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Home My WebLink About2018-04-16 Packet - Budget Workshop City of Ukiah Council - Department Budget Workshop April 16 - 17, 2018 Department Summaries through March 31, 2018 and Future Objectives Page1 Page2 Page3 Page4 Page5 Page6 Page7 Page8 Page9 Page10 Page11 Page12 Page13 Page14 Page15 Page16 Page17 Page18 Page19 Page20 Page21 Page22 Page23 Page24 Page25 Page26 Page27 Page28 Page29 Page30 Page31 Page32 Page33 Page34 Page35 Page36 Page37 Page38 Page39 Page40 Page41 Page42 Page43 Page44 Page45 Page46 Page47 Page48 Page49 Page50 Page51 Page52 Page53 Page54 Page55 Page56 Page57 Page58 Page59 Page60 Page61 Page62 Page63 Page64 Page65 Page66 Page67 Page68 Page69 Page70 Page71 Page72 Page73 Page74 Page75 Page76 Page77 Page78 Page79 Page80 Page81 Page82 Page83 Page84 Page85 Page86 THIS REPORT Management of the City of Ukiah is pleased to present Quarterly Financial this quarterly financial report on the activities, condition, and budgetary highlights for the third quarter of fiscal year 2017-18 covering the period of July 1, 2017 through Report March 31, 2018. Third Quarter, 2017-18 Tel 707.463.6200 300 Seminary Ave www.cityofukiah.com Ukiah, CA 95482 Quarterly Financial Report Third Quarter, 2017-18 Tel 707.463.6200 300 Seminary Ave www.cityofukiah.com Ukiah, CA 95482 Contents Contents To Our Community _________________________________________________________________________ 1 Financial Summary _________________________________________________________________________ 5 Financial Statements and Schedules ________________________________________________________ 6 Notes to Financial Statements _____________________________________________________________ 25 Ukiah City Council and Treasurer ___________________________________________________________ 26 City Executive Management Team ________________________________________________________ 27 City Contact Information __________________________________________________________________ 28 This report was prepared by members of the Finance Department Team: Mary Horger, Procurement Manger Daphine Harris, Management Analyst Finance Daniel Buffalo, Finance Director Additional support provided by Shannon Riley, Deputy City Manager Highlights Pg. 01 budget is a To Our Community comprehensive Strategic Highlights policy document and The Ukiah City Council, through a strategic process of discussion, observation, and education, has developed the following set of focused priorities that help guide the development and spending plan implementation of policies, activities, and programs. These four areas are in no way all- outlining the , nor are they finite; rather, the strategic planning priorities of the process is considered evolutionary and vision-based. All of these areas work to further promote the vibrancy and sustainability of the Ukiah community and the organization. Develop a prioritized plan for maintaining and improving public infrastructure. Planning valley-wide takes place based on sound planning principles. Facilitate the development of a sound local economy that attracts investment, promotes economic diversity, supports businesses, creates employment opportunities, and generates public revenues. Council and staff work together to create a more responsive and effective workplace environment. Budgetary Highlights The City budget is a comprehensive policy document and spending plan outlining the priorities of the City Council. The original adopted operating and capital budget for fiscal year 2017-18 was $64.3 million and $61.3 million, respectively, for a grand total of $125.6 million. It has since been amended to include various adjustments brought to the City Council as well as encumbrances from the prior fiscal year. Highlights Pg. 02 The graph to the right illustrates where the City Council has appropriated resources by major category. For clarification, activities classified as include capital projects and programs not related to specific functions/activities (such as electric operations or parks and recreation), internal services, special projects, and general governance (legislative and administrative). The graph to the left illustrates how those same appropriations are broken down into major functions or activities. Highlights Pg. 03 Operating Highlights The City engages in numerous activities during the year, offering services and programs to its residents and the greater community as a whole. From law enfocement and public safety to recreation programs, we are a full-service City, a regional economic hub, and a municipal organization of caring and dedicated professionals. Operating highlights for the year include: Strides in economic development. Construction has begun on the Costco store. The winter has been relatviley dry, meaning the contractors are building seven days a week. The Palace Hotel is in the hands of a Receiver. Progress is being made, cleanup work has begun, and the building has been secured internally. Strengthening our community. The Ukiah Valley Fire Department and Ukiah Valley Fire District have merged to form the Ukiah Valley Fire Authority. This process took many years and even more planning. The Fire Authority looks forward to adding much needed resources to our community. Improving City processes. TCommunity Development Department is well underway restructuing the department, which encompasses the functions of planning, improving wait times for permit and plan review. Enhancing interagency relationships and strenghtening safety services. The City was able to expand the partnership with Ukiah Unified School District to add a second School Resources Officer that is assigned to various school sites. Expanding housing and improving the lives of our seniors. PEP Senior Housing Project opened next door to Grace Hudson Museum. This is a 42-unit