City of Carmel-by-the-Sea Fiscal Year 2012-2013 Quarterly Performance Report

Third Quarter Fiscal Year 2012-2013 January 1, 2013 March 31, 2013 Presented to the City Council May 7, 2013

Summary of Report
THIRD QUARTER This report provides a quarterly update of the Citys fiscal, operational and capital project completion performance relative to the adopted fiscal year 2012-2013 operating plan and budget. The third quarter of Fiscal Year 2012-2013 ended March 31, 2013. Revenue continues to show signs of strengthening and expenditures are well managed by the departments. The most significant financial variance is the States unanticipated payment of vehicle license fees. On the whole, General Fund revenue received was nearly $9 million at the three-quarter point of the year and actual expenditures are just over $9 million. No fund balance has been used for operations. Other highlights for the second quarter include: progress on 2013 key initiatives, effective management of departmental operations, and substantial completion of capital projects. The three primary revenue sources are strong. Property taxes are 62% of budget projections indicating a likely positive true variance. Sales tax and transient occupancy taxes are at 64% and 68% of budget respectively. The Measure D one-percent sales tax rate increase became effective on April 1, 2013. Reported performance measures reflect those that are included in the adopted fiscal year 2012-2013 budget. This quarterly report is a status update of the fiscal year 20122013 operating plan and budget. The City Council provided direction on certain performance metric revisions that will be presented to the City Council in May for adoption as part of the fiscal year 2013-2014 operating plan. A summary of the funded fiscal year 2012-2013 capital projects begins on page nine of this report. Work is underway on all projects with 78% of the projects being substantially complete.

Third Quarter FY 12-13 Performance Report

Financial Summary
MAJOR FUND BUDGET SUMMARY
Actual Description FY 2009-10 Actual FY 2010-11 Actual FY 2011-12 Adopted Budget FY 2012-13 Revised Budget FY 2012-13

75% of the Fiscal Year

Third Quarter FY 2012-13 % of adjusted Budget

GENERAL FUND Source of Funds Taxes Franchise Fees Fees & Permits Fines & Forfeit Intergovernmental Other Use of Prior Funds

10,190,355 452,935 448,356 17,007 386,658 643,343 592,178 12,730,832

10,368,322 476,597 390,738 19,314 450,778 394,465 724,566 12,824,780

10,982,324 406,550 450,600 17,907 368,948 660,342 12,886,671

11,361,000 512,698 430,500 25,200 71,700 428,266 585,002 13,414,366

11,434,500 512,698 430,500 25,200 143,715 643,568 359,700 13,549,881

7,577,770 333,255 339,754 12,086 204,002 393,226 8,860,093

66.27% 65.00% 78.92% 47.96% 141.95% 61.10% 0.00% 65.39%

Uses of Funds Policy & Executive Public Safety Public Services Library Administrative Planning & Bldg Non-Dept Debt Service Capital Outlay Other Uses

1,719,774 4,871,400 2,069,581 935,990 1,022,518 537,414 861,757 579,257 76,000 140,669 12,814,360

1,214,436 4,850,572 2,113,969 969,482 891,592 571,994 753,845 536,609 220,932 493,830 12,617,261

1,359,940 4,701,255 2,098,402 910,722 1,000,749 599,918 781,289 537,771 606,898 12,596,944

1,283,635 6,011,113 2,673,953 988,776 1,162,270 662,281 923,318 537,200 14,242,546

1,273,218 5,012,695 2,160,036 956,427 1,217,530 628,798 923,318 710,048 430,598 13,312,668

740,273 3,889,400 1,721,643 655,117 863,744 383,798 710,852 179,112 9,143,938

58.14% 77.59% 79.70% 68.50% 70.94% 61.04% 76.99% 25.23%

68.69%

GAS TAX FUND Source of Funds Taxes Interest

66,620 1,633 68,253

64,117 64,117

114,833 554 115,387

72,450 2,500 74,950

72,450 2,500 74,950

22,902 22,902

31.61% 0.00% 30.56%

Uses of Funds Salaries and Benefits Materials & Supplies Trans. To Capital Transfer to General

