City of Carmel-by-the-Sea
Fiscal Year 2012-2013
Quarterly Performance Report
Second Quarter Fiscal Year 2012-2013
October 1, 2012 – December 31, 2012
Presented to the City Council
February 5, 2013
Summary of Report
SECOND QUARTER
The second quarter of Fiscal Year 2012-2013 ended December 31, 2012. Property
transfer tax and transient occupancy tax revenues, economic indicator revenues, are
showing signs of continuing strengthening. Expenditures generally remain balanced.
On the whole, General Fund revenue received was nearly $7 million at the mid-point of
the year and actual expenditures are just under $6 million. No fund balance has been
used for operations. Other highlights for the second quarter include: substantial
completion of 2012 key projects, effective operations in the departments, and
substantial progress on all capital projects.
The three primary revenue sources are strong. Property taxes are 60% of budget
projections indicating a likely positive true variance. Sales tax and transient occupancy
taxes are both at 46% of budget with December receipts forthcoming. The projections
do not include Measure D funding (other than the $25,000 already recognized by the
City Council).
BUDGET ADJUSTMENT REQUESTS
Two budget adjustment requests are included on the regular agenda. Staff is not
proposing additional budget adjustment requests at this time. The City Council may
want to discuss and consider budget adjustments at this point or direct staff to return at
a future meeting with additional information or proposed budget adjustment requests
for the City Council’s consideration.
Financial Summary
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 second quarter. Secured property
taxes and transient occupancy taxes are projected to exceed the adopted budget
targets. Motor vehicle in-lieu revenue was funded by the State but was not an
anticipated revenue in the adopted budget. The adopted revenue budget does not
anticipate revenue from Measure D other than the $25,000 the City council recognized
on December 6, 2012 for sidewalk repair projects. In the “other” revenue category,
parking lot revenue is exceeding budget projections.
CITY COUNCIL
The City Council budget is approximately 55% expended at the mid-point of the fiscal
year. Annual citywide dues are paid early in the fiscal year resulting in much of the
department’s expenditures being front loaded in the fiscal year. The dues for the
Monterey Peninsula Regional Water Authority were approved by the City Council at an
amount higher than budgeted; as a result of this true variance, a mid-year budget
adjustment for the City’s dues and memberships is included as a budget adjustment
request on the February 5, 2013 City Council agenda.
LEGAL
The expenditures for Legal are below budget limits as of the end of the second quarter.
29% 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 $40,000 against a budget of
$210,000.
CITY ADMINISTRATOR OFFICE
The City Administrator Office budget is 39% 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 and Economic Development component and Community
Services. The Marketing and Economic Development budget is 51% expended as of the
end of the second quarter; most regional marketing efforts occur during the second and
third quarters. 30% of the Community Services budget is expended at the mid-point of
the fiscal year with the savings primarily in part-time assistance due to a vacancy. On
the Marketing and Economic Development operation, the City helped the new
Hospitality Improvement District, charged with small conference destination marketing,
become funded and operational. Community Services, working with the Community
Activities and Cultural Commission, continues to pursue and coordinate events that are
great for the community and bring visitors to the Village. In particular, a pilot Thursday
night event in December was a success at Devendorf Park and the Holiday events were
well received.
ADMINISTRATIVE SERVICES
The Administrative Services budget shows expenditures at 60% at the 50% point of the
fiscal year. Professional services, workers compensation expenditures, and recruitment
costs all contribute to this variance from budget. During the second quarter of the fiscal
year, the Department completed the pension obligation bond issuance and prepayment
of the City’s side fund obligation, worked with the California Board of
Equalization to implement Measure D after it was approved by the voters, completed
the Administrative Services Director recruitment, and developed information for the
City to begin filling the position of Community Planning and Building Director and
Director of Public Services.
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 second quarter the
Department had one vacancy, the Community Planning and Building Manager/Director
position. A part-time contract planner is assisting with the workload. The early part of
the second quarter saw the hiring of the code compliance contractor and monthly code
compliance activity reports began to be presented at City Council meetings. Code compliance has reinvigorated its efforts to maintain community character with
enforcement of the City’s right-of-way encroachment and short-term residential rental
ordinances.
PUBLIC SERVICES
Public Services continued to complete a number of projects during the second quarter.
The bridge replacement project at Mission Trail Nature Preserve was completed. The
tree pruning contract work began in November. Work began on the Del Mar restoration
project including the San Antonio trail redesign and connection, dunes restoration, and
boardwalk and platform construction. One of two trash can use surveys was completed
as analysis for the trash can replacement project. The Department’s lost time rate rose
to 8.09% due to injury leave and sick leave.
PUBLIC SAFETY
The Public Safety budget is below budget due primarily to a timing variance for fire
services and lower than anticipated overtime expenditures in police. The police diversion program remains a successful program with a 90% completion rate.
Ambulance is maintaining an unfunded vacancy due to budget constraints in developing
the adopted budget and to examine the opportunity for operational efficiencies. The
vacant position is currently being filled by a part time per diem fire fighter paramedic
and the cost to fill the position is slightly less than the cost to fill the position
permanently with a full time employee which would provide more operational stability.
Staff anticipates filling the vacancy during the third quarter if funding is approved by the
City Council. 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
low for police but higher than average for fire as a result of worker comp and other
leave.
LIBRARY
The Department finalized updating its five-year Strategic Workplan during the second
quarter. Community programs remain a priority and are well received by attendees;
staff is tracking a new performance measure below of program attendance. The budget
expenditures were nearly 49% at the end of the second quarter
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.
ASBS Dry Weather Diversion: This storm drain runoff project has the goal of eliminating
dry weather flows to the beach. Engineering is designing improvements and work is
anticipated to occur in Spring 2013.
Alerting System: This is a grant funded project and grant applications have been
submitted and are under review.
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.
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 will be completed prior to full vehicle fleet installation.
Self contained breathing apparatus: This is a grant funded project and grant
applications have been submitted and are under review. This is a multijurisdictional
grant request which typically makes the grant more attractive for award.
Del Mar Master plan: The design has been approved by the City Council and the grant
awarded. The construction bid was awarded for the boardwalk and San Antonio
pathway. The project is under way with substantial completion at the time of this
report.
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 obtained and available for
immediate response. There was insufficient saturation during the second 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 considered to facilitate
the repairs.
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