10-20-2020 - AGENDA ITEM 10 CONSIDERATION OF AUGUST FINANCIAL REPORT FOR FISCAL YEAR 2020-21AGENDA ITEM NO. 10
AGENDA STAFF REPORT
City of West Covina I Office of the City Manager
DATE: October 20, 2020
TO: Mayor and City Council
FROM: David Carmany
City Manager
SUBJECT:
CONSIDERATION OF AUGUST FINANCIAL REPORT FOR FISCAL YEAR 2020-21
RECOMMENDATION:
It is recommended that the City Council receive and file the August Financial Report for Fiscal Year 2020-21
and adopt Resolution No. 2020-108 to approve the budget amendments attached to this report.
RESOLUTION NO.2020-108 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WEST COVINA, CALIFORNIA, ADOPTING BUDGET AMENDMENTS FOR THE FISCAL
YEAR COMMENCING JULY 1, 2020 AND ENDING JUNE 30, 2021
BACKGROUND:
The City of West Covina adopts a budget annually for each fiscal year (FY) which starts on July 1 and ends on
June 30. The FY 2020-21 annual budget was adopted on June 23, 2020 by the City Council. Due to the
economic uncertainty mainly surrounding the revenue projections, staff assured the City Council that a monthly
report of revenues and expenditures would be presented and recommendations for any necessary adjustments
would be made.
DISCUSSION:
The City of West Covina has completed the second month (August) of the Fiscal Year 2020-21. The focus of
this report is the General Fund revenues and expenditures.
For the first two months of the 2020-21 Fiscal Year, the City has collected 3.4% of the General Fund revenues.
For the first two months of the 2019-20 Fiscal Year, the City had collected 6.2% of its General Fund revenues.
Therefore, revenues have decreased in the current fiscal year by approximately 2.8%. The decline is
attributable to the delay of exchanging Prop A monies for General Fund monies. Each year, the City exchanges
approximately $2.2 million of Prop A funds in exchange for $1.6 million of General Fund monies. This is
typically done in July. This year, the exchange was delayed in anticipation of revised estimates in the amount of
Prop A monies that the City can expect to receive.
Expenditures for the month of August 2020 were $4,626,132 or 6.9%. The cumulative total for expenditures
ATTACHMENT NO.4
Date:
Requested by
Dept/Div:
EXPENDITURES
BA *019
CITY OF WEST COVINA Posted By:
BUDGET AMENDMENT Date Posted:
Fiscal Year: 2020-21
Amount:
Description:
Account Number
Dept/Account Description
Current Budget
Proposed Amendment
Amended Budget
110.13.1350.5181
PERS UAL PMT - Safety
144 842,922
144,842,922
110.13.1350.5182
PERS UAL PMT - Miscellaneous
40,739,318
40,739,318
300.13.1350.6432
Costs of Bond Issuance
1,083,165
1,083,165
300.95.9500.9110
Transfer Out
185,582,240
185,582,240
110.95.9500.9124
Transfer Out
567,148
567,148
372,814,793
1 372,814,793
REVENUES
Account Number
Account Description
Current Budget
Proposed Amendment
Amended Budget
110.00.9100.9300
Transfer In
185,582 240
185 582,240
300.00.4853
Debt Proceeds
204,095,000
204,095,000
110.00.4160
Contractors License Tax
300,000.00
300,000
124.00.9100.9110
Transfer In
567,148
567,148
REASON/JUSTIFICATION (Please be specific)
1. Pension Obligation Bonds 2. Eliminate Contractors License Tax Revenue 3. SB1 MOE
APPROVALS
City Council Approval Date (if required, attach minutes): 10/20/2020 ❑ Approval Not Required
Dept Head Approval:
Date:
Finance Director: Date:
Funds Available? ❑ Yes No
City Manager: Date:
Of over $100,000)
❑ Approved ❑ Denied
for the General Fund is $7,712,898 or 11.6%. When compared to August 2019, expenditures, excluding the
unfunded pension liability payment, were $7,760,645 or 11.8%. The expenditures for the current fiscal year are
slightly less than the FY 2019-20 fiscal year. This is due to the Department Heads being extremely fiscally
aware and ensuring that the budget is adhered to.