for low-income seniors. Core Values Our core values are what drive us to better serve our community by creating a culture of positivity, inclusion, and professional betterment. These values are as follows: Professionalism. We demonstrate this through proficiency, reliability, and our drive to make opportunities happen. Service. We inspire confidence in our organization and out team members by consistently providing exceptional service. Teamwork. We believe in creating an environment that fosters teamwork and processes that support equal opportunity, collaboration, and commitment to common goals. Innovation. We work to discover practical solutions, challenge prevailing assumptions, and create new ideas that prove useful. Safety. We strive to keep our community and our workplace safe and healthy. www.cityofukiah.com/eep. Highlights Pg. 04 Looking Ahead Looking forward to the final quarter of 2017-18 and beyond, we will continue to emphasize the following activities: Housing Economic Development Public safety Landfill closure Rate review, sewer Redwood Business Park right-of-way improvements As we move forward, the future offers many opportunities for organizational development and process improvement. One of the most important and urgent priorities will be the development of our team and its delivery of services for the benefit of our entire Ukiah community. We are excited about the direction the City is moving, including the continued enhancement of transparency of City finances, of which this report is one example. Sage Sangiacomo City Manager April 10, 2018 Financial Summary Pg. 05 Financial Summary In this section we report on the financial activities of the City as a whole (City-wide), which include all governmental and proprietary (enterprise and internal service) funds, all City departmental activities, and information on the status of capital improvement projects identified by the City Council. Financial highlights of the last nine months ending March 31, 2018 include the following: Expenditures of $42.6 million outpaced revenue City-wide of $38.1 million by $4.5 million. Capital expenditures were $5.7 million, of which $1.8 million was for paid for by the general fund. The general fund and major enterprise funds remained well capitalized and able to meets its service demands. Top ten revenues of the general fund came in higher than the same period last year, driven by increasing sales tax, new revenue sources (Measure Y) and TOT revenue. Most departments and activities are on pace or under budget estimates. A few will be in need of further review and potential appropriation adjustments. Personnel expenses totaled to 36.4% of total City expenditures. Materials, services, insurance, and supplies totaled to 36.3%, while debt service and capital outlay rounded out the remaining amount at 13.9% and 13.4%, respectively. For More Information. based on detailed information produced by its financial management system. If you would like additional information, or have questions about this report, please call the Finance Department at 707.463.6220. Daniel Buffalo, MPA, CPA, CGMA Finance Director April 10, 2018 Financial Statements and Schedules Pg. 06 City-Wide Financial Statements and Schedules The financial statements and schedules presented here are unaudited. For audited information, (CAFR), which is released by December 31 following the end of the fiscal year. Fund Statements and Schedules Summary of all Funds Major governmental and proprietary funds: Balance Sheet/Working Capital Statement of Changes General Revenues Top Ten Revenues The Enterprise Funds Changes to Working Capital Working Capital Over Time Department Summary Budget to actual Capital Improvement Update Project Budget, Schedule, and Status Financial Statements and Schedules Pg. 07 Fund FUND-BASED March 31, 2018 Schedules Balance Sheet/Working Capital and Major Funds Statements GeneralElectricWaterSewer ASSETS Current: Cash and investments: Available for operations$ 3,666,179$ 17,950,136 $ 8,659,036$ 11,477,658 Restricted - - - (91,736) Receivables: Accounts, net (9,473) 1,839,769 812,101 537,252 Taxes 12,585 - - - Interest 17,033 18,279 36,421 27,478 Notes 400 - - - Grants and subventions - - - - Due from other funds 1,118,573 - - - Advances to other funds 948,846 - - - Inventory and prepaids 14,099 1,086,497 110,836 - Land held for resale - - - - Total assets 5,768,242 20,894,681 9,618,394 11,950,652 LIABILITIES Current liabilities: Accounts payable 816,769 - 69,086 66,600 Accrued payroll liabilities 443,915 86,172 40,690 50,478 Interest payable - 10,156 151,173 928,726 Deposits payable - - - - Due to other funds - - - - Advance from other funds - - 745,000 - Due within one year - - - - Intergovernmental payable - - - - Total liabilities 1,260,684 96,328 1,005,949 1,045,804 FUND BALANCE/WORKING CAPITAL Nonspendable 949,246 - - - Restricted - - - - Committed - - - - Assigned - - - - Unassigned/unrestricted 3,558,312 20,798,353 8,612,445 10,904,848 Total fund balance/working capital 4,507,558 20,798,353 8,612,445 10,904,848 Financial Statements and Schedules Pg. 08 FUND-BASED March 31, 2018 Balance Sheet/Working Capital Non-Major Funds GovernmentalEnterpriseInternal ServiceTotal ASSETS Current: Cash and investments: Available for operations$ 7,131,115$ 8,332,528$ (1,200,494)$ 56,016,158 Restricted cash - - - (91,736) Receivables: Accounts, net 1,000 7,118 85,385 3,273,152 Property tax receivable - - - 12,585 Interest receivable 12,040 20,068 - 131,319 Notes receivable 4,669,118 32,500 - 4,702,018 Grants receivable 632,211 171,900 - 804,111 Due from other funds - - - 1,118,573 Advances to other funds - - 745,000 1,693,846 Inventory and prepaids - - 760 1,212,192 Land held for resale 2,435,114 - - 2,435,114 Total assets 14,880,598 8,564,114 (369,349) 71,307,332 LIABILITIES Current liabilities: Accounts