HomeMy WebLinkAbout10/3/2023 Item 7a, Jackson - Staff Agenda CorrespondenceCity of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: October 3, 2023
TO: Mayor and Council
FROM: Emily Jackson, Finance Director
VIA: Derek Johnson, City Manager
SUBJECT: ITEM 7a – FY 2022-23 YEAR END BUDGET REVIEW (UNAUDITED)
The purpose of the memorandum is to address a question related to utility user tax
revenue and correct a table included in the Water Fund section of the 2022 -23 Year End
Budget Report document.
Staff received the following question, regarding Utility User Tax (UUT) revenues received
in FY 2022-23. Staff’s response is shown in italics:
1. Why were UUT projections so far off? Does this mean that people used much
more energy than projected?
As noted in the report, UUT is a pretty volatile
revenue source for the City, so projections are
conservative and based on prior years’ actuals.
The table to the right shows UUT revenues for
the last ten years, and demonstrates the
volitility in this revenue source. Unfortunately,
UUT is not a revenue source that the City has
much influence over, as the charges are based
heavily on consumption of utility services.
The increase in UUT revenue over budget in
FY 2022-23 is largely due to weather
conditions during the fiscal year, which
increased consumption overall. Natural gas
and electricity usage were the biggest contributors to UUT revenues. Based on
staff’s own analysis as well as statewide analysis performed by HdL, the increase
in natural gas consumption is attributable to colder weather in the area in January
through April. The increase in electricity consumption is attributable to hotter
summer months.
Fiscal
Year Revenue %
change
13-14 5,345,342 9%
14-15 5,211,207 -3%
15-16 5,413,720 4%
16-17 5,539,407 2%
17-18 5,627,356 2%
18-19 4,919,892 -13%
19-20 5,439,144 11%
20-21 5,225,979 -4%
21-22 5,338,325 2%
22-23 6,265,673 17%
Item 7a – FY 2022-23 Year End Budget Review (Unaudited) Page 2
2. Correction of Water Fund Table
Several accounts were inadvertently excluded from the FY 2023-24 Budget
column of the Water Fund Operating Expenditures table, making the budget
appear as if it was significantly lower (which is not the case). This administrative
adjustment has no impact on the year-end analysis or the adopted budget. The
table will be replaced with the correct version when the report is published on the
City’s website.
Existing Attachment A – Table 46 (Packet Page 110)
Corrected Attachment A – Table 46 (Packet Page 110)
FY 2021-22 FY 2023-24
Actual Budget Actual Funds Available % Budget
Staffing 5,174,679$ 5,484,670$ 4,999,216$ 485,454$ 9%5,502,576$
Contract Services 9,921,661$ 11,960,958$ 9,866,973$ 2,093,985$ 17%12,372,096$
Other Operating Expenditures 955,013$ 1,534,093$ 1,186,567$ 347,526$ 20%1,589,739$
Transfers Out 2,517,178$ 2,311,753$ 2,311,753$ -$ 0%2,826,143$
Utilities 526,965$ 698,125$ 657,998$ 40,127$ 6%1,033,139$
Debt Service 2,307,374$ 2,442,558$ 2,300,546$ 142,012$ 0%1,870,392$
TOTAL 21,402,870$ 24,432,158$ 21,323,053$ 3,109,105$ 13%25,194,085$
Water Fund Operating
Expenditures
FY 2022-23