65,834 1,735 67,569

44,674 5,600 50,274

28,939 28,939

74,950 74,950

74,950 74,950

12,155

10,747 22,902

14.34% 30.56%

CAPITAL PROJECTS FUND Source of Funds Grants Intergovernmental Fees Transfer in Use of Prior Funds Interest Uses of Funds Capital Outlay Designated for Future AMBULANCE FUND Source of Funds Call Income Transfer in Debts Recovered

220,932 220,932

247,978 291,000

1,058,918 1,597,896

430,000 370,000 305,600 562,988 1,668,588

465,632 370,000 305,600 651,758 1,792,990

48,028 108,010 59,690 420,448 636,176

10.31% 29.19% 19.53% 64.51% 35.48%

1,085,637 1,085,637

1,597,896 1,597,896

1,668,588 1,668,588

1,792,990 1,792,990

636,176 636,176

35.48% 35.48%

497,636 497,636

370,000 433,179 803,179

370,000 433,179 803,179

145,833 219,147 364,980

39.41% 50.59% 45.44%

Uses of Funds Salaries and Benefits Materials & Supplies

339,144 38,544 377,688

667,547 135,632 803,179

646,944 135,632 782,576

322,813 42,167 364,980

49.90% 31.09% 46.64%

Third Quarter FY 12-13 Performance Report

Department Summary
Note: This section reports on variances of actual expenditures compared to budget. The summaries differentiate timing variances from true variances. A timing variance is when an expenditure is anticipated in the adopted annual budget but does not occur at the anticipated time or on an even quarterly basis (for example a one-time expenditure that occurs in the first quarter). A true variance is an expenditure that is not anticipated in the adopted budget.

REVENUE Revenue shows continued strengthening through the third quarter. Secured property taxes, transient occupancy taxes, and sales taxes are projected to exceed the adopted budget targets. Motor vehicle in-lieu revenue was funded by the State but was an unanticipated revenue in the adopted budget. Building permit revenue is demonstrating positive growth and will likely exceed revenue estimates. Year end projections anticipate revenue exceeding revised budget targets by five percent. CITY COUNCIL The City Council budget is approximately 77% expended at the three-quarter point of the fiscal year. Annual citywide dues are paid early in the fiscal year resulting in much of the departments expenditures being front loaded in the fiscal year.
Performance
Attend and participate in City Council meetings Set City goals and objectives Number of ordinances adopted Number of resolutions adopted

FY 11-12 36 Yes 3 74

FY 12-13 Q3 12-13 FY 13-14 FY 14-15 32 Yes 5 80 29 Yes 5 62 30 Yes 5 70 30 Yes 5 70

Third Quarter FY 12-13 Performance Report

LEGAL The expenditures for Legal are below budget limits as of the end of the third quarter. 60% of the budget has been expended. Most of the positive variance is a result of timing due to the billing process. Outside legal billings total $117,087 against a budget of $210,000.
Performance
Resolve 66% of litigation cases without any payment to plaintiff Provide advice on an estimated number of agenda items per year Respond to 85% of legal requests by negotiated target date

FY 11-12 43% 204 85%

FY 12-13 Q3 12-13 FY 13-14 70% 225 90% 100% 40 90% 70% 230 90%

FY 14-15 70% 230 90%

CITY ADMINISTRATOR OFFICE The City Administrator Office budget is 55% expended at the midpoint of the fiscal year. In addition of executive oversight of the organization and policy formulation and execution in support of City Council direction, the Office also provides operational oversight of the Marketing program and Community Services. The Marketing budget is 81% expended as of the end of the third quarter; most regional marketing efforts occur during the second and third quarters. 41% of the Community Services budget is expended at the three quarter point of the fiscal year with the savings primarily in parttime assistance due to a vacancy. The department is completing a marketing plan which is one of the Citys 2013 key initiatives, developing guidelines for the weekly market at Sunset Center, has entered into a 2013 performance agreement with the Forest Theater Guild for 2013 performances.