payable 47,518 10,023 - 1,009,996 Accrued payroll liabilities 31,825 40,648 81,304 775,032 Interest payable - 2,390 - 1,092,445 Deposits payable - 6,324 - 6,324 Due to other funds 1,068,489 37,203 - 1,105,692 Advance from other funds 49,601 899,246 - 1,693,847 Due within one year - - - - Intergovernmental payable - - - - Total liabilities 1,197,433 995,834 81,304 5,683,336 FUND BALANCE/WORKING CAPITAL Nonspendable 4,669,118 32,500 745,000 6,395,864 Restricted - - - - Committed - - - - Assigned - - - - Unassigned/unrestricted 9,014,047 7,535,780 (1,195,653) 59,228,132 Total fund balance/working capital 13,683,165 7,568,280 (450,653) 65,623,996 Financial Statements and Schedules Pg. 09 Fund FUND-BASED Nine-month Period Ended March 31, 2018 Schedules STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE/WORKING CAPITAL and Major Funds by major category Statements Major Enterprise Funds GeneralElectricWaterSewer REVENUE Governmental Revenue: (cont.) Taxes: Sales$ 7,169,182$ -$ -$ - Property 840,345 - - - Transient occupancy 864,878 - - - Business license 151,186 - - - Other taxes 107 - - - Licenses, permits, and franchises 1,529,400 - 7,746 8,592 Fines, forfeitures, and penalties 22,566 - - - Grants, subventions, and contributions 18,569 387 - - Use of money and property 69,262 13,098 - - Other revenue 69,629 311,248 9,546 3,550 Enterprise revenue and other charges for service: Water - - 2,292,350 - Sewer - 11,448,816 2,641,407 5,538,574 Electric - 60,777 - - Airport - - - - Other services 859,608 - - - Grants and contributions - - - - Total operating revenue 11,594,732 11,834,326 4,951,049 5,550,716 EXPENDITURES (by function) Current: Administration and overhead 1,591,078 - - - Internal services 40,129 - - - General government 61,820 - - - Public safety 6,016,489 - - - Roads and infrastructure 726,640 - - - Parks, buildings, and grounds 747,357 - - - Culture and recreation 660,867 - - - Community development 534,403 - - - Redevelopment and economic development 71,564 - - - Housing and support programs - - - - Electric services - 9,589,940 - - Water resources - - 1,404,372 2,638,396 Airport services - - - - Conference Center - - - - Landfill - - - - Capital outlay 1,845,542 566,275 1,123,929 1,020,318 Debt service: Principal - - 490,000 2,090,000 Interest 57,933 - 436,669 2,770,900 Capital lease installments 18,136 - - - Debt issuance costs 4,019 - - - Total expenditures 12,375,977 10,156,215 3,454,970 8,519,614 Excess of revenue over (under) expenditures$ (781,245)$ 1,678,111$ 1,496,079$ (2,968,898) Financial Statements and Schedules Pg. 10 FUND-BASED Nine-month Period Ended March 31, 2018 STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE/WORKING CAPITAL Non-Major Funds by major category GovernmentalEnterpriseInternal ServiceTotal REVENUE Governmental Revenue: Taxes: Sales$ -$ -$ -$ 7,169,182 Property - 9,270 - 849,615 Transient occupancy - - - 864,878 Business license 8,503 - - 159,689 Other taxes - - - 107 Licenses, permits, and franchises - - - 1,545,738 Fines, forfeitures, and penalties - - - 22,566 Grants, subventions, and contributions 531,672 77,419 - 628,047 Use of money and property 310,894 - - 393,254 Other revenue 366,329 5,125 10,836 776,263 Enterprise revenue and other charges for service: Water - - - 2,292,350 Sewer - - - 19,628,797 Electric - 139,045 - 199,822 Airport - 924,008 - 924,008 Other services 36,468 707,708 1,050,661 2,654,445 Grants and contributions - - - - Total operating revenue 1,253,866 1,862,575 1,061,497 38,108,761 EXPENDITURES (by function) Current: Administration and overhead 208,166 - - 1,799,244 Internal services - - 4,399,053 4,439,182 General government - - - 61,820 Public safety 142,073 126,952 - 6,285,514 Roads and infrastructure 34,924 - - 761,564 Parks, buildings, and grounds 232,157 - - 979,514 Culture and recreation 48,266 27,042 - 736,175 Community development - - - 534,403 Redevelopment and economic development 4,090 - - 75,654 Housing and support programs - - - - Electric services 5,000 210,032 - 9,804,972 Water resources 10,000 123,714 - 4,176,482 Airport services - 773,763 - 773,763 Conference Center - 174,371 - 174,371 Landfill - 363,481 - 363,481 Capital outlay 442,935 569,639 140,259 5,708,897 Debt service: Principal - 9,717 - 2,589,717 Interest - 4,657 - 3,270,159 Capital lease installments - 204 59,766 78,106 Debt issuance costs - - - 4,019 Total expenditures 1,127,611 2,383,572 4,599,078 42,617,037 Excess of revenue over (under) expenditures$ 126,255 $ (520,997)$ (3,537,581) $ (4,508,276) Financial Statements and Schedules Pg. 11 City-wide Revenues and Expenditures Compared Revenues and Expenditures Compared to all other revenue sources of the City, general fund revenues accounts for around one-third of the total. Compared to all other expenditures of the City, the general fund typically accounts for about one-quarter of the total. General Revenues Pg. 12 General deemed necessary and desirable by the citizens of Ukiah and the City Council. Revenues Revenues that are accounted for by management and are at the discretion of the City Council are various and generally include: Taxes: o Bradley-Burns sales tax (1% of taxable sales) Top 10 general o Transaction and use taxes: revenues are Measure P Measure Y trending o Property taxes positively, up o TOT taxes (hotel tax) 17.5% from the o Business license tax same time last Licenses, permits, and franchise fees (cable, phone, garbage collection, utilities) year. Fines, forfeitures, and penalties Intergovernmental (grants and subventions) Use of money and property (interest earnings, rents, etc.) Other misc. Altogether, the general fund receives revenue from 77 distinct sources. However, the majority of the revenue it receives comes from just ten of them. Top Ten Revenues ces in the general fund account for approximately 88 percent of total general fund