HomeMy WebLinkAboutAGENDA REPORT 2020 1104 CCSA REG ITEM 09D POWERPOINTFirst Quarter FY 2021 (Jul – Sept) November 04,2020
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Presentation Agenda
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Economic Outlook
GDP
Unemployment
Consumer Spending
State’s Deferral Impacts
Sales Tax Trends
Tax & Bond Measures
FY 20 Unaudited FY 21 First Quarter
Revenues
Expenditures
Accomplishments
Revenues
Expenditures
Challenges Ahead
Reserves
Economic Outlook
GDP
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Department of Commerce’s
Bureau of Economic Analysis
(BEA) released the advance
estimate for gross domestic
product (GDP) for the third quarter
of 2020, finding that real gross
domestic product increased at an
annual rate of 33.1%.
Unemployment
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The US unemployment rate in
September decreased to 7.9%
from the 14.7% in April 2020.
Still the highest in the history.
Unemployment Insurance is at a
current level of 751000.
Consumer Spending
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In September, both Personal
Income ($170.3 billion, 0.9%) and
Consumer Spending ($201.4
billion, 1.4%) increased.
Status of the State’s
Sales Tax Deferral Program
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▸90-day deferral up to $1 million in sales tax liability, in effect
through 7/31/20, no sign up necessary – if qualify, don’t file
▸For small businesses, $5 million or less in annual taxable
sales
▸Defer maximum $50,000 tax liability, 12-month interest and
penalty free, must be paid in full by 7/31/2021
Industry Comparison
Jan–Jun 2019 vs. Jan–Jun 2020
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Sales Tax Forecast Statewide
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2020 Statewide Sales Tax
Industry Outlook
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General Consumer Goods Business/Industry
Fuel/Service Station Restaurants/Hotels
Building/Construction Autos/Transportation
FY 2019-20
Unaudited Results
Adopted Budget
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General
Fund
Special
Revenue
Funds
Capital
Funds
SARA &
MWPRCA TOTAL
Revenues $19,664,901 $15,204,194 $230,000 $1,698,236 $36,797,331
Transfers In $3,530,052 $1,691,336 $5,221,388
Expenditures ($16,187,336)($33,088,763)($2,017,323)($1,681,536)($52,974,958)
Transfers Out ($3,322,482)($207,570)($1,691,336)($5,221,388)
Net Surplus / (Deficit)$155,083 ($14,562,087)($1,787,323)$16,700 ($16,177,627)
Projected Budget
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General
Fund
Special
Revenue
Funds
Capital
Funds
SARA &
MWPRCA TOTAL
Revenues $18,829,250 $16,122,350 ($341,300)$1,698,236 $36,308,536
Transfers In $2,032,817 $3,009,242 $1,691,336 $6,733,395
Expenditures ($18,652,623)($15,730,236)($2,651,374)($1,677,886)($38,712,119)
Transfers Out ($2,849,411)($159,831)($2,032,817)($1,691,336)($6,733,395)
Net Surplus / (Deficit)($639,967)$3,241,525 ($5,025,491)$20,350 ($2,403,583)
FY 2019-20 Unaudited Results
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General Fund
Revenues $20,188,431
Transfers In $1,836,478
Expenditures ($17,396,340)
Transfers Out ($2,623,815)
Net Changes in Fund Balance $2,004,754
Reserve Policy 5.2
Emergency/Contingecy ($152,000)
CalPERS Unfunded Accrued Liability ($1,341,661)
Special Projects Fund ($350,000)
Net Surplus $161,093
$24,317,962
Special Projects Fund
$3,675,000
Emergency/Contingency Fund
$10,600,663
Endowment Fund
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Reserves
FY 2020-21
First Quarter
Jul - Sept
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Revenues
Adopted Budget Jul - Sep % of Jul - Sep Jul - Sep Variance ($) Variance (%)
Revenue Type 2020-21 2020-21 Adopted Budget 2020-21 2019-20 Jul - Sep Jul - Sep
Property Tax 9,282,500 96,341 1.04%96,341 62,505 33,836 154.13%
Sales and Use Tax 3,506,000 306,900 8.75%306,900 291,254 15,646 105.37%
Transient Occupancy Tax - 980 NEW 980 - 980 NEW
Franchise Fees 1,162,000 - 0.00%- 288,402 (288,402) 0.00%
Use of Money and Property 842,000 (15,878) -1.89%(15,878) 102,772 (118,650) -15.45%
Federal, State and Local Funding 2,149,373 - 0.00%- 2,942 (2,942) 0.00%
Fees for Services 1,409,369 197,436 14.01%197,436 305,076 (107,640) 64.72%
Other Revenues 784,700 239,472 30.52%239,472 283,978 (44,506) 84.33%
CARES Act Funding - 74,655 NEW 74,655 - 74,655 NEW
Total 19,135,942$ 899,906$ 899,906$ 1,336,929$ (437,023)$
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Expenditures
Adopted Budget Jul - Sep % of Jul - Sep Jul - Sep Variance ($) Variance (%)
Expenditure Type 2020-21 2020-21 Adopted Budget 2020-21 2019-20 Jul - Sep Jul - Sep
Services & Supplies 2,760,306 202,293 7.33%202,293 343,857 (141,564) 58.83%
Salaries and Benefits 4,888,765 1,100,860 22.52%1,100,860 1,053,207 47,653 104.52%
Sheriff 7,749,933 1,193,865 15.40%1,193,865 616,661 577,204 193.60%
Utilities 375,647 46,638 12.42%46,638 38,707 7,931 120.49%
Capital Outlay 239,276 158,159 66.10%158,159 1,314,976 (1,156,817) 12.03%
Sub-Total 16,013,927$ 2,701,815$ 2,701,815$ 3,367,408$ (665,593)$
Transfers Out:
Parks Maintenance 1,486,883 - 0.00%- - - N/A
LMDs 178,142 - 0.00%- - - N/A
Street Lighting 80,954 - 0.00%- - - N/A
Engineering 215,401 - 0.00%- - - N/A
Community Development 1,160,635 - 0.00%- - - N/A
Total 19,135,942$ 2,701,815$ 2,701,815$ 3,367,408$ (665,593)$
Challanges Ahead!
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CalPERS 3 ✔March 31 – Market fall caused a -4% expected returns
✔Private Asset Classes not included
✔Estimated loss for the City $4,296,000
Recession Shapes 2
✔V – Sharp decline followed by sharp recovery
✔U – Sharp decline with stagnation before rise up
✔Swoosh – Sharp decline, partial bounce, followed by
gradual recovery
Businesses 1 ✔Many remain close & some may never open again
✔Social Distancing challanges
✔Those who open may have financial challanges ahead
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Questions?
Moorparkca.gov
Finance Department
Financial Information Hub