Third Quarter FY 12-13 Performance Report

Performance

Conduct quarterly operational review meetings Complete Department manager performance reviews before due date % Public Records Act requests processed within 10 days % of error free City Council agendas

FY 11-12 18 7 47/48 98% 64%

FY 12-13 Q3 12-13 FY 13-14 FY 14-15 28 8 50/50 100% 80% 17 7 44/44 100% 55% 28 6 50/50 100% 100% 28 6 50/50 100% 100%

ADMINISTRATIVE SERVICES The Administrative Services budget shows expenditures at 74% at the 75% point of the fiscal year. During the third quarter of the fiscal year, the Department began the recruitment for the Community Planning and Building Services Department Director, pushed forward the development of the information technology strategic plan, completed an initial risk management assessment.
Performance FY 11-12 38% 11 FY 12-13 Q3 12-13 FY 13-14 FY 14-15 95% 8 32% 5/20 95% 5/15 95% 5/10
% employee performance reviews completed on time # of worker comp claims (new/open) IT expenditures per workstation $ # of Budget Revisions

7,163 $ 7,628 26 10

4,796 $ 7,909 $ 8,136 6 10 10

COMMUNITY PLANNING AND BUILDING The Community Planning and Building Department continues to see revenue growth resulting from increased development activity. As of the end of the third quarter the Department had one vacancy, the Community Planning and Building Director position. A part-time contract planner, and shared services with neighboring jurisdictions are assisting with the workload. The departments budget is 58% expended as of March 31, 2013.

Third Quarter FY 12-13 Performance Report

Performance

Review all design review applications for completeness within 2 weeks Provide building permit plan check corrections w/in 3 wks Avg. 2 days from first code complaint to investigation Complete 100% of inspections within three business days of request

FY 11-12 85% 90% 75% 90%

FY 12-13 Q3 12-13 FY 13-14 FY 14-15 90% 95% 85% 95% 70% 92% 90% 100% 95% 98% 90% 98% 95% 98% 95% 98%

PUBLIC SERVICES Public Services continued to complete a number of projects during the third quarter. A grant-funded light replacement project on the Sunset terrace is underway. Work is nearly complete on the Del Mar restoration project including the San Antonio trail redesign and connection, and boardwalk and platform construction. The trash can replacement project is working through a review process. The department is conducting bids for services with awards anticipated to come to the City Council in the fourth quarter. The Departments lost time rate was 4.97%.
Performance
Custodial expenditure per square foot City trees receiving preventative maint. out of total inventory of 9681 % of lane miles assessed at satisfactory or better Street sweeping expenditure per capita

FY 11-12 $

FY 12-13 Q3 12-13 FY 13-14 FY 14-15 0.94 $ 1.10 $ 500 52% 585 52% 0.94 $ 500 51% 0.95 500 51%

0.90 $ 350 53%

36.65 $ 37.45 $ 35.64 $ 38.00 $ 38.50

PUBLIC SAFETY The Public Safety budget is in line with budget with 78% of expenditures as of March 31, 2013. Police is seeking interested parties for an upcoming citizen academy. An emergency preparedness workshop was held on February 26, 2013. The traffic speed survey was completed an approved by the City Council which is required for setting and enforcing speed limits. Work is underway on parking data gathering as a prelude to the parking management plan for the City Council to discuss this summer.

Third Quarter FY 12-13 Performance Report

Recruitment of paramedic firefighters and per diem paramedic firefighters for the Citys ambulance is underway. Ambulance revenue is higher than anticipated due to collection success and the use of electronic patient care records. Fire received award of the SAFER grant which will fund firefighter staffing and should result in decreased overtime costs primarily next fiscal year. Lost time was 5% for police and ambulance and 7.8%.
Performance FY 11-12 FY 12-13 Q3 12-13 FY 13-14 FY 14-15
Total Fire expen per capita (excludes ambulance) $ % of total fire calls w/ a response time of < 5 min. from dispatch to arrival % full cardiac arrest patients with a pulse upon delivery % of UCR Pt 1 crimes cleared Maintain a 85% completion in the Carmel Diversion Program

515.81 $ 495.72 $ 505.21 $ 500.80 $ 508.03 90% 100% 10% 87% 97% 100% of 100% 3 25% 19% 90% 90% 95% 95% 100% 25% 90% 95% 100% 30% 90%

LIBRARY The local history department of the library is processing a backlog of the local history collection, indexing the Devendorf collection, updating copyright policies and procedures, and is actively assisting residents in local history research. The children and adult summer reading programs begin in June. The library is preparing for an open recruitment of library assistants to serve in the on-call pool. The budget expenditures were 66% at the end of the third quarter.
Performance
# of library visits Total Circulation Users of public internet computers per year WiFi Users Program Attendance Registered borrowers General Fund contribution per registered borrower