income. Focusing on these sources can provide a useful understanding of Top Ten Revenues, FY 2017-18 General Fund The bar graph below ЊЌ͵Ві illustrates the performance of top ten revenues as compared to a year ago. Overall, these revenue sources combined are БЏ͵Њі up over 17.51% ƚƷğƌ ƷƚƦ ЊЉhƷŷĻƩ wĻǝĻƓǒĻ percent from General Revenues Pg. 13 the same time last year. Total general fund revenues are up nearly ten percent. General Revenues Pg. 14 General Sales Tax. The City collects sales tax from three sources: normal Bradley-Burns sales taxes (1 percent of taxable transactions), a ½ percent sales and use tax, commonly referred to as Revenues Measure P and devoted entirely to the City, and another ½ percent sales tax, referred to as (cont.) Measure Y. All three tax sources are distinct and considered separate sources. Each behave slightly differently given their tax base. Bradley- evied on transactions based geographically in the City. Here we see this revenue source up over two percent (2%) economic base are up with the biggest gains coming from its restaurants and home supply/construction businesses. Measures P and Y. These are what are called es and are applied to any taxable sale in the City as well as any sale where the use of the item is in the City. For instance, a car purchased outside the City but registered to, and therefore presumed to be used at, an address within the City would be levied the ½ cent on the purchase price. Similar to regular Bradley-Burns sales tax, this revenue source is up nearly six percent (6%) from the same time last year. And like Bradley-Burns sales tax, both Measures P and Y are general taxes and can be used for any regular, general governmental purpose. However, the City Council has reserved amounts collected from each for public safety and road/right-of-way rehabilitation. Property Tax in Lieu of VLF (Vehicle License Fee). These are property tax shares allocated to cities and counties beginning in FY 04-05 as compensation for the SVehicle License Fees (VLF). This revenue source typically follows regular property tax collections, discussed under below but is down 9.4% compared to last year. Transient Occupancy Tax (TOT). revenue source has performed strongly over the last two years, up over 20 percent (20%) from 2015-16. Here we see it up nearly 14 percent (14%) from the same period a year ago. Driven by increased tourism in the greater Ukiah Valley area and a larger volume of travelers heading north, this revenue source is poised to continue its positive growth trend for several more years. Ukiah has historically been considered a final layover before making the trek to Fort Bragg and Humboldt County; however, it is now becoming a destination of its own, with visitors exploring the wonder of what the Ukiah Valley has to offer. The TOT rate in Ukiah currently is 10 percent; however, 8 percent is considered general revenue to the general fund, which is what is reported here. The remaining 2 percent funds economic development and tourism enterprise and is deposited to a special revenue fund. City Utility Franchise Fees. This revenue source is a charge to the City fees are not taxes; rather, they are rents paid by utility providers to operate on or in City rights-of- way and City property, such as roads, sidewalks, parklands, etc. The rents are established by the City Council and typically are correlated to gross revenues generated by the utility provider. This General Revenues Pg. 15 General revenue source is trending lower in the third quarter but is expected to end the year higher than the previous year due to a recent adjustment to electric utility rates in January of 2017. Revenues (cont.) Redevelopment Tax Increment Pass-Through. After the dissolution of Redevelopment in California by the Legislature, the Ukiah Redevelopment Agency was sent into receivership of a successor agency. Property tax increment revenue once received by the former agency was, instead, held in trust by the County Auditor-Controller in a specific fund, affectionately known as the Redevelopment Property Tax Trust Fund (RPTTF). Property tax increment collected in this fund would first pay the County Auditor- of the former RDA (City of Ukiah) to satisfy the obligations of the former agency, then to the taxing entities in the project area of the former RDA, including the Ukiah Unified School District and the County of Mendocino general fund. The City also receives a share of these residuals and deposits them in a specific in the general fund, which is reported here. This revenue source tracks relatively similar to regular (secured) property tax, although it is calculated from a slightly different derivative property tax base (tax increment). Secured Property Tax. Traditionally, revenue from property tax was viewed as a very stable source. The housing collapse of 2008 tested that assumption. However, as the housing market continued to recover modestly in Ukiah, receipts came in higher than the year prior. This was due to a combination of factors, including retroactive Prop 8 (1978) assessment adjustments and increased assessed values from housing sales. Slightly less than 11 percent of property taxes paid by property owners within the City are allocated to the City. The majority is distributed to local schools and the County of Mendocino. As mentioned earlier, revenue from this source is expected to continue to trend positively over the next few years as the county continues to process Prop 8 property value adjustments and as housing prices and home sales increase. Refuse Disposal Franchise Fees. This revenue source waste hauler. As discussed earlier, franchise fees are not taxes; rather, they are rents paid by utility providers to operate on or in City rights-of-way and City property, such as roads, sidewalks, parklands, etc. The vehicles used to provide this