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Home My WebLink About5C - First Quarter Budget Report MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: RECOMMENDED MOTION: Revi1'ed by: \' (/ j .V/' Frank BOY~, 7'y ATTACHME '7 M:\I:lUU\..::lt: I 't:lt"':.UQC APRIL 7,2008 5C Ralph Teschner, Finance Director CONSIDER APPROVAL OF 2008 18t 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 1 st Quarter Budget Report is a document entitled "Budget Report Overview" for the General Fund that is intended to satisfy your request. The 1 st Quarter Budget Reports shows the status of expenditures for the first three months of activity in 2008 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 :1:5% 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 2008 1 st Quarter Budget Report as submitted. 1. 2008 1 sl Quarter Budget Summary Reports 2. Budget Report Overview (General Fund) www.cityofpriorlake.com Phone 952.447.9800 / Fax 952.447.4245 2008 1st Quarter General Fund Budget Summary Report Budget Amount Expended Percent General Government 2,516,582.00 484,683.00 19% Mayor & Council 69,931.00 18,576.00 27% Ordinance 12,000.00 640.00 5% City Manager 365,418.00 91,013.00 25% Boards & Commissions 13,337.00 0.00 0% Elections 16,297.00 0.00 0% Director of Finance 130,865.00 33,051.00 25% Accounting 174,226.00 41,497.00 24% Internal Auditing 22,200.00 4,190.00 19% Assessing 110,800.00 0.00 0% Law 376,000.00 62,384.00 17% Personnel 78,343.00 13,597.00 17% Communications 126,798.00 22,622.00 18% Community Dev./Nat Resource 434,716.00 107,114.00 25% Data Processing 175,595.00 34,030.00 19% Buildings & Plant 410,056.00 55,969.00 14% Public Safety 4,237,976.00 853,112.00 20% Police 2,992,990.00 665,599.00 22% Fire & Rescue 766,153.00 76,246.00 10% Building/Transportation Services 436,443.00 105,037.00 24% Emergency Management 7,500.00 336.00 4% Animal Control 34,890.00 5,894.00 17% Public Works 1,806,123.00 388,335.00 22% Engineering 560,159.00 131,501.00 23% Street 949,651.00 182,104.00 19% Central Garage 296,313 .pO 74,730.00 25% Culture-Recreation 1,882,397.00 339,166.00 18% Recreation 478,473.00 94,424.00 20% Parks 1,302,992.00 221,284.00 17% Libraries 100,932.00 23,458.00 23% Economic Development 131,872.00 26,950.00 20% Debt Service 1,576,481.00 0.00 0% Contingent Reserve 275,000.00 90,000.00 33% Revenues 12,426,431.00 632,597.00 5% General Property Taxes 8,131,224.00 0.00 0% Licenses & Permits 625,925.00 50,742.00 8% Intergovernmental Revenue 1,305,838.00 357,230.00 27% Charges for Services 1,594,344.00 150,009.00 9% Fines & Forfeits 189,600.00 34,724.00 18% Miscellaneous Revenue 267,500.00 38,592.00 14% Other Financing Sources 312,000.00 1,300.00 0% Total Budget Expenditures 12,426,431.00 2,182,246.00 18% Total Budget Revenues 12,426,431.00 632,597.00 5% BRO J08 10:44 AMJ12812008 Enterprise Funds 2008 1st Quarter Enterprise Funds Budget Summary Report Budget Amount Expended Percent Utility Fund 5,099,065.00 678,268.00 13% Water 1,768,821.00 250,008.00 14% Sewer 1,976,830.00 428,260.00 22% Lift Station Upgrade 250,000.00 0.00 0% CIPP Pipe Slip Lining 100,000.00 0.00 0% Transfers 1,003,414.00 0.00 0% Water Quality 315,537.00 23,005.00 7% Transit Services 575,651.00 74,050.00 13% Revenues 5,651,295.00 880,538.00 16% Water Utility Revenues 4,723,494.00 660,227.00 14% Water Quality Utility Revenues 352,150.00 70,532.00 20% Transit Revenues 575,651.00 149,779.00 26% Total Budget Expenditures 5,990,253.00 775,323.00 13% Total Budget Revenues 5,651,295.00 880,538.00 16% BUDGET REPORT OVERVIEW (2008 18t Quarter Budget Report) Expenditures: General Government · Ordinance costs for legal notices is largely unspent because only a few ordinance publications occurred during the first three months, which is the main reason why the YTO percentage is at only 5%. · Boards and Commissions constitute the Planning Commission and EDA whose per diem salaries are paid after the end of each quarter therefore the zero amount. · Expenses associated with Elections and Assessing are typically not incurred until the latter part of the budget year i.e., fall election judge salaries and mid-year contract assessing billing, therefore the zero amounts. . Legal fees in the general service area is running lower at 17% than projected at this point of the budget cycle due to the fact that city attorney costs represent only two months of billings in the quarter. . Internal Auditing shows minimal activity, as audit billings will occur later for work completed on the 2007 audit report. . Personnel expenses of 17% are somewhat less than normal as expenditures associated with professional consultant services and public information categories have not been expended. · Communication expenditures are lower than budget at 18% because postage and expenses associated with miscellaneous brochure mailings have not been incurred plus only two Wavelength publication invoices have been processed to date. Also webcasting has not yet been initiated. . Data