The overtime budgets for the Police and Fire Departments are reviewed monthly by City staff
Overtime in the Police Department is $160,705 for the month of August. The cumulative total for Police
Department overtime is $283,612 or 16.4% of the budgeted amount, which is on track for the current fiscal
year.
The Fire Department regular overtime is $267,485 for the month of August. The cumulative total for Fire
Department overtime is $519,486 or 91.4%. City staff is continuing to look at alternative solutions to the costs
that are bome by the City's General Fund for the Fire Department. If the Fire Department overtime continues at
this pace, the cost for Fiscal Year 2020-21 will be close to $3 million.
The overtime costs listed above do not include mutual aid overtime. The cumulative cost for mutual aid
overtime through the end of August are $173,117 or 80.7% of the budgeted amount. Although the budget to
actual costs appear high, these costs are fully reimbursable by the entities affected by the fire. A budget
amendment will be prepared for City Council approval when the mid -year budget report is presented.
In addition to receiving and filing the August report, staff is requesting that the City Council adopt the
proposed resolution, which adopts budget amendments to: correct account numbers in the budget document,
amend the budget for the issuance of Pension Obligation Bonds, remove the amount budgeted for the
Contractors License Tax, and increase the budget for SB 1 maintenance of effort.
Prepared by: Robbeyn Bird, Finance Director
Attachments
Attachment No. 1 - Resolution No. 2020-108
Attachment No. 2 - Exhibit A to Resolution No. 2020-108
Attachment No. 3 - Exhibit B to Resolution No. 2020-108
Attachment No. 4 - Exhibit C to Resolution No. 2020-108
CITY COUNCIL GOALS & OBJECTIVES: Achieve Fiscal Sustainability and Financial Stability
ATTACHMENT NO. 1
RESOLUTION NO.2020-108
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF WEST COVINA, CALIFORNIA, ADOPTING BUDGET
AMENDMENTS FOR THE FISCAL YEAR COMMENCING
JULY 1, 2020 AND ENDING JUNE 30, 2021
WHEREAS, the City Manager, on or about June 23, 2020, submitted to the City Council
a proposed budget for the appropriation and expenditure of funds for the City of West Covina for
Fiscal Year 2020-2021; and
WHEREAS, following duly given notice and prior to budget adoption, the City Council
held public meetings, receiving, considering and evaluating all comments, and adopted a budget
for the fiscal year commencing July 1, 2020 and ending June 30, 2021; and
WHEREAS, amendments must periodically be made to the budget to conform to changed
circumstances following adoption of the budget.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WEST COVINA,
CALIFORNIA DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The City Council hereby approves Budget Amendment No. 015, attached
hereto as Exhibit A, to correct account numbers in the 2020-2021 budget document.
SECTION 2. The City Council hereby approves Budget Amendment No. 018, attached
hereto as Exhibit B, to correct account numbers in the 2020-2021 budget document.
SECTION 3. The City Council hereby approves Budget Amendment No. 019, attached
hereto as Exhibit C, to amend the budget for issuance of the Pension Obligation Bonds, to eliminate
the budgeted Contractors License Tax, and to increase the budget for the SB1 maintenance of
effort.
SECTION 4. The City Clerk shall certify to the adoption of these resolutions and shall
enter the same in the book of original resolutions and it shall become effective immediately.
APPROVED AND ADOPTED this 20th day of October 2020.
