HomeMy WebLinkAbout5G - 2008 3rd Quarter Budget Summary Reports
MEETING DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
DISCUSSION:
RECOMMENDED
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4646 Dakota Street S.E.
Prior Lake, MN 55372-1714
CITY COUNCIL AGENDA REPORT
OCTOBER 20, 2008
5G
Ralph Teschner, Finance Director
CONSIDER APPROVAL OF 2008 3rd 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 3rd Quarter Budget Report is a document entitled
"Budget Report Overview" for the General Fund that is intended to satisfy your
request. The 3rd Quarter Budget Reports shows the status of expenditures for
the first nine 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 3rd Quarter
Budget Report as submitted.
I
1. 2008 3rd Quarter Budget Summary Reports
2. Budget Report Overview (General Fund)
www.cityofpriorlake.com
Phone 952.447.9800 / Fax 952.447.4245
2008 3rd Quarter General Fund Budget Summary Report
Budget Amount Expended Percent
General Government 2,516,582.00 1,730,294.00 69%
Mayor & Council 69,931.00 48,570.00 69%
Ordinance 12,000.00 4,6H7.00 39%
City Manager 365,418.00 254,648.00 70%
Boards & Commissions 13,337.00 3,983.00 30%
Elections 16,297.00 7,378.00 45%
Director of Finance 130,865.00 97,390.00 74%
Accounting 174,226.00 127,767.00 73%
Internal Auditing 22,200.00 19,190.00 86%
Assessing 110,800.00 100,000.00 90%
Law 376,000.00 238,982.00 64%
Personnel 78,343.00 45,471.00 58%
Communications 126,798.00 76,139.00 60%
Community Dev./Nat Resource 434,716.00 318,196.00 73%
Data Processing 175,595.00 77,856.00 44%
Buildings & Plant 410,056.00 310,037.00 76%
Public Safety 4,237,976.00 2,851,446.00 67%
Police 2,992,990.00 2,175,281.00 73%
Fire & Rescue 766,153.00 348,984.00 46%
Building/Transportation Services 436,443.00 302,384.00 69%
Emergency Management 7,500.00 981.00 13%
Animal Control 34,890.00 23,816.00 68%
Public Works 1,806,123.00 1,350,764.00 75%
Engineering 560,159.00 381,405.00 68%
Street 949,651.00 753,424.00 79%
Central Garage 296,313.00 215,935.00 73%
Culture-Recreation 1,882,397.00 1,415,743.00 75%
Recreation 478,473.00 339,523.00 71%
Parks 1,302,992.00 990,863.00 76%
Libraries 100,932.00 85,357.00 85%
Economic Development 131,872.00 84,045.00 64%
Debt Service 1,576,481.00 449,285.00 28%
Contingent Reserve 275,000.00 90,000.00 33%
Revenues 12,426,431.00 6,230,532.00 50%
General Property Taxes 8,131,224.00 3,945,179.00 49%
Licenses & Permits 625,925.00 333,690.00 53%
Intergovernmental Revenue 1,305,838.00 819,595.00 63%
Charges for Services 1,594,344.00 809,720.00 51%
Fines & Forfeits 189,600.00 144,267.00 76%
Miscellaneous Revenue 267,500.00 158,488.00 59%
Other Financing Sources 312,000.00 19,593.00 6%
Total Budget Expenditures 12,426,431.00 7,971,577.00 64%
Total Budget Revenues 12,426,431.00 6,230,532.00 50%
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Enterprise Funds
2008 3rd Quarter Enterprise Funds Budget Summary Report
Budget Amount Expended Percent
Utility Fund 5,099,065.00 3,032,410.00 59%
Water 1,768,821.00 1,142,760.00 65%
Sewer 1,976,830.00 1,548,759.00 78%
Lift Station Upgrade 250,000.00 44,013.00 18%
CIPP Pipe Slip Lining 100,000.00 100,171.00 100%
Transfers 1,003,414.00 196,707.00 20%
Water Quality 315,537.00 220,656.00 70%
Transit Services 575,651.00 469,224.00 82%
Revenues 5,651,295.00 4,056,874.00 72%
Water Utility Revenues 4,723,494.00 3,205,851.00 68%
Water Quality Utility Revenues 352,150.00 253,378.00 72%
Transit Revenues 575,651.00 597,645.00 104%
Total Budget Expenditures 5,990,253.00 3,722,290.00 62%
Total Budget Revenues 5,651,295.00 4,056,874.00 72%
BUDGET REPORT OVERVIEW
(2008 3rd Quarter Budget Report)
Expenditures:
General Government
· Ordinance costs for legal notices are down because only a few ordinance publications
occurred during the first nine months, which is the main reason why the YTD percentage
is at only 39%.