Processing is below estimates at 19% because we have expended only a limited portion of the capital dollars assigned for scheduled computer replacements. . Bldgs & Plant is less at 14% because our LMCIT liability and property casualty insurance premiums were billed late by the League of Minnesota Cities and will show up in next quarter's budget analysis. · General Government totals are in general conformance with budget estimates at 19%. Public Safetv . Police Department expenses were slightly below at 22% because the new squad cars have not yet been purchased. · Fire Department expenses are fairly low at 10% because 27% of department costs are attributed to the state aid insurance and pension contributions, both of which are paid as an annual lump sum near year-end. In addition our annual share for the joint public safety training facility occurs later in the year as well. . Emergency Management costs of 4% are low because we have not sustained any repairs to the existing sirens which are typically caused by lightning damage. · Animal control does not represent a full quarter of service because they are billed one month in arrears. . Public Safety totals are in general conformance with budget estimates at 20%. Public Works · Engineering Department expenses were slightly below at 23% because of an unfilled engineering position, which reduces personnel expenses within the department. . Street Department expenses typically lag during the 18t quarter due to the fact that a major share of its operating expenses is incurred during summer and fall. . Public Works totals are in general conformance with budget estimates at 22%. BR010S Culture-Recreation . Due to the seasonal nature of recreation and park expenditures, budget results (20% & 17%) are normally lower during the 1st quarter. Their major activity levels occur during the spring and summer months. . Culture-Recreation totals are near seasonal budget expectation at 18%. Economic Develooment . The budget expenditures are under as the general professional services are largely unexpended to date. . Economic Development totals are under budget estimates at 20%. Debt Service . All general debt service bond payments are made during the months of June and December. ContinlZent Reserve . One Contingency expenditure of $90,000 has occurred which represents the fmal dump site cleanup payment to Scott County. Expenditure Summary: 2008 General Fund 1 st Quarter operating expenditures are on track and represent 18% of the total $12,426,431 operating budget. This actually compares with similar 2007 1 st quarter results of 16%. Expenditures during the 1 st quarter are typically less than the remaining fiscal quarters. Revenues: . Property tax. settlements are scheduled for June and December therefore no tax. revenue has been received. . License & Permit fees are under projection at 8% as building permit activity is lagging substantially and is not expected to pick up appreciably until possibly 2010 reflecting the national slowdown in the overall housing market. . Intergovernmental revenue is at the quarterly budget estimate. . Charges for services is under expectations at 9% primarily due to the fall off in building permit plan check fees, the timing of franchise fee payments which occur shortly after the end of each quarter and the project administration/engineering transfer which is recognized at year end. Also, all park service fees are not collected until the summer months. . Fine revenue is actually averaging slightly above projections as payments are in arrears by one month. . Miscellaneous Revenue is under budget at 14% of estimates as no development revenue has been generated. . Other Financing Sources primarily consists of the $300,000 ent~.p.;se fund contribution transfer, which is recognized at year-end. Revenue Summary: Revenues normally lag at this time of year and account for approximately 5% of budget, which is at the low end of what the City has averaged in the past five years, which has shown a spread of 6%-12%. BR0108 1 ST QUARTER BUDGET RECAP: Overall, the 2008 1 st quarter financial performance is fairly typical to past years with no significant expense variances. In the area of Licenses and Permits we do expect a sharp revenue shortfall of nearly $500,000 as the economy continues to soften and building activity further declines. However, the City has positioned itself in response to these economic shortcomings with an organizational restructuring that will trim a number of employee personnel as we move forward into 2009. Other expenditure reduction measures will be identified and brought back to the Council for approval. The Contingency balance of $185,000 will also need to be reserved. Taking these action steps early in the fiscal year will allow the City to balance its resources against service demands. * [1 st Quarter Budget Report represents expenditures and revenues to date and do not include outstanding appropriations or receipt expectations.] BR0108