service (garbage trucks) are heavy machines that wear roads more quickly and significantly than other commercial and non-commercial vehicles. Revenues from this source have come in slightly higher in FY 2017-18 than in the same period of the preceding year due to increased revenue by the hauler, Ukiah Waste Solutions. Business License Tax. Businesses that operate within City limits are required to obtain a business license. The proceeds from the tax collected are available for unrestricted use in the general fund. Receipts for this period are up significantly from a year ago likely due to timing differences of payments to the City and to the normal business cycle. Major Enterprise Funds Pg. 16 Enterprise The City provides various enterprise services, including electric, water, and sewer. Water and sewer are divisions within the Department of Water Resources but are accounted for, like Funds electric, in a proprietary enterprise fund. Through the collection of fees and charges, these funds should collect revenues sufficient to finance costs associated with administration, operations, capital improvements (CIP), and debt service. Enterprise activities are accounted for like a business in the private sector using the full accrual basis. This is starkly different than governmental fund accounting, which uses the modified accrual basis and is concerned only with current spendable resources, what we call fund balance. Drawing comparisons of information between the two methods can be challenging. Although the City accounts and reports on these funds using full accrual accounting basis, here we present the activities of the water, sewer, and electric enterprise funds in terms of working capital. Working capital is defined as the difference between current assets and current liabilities, which is closely approximate to the definition of fund balance in governmental funds. the resources available to meet ongoing operating, debt service, and capital activities in the near term. Non-cash expenses, such as depreciation and typically part of full accrual accounting, are excluded from this presentation. Major Enterprise Funds Pg. 17 Electric Enterprise Enterprise Revenues from rates through the first three quarters of the year outpaced expenditures by Funds (cont.) almost $1.7 million. However, revenues are down from the same period last year by nearly 2.1 percent. This difference is mostly due to two cap and trade sales that occurred in fiscal year 2017, when usually there is just one sale per year. That is balanced by increased rate revenue due to the rate adjustment in January 2017. Operating expenditures are stable, and are expected to be well below that originally budgeted Rate revenues due to unanticipated delays in the Hastings property development. The fund overall is experiencing an increase in working capital, up almost 9 percent from last electric utility year, recovering from the low in 2016, during which cash balances held by Northern California are trending positively largely Overall, the electric enterprise maintains a healthy reserve, and working capital is 175 percent of due to recent current revenue for the year. rate increases enacted by the City Council in 2017. The enterprise is financially stable and engaging in needed capital improvements. Major Enterprise Funds Pg. 18 Enterprise Water Enterprise Funds (cont.) Revenues from rates exceeded expenditures by almost $1.5 million, and are up 13% from last This is due primarily to the rate adjustment approved by Council in July 2014, with the first Revenues for increase implemented in June 2016. enterprise are year in comparison to the same period for the last five years. The performance of the fund trending overall reflects a steady increase in working capital, up 9.6 percent from last year. The increase positively largely of working capital is due to some infrastructure improvement projects budgeted, but yet to be due to recent performed. rate increases Overall, the fund has performed well over the last five years. enacted by the City Council. The enterprise is financially stable and engaging in needed capital improvements. Major Enterprise Funds Pg. 19 Enterprise Sewer Enterprise Funds (cont.) Expenditures exceeded revenue from rates by $2.97 million. $10.9 million, or 197 percent of current revenue for the year. A significant part of the expenditures this year is from litigation expenses with a total of nearly $450,000. The fund continues to perform nominally. This is problematic, however, as it makes continued Revenues for investments in capital outlay increasingly challenging. It also is challenged by the continued increase in legal expenses related to the defense of the Ukiah Valley Sanitation District litigation. wastewater Further, it is a high priority of management to engage in a review of the sewer rate schedule by enterprise are the end of the fiscal year to ensure the enterprise has sufficient resources to maintain operations, trending lower fund capital improvements, meet debt service requirements, and sustain adequate reserves. than the same time last year, while expenditures have increased, due, in part, to ongoing litigation with the Ukiah Valley Sanitation District. The enterprise is challenged financially but maintains strong reserves to ensure service delivery to customers. Department Summary Pg. 20 Department DEPARTMENT SUMMARY Budget to Actual Summary Nine-month Period Ended March 31, 2018 VarianceBudget BudgetFavorable% Budget% of Total OriginalAmendedActual(Unfavorable)ExpendedExpenditures EXPENDITURES (by department/division) Budget to Allocated admin and overhead$ (3,132,019) $ (3,132,019) $ -$ (3,132,019) --2.36% Non-Departmental 1,470,290 5,591,317 1,607,802 3,983,515 28.76%4.21% Actual City Council 168,556 168,556 60,735 107,82136.03%0.13% City Manager 511,981 511,981 307,494 