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Home My WebLink About5C - 1st Quarter Finance Report MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: RECOMMENDED MOTION: Reviewed by: CITY COUNCIL AGENDA REPORT APRIL 20, 2009 5C Jerilyn Erickson, Finance Director CONSIDER APPROVAL OF 2009 1ST QUARTER FINANCIAL REPORT FOR THE GENERAL FUND AND ENTERPRISE FUNDS Introduction Staff has prepared summary financial reports as of March 31, 2009 for the General Fund, Water and Sewer Fund, Water Quality Fund, and Transit Fund. The reports reflect revenue and expenditure activity for the first three months of the year. The attached narrative provides some explanations for the budget to actual variances. If council members have questions please feel free to contact me at 952-447- 9841 for more information. A motion as part of the consent agenda to approve the 2009 1 sl Quarter Financial Report as submitted. ATTACHMENTS: Frank Boyles, City Manager 1. 2009 151 Quarter Financial Report Summary 2. Financial Report Narrative www.cityofpriorlake.com 19l{8IV~:95~.)4~7~980(j)(1 P~~~:4\41:~~45 EXPLANATION OF SIGNIFICANT VARIANCES FOR CITY OF PRIOR LAKE FINANCIAL REPORT DATED 03/31/2009 GENERAL FUND REVENUES Property taxes and certain state aids comprise about 72 percent of the funding sources for the General Fund. The receipt of these revenues does not directly coincide with the timing of the expenditures. Therefore, a use of fund balance reserves (negative Net Change) is expected during the first five months of the year to fund the expenditures until the first half tax settlement is received in June. Property taxes . First half settlement for current taxes and fiscal disparities is received in June. Licenses & permits . Renewal period for liquor licenses is in June. . Building permits are slightly down from 2008. . Retainage forfeitures reflect tree and builders' escrows that were forfeited. . Mechanical and plumbing permit revenue is slightly higher than 2008. . Sewer and water inspection revenues are slightly lower than 2008. . Animal license revenues vary throughout the year. Intergovernmental revenue . Local government aid for PERA is received in July and December. . Township fire agreement payments are due in January and June. . State fire and police aids are received in August and October. . County payments for Cleanup Day are received later in the year. Charges for services . Plan check fees are slightly higher than 2008; this is primarily due to the drawdown of escrow funds for Wennsman Homes for payment of their outstanding plan check fees. . Sale of maps exceeded the budget due to the higher number of contractors that bid on the reconstruction projects for 2009. . Franchise and PEG fees are received following the end of each quarter. . Softball fees are primarily received during first quarter; . Recreation fees, including pavilion and park shelter rentals and park admissions, are primarily received during second and third quarter. . Lease payments for facility rentals are current for all tenants except Rock Creek; they are delinquent three months - $3000. . Tower Lease revenue varies throughout the year; lease payments are current. . Sign lease revenue was new in 2008. Renewals are expected throughout the year. Fines and forfeitures . Prosecution restitution payments are slightly lower than first quarter, 2008. Miscellaneous revenues . Interest earnings are higher for the first quarter due to $5 million in bonds being called. Interest earnings are recorded on a cash basis throughout the year so when a bond is called or matures, the interest is recognized in that month. . Developer agreement revenues have not been received due to lack of development. . No contributions have been received during first quarter. GENERAL FUND EXPENDITURES First quarter 2009 General Fund operating expenditures represent 17 percent of the $12,476,974 annual budget. This percentage is consistent with the level of expenditures for the past two years. General government . First quarter per diems and reimbursements have not been paid for the mayor and council members. . Ordinance costs are lower because only a few ordinance publications occurred during the first three months. . Expenses associated with the 2030 Vision