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Home My WebLink About5C - 2nd Quarter Financial Report 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: RECOMMENDED MOTION: Reviewed by: (,J f~\Council\2009 CITY COUNCIL AGENDA REPORT JULY 20, 2009 5C Jerilyn Erickson, Finance Director CONSIDER APPROVAL OF 2009 2nd QUARTER FINANCIAL REPORT FOR THE GENERAL FUND AND ENTERPRISE FUNDS I ntrod uction Staff has prepared summary financial reports as of June 30, 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 six months of the year. The attached memorandum provides a summary of the significant issues. 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 2"dQuarter Financial Report as submitted. anager . J 1. 2009 2nd Quarter Financial Report Summary 2. Financial Report Memorandum www.cityofpriorlake.com ~~~M;?pg~O~()~O flim ~g~flfl~1?t1 F<eportdoc MEMORANDUM TO: FROM: RE: Prior Lake City Council Jerilyn Erickson, Finance Director Financial Report dated 06/30/2009 Upon review of the financial report for the first six months of 2009, I am cautiously optimistic that the City is on track to attain its revised targets for General Fund revenues and expenditures. The significant issues are summarized below: With the current economic conditions, I was concerned that we might experience a lower collection rate for property taxes. The first half taxes were received in June and the collection rate was comparable to the previous two years. The collection rate primarily affects our cash flow. If property taxes are not collected this year, they will be collected in subsequent years and recognized as revenue at that time. Single family building permit projections were revised to a target of 25 for 2009 versus the 100 that were originally budgeted. Seventeen permits have been issued through June 30th. Four additional permits have already been issued in July and six more have been submitted for review. Plan check fee revenues are running in alignment with building permit revenues. Court fines and prosecution restitution revenues are coming in lower than expected. If the current trend of receipts continues through yearend, the shortfall could be approximately $50,000. Interest earnings are at 96 percent of the budget. This number is higher than expected due in part to bonds being called and the interest being received earlier in the year. Keep in mind that, just as in years past, interest earnings are adjusted at yearend to reflect the fair value of the securities. Depending on the market situation at that point, this adjustment can be an increase or a decrease to the actual interest earnings for the year. Developer agreement and sign lease fee revenues continue to be at zero. These revenues are contingent upon development and negotiating sign advertisement agreements at the ball fields. General Fund expenditures for the first six months represent 39 percent of the $12,576,974 amended budget. This percentage is slightly lower than the level of expenditures for the same period last year. The revenues and expenditures for the enterprise funds are generally consistent with levels from previous years. Water revenues are down approximately eight percent due to lower consumption for the first five months of the year. Typically, the August and October billing cycles reflect higher consumption and, therefore, a higher percentage of the annual revenues. Capital projects are in progress. Major costs will be reflected on future financial reports. If you have any questions regarding these financial reports, please contact me at 952.447.9841. F~\Council\2009 '/\genda Reporls\(}7 2.0 09\1\gt;nda Report - 2009 2nd Quarter Financial City of Prior Lake General Fund Summary As of 6/30/2009 (Unaudited) Variance with Amended 2009 Budget - Percent of Budget Actual Positive (Negative) BudQet Revenues Taxes 8,404,562 4,157,386 (4,247,176) 49% Licenses and permits 454,180 172,224 (281,956) 38% Intergovernmental 1,342,679 635,145 (707,534) 47% Charges for services 1,532,553 588,380 (944,173) 38% ~ines and forfeitures 222,000 82,017 (139,983) 37% Interest on investments 120,000 115,107 (4,893) 96% Other 176,000 122,385 (53,615) 70% Transfers from other funds 325,000 162,498 (162,502) 50% Total revenues 12,576,974 6,035,142 (6,541,832) 48% Expenditures General government 2,436,475 1,087,055 1,349,420 45% Public safety 4,301,345 1,882,275 2,419,070 44% Public works 1,922,955 