204,48760.06%0.39% City-Wide Admin Services 244,003 244,003 78,719 165,28432.26%0.18% Community Outreach/Public Info 27,982 27,982 20,402 7,58072.91%0.02% Miscellaneous General Government Actvities - 14,255 68,250 (53,995)478.78%0.01% City Clerk 312,614 312,614 154,479 158,13549.42%0.24% Economic Development 637,807 637,807 64,715 573,09210.15%0.48% With 75% of the Visit Ukiah 145,506 152,431 55,994 96,43736.73%0.11% Budget Development And Management 213,967 221,467 110,520 110,94749.90%0.17% year in the Utility Billing 1,544,329 1,518,219 695,775 822,44445.83%1.14% books, Accounting & Reporting 847,773 908,703 450,757 457,94649.60%0.68% Purchasing 477,715 477,715 224,656 253,05947.03%0.36% departments It 1,294,713 1,247,822 582,659 665,16346.69%0.94% City Attorney 194,450 194,450 131,697 62,75367.73%0.15% have spent 32% City Treasurer 99,466 99,466 37,623 61,84337.82%0.07% Human Resources 538,813 543,493 315,951 227,54258.13%0.41% of their budgets, Risk Management 659,847 659,847 717,222 (57,375)108.70%0.50% Successor Agency 6,252 27,371 6,849 20,52225.02%0.02% primarily due to Grants Division - 118,631 - 118,6310.00%0.09% Police Operations 9,982,589 10,031,909 5,324,325 4,707,584 53.07%7.55% delays in capital City Fire 2,578,122 2,729,989 1,811,330 918,65966.35%2.06% projects. District Fire 2,148,439 2,153,430 537,833 1,615,597 24.98%1.62% Parks 1,516,595 1,519,444 826,047 693,39754.37%1.14% Park Development 18,000 18,000 - 18,0000.00%0.01% Aquatics 216,907 216,907 146,891 70,01667.72%0.16% Golf 45,129 45,129 27,042 18,08759.92%0.03% Buildings & Grounds Maintenance 917,062 922,485 321,810 600,67534.89%0.69% Conference Center 473,071 473,071 174,187 298,88436.82%0.36% Museum 466,139 497,259 253,746 243,51351.03%0.37% Recreation 1,145,704 1,003,704 562,242 441,46256.02%0.76% Community Planning 562,182 657,831 312,836 344,99547.56%0.50% Building Inspection 336,701 412,412 221,567 190,84553.72%0.31% Housing 505,000 505,000 - 505,0000.00%0.38% Fleet And Plant Maintenance 511,947 640,046 411,824 228,22264.34%0.48% Engineering/Streets 10,398,680 12,436,347 2,849,502 9,586,845 22.91%9.36% Corporation Yard 67,980 72,227 74,778 (2,551) 103.53%0.05% Landfill 11,063,539 11,321,190 362,766 10,958,4243.20%8.52% Airport Operations 2,555,519 2,565,895 748,618 1,817,277 29.18%1.93% Electric Distribution 8,376,127 8,397,512 1,478,510 6,919,002 17.61%6.32% Technical Services 3,165,285 444,350 434,198 10,15297.72%0.33% Electric Administration 15,022,601 15,145,882 7,177,839 7,968,043 47.39%11.40% Public Benefit - 27,217 - 27,2170.00%0.02% Electric Services - 17,159 87,453 (70,294)509.66%0.01% Water Services 8,472,522 9,882,527 3,467,240 6,415,287 35.08%7.44% Sewer Services 12,699,335 14,022,195 8,516,986 5,505,209 60.74%10.56% Recycled Water Services 26,087,347 26,111,570 592,349 25,519,2212.27%19.66% Total$ 125,596,567$ 132,816,798$ 42,414,218$ 90,402,58031.93%100.00% Notes: 1. Administrative, overhead, and internal service fund allocations found in the - 18 Cost Allocation Plan have not been implemented, per Council direction, pending further review. Capital Improvements Pg. 21 CIP Update Capital Improvement Program Expenditure Plan - Current Fiscal Year 2017-18 Project Percent Total Program Expended Requested Project NameCodeStatusCompleteCost2017-182017-18Comments STREETS AND RIGHTS-OF-WAY Special Project Reserve Fund 251 Smith Street Sidewalk - curb, gutter, 21,951 2pavement15030In progress0% 220 31,847 In design phase. Street reconstruction (Luce, Funds will be expended when street 661,019 2Washington, Observatory)*15031In progress80% 9,550 661,019reconstruction begins. Congestion Relief Fund 510 2Slurry Seal Various Steets15027In progress0% 200,000 - 200,000 Contract awarded. 2Overlay StreetsIn progress0% 200,000 200,000 Bid documents prepared. Smith Street Sidewalk, Curb, Gutter, 250,000 2PavementIn progress0% 250,000 Finalizing design. STIP Augmentation Fund 507 1Gobbi/Waugh Traffic SignalIn progress0% 112,000 112,000 MCOG pending. SB 325 Reimbursment Fund 508 2City Speed Zone ReportsIn progress60% 40,000 40,000 State STP Fund 509 N. State St. & Empire Dr/Ford Rd. Signal 25,000 2CoordinationIn progress0% 25,000 MCOG pending. Total$ 1,509,970 $ 9,770$ 1,519,866 INFRASTRUCTURE Engineering/Streets Fund 100 Redwood Business Park improvements - 2iBank funding13001In progress 4,000,000 73,936 4,000,000 In construction. Redwood Business Park improvements - 2interfund loan17028In progress 3,333,000 1,617,856 3,333,000 In construction. Utility Billing Fund 205 2Building ImprovementsNot started 100,000 100,000 Parks and Related Facitlities Fund 301 2Anton Stadium infrastructureIn progress35% 18,000 - 18,000 Design phase complete. Building Maintenance 208 2Civic Center Facility ImprovementsIn progress20% 75,000 4,950 74,950 1Council Chambers RenovationNew 100,000 100,000 2Aphasia for Civic Center AnnexNew 50,000 50,000 2Civic Center reconfigurationNew 75,000 49,500 2Tile replacement for fountainNew 20,000 20,000 Found contractor to replace tile. Special Projects Reserve Fund 251 2Todd Grove Picnic AreaIn progress10% 50,000 50,000 Planning phase. Museum Prop 84 & Habitat Conservation Grants 310 2Museum - Prop 84Completed100% 1,509,011 40,377 Complete FY 17-18 2Museum - Habitat ConservationCompleted100% 1,509,011 Complete FY 17-18 State STP Fund 509 N. State and Low Gap intersection 16018 32,380 2improvementsIn progress20% 37 In construction. Trans-Traffic Fund 510 Main Replacement17002In progress 356,967 180,957 - Museum Fund 691 2Christensen project placeholderIn progress10% 20,000 20,000 Landfill Closure Fund 702 2Landfill Closure ProjectIn progress 10,343,287 Pending final design. Ukiah Valley Conference Center Fund 730 2New conference room chairsNew 25,000 25,000 2HVAC SystemIn progress 100,000 100,000 Pending Council approval. Airport FAA Grants 778 Capital Improvements Pg. 22 Runway 15-33 Pavement Rehab & 190,000 2Taxiway Alignment15040In progress60% 1 28,217 - Design phase. 