and Strategic Plan update and the annual fee for SCALE city- wide innovative plan are reflected in the city manager expenditures. Therefore, the department percentage is higher. . Boards and Commissions are comprised of the Planning Commission and EDA. Per diems are paid after the end of each quarter. . Election costs typically occur later in the year. . Internal auditing reflects a progress payment for the 2008 annual audit. Additional progress billings will occur in second quarter. . Assessing costs are paid later in the year. . City attorney costs only reflect two months of activity. . Personnel costs are under budget because professional consultant and public information categories have not been expended. . Data processing costs are lower because we haven't expended funds for software upgrades and capital purchases. . Buildings and Plant costs are lower because the invoice for first quarter LMCIT general liability and property insurance premiums has not been received. This is usually received/paid during second quarter. Public safety . Fire department costs are low because the state aid insurance and pension contribution is made later in the year. In addition, the budget reflects a half year of salary and benefits for a full-time fire chief that is expected to,be h:nplemented in July 2009. . Emergency Management costs are low because we haven't incurred any repair and maintenance expense for the sirens. Public works . Street department costs are usually lower in the first quarter. The major share of the operating expenses is incurred in the summer and fall. Culture/recreation . The majority of activity for the parks and recreation departments occurs during the spring and summer months. Urban and economic development . Expenditures are low primarily due to professional services for consultants and marketing/promotional services not being expended. Transfers to other funds . Transfers for debt service payments are made in June and December. Contingency . The only expenditure authorized from the contingency reserve has been the repair of the roof for the house at Pike Lake. .~ 2009 WATER AND SEWER FUND Revenues The percentage for first quarter water and sewer revenues is consistent with the same period in 2008 which includes only one billing cycle. Expenses The costs for major capital improvements are incurred in the summer and fall. WATER QUALITY FUND Revenues Water quality revenues are higher due to the increase in the storm water charge from $6.00 to $7.25. The percentage for first quarter revenues is consistent with the same period in 2008 which includes only one billing cycle. Expenses Personnel costs are under budget because additional costs are typically incurred during the summer months for seasonal employees. The costs for major capital improvements are incurred in the summer and fall. TRANSIT FUND Revenues Bus fares are slightly higher and state transit aid is 10Vller than budget. The state transit aid is dependent on the motorvE;lhicle sa,les taxes collected. With the decline in the economy, motor vehicle sales have also declined; , therefor.e, the~miount, of s~les tax distribute~ by the state. is also .19w~r, " Expenses Overall, expenses are under budget because certain categories have not been expended such as repair and maintenance service, facility rental and the additional contract costs for the summer internal circulator. 2009 '1 City of Prior Lake General Fund Summary As of 3/31/2009 (Unaudited) Variance with 2009 03/31/2009 Budget - Percent of BudQet Actual Positive (NeQative) Budget Revenues Taxes 8,404,562 (8,404,562) 0% Licenses and permits 454,180 55,500 (398,680) 12% Intergovernmental 1,342,679 374,960 (967,719) 28% Charges for services 1,532,553 236,960 (1,295,593) 15% Fines and forfeitures 222,000 41,848 (180,152) 19% Interest on investments 120,000 84,642 (35,358) 71% Other 76,000 3,273 (72,727) 4% Transfers from other funds 325,000 81,249 (243,751) 25% Total revenues 12,476,974 878,432 (11,598,542) 7% Expenditures General government 2,436,475 466,353 1,970,122 19% Public safety 4,301,345 974,575 3,326,770 23% Public works 1,822,955 386,999 1,435,956 21% Culture & recreation 1,927,882 317,873 1,610,009 16% Urban & economic development 62,583 8,277 54,306 