· City Manager costs are under at 70% because the professional services account has been
under-expended to date.
. Boards and Commissions constitute the Planning Commission and EDA whose per
diem salaries are paid after the end of each quarter therefore the quarter lag accounts
for the 30% result.
· Internal Auditing billings are complete. The remaining $3000 was initially allocated
for the GASB 43 & 45 OPEB report; however this work will actually be completed
with next year's financial statements so the 86% is final.
· Assessing contract service expenditures are complete for the year and represent 90%
of budget.
· Legal fees in the general service area is running lower at 59% than projected at this
point of the budget cycle due to the fact that city attorney costs represent only eight
months of billings. The overall legal expense category (prosecution and city attorney)
outcome is 64% of the year to date budget.
· Personnel expenses of 58% are somewhat less than normal as expenditures associated
with professional consultant services and miscellaneous categories have been deferred
until the later part of the year.
. Communication expenditures are lower than budget at 60% because postage and
expenses associated with miscellaneous brochure mailings have not been incurred
plus only six Wavelength publication invoices have been processed to date. Also
webcasting has not been initiated.
· Data Processing is below estimates at 44% because our contract support services have
been less and we have expended only a limited portion of the capital dollars assigned
for scheduled computer replacements.
· General Government totals are in general cO/?formance with budget estimates at
69%.
Public Safety
· Fire Department expenses are fairly low at 46% 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.
. Emergency Management costs of 13% 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 67%.
Public Works
. Engineering Department expenses were slightly below at 68% because of the unfilled
engineering position, which reduces personnel expenses within the department.
. Street Department expenses of 79% are above budget because the department
incurred higher expenses in fuel, street lighting and repair and maintenance
categories.
. Public Works totals are in general conformance with budget estimates at 75%.
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Culture-Recreation
· Libraries is over at 85% because of a HV AC compressor that was recently replaced.
· Culture-Recreation totals are in general conformance with budget estimates at 75%.
Economic Develooment
· The budget expenditures are under as the professional services category appropriated
for consulting work is largely unexpended to date.
· Economic Development totals are under budget estimates at 64%.
Debt Service
· All general debt service bond payments are made during the months of June (interest
only) and December (principal/interest).
· Debt Service totals are in general conformance with budget estimates at 28%.
Contingent Reserve
· One Contingency expenditure of $90,000 has occurred which represents the final
dump site cleanup payment to Scott County.
Expenditure Summary:
2008 General Fund 3rd Quarter operating expenditures are on track with our expenditure
reduction plans and represent 64% of the total $12,426,43] operating budget. This
actually compares favorably with 2007 3rd qumier results of 66%.
Revenues:
. The current property tax settlement in June showed no apparent delinquency problem
as collections reached 49%.
· License & Permit fees are under projection at 53% 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 under at 63% of the quarterly budget estimate because
the Fire and Police aid funded by the 2% surcharge on property and casualty
insurance premiums is not paid until October by the State of Minnesota.
· Charges for services is significantly under expectations at 51 % 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.
. Fine revenue is actually averaging slightly above projections at 76% even though
payments are in arrears by one month.
. Miscellaneous Revenue is under budget at 59% of estimates as very little
development revenue has been generated.
· Other Financing Sources primarily consists of the $300,000 enterprise fund
contribution transfer, which is recognized at year-end.
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Revenue Summary:
Revenues realized are approximately 50% of budget and is on average weaker in relative
comparison to the past five years that have sho\vn a typical spread of 55-6 I % at midyear.
This is primarily the result of the slowdown in residential housing construction.
3rd QUARTER BUDGET RECAP:
Overall, the 2008 3rd quarter financial performance is fairly typical to past years with no
significant expense variances. In the area of Licenses and Permits we will incur 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. If other expenditure reduction
measures are required they will be identified and brought back to the Council for
approval. The need for the Contingency balance of $185,000 to be reserved is also
important. Implementing these action steps as we progress into the final quarter of the
fiscal year will allow the City to balance its resources against service demands.
* [3rd Quarter Budget Report represents expenditures and revenues to date and do not
include outstanding appropriations or receipt expectations.]
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