Tony Wu
Mayor
APPROVED AS TO FORM ATTEST
Thomas P. Duarte Lisa Sherrick
City Attorney Assistant City Clerk
I, LISA SHERRICK, Assistant City Clerk of the City of West Covina, California, do
hereby certify that the foregoing Resolution No. 2020-108 was duly adopted by the City Council
of the City of West Covina, California, at a regular meeting thereof held on the 20th day of
October, 2020, by the following vote of the City Council:
AYES:
NOES:
ABSENT:
ABSTAIN:
Lisa Sherrick
Assistant City Clerk
EXHIBIT A
BUDGET AMENDMENT NO.015
EXHIBIT B
BUDGET AMENDMENT NO.018
EXHIBIT C
BUDGET AMENDMENT NO.019
ATTACHMENT NO.2
Requested by:
Dept/Div:
EXPENDITURES
CITY OF WEST COVINA ( Posted By:
BUDGET AMENDMENT Date Posted:
Amount:
Description:
Account Number
Dept/Account Description
Current
Budget
ropose
Amendment
Amended
Budget
189.61,7003.7900
CIP - Misc
75
000.00
75 000.00
189.80.7007.7300
Sewer
75 000.00
75
000.00
189.61.7003.7900
CIP - Misc
152
600.00
152,600.00
189.80.7007.7300
Sewer
152 600.00
152
600.00
189.61.7003.7900
CIP - Misc
1,500,000.00
1 500 000.00
189.80.7007.7300
Sewer
1,500,000.00
1,500,000.00
189.61.7003.7900
CIP - Misc
295
000.00
295 000.00
189.80.7007.7300
Sewer
295 000.00
295
000.00
189.61.7003.7900
CIP- Mist
230
000.00
230 000.00
189.80.7007.7300
Sewer
230 000.00
230
000.00
189.61.7003.7900
CIP - Misc
140
000.00
140 000.00
189.80.7007.7300
Sewer
140 000.00
140
000.00
188.61.4141.7200
Streets
500
000.00
500 000.00
188.80.7005.7200
Streets
500 000.00
500
000.00
122.80.7003.7900
CIP - Misc
10
000.00
10 000.00
122.80.7005.7200
Streets
10 000.00
10
000.00
237.80.7005.7700
CIP- Park
2,067,148.00
(2,067,148.00)
237.80.7005.7200
Streets
2,067,148.00
2 067
148.00
197.61.4160.7900
CIP - Misc
1,000,000.00
1 000 000.00
197.80.7005.7200
Streets
1,000 000.00
1,000
000.00
189.61.7003.7900
CIP - Misc
50
000.00
50,000.00
189.80.7005.7200
Streets
50,000.00
50
000.00
124.61.4150.7900
CIP- Misc
60,000.00
60 000.00
124.80.7006.7800
St Li ht & Traffic Signal
60 000.00
60
000.00
124.61.4150.7900
CIP - Misc
30
000.00
30 000.00
124.80.7006.7800
St Light & Traffic Signal
30,000.00
30,000.00
119.61.4183.7900
CIP- Misc
40
000.00
40 000.00
119.80.7008.7170
Vehicles & Mobile Equipment
40 000.00
40
000.00
6,149,748.00 6,149 748.00
REVENUES
Proposed
Account Number Account Description Current Budget Amendment Amended Budget
This amendment is to correct the budgeted funds into the prior years' account structure.
APPROVALS
City Council Approval Date (if required, attach minutes): ❑ Approval Not Required
Dept Head Approval:
Date:
Date:
ty Manager: Date:
over$100,000)
❑ ADDroved ❑ Denied
Requested by
Dept/Div:
FXPFNnTTIIRFS
CITY OF WEST COVINA
BUDGET AMENDMENT
F Maldonado
Finance
ATTACHMENT NO.3
BA # 018
Posted By:
Date Posted:
Fiscal Year: 2020-21
Amount: $0.00
Description: Reclass Budget Funds
to Current Account Structure
Account Number
Dept/Account Description
Current Budget
Proposed
Amendment
men e
Budget
820.22.2210.7700
CIP- Parks
310,000.00
310,000.00
-
162.80.7003.7900
CIP- Misc
310,000.00
310,000.00
236.80.7004.7700
CIP - Parks
80,000.00
80,000.00
-
143.80.7004.7700
CIP - Parks
80,000.00
80 000.00
236.80.7004.7700
CIP - Parks
500,000.00
500 000.00
-
143.80.7004.7700
CIP- Parks
500,000.00
500 000.00
890,000.00
-
890,000.00
I'T�1 �la1.TliIT��
Account Number
Account Description
Current Budget
ropose
Amendment
Amende
Budget
REASON/JUSTIFICATION Please be specific)
This amendment is to correct the budgeted fund and account number into the prior years' account
structure.
APPROVALS
City Council Approval Date (if required, attach mi
Dept Head Approval:
Date:
Finance Director: Date:
Funds Available? ❑ Yes ❑No
❑ Approval Not Required
City Manager: Date:
(if over $100,000)
❑ Approved ❑ Denied