HomeMy WebLinkAbout5E - 2007 Fourth Quarter Financial Reports
MEETING DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
DISCUSSION:
RECOMMENDED
MOTION:
Frank Boyles,
ATTACHMENT:
CITY COUNCIL AGENDA REPORT
/'
MARCH 3, 2008
5E
Ralph Teschner, Finance Director
CONSIDER APPROVAL OF 2007 4th QUARTER BUDGET SUMMARY
REPORTS AND GENERAL FUND OVERVIEW
Introduction
The City Council has directed Staff to prepare an accompanying written
narrative that would serve as an informational excerpt to the quarterly budget
reports. Attached to the 4th Quarter Budget Report is a document entitled
"Budget Report Overview" for the General Fund that is intended to satisfy your
request. The 4th Quarter Budget Reports shows the status of expenditures for
all 12 months of activity in 2007 for the General Fund and Enterprise Funds
consisting of the water & sewer, water quality and transit funds.
The "overview" provides information related to those areas within the general
fund budget that have experienced exceptions (normally :i:5% variation) to the
approved budget levels. The report identifies revenue shortfalls and surpluses
and includes a short explanation as to the various reasons. Expenditures are
also summarized on this basis.
The "Budget Report Overview" is intended to serve as narrative support to the
Quarterly Budget Report and highlight the performance results of the General
Fund budget. Please feel free to contact me at 447-9841 for more information.
A motion as part of the consent agenda to approve the 2007 4th Quarter
Budget Report as submitted.
ager
1. 2007 4th Quarter Budget Summary Reports
2. Budget Report Overview (General Fund)
www.cityofpriorlake.com
Phone 952.447.9800 / Fax 952.447.4245
2007 4th Quarter General Fund Budget Summary Report
Budget Amount Expended Percent
General Government 2,221,528.00 2,271,677.00 102%
Mayor & Council 61,927.00 65,187.00 105%
Ordinance 12,000.00 7,826.00 65%
City Manager 384,438.00 345,886.00 90%
Boards & Commissions 13,337.00 10,308.00 77%
Elections 5,565.00 5,300.00 95%
Director of Finance 126,848.00 126,297.00 100%
Accounting 168,240.00 165,358.00 98%
Internal Auditing 18,200.00 18,190.00 100%
Assessing 102,200.00 102,886.00 101%
Law 298,000.00 354,398.00 119%
Personnel 75,799.00 75,524.00 100%
Communications 131,974.00 109,481.00 83%
Planning & Zoning 350,713.00 364,298.00 104%
Data Processing 142,550.00 137,813.00 97%
Buildings & Plant 329,737.00 382,925.00 116%
Public Safety 4,058,132.00 3,846,837.00 95%
Police 2,802,295.00 2,755,268.00 98%
Fire & Rescue 668,649.00 626,886.00 94%
Building Inspection 526,660.00 409,626.00 78%
Emergency Management 27,300.00 21,829.00 80%
Animal Control 33,228.00 33,228.00 100%
Public Works 1,709,200.00 1,716,564.00 100%
Engineering 542,430.00 531,463.00 98%
Street 883,527.00 903,728.00 102%
Central Garage 283,243.00 281,373.00 99%
Culture-Recreation 1,732,122.00 1,651,962.00 95%
Recreation 391,115.00 354,192.00 91%
Parks 1,243,522.00 1,214,569.00 98%
Libraries 97,485.00 83,201.00 85%
Economic Development 167,141.00 109,382.00 65%
Debt Service 1,547,684.00 1,553,438.00 100%
Contingent Reserve 250,000.00 669,386.00 268%
Revenues 11,685,807.00 11,660,903.00 100%
General Property Taxes 7,526,814.00 7,574,935.00 101%
Licenses & Permits 752,275.00 517,660.00 69%
Intergovernmental Revenue 1,223,537.00 1,240,355.00 101%
Charges for Services 1,506,581.00 1,573,754.00 104%
Fines & Forfeits 189,600.00 190,650.00 101%
Miscellaneous Revenue 225,000.00 303,608.00 135%
Other Financing Sources 262,000.00 259,941.00 99%
Total Budget Expenditures 11,685,807.00 11,819,246.00 101%
Total Budget Revenues 11,685,807.00 11,660,903.00 100%
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Enterprise Funds
2007 4th Quarter Enterprise Funds Budget Summary Report
Budget Amount Expended Percent
Utility Fund 3,678,724.00 4,493,440.00 122%
Water 1,107,693.00 1,229,699.00 111%
Sewer 2,331,031.00 2,274,895.00 98%
Lift Station Upgrade 240,000.00 250,172.00 104%
CIPP Slip Lining 0.00 29,649.00 nJa
Transfers 506,987.00 709,025.00 140%
Water Quality 330,454.00 267,268.00 81%
Transit Services 581,579.00 690,442.00 119%
Revenues 5,474,949.00 6,615,344.00 121%
Water Utility Revenues 4,554,870.00 5,420,548.00 119%
Water Quality Utility Revenues 338,500.00 371,032.00 110%
Transit Revenues 581,579.00 823,764.00 142%
Total Budget Expenditures 5,097,744.00 5,451,150.00 107%
Total Budget Revenues 5,474,949.00 6,615,344.00 121%
BUDGET REPORT OVERVIEW
(2007 4th Quarter Budget Report)
Expenditures:
General Government
. Ordinance expenses were down at 65% because of lower publication expenses as fewer
legal and ordinance notices were required this past year.
. City Manager costs were under at 90% because the professional services account was
under-expended.