13% Subtotal 10,551,240 2,154,077 8,397,163 20% Transfers to other funds 1,625,734 1,625,734 0% Contingency reserve 300,000 5,540 294,460 2% Total expenditures 12,476,974 2,159,617 10,317,357 17% Net change (1,281,185) 2009Q1 Financial Report: GF Summary Page 1 of 7 04/14/2009 City of Prior Lake General Fund Revenues As of 3/31/2009 (Unaudited) Variance with 2009 03/31/2009 Budget - Actual Bud~et Actual Positive (Negative) Percent Property taxes 31010 Current taxes 7,910,537 (7,910,537) 0% 31012 Market value credit aid (226,000) 226,000 0% 31040 Fiscal disparities 720,025 (720,025) 0% 8,404,562 (8,404,562) 0% Licenses & permits 32100 Business licenses 800 900 100 113% 32110 Liquor licenses 57,680 545 (57,135) 1% 32160 Refuse haulers 4,200 (4,200) 0% 32161 Plumbing registrations 1,250 675 (575) 54% 32170 Outdoor concert permits 1,250 200 (1,050) 16% 32180 Cigarette licenses 3,250 3,250 100% 32210 Building permits 330,000 22,710 (307,290) 7% 32211 Retainage forfeiture 11,250 11,250 0% 32215 Mechanical permits 24,850 7,870 (16,980) 32% 32230 Plumbing permits 19,900 4,633 (15,267) 23% 32231 Sewer/water inspection 5,000 307 (4,693) 6% 32240 Animal licenses 3,750 2,685 (1,065) 72% 32260 Burning permits 2,250 475 (1,775) 21% 454,180 55,500 (398,680) 12% Intergovernmental revenue 33401 Local government aid 11,905 (11,905) 0% 33416 State aid - police training 8,855 (8,855) 0% 33418 State road & bridge aid 238,000 115,119 (122,881 ) 48% 33420 State fire aid - ins premium 166,000 1,000 (165,000) 1% 33421 State police aid - ins premium 172,500 (172,500) 0% 33610 County/city aids & grants 10,455 (10,455) 0% 33620 Township fire & rescue aid 322,016 155,604 (166,412) 48% 33621 Liaison aid 52,948 13,237 (39,711) 25% 33631 Payment in lieu of taxes 360,000 90,000 (270,000) 25% 1,342,679 374,960 (967,719) 28% Charges for services 34103 Zoning & subdivision fees 13,075 692 (12,383) 5% 34104 Plan check fees 220,750 26,983 (193,767) 12% 34105 Sale of maps/publications 500 3,499 2,999 700% 34107 Assessment searches 400 15 (385) 4% 34109 Project admin/eng fees 314,900 78,725 (236,175) 25% 34203 AccidenUwarrant reports 300 91 (209) 30% 34303 Franchise fees 536,944 (536,944) 0% 34304 PEG access fees 35,256 (35,256) 0% 34731 Softball fees 28,000 24,035 (3,965) 86% 34735 Recreation program fees 66,000 2,183 (63,817) 3% 34740 Beach concessions 13,000 2,509 (10,491 ) 19% 34760 Facility rental 86,526 18,465 (68,061) 21% 34761 Studio/pavilion rental 18,000 1,760 (16,240) 10% 34762 Park shelter rental 7,000 920 (6,080) 13% 34765 Tower leases 150,152 77,083 (73,069) 51% 2009Q1 Financial Report: GF Revenues Page 2 of 7 04/1412009 City of Prior Lake General "fund Revenues As of 3/31/2009 (Unaudited) Variance with 2009 03/31/2009 Budget - Actual Budget Actual Positive (Negative) Percent 34780 Park admission fees 28,000 (28,000) 0% 34782 Sign lease fees 13,750 (13,750) 0% 1,532,553 236,960 (1,295,593) 15% Fines & forfeitures 35101 County court fines 150,000 34,394 (115,606) 23% 35104 Prosecution restitution 72,000 7,454 !64,546) 10% 222,000 41,848 (180,152) 19% Miscellaneous revenues 36210 Interest earnings 120,000 84,642 (35,358) 71% 36211 Developer agreements 25,000 (25,000) 0% 36212 Miscellaneous revenue 30,000 3,273 (26,727) 11% 36230 Contributions & donations 15,000 P5,000) 0% 190,000 87,915 (102,085) 46% Other financing sources 39102 Sale of property 6,000 (6,000) 0% 39203 Transfers from other funds 325,000 81,249 (243,751) 25% 331,000 81,249 (249,751) 25% Grand total 12,476,974 878,432 (11,598,542) 7% 2009Q1 Financial Report: GF Revenues Page 3 of 7 04/14/2009 City of Prior Lake General Fund Expenditures As of 3/31/2009 (Unaudited) Variance with 2009 03/31/2009 Budget - Actual Budget Actual Positive (Negative) Percent General government 41110 Mayor & council 70,131 12,508 57,623 18% 41130 Ordinance 11,000 1,287 9,713 12% 41320 City manager 388,036 115,892 272,144 30% 41330 Boards & commissions 12,369 159 12,210 1% 41410 Elections 5,600 5,600 0% 41520 Director of finance 128,978 29,930 99,048 23% 41530 Accounting 182,043 41,770 140,273 23% 41540 Internal auditing 27,200 5,000 22,200 18% 41550 Assessing 105,200 105,200 0% 41610 City attorney 385,000 65,337 319,663 17% 41820 Personnel 135,314 26,116 109,198 19% 41830 Communications 