757,517 1,165,438 39% Culture & recreation 1,927,882 774,400 1 ,153,482 40% Urban & economic development 62,583 27,756 34,827 44% Subtotal 10,651,240 4,529,003 6,122,237 43% Transfers to other funds 1,625,734 427,317 1,198,417 26% Contingency reserve 300,000 5,949 294,051 2% Total expenditures 12,576,974 4,962,269 7,614,705 39% Net change 1,072,873 June 2009 Financial Report .' GF Summary Page 1 of 7 07/1512009 City of Prior Lake General Fund Revenues As of 6/30/2009 (Unaudited) 2009 Variance with Amended 2009 Amended Budget - Actual Budget Actual Positive (Negative) Percent Property taxes 31010 Current taxes 7,910,537 3,702,173 (4,208,364) 47% 31012 Market value credit aid (226,000) 226,000 0% 31020 Delinquent taxes 94,597 94,597 0% 31040 Fiscal disparities 720,025 360,616 (359,409) 50% 8,404,562 4,157,386 (4,247,176) 49% Licenses & permits 32100 Business licenses 800 1,100 300 138% 32110 Liquor licenses 57,680 53,180 (4,500) 92% 32160 Refuse haulers 4,200 3,875 (325) 92% 32161 Plumbing registrations 1,250 775 (475) 62% 32170 Outdoor concert permits 1,250 1,100 (150) 88% 32180 Cigarette licenses 3,250 3,250 100% 32210 Building permits 330,000 70,276 (259,724) 21% 32211 Retainage forfeiture 10,250 10,250 0% 32215 Mechanical permits 24,850 11,804 (13,046) 48% 32230 Plumbing permits 19,900 10,859 (9,041) 55% 32231 Sewer/water inspection 5,000 925 (4,075) 19% 32240 Animal licenses 3,750 3,555 ( 195) 95% 32260 Burning permits 2,250 1,275 (975) 57% 454,180 172,224 (281,956) 38% 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% 33422 State aids & grants 0% 33610 County/city aids & grants 10,455 6,022 (4,433) 58% 33620 Township fire & rescue aid 322,016 216,530 (105,486) 67% 33621 Liaison aid 52,948 26,474 (26,474) 50% 33631 Payment in lieu of taxes 360,000 270,000 (90,000) 75% 1,342,679 635,145 (707,534) 47% Charges for services 34103 Zoning & subdivision fees 13,075 4,617 (8,458) 35% 34104 Plan check fees 220,750 52,318 (168,432) 24% 34105 Sale of maps/publications 500 3,649 3,149 730% 34107 Assessment searches 400 15 (385) 4% 34109 Project admin/eng fees 314,900 157,450 (157,450) 50% 34203 AccidenUwarrant reports 300 241 (59) 80% 34303 Franchise fees 536,944 135,363 (401,581 ) 25% 34304 PEG access fees 35,256 9,088 (26,168) 26% 34731 Softball fees 28,000 27,428 (572) 98% 34735 Recreation program fees 66,000 26,911 (39,089) 41% 34740 Beach concessions 13,000 3,924 (9,076) 30% 34760 Facility rental 86,526 37,080 (49,446) 43% 34761 Studio/pavilion rental 18,000 7,854 (10,146) 44% June 2009 Financial Report: GF Revenues Page 2 of 7 07/1512009 City of Prior Lake General Fund Revenues As of 6/30/2009 (Unaudited) 2009 Variance with Amended 2009 Amended Budget - Actual Budget Actual Positive (Negative) Percent 34762 Park shelter rental 7,000 6,277 (723) 90% 34765 Tower leases 150,152 109,225 (40,927) 73% 34780 Park admission fees 28,000 6,940 (21,060) 25% 34782 Sign lease fees 13,750 (13,750) 0% 1,532,553 588,380 (944,173) 38% Fines & forfeitures 35101 County court fines 150,000 54,476 (95,524) 36% 35104 Prosecution restitution 72,000 27,541 (44.459) 38% 222,000 82,017 (139,983) 37% Miscellaneous revenues 36210 Interest earnings 120,000 115,107 (4,893) 96% 36211 Developer agreements 25,000 (25,000) 0% 36212 Miscellaneous revenue 30,000 11,828 (18,172) 39% 36225 Unrealized inv. Gain(loss) 36230 Contributions & donations 15,000 8,950 (6,050) 60% 190,000 135,885 (54,115) 72% Other financing sources 39102 Sale of property 6,000 (6,000) 0% 39203 Transfers from other funds 325,000 162.498 (162,502) 50% 39310 Bond Proceeds 100,000 101,607 1,607 0% 431,000 264,105 (166,895) 61% Total revenues 12,576,974 6,035,142 (6,541,832) 48% June 2009 Financial Report: GF Revenues Page 3 of 7 07/15/2009 City of Prior Lake General Fund Expenditures As of 6/30/2009 (Unaudited) Variance with Amended 2009 Budget - Actual Budget Actual Positive (Negative) Percent General government 41110 Mayor & council 70,131 28,315 41,816 40% 41130 Ordinance 11 ,000 3,314 7,686 30% 41320 City manager 388,036 186,988 201,048 48% 41330 Boards & commissions 12,369 912 11,457 7% 41410 Elections 5,600 5,600 0% 41520 Director of finance 128,978 58,936 70,042 46% 41530 Accounting 182,043 82,764 99,279 45% 41540 Internal auditing 27,200 24,000 3,200 88% 41550 Assessing 105,200 102,000 3,200 97% 41610 City attorney 385,000 138,621 246,379 36% 41820 Personnel 135,314 53,942 81,372 40% 41830 