2Pavement Management & PCN15041In progress80% 34,700 22,446 - Grant funded project to improve 1,260,000 2runway15040New - 1,260,000 Waiting on FAA. Airport FAA Grants 779 2Concrete slab for fuel tank project15042Completed100% 183,540 39,854 - Complete in 17-18 Electric 801 Automated Meter Reading Upgrade - Waiting on Finance CIS System. Possible 1,900,000 1AMI (Electric System)15080In progress3% 22,131 2,100,000CIS joint cloud. 2Distribution - transformer replacements15083Completed100% 50,000 17,152 Poll testing takes place every 10 years. 50,000 2Utility poll testing and replacement15083Completed 50,000Next testing is year 2020. 2Conductor upgradesCompleted100% 20,000 20,000 Design Build 1350 Hastings Rd, consulting Working with Planning requirements. 120,000 2services13004In progress10% - 120,000Pending Use Permit. 2System loading and fault monitoring15081Completed100% 50,000 44,287 39,648 2Communication upgade15082In progress3% 25,000 100 20,212 Pending Engineering Services. Facility Improvements (Electric Utility 800,000 1Service Center)15095In progress3% 14,829 333,372 Community Solar (renewable resource 750,000 1development)15095In progress3% 1,100,000 Pending Planning requirements. 2Service center site improvementsIn progress - 500,000 Working with Planning. 2Sevice center building improvementsIn progress 600,000 Working with Planning. Hydro electric equipment and tool - 2storageIn progress10% 70,000 Pending US ARMY Core of Engineers. Hydro electric equipment repair and - 2upgradesCompleted 23,465 415,000 Overhead system capacity - 2improvementsIn progress90% 352,000 Will be completed by Year-End Underground system capacity - 2improvementsIn progress90% 370,000 Will be completed by Year-End Design complete. Working on - 24160 to 12kv conversion - FairgroundsIn progress 280,000agreement. 2Metered power pedestal programIn progress40% 70,000 70,000 Desing complete. Out for bid. Water 822 2Well #415070In progress70% 1,397,900 157,117 584,243 Complete in 17-18 2Well #915074In progress70% 1,635,800 163,803 248,135 Complete in 17-18 1Pipeline Improvements15069In progress60% 1,150,000 17,989 1,150,000 1Replace PZ2s Reservoir15071In progress10% 1,000,000 12,625 915,528 Complete in 17-18 2Millview/Ukiah Intertie15072In progress10% 125,000 - 125,000 Complete in 17-18 2Willow/Ukiah Intertie15073In progress10% 125,000 - 125,000 Complete in 17-18 Connect Chlorine at WTP (switch to 200,000 2liquid chlorine)15075Deferred - - Analyzing performance. AMI project cancelled due to recycled 1,040,000 1Water Meter Replacement 15077Cancelled 6,144 40,000water system. 2Well #3 RoofDeferred 15,000 15,000 Luce, Observatory, Washington main 1,163,933 2replacementIn progress 6,151 1,163,933 Main Replacement17002In progress 766,282 614,230 Wastewater 840 2Replace AWT Feed Pump MotorsDeferred 90,000 - - 2Chlorine Mixer15054Cancelled 40,000 - - 2Manhole Replacement15055In progress 15,000 - 15,000 2Online Ammonia & Nitrate AnalyzerCompleted100% 50,000 - 2Vac-Trailer Cancelled 70,000 - Luce, Observatory, Washington main 917,548 2replacementIn progress 73,352 917,548 Main Replacement17002In progress 679,421 623,248 - Recycled Water 830 - 2Recycled Water System Phases 1-315062In progress10% 37,650,191 540,010 25,875,000 Design complete. Ready to bid. Total Infrastructure$ 65,007,684$ 4,465,263$ 57,138,356 Capital Improvements Pg. 23 CIP Update EQUIPMENT/OTHER General Fund 100 - Police 2 Patrol Vehicles In progress 100,000 100,000 Pending purchase. (cont.) 2 Cisco ASA Firewalls - Police In progress 50,000 50,000 Pending Council approval. General Fund 100 - Fire 2 Rescue Rope Replacement In progress 10,000 10,000 Pending order. 2 Swift Water Rescure Replacement Completed100% 15,000 15,137 15,000 2 Air Monitor Replacement Completed100% 11,000 10,194 11,000 2 Life Pack 15 Completed100% 30,000 25,979 30,000 2 SCBA Bottle Replacement Completed100% 15,000 15,000 2 Turnout Replacement, PPE 4 sets In progress 15,000 2,284 15,000 Pending order. General Fund 100 - Streets - - 2 Skidsteer Portion Completed 30,000 22,616 30,000 2 Street Sweeper In progress 225,000 225,000 Pending purchase. General Fund 100 - Parks 2MowerCompleted100% 75,000 85,296 75,000 Fleet and Plant Maintenance Fund 203 1Truck ReplacementCompleted100% 114,000 113,781 2 Equipment for new service truck Completed 30,000 30,000 2 Replace overhead lube system In progress 40,000 40,000 Initiating design. Equipment Reserve Fund 220 - - 2Police patrol vehicles15043Completed100% 120,000 31,132 2Police portable radiosCompleted100% 60,000 69,388 2Replace SCBA15034Completed100% 15,000 - - 2Replace defibrillator15035Completed100% 25,000 - - 2Replace defibrillatorCompleted - - 25,000 1Two New Type I fire engine *In progress 325,000 18,752 - Engines are being built. Asset Seizure Fund 630 240 TasersIn progress 80,000 80,000 Asset Forfeiture Fund 638 2Body camerasIn progress 21,684 Airport FAA Grants 779 Fuel Tank, Upgrades and Self service 2tank15042Completed100% 172,200 14,374 77,768 Airport FAA Grants 779 2Phase 3 Fuel tank upgrades15042In progress 30,000 30,137 30,000 Purchase of Golf cart/small off road 2vehicleNot started 12,000 - 12,000 Rebudgeting for FY 18-19 Electric 800 Electronic display trailer (1/3 share with 2water, sewer, electric)In progress 8,250 - 8,250 2Replace first responder trouble truck In progress 170,000 168,965 170,000 On order. 2Replace digger derrick truckIn progress 425,000 325,967 425,000 On order. 