participation and Traffic Safety Pees, which are a new revenue source beginning fiscal year 1988-89. Traffic Safety Fees are paid by developers and used to fund various street construction projects. The current fiscal year is the third of the current four-year Federal Aid Urban funding cycle. Typically expenditures are made by the City and then reimbursed. This is why revenues are only 15% collected. PARK CONSTRUCTION FUND APPROPRIATION 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 percentaae Remainina $4,692,601 $ 4,216,899 90% REVENUE 1988-89 Estimate 6-Month Uncollected Percentage Uncollected $1,016,935 $ 522,152 51% Revenue is derived from Park Development fees, which are behind VI-6 '""' ,-",,' " .I Revenues collected through the first half of the fiscal year are $213,465 from Park Development fees and $276,806 from the State. Appropriations expended to date total $458,887 or 10% due to the fact that many projects are still in the preliminary stages, particularly Seccombe Lake Development Phase lB. CEMETERY CONSTRUCTION FUND APPROPRIATION 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $ 50,383 $ 50,383 REVENUE 100% 1988-89 Estimate 6-Month Uncollected Percentage Uncollected $ 14,000 $ 7,852 56% Funds are derived from a portion of the sale of cemetery plots to be used for cemetery capital expenditures. SEWER LINE CONSTRUCTION FUND APPROPRIATION 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $ 4,654,539 $ 4,513 ,030 REVENUE 97% 1988-89 Estimate 6-Month Uncollected Percentage Uncollected $ 1,418,099 $ 1,173,133 82% The rate of construction since the building moratorium was lifted has not been as high as anticipated by the Building and Safety Department. Sewer connection fees at mid-year are only 15% of the annual estimate collectd. It is estimated that revenues may fall short as much as $500,000. VI-7 ..."...'" ~ .........' ........' STORM DRAIN CONSTRUCTION FUND APPROPRIATION 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $ 3,299,284 $ 3,181,426 96% REVENUE 1988-89 Estimate 6-Month Uncollected Percentage Uncollected $ 795,685 $ 405,848 51% $383,061 of the anticipated $795,685 from storm drain facilities fees has been collected to date. Appropriations expended to date total $117,858 or 4%, due to the fact that many projects are still in the preliminary stages. LIABILITY INSURANCE FUND APPROPRIATION 1988-89 Appropriations 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $ 2,449,494 $ 1,202,401 49% Revenue for this fund is derived from a budgeted transfer from the General Fund in the amount of $1,002,500. The total appropriation for 1988-89 is $2,449,494. Liability claims make up $1,502,000 of that amount of the claims amount, $594,546 has been paid out at mid-year. Litigation expense to date has been $138,093. The liability insurance premium was paid in the amount of $452,760 to the BICEP Authority for the first year's coverage. The first deductible agreement. year was from October 1, 1988 through July of $1,000,000 per incident is required per the Any balances are retained to increase reserve. 1, 19 89 . A joint powers VI-B ..-, ~ '-'" COMBINED HEALTH INSURANCE PLAN FUND Thru 12-31-88 1986/87 1987/88 88/89 Income 2,009,541 2,349,893 1,385,830 Expense 2,698,109 3 ,032,278 1,456,702 Gain/<Loss> <688,568> <682,385> <70,872> This fund was created to account for costs under the City's John Hancock self-insured program. Combined benefits covered are health, dental, vision and life insurance. Revenues for this fund consist of charges to departments for health insurance benefits and charges to employees for premiums not covered by the City. The intended goal was for the fund to be self-supporting. The fund started the year with a <$1,376,017> beginning balance and at 12-31-88, has an estimated deficit fund balance of <$1,446,889>. As of January 1, 1989 the City implemented a new premium oriented health program through P.E.R.S. The P.E.R.S. program primarily addresses health insurance. It is anticipated than run-out costs from existing John Hancock claims will continue to be a cost to the City. These costs are estimated to be between $300,000 and $600,000. A surcharge will be implemented with the 1989/90 budget process to help offset future John Hancock run-out costs and reduce the operating, deficit caused by the self-funded health insurance program. SELF-INSURED HEALTH PLAN FUND Income to this fund effectively ceased when the new health plan started on January 1, 1986. Costs have been accumulated that reflect charges for services under the Blue Cross Plan. The fund began the year with deficit balance of $476,293. Transfer of funds from other areas will be necessary to resolve the deficit. UNEMPLOYMENT INSURANCE FUND The Unemployment Insurance expenditure at 12-31-88 totaled $27,572 and revenues collected were $49,892. Revenues are derived from charges to departments. Based upon the budget amounts, the fund balance in this fund should be $127,753 at year-end. Recent State action has eliminated the possibility of reimbursement of unemployment costs. The City of Sacramento is pursuing legal action which, if successful, could result in some reimbursement. Final resolution of this issue will most likely not materialize in the near future. VI-9 .-.-.. -,~ - ~~ This fund is used to account for worker's compensation costs incurred by all City operations. Revenue for the Fund is derived from charges to City departments and interest earned on the Fund's cash balance. The beginning fund balance was $221,736. DATA PROCESSING FUND APPROPRIATION 1988-89 Appropriation 12-31-88 Unencumbered Balance 12-31-88 Percentaqe Remaininq $ 933,470 $ 380,300 41% REVENUE 1988-89 Estimate 6-Month Uncollected Percentage Uncollected $ 902,396 $ 528,118 59% Revenues are derived from charges to departments and billings for services to the Water Department. At 12-31-88 expenditures totalled $553,170 or 59% and revenues were $374,278 or 41%. The ending fund balance for this fund was $211,447 at the end of 1987-88. The City is currently having a study performed by Peat Marwick Main & Co. of the effectiveness and size of the City's data processing system. The data processing manager indicates that the City could outgrow its current system in the next twelve to eighteen months. Additional funding could be necessary to ensure an efficient system by implementing the recommendations of the study. CEMETERY PERPETUAL CARE FUND This fund is set up so that income of the Cemetery Endowment Care Fund from the sale of cemetery lots shall be deposited and used exclusively for care of the lots. The amounts deposited into this fund are a portion of the income from the sale of each lot as determined by the Cemetery Commission. Interest earnings on this fund are utilized to support the operation of the Cemetery Fund (106). The beginning fund balance was $601,420. The fund balance at 12-31-88 was $611,420. VI-10