CITY COUNCIL STAFF REPORT
MEETING DATE: FEBRUARY 15, 2017
PREPARED BY: Dat Nguyen, Finance Director/Administrative Services Department
APPROVED BY: City Manager
TITLE
DECEMBER 2016 FINANCIAL AND INVESTMENT REPORT
END
RECOMMENDATION(S)
RECOMMENDATION
Accept and file report.
BODY
COUNCIL PRIORITIES, GOALS & STRATEGIES:
Ongoing Priorities
Maintaining fiscal responsibility
Preserving and cultivating public trust
REPORT NARRATIVE:
As part of the City Council's expectation to maintain a high level of transparency and to be responsible stewards of public funds, attached are the Financial and Investment Reports for the six months ended December 31, 2016. Overall, the City received 43% of the budgeted revenues for all funds as there is typically a delay in remittances. However, the amount received year to date for all funds is approximately $2.5 million or 5% higher than prior year at this time. The increase was primarily led by an overall increase in General Fund revenues of $2.1 million compared to prior year at this time.
General Fund revenues totaled $14.9 million, $2.1 million or 17% higher than a year ago at this time mainly due to an increase in sales tax collection of approximately $1.6 million and transient occupancy tax (TOT) of approximately $150,000. An increase in sales tax collection is primarily due to the end of the "triple-flip." The State Board of Equalization had begun to disburse to cities the full Bradley-Burn Uniform Sales Tax rate of 1% versus 0.75% in prior years. The increase in TOT is mainly due to the addition of a new hotel, La Quinta. Sales tax and TOT are forecasted to slightly exceed the budgeted amount for the fiscal year. General Fund expenditures totaled $19.4 million or 50% of the budget. Expenditures, including encumbrances amounted to $21.1 million or 54% of the budget. The encumbrances represent commitments or contractual obligations that the City entered into with vendors or suppliers, such as Cal-West L...
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