2VLF High POT cable test setIn progress 25,000 - 25,000 2E-VehicleCompleted - - 45,000 2Hydro filter cartIn progress 22,000 22,000 Complete by Year-End. Electric 801 Equipment Replacements (trucks, 1equipment etc.)Completed100% 495,000 Control System Upgrades (Hydro & 2Substation)15082In progress15% 75,000 100 75,000 Tainter Valve and Penstock Repair 2(Hydro)15013Completed100% 225,000 - 221,696 T1/T2 Bushing & Gasket Replacement 2(Orchard Substation)15093Completed100% 250,000 122,560 250,000 Primary & Secondary Conductor 2Repair/ReplacementCompleted100% 50,000 - Undergrounding Phase 3 & 4: Overhead 2to Underground16021In progress15% 20,000 - 20,000 Water 820 Truck Replacement (Ford Ranger, 2shared with wastewater)Completed100% 10,000 - - 1Service Truck15076Cancelled 45,000 - No need. Capital Improvements Pg. 24 Portion of Service Truck (50% 1Wastewater Fund)15059Cancelled 30,000 - Incomplete till 18-19. Vactor Replacement (50% Wastewater 1Fund)15057Deferred 200,000 - Deferred till 18-19. Asset Management Software (GIS 2system)15051In progress 15,000 - 15,000 Genie Lift (personnel lift for 2cleaning/maintenance at water plant)Completed100% 12,000 - 2Mid-size 4 door truckCompleted100% 35,000 27,500 35,000 Electronic display trailer (1/3 share with 2water, sewer, electric)In progress 8,250 - 8,250 2Supervisor F-1500Completed100% 15,000 13,825 15,000 2Skidsteer PortionCompleted100% 30,000 20,757 30,000 Wastewater 840 2Replace 2006 PriusCompleted100% 30,000 2Replace 3/4 Ton Dodge Completed100% 45,000 2Replace Ford RangerCompleted100% 10,000 Electronic display trailer (1/3 share with 2water, sewer, electric)In progress 8,250 8,250 2Supervisor F-1500Completed 15,000 13,825 15,000 2Skidsteer PortionCompleted 30,000 20,757 30,000 2AWT15053In progress 90,000 25,893 90,000 2Truck15058Completed100% 30,000 18,252 30,000 2Kubota muleCompleted100% 16,000 - 16,000 2Replace ForkliftCompleted100% 20,000 16,527 20,000 2Belt filter press overhaulIn progress 85,000 - 85,000 Evaluating option. Information Technology 209 Council Chambers Electronic 1Renovation15016In progress10% 75,000 - 75,000 Working RFP for engineer. 2Access Point Wi-Fi 15018In progress10% 30,000 - 30,000 Waiting for quote. 2Cardlock System Phase II15019Deferred 85,000 - - Deferred till 2020 Veeam Backup and Replication, 2disaster recovery softwareCancelled 18,300 - - Added to 18/19 Software budget. 2Host Cluster Server VM-Host16022Cancelled 10,000 - - 2Point Multipoint Communications16023Cancelled 50,000 - - Waiting on Microsoft Office update. Moved to FY 18/19 Data Storage . This is 2Wifi access pointIn progress 30,000 - 30,000an ongoing cost. 2Fiber WAN projectIn progress 83,000 - 83,000 In research stage. 2Civic Center APC Battery ReplacementCompleted100% 25,000 19,866 25,000 2Cluster Servers VMM ServersCompleted100% 58,000 - 58,000 Ukiah Valley Fire District Fund 915 SCBA Equipment replacement and 2repairNew 15,000 - 15,000 2South Station roof repairNew 60,000 60,000 2South Station A/C replacementNew 50,000 50,000 Total Equipment/Other $ 4,754,934 $ 1,233,864$ 2,956,214 Total capital$ 71,272,588$ 5,708,897$ 61,614,436 1. Council review and approval required before initiation. 2. Regular approval procurement process applies. *Specific engineer's estimates on each project not yet available. * A Type 1 fire engine is designed for structural fire fighting. Notes: 1. was compiled. Notes Pg. 25 Notes to Financial Statements New Funds New funds were created grant activities. Significant Changes No significant accounting or budgeting changes were made this quarter or since the start of the fiscal year. City-Wide Notes that review are expected by the end of April and will be presented to the Council in May in coordination with the ad hoc committee assigned to the project. Department Notes Several departments have or are approaching their budget appropriation limit earlier than anticipated. Management will address those issues with the Council, pursuant to adopted budget policy, if additional appropriation is needed for a particular department. Takeaways City revenues are trending positively Expenditures City-wide and at the fund level are within budgeted appropriations Most departments currently are within budget estimates Contacts Pg. 26 Ukiah City Council and Treasurer Allen Carter, Treasurer Kevin Doble, Mayor Email: Email: acarter@cityofukiah.com kdoble@cityofukiah.com Maureen Mulheren, Vice-Mayor Email: mmulheren@cityofukiah.com Jim Brown, Council Member Email: jbrown@cityofukiah.com Douglas Crane, Council Member Email: dcrane@cityofukiah.com Steve Scalmanini, Council Member Email: sscalmanini@cityofukiah.com Contacts Pg. 27 City Executive Management Team The senior management team for the City of Ukiah. City Manager Water Resources Director Sage Sangiacomo Sean White Email: ssangiacomo@cityofukiah.com Email: swhite@cityofukiah.com Phone: 707.463.6221 Phone: 707.467.5712 Deputy City Manager Community Development Director Shannon Riley Craig Schlatter Email: sriley@cityofukiah.com Email: cschlatter@cityofukiah.com Phone: 707.467.5793 Phone: 707.463.6207 City Attorney Finance Director David Rapport Daniel Buffalo Email: drapport@cityofukiah.com Email: dbuffalo@cityofukiah.com Phone: 707.467.2800 Phone: 707.463.6220 City Clerk IT Administrator Kristine Lawler Scott Shaver Email: klawler@cityofukiah.com Email: sshaver@cityofukiah.com Phone: 707.463.6217 Phone: 707.467.5722 Human Resources/Risk Management Police Chief Director Chris Dewey Sheri Mannion Email: cdewey@cityofukiah.com Email: smannion@cityofukiah.com Phone: 707.463.6245 Phone: 707.463.6272 Ukiah Valley Fire Authority Administrator Public Works Director/City Engineer Dan Grebil (Interim) Tim Eriksen Email: dgrebil@cityofukiah.com Email: teriksen@cityofukiah.com Phone: 707.462.7921 Phone: 707.463.6280 Community Services Administrator Electric Utility Director Tami Bartolomei Mel Grandi Email: tbartolomei@cityofukiah.com Email: mgrandi@cityofukiah.com Phone: 707.467.5764 Phone: 707.463.6295 Airport Manager Greg Owen Email: gowen@cityofukiah.com Phone: 707.467.2855 Contacts Pg. 28 City Contact Information City of Ukiah 300 Seminary Ave Ukiah, CA 95482 Tel 707.463.6200 www.cityofukiah.com