Communications 119,113 48,485 70,628 41% 41910 Comm developmenUnatural res 261,924 122,080 139,844 47% 41920 Data processing 160,815 41,840 118,975 26% 41940 Buildings & plant 443,752 194,858 248,894 44% Total general government 2,436,475 1,087,055 1,349,420 45% Public safety 42100 Police 3,117,749 1,446,049 1,671,700 46% 42200 Fire 780,878 241,459 539,419 31% 42400 Building/transportation services 360,328 178,480 181,848 50% 42500 Emergency management 7,500 1,352 6,148 18% 42700 Animal control 34,890 14,935 19,955 43% Total public safety 4,301,345 1,882,275 2,419,070 44% Public works 43050 Engineering 493,165 236,052 257,113 48% 431 00 Street 1,112,526 373,043 739,483 34% 43400 Central garage 317,264 148,422 168,842 47% Total public works 1,922,955 757,517 1,165,438 39% C u Itu re/recreation 45100 Recreation 437,498 157,689 279,809 36% 45200 Parks 1,384,317 568,803 815,514 41% 45500 Libraries 106,067 47,908 58,159 45% Total culture/recreation 1,927,882 774,400 1 ,153,482 40% Urban & economic development 46500 Economic development 62,583 27,756 34,827 44% Total urban/economic dev 62,583 27,756 34,827 44% 49303 Transfers to other funds 1,625,734 427,317 1 ,198,417 26% 49999 Contingency reserve 300,000 5,949 294,051 2% Total expenditures 12,576,974 4,962,269 7,614,705 39% June 2009 Financial Report: GF Expenditures Page 4 of 7 07/1512009 City of Prior lake Water & Sewer Fund As of 6/30/2009 (Unaudited) Variance with Amended 2009 Budget - Actual Budget Actual Positive (Negative) Percent Operating revenues Charges for services - water 37100 Water revenues 2,138,750 721,773 (1,416,977) 34% 37110 Capital facility revenue 450,000 228,422 (221,578) 51% 37150 Water reconnect charges 7,650 8,803 1,153 115% 37160 Penalties 70,963 29,519 (41,444) 42% 37170 Water meters 43,625 13,769 (29,856) 32% 37175 Pressure reducers 12,975 4,570 (8,405) 35% Total water revenues 2,723,963 1,006,856 (1,717,107) 37% Charges for services - sewer 37102 Sewer revenues 1,916,250 962,645 (953,605) 50% Total sewer revenues 1,916,250 962,645 (953,605) 50% Miscellaneous revenues 36210 Interest earnings 240,000 172,692 (67,308) 72% 36212 Miscellaneous 293 293 0% 39102 Sale of Property 350 350 0% Total miscellaneous revenues 240,000 173,335 (66,665) 72% Total revenues 4,880,213 2,142,836 (2,737,377) 44% Operating expenses Personnel & current expenses 49400 Water 1,449,803 737,188 712,615 51% 49450 Sewer 1,962,489 959,852 1,002,637 49% Total operating expenses 3,412,292 1,697,040 1,715,252 50% Capital improvements 49400 Water improvements 311,200 311,200 0% 49450 Sewer improvements 129,000 129,000 0% 49003 Lift station upgrade 165,000 43,802 121,198 27% 49005 CIPP pipe slip lining 130,000 130,000 0% Total capital improvements 735,200 43,802 691,398 6% 49303 Transfers to other funds 1,044,214 676,137 368,077 65% Total expenses 5,191,706 2,416,979 2,774,727 47% Net change (311,493) (274,143) June 2009 Financial Report: Water. Sewer Page 5 of 7 07/1512009 City of Prior Lake Water Quality Fund As of 6/30/2009 (Unaudited) Variance with 2009 2009 Budget - Actual Budget Actual Positive (Negative) Percent Operating revenues Charges for services - storm water 37120 Water quality revenue 425,000 220,563 (204,437) 52% Total water quality revenues 425,000 220,563 (204,437) 52% Miscellaneous revenues 36210 Interest earnings 13,646 13,646 0% Total miscellaneous revenues 13,646 13,646 0% Total revenues 425,000 234,209 (190,791) 55% Operating expenses Personnel & current expenses 49420 Water quality 186,806 122,539 64,267 66% Capital improvements 49420 Water quality 235,000 36,461 198,539 16% Total expenses 421,806 159,000 262,806 38% Net change 3,194 75,209 June 2009 Financial Report: Water Quality Page 6 of 7 07/1512009 City of Prior Lake Transit Fund As of 6/30/2009 (Unaudited) Variance with 2009 2009 Budget - Actual Budget Actual Positive (Negative) Percent Operating revenues Charges for services - transit revenue 38400 Bus fares 112,000 44,955 (67,045) 40% 38422 State transit aid 718,058 372,342 (345,716) 52% Total transit revenues 830,058 417,297 (412,761) 50% Total revenues 830,058 417,297 (412,761) 50% Operating expenses Personnel & current expenses 49804 Transit services 790,120 241,247 548,873 31% Capital improvements 49804 Capital improvements 20,000 20,000 0% Total expenses 810,120 241,247 568,873 30% Net change 19,938 176,050 June 2009 Financial Report: Transit Page 7 of 7 07/1512009