119,113 25,975 93,138 22% 41910 Comm development/natural res 261,924 61,652 200,272 24% 41920 Data processing 160,815 30,950 129,865 19% 41940 Buildings & plant 443,752 49,777 393,975 11% Total general government 2,436,475 466,353 1,970,122 19% Public safety 42100 Police 3,117,749 737,363 2,380,386 24% 42200 Fire 780,878 138,376 642,502 18% 42400 Building/transportation services 360,328 88,879 271 ,449 25% 42500 Emergency management 7,500 996 6,504 13% 42700 Animal control 34,890 8,961 25,929 26% Total public safety 4,301,345 974,575 3,326,770 23% Public works 43050 Engineering 493,165 116,020 377,145 24% 431 00 Street 1,012,526 197,425 815,101 19% 43400 Central garage 317,264 73,554 243,710 23% Total public works 1,822,955 386,999 1,435,956 21 % Culture/recreation 45100 Recreation 437,498 79,433 358,065 18% 45200 Parks 1,384,317 214,320 1,169,997 15% 45500 Libraries 106,067 24,120 81,947 23% Total culture/recreation 1,927,882 317,873 1,610,009 16% Urban & economic development 46500 Economic development 62,583 8,277 54,306 13% Total urban/economic dev 62,583 8,277 54,306 13% 49303 Transfers to other funds 1,625,734 1,625,734 0% 49999 Contingency reserve 300,000 5,540 294,460 2% Grand total 12,476,974 2,159,617 10,317,357 17% 2009Q1 Financial Report: GF Expenditures Page 4 of 7 04/14/2009 City of Prior Lake Water & Sewer Fund (Unaudited) Variance with 2009 03/31/2009 Budget - Actual Budget Actual Positive (Negative) Percent Operating revenues Charges for services - water 37100 Water revenues 2,138,750 220,916 (1,917,834) 10% 37110 Capital facility revenue 450,000 76,208 (373,792) 17% 37150 Water reconnect charges 7,650 4,175 (3,475) 55% 37160 Penalties 70,963 9,545 (61,418) 13% 37170 Water meters 43,625 4,722 (38,903) 11% 37175 Pressure reducers 12,975 435 P 2,540) 3% Total water revenues 2,723,963 316,001 (2,407,962) 12% Charges for services - sewer 37102 Sewer revenues 1,916,250 299,333 (1,616,917) 16% Total sewer revenues 1,916,250 299,333 (1,616,917) 16% Miscellaneous revenues 36210 Interest earnings 240,000 124,787 (115,213) 52% 36212 Miscellaneous 280 280 0% Total miscellaneous revenues 240,000 125,067 (115,213) 52% Total revenues 4,880,213 740,401 (4,140,092) 79% Operating expenses Personnel & current expenses 49400 Water 1,449,803 379,046 1,070,757 26% 49450 Sewer 1,962,489 444,410 1,518,079 23% Total operating expenses 3,412,292 823,456 2,588,836 24% Capital improvements 49400 Water improvements 311,200 311,200 0% 49450 Sewer improvements 129,000 129,000 0% 49003 Lift station upgrade 165,000 7,988 157,012 5% 49005 CIPP pipe slip lining 130,000 130,000 0% Total capital improvements 735,200 7,988 727,212 1% 49303 Transfers to other funds 1,044,214 103,749 940,465 10% Total expenses 5,191,706 935,193 4,256,513 18% Net change (311,493) (194,792) 2009Q1 Financial Report: Water. Sewer Page 5 of 7 04/14/2009 City of Prior Lake Water Quality Fund (Unaudited) Variance with 2009 2009 Budget - Actual Budget Actual Positive (Negative) Percent Operating revenues Charges for services - storm water 37120 Water quality revenue 425,000 81,586 (343,414) 19% Total water quality revenues 425,000 81,586 (343,414) 19% Miscellaneous revenues 36210 Interest earnings 9,586 9,586 0% Total miscellaneous revenues 9,586 9,586 0% Total revenues 425,000 81,586 (333,828) 19% Operating expenses Personnel & current expenses 49420 Water quality 186,806 32,618 154,188 17% Capital improvements 49420 Water quality 235,000 235,000 0% Total expenses 421,806 32,618 389,188 8% Net change 3,194 48,968 2009Q1 Financial Report: Water Quality Page 6 of 7 04/14/2009 City of Prior lake Transit Fund (Unaudited) Variance with 2009 2009 Budget - Actual Budget Actual Positive (Negative) Percent Operating revenues Charges for services - transit revenue 38400 Bus fares 112,000 33,069 (78,931) 30% 38422 State transit aid 718,058 143,148 (574,910) 20% Total transit revenues 830,058 176,217 (653,841) 21% Total revenues 830,058 176,217 (653,841) 21% Operating expenses Personnel & current expenses 49804 Transit services 790,120 116,347 673,773 15% Capital improvements 49804 Capital improvements 20,000 20,000 0% Total expenses 810,120 116,347 693,773 14% Net change 19,938 59,870 2009Q1 Financial Report: Transit Page 7 of 7 04/14/2009