FY 11-12 FY 12-13 Q3 12-13 FY 13-14 FY 14-15 91,000 94,000 68,738 95,000 96,000 140,000 145,000 112,281 150,000 150,000 15,000 15,000 10,917 2,014 2,856 9,377 15,000 15,000

12,600 $

10,600

11,000

11,500

73.27 $ 93.30 $ 69.86 $ 91.03 $ 87.07

Third Quarter FY 12-13 Performance Report

CAPITAL PROJECTS
Vehicle acquisition: The Fiscal Year 2012-2013 budget includes $386,077 for vehicle lease payments ($301,077) and purchases ($85,000). The new patrol vehicle has been delivered and is in service. The new Public Works vehicle has been delivered and is in service. The parking enforcement vehicle (budgeted last fiscal year) is pending delivery. The police administration vehicle has been purchased and is in service. The paint truck is on a maintenance hold and a new vehicle is included in the fiscal year 2013-14 proposed budget. If approved by the City Council street painting and marking will occur this summer. ASBS Dry Weather Diversion: This storm drain runoff project has the goal of eliminating dry weather flows to the beach. Engineering has designed improvements and the awarding of the construction contract will be on an upcoming City Council agenda. Work is anticipated to occur primarily in Fall 2013. Alerting System: This is a grant funded project and grant applications have been submitted and are under review. This important project will need commence in the fourth quarter regardless of grant funding determination. Rio Park Improvements: During the first quarter the City Council held a community workshop on Rio Park. Additional ongoing funding will need to be identified. The immediate task coming out of the workshop was to secure a pedestrian pathway from Rio Road to the intersection of Lasuen Road and Dolores Street. Design of the pathway is underway and adjacent landowners have expressed a willingness to cooperate with bringing the project to fruition. Interface for patrol audio/video equipment: The project is complete. Auto downloading of audio and video data is proving more efficient with an improved chain of evidence control. Mobile data terminal software and installation: This project was applied to the new police patrol vehicle and equipment has been installed. Testing of the effectiveness of the equipment is being completed prior to full vehicle fleet installation. Self contained breathing apparatus: This is a grant funded project and grant applications have been awarded. Staff is completing equipment acquisition research.

Third Quarter FY 12-13 Performance Report

Del Mar Master plan projects: The design has been approved by the City Council and the grant awarded. The construction contract was awarded for the boardwalk and San Antonio pathway. The pathway portion of the project is nearly complete. Interpretive signage will be added to the boardwalk area prior to fiscal year end. Additional sidewalk upgrades, part of the original design but beyond the original scope of funding, are being considered to improve connectivity and aesthetics and will be completed within available funding constraints. The dune project in conjunction with the Carmel Garden Club is substantially complete. Forest Theater Renovation: The City has submitted two grant applications and is searching for additional foundation opportunities for the Forest Theater renovation. Funding would enable a planning process to occur to identify a renovation project and phasing. Street and Road projects: The annual street and road construction project is complete as approved by the City Council in the Capital Improvement Plan. Sunset Center roof repairs: A leak detection contractor is available for immediate response. There was insufficient saturation during the third quarter to identify leak location; identifying necessary repairs requires active leaking and/or saturation. Scheduling of the diagnostic work will occur as weather permits and an alternative, less comprehensive, repair approach is now being completed to facilitate the repairs. Some patching has been completed and will be completed as needed on an ongoing basis.

About this report format: This report is produced quarterly to improve transparency and accessibility of the City of Carmel-by-the-Seas fiscal position and operations. Popular financial reporting, such as this document, is to provide financial data in a form that is not confusing or discouraging to those unfamiliar with accounting and financial reporting. It is not enough that reports are written. People must be able to access them, read them, and understand them if government transparency and community engagement is to have meaning. Fiscal transparency can be defined to involve ready access to reliable, comprehensive, timely, understandable, and comparable information on the Citys activities. With a user friendly, less technical discussion of City finances, the report is our way of showing the taxpaying public the value of their tax dollar and accomplishments of the City on the publics behalf. These reports are prepared quarterly and distributed in August, November, February, and May so the information can be used for effective public participation and enhanced accountability.

Third Quarter FY 12-13 Performance Report

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