. Boards and Commissions expenses were down at 77% of budget because a number of
planning commission meetings were cancelled,
. Legal expenditures of $354,398 exceeded the $298,000 budget estimate by 19%
because of litigation associated with the special assessment appeals and land use
disputes while prosecution expenses were higher as the Scott Joint Prosecution
budget increased more than expected for this year. Also, our activity level for Prior
Lake was higher than that of the other cities percentage wise and since costs are
distributed on a percentage basis, our share for the year was more.
. Communication expenditures outcome was lower than budget at 83% primarily
because expenses associated with professional consultant services for web casting were
not utilized.
. Bldgs & Plant expenditures ended up significantly over at 116% primarily because of
higher energy costs for gas and electric utilities. Also, repair and maintenance supply
costs were more than double our expense allocation because of a number of building
accessory needs that were not anticipated with the new city hall move-in.
. Remaining categories were in conformance with budget estimates with an overall
General Government budget performance of 1 02%.
Public Safety
. Fire Department expenses were slightly below at 94% because the insurance premium
contribution aid paid was 10% less than the previous year due to a lower level of
statewide premium collections.
. Building Inspection expenditures were substantially under at 78% due to the open
building inspector position which was filled with a code enforcement officer within
the Planning Department.
. Emergency Management costs were relatively low at 80% as we incurred very few
repairs to the existing sirens which are typically caused by lightning damage.
. Public Safety total budget performance was 95%for the year in view of the fact that it
accounts for the major public service category and for more than a third of the city's
entire general operating budget.
Public Works
. Street Department expenses of 102% ended marginally above budget because the
department incurred higher expenses in several repair and maintenance categories i.e.,
crack sealing, sealcoating and bituminous overlays (Council appropriated an
additional $10,000 worth of bituminous overlay work).
. Remaining categories were in conformance with budget estimates with overall Public
Works budget performance of 1 OO%.
Culture-Recreation
. Recreation costs were under at 91 % primarily because expenditures associated with
instructor fees and seasonal employees were reduced in an effort to more efficiently
operate the summer recreation programs.
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. Library budget totals came in lower at 85% mostly due to lower building repair and
maintenance costs.
. Culture-Recreation totals were in cmiformance with budget estimates at 95%.
Economic Development
. The budget expenditures are significantly under as the general professional services
and land options appropriation were largely unexpended.
. Economic Development totals are under budget estimates at 65%.
Debt Service
. Debt Service totals were in general conformance l'r,ith budget estimates at 100%.
Contingent Reserve
. The following Contingency related expenditures occurred in 2007:
1. $425 LMCIT insurance reimbursement payment.
2. $1,050 OSHA safety fine.
3. $6,359 Kopp farm demolition expenses.
4. $9,663 Dept. of Revenue sales tax audit.
5. $90,000 dump clean-up restitution to Scott County.
6. $250,000 appropriation for Pike Lake Park.
7. $311,888 appropriation for 800 megahertz radio acquisition.
. On an aggregate basis all Contingency expenditures totaled just over $669,000 when
compared to the Contingent Reserve appropriation of$250,000.
Expenditure Summary:
Total unaudited 2007 General Operating Budget expenditures are projected to be
$11,819,246 when including outstanding encumbrances. This amount represents 101 % of
the approved 2007 City of Prior Lake Operating Budget ($11,685,807). These totals
compare with actual budgetary performance of 98%, 95% and 98% for the preceding
years of2006, 2005 and 2004.
Revenues:
. Current property tax collections resulted in a 96% collections rate. When adding in
delinquent receipts of past years the City realized 101 % of its 2007 property tax levy.
. License & Permit fees were notably below total projections at 69% as building
permits continued to fall off (116 single family permits versus 250 budgeted)
reflecting the housing market decline regionally throughout the metropolitan area.
. Intergovernmental revenue was slightly above revenue projections at 101 %.
. Charges for services exceeded expectations at 104% as a result of the phase-in of
franchise fees and an increase in facility rental attributed to additional antennae
leases. Both offset a 40% shortfall in plan check fees as a result of reduced building
activity.
. Fine revenue was slightly above projections at 101 %.
. Miscellaneous Revenue was significantly above budget at 135% due to an increase in
investment interest earnings.
. Other Financing Sources revenue at 99% was slightly below budget estimates.
Revenue Summary:
Total 2007 General Operating Budget revenues are projected to be $11,660,903. This
amount represents 100% of the City of Prior Lake's $11,685,807 General Operating
Budget. These totals compare with actual budgetary performance of 110%, 103%, and
104% respectively for the preceding years of 2006,2005 and 2004.
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Budget. These totals compare with actual budgetary performance of 110%, 103%, and
104% respectively for the preceding years of 2006, 2005 and 2004.
4th QUARTER BUDGET RECAP:
Overall, the majority of the 2007 budgetary financial performance was very close to
expectations on both the revenue and expense side. The City's General Fund cash
balance will have decreased by an estimated net amount of $308,000 (includes $150,000
Severance Compensation Fund contribution authorized by RS 07-102) to a preliminary
unaudited position of $5.3 7 million.
This general fund cash balance amount represents a reserve of 43% based upon the
current annual budget. The above figures are not final. As soon as the City's 2007
financial audit is completed in May, Staff will report the actual General Fund balance.
The following two General Fund balance appropriations resulted in our total
expenditures slightly exceeding revenues: .
1.) $250,000.00 - contribution to the Pike Lake Park acquisition.
2.) $312,000.00 - 800 megahertz radio purchase.
Both appropriations were extraordinary demands.
We anticipate that the regional building slowdown will continue another 24 months into
at least the beginning of 2010. Because of this market uncertainty it is important that the
City of Prior Lake exercise caution and continue to maintain its financial strength
through a healthy general fund balance.
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