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Home My WebLink About5F - 3rd Quarter Financial Report MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: ALTERNATIVES RECOMMENDED MOTION: Reviewed by: r:J} Frank BOYI~ Ciy M ATTACHME~ p 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 CITY COUNCIL AGENDA REPORT OCTOBER 19, 2009 5F Jerilyn Erickson, Finance Director CONSIDER APPROVAL OF 2009 3RD QUARTER FINANCIAL REPORT FOR THE GENERAL FUND AND ENTERPRISE FUNDS Introduction Staff has prepared summary financial reports as of September 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 nine 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. 1. A motion as part of the consent agenda to approve the 2009 3rd Quarter Financial Report as submitted. 2. Take no action and provide the staff with specific direction. Alternative 1. A motion as part of the consent agenda to approve the 2009 3rd Quarter Financial Report as submitted. 1. 2009 3'd Quarter Financial Report Summary 2. Financial Report Memorandum www.cityofpriorlake.com '1 ~i~~)~g?iA4Ai~~ql!{irr:~ ~iJ:?:lft4iZA245 MEMORANDUM TO: FROM: RE: Prior Lake City Council Jerilyn Erickson, Finance Director Financial Report dated 09/30/2009 Upon review of the financial report for the first nine months of 2009, I continue to be cautiously optimistic that the City is on track to attain its revised targets for General Fund revenues and expenditures. As each month goes by we are able to affirm that what we anticipated for activity actually happened or the impact was greater/less than anticipated. The elasticity of other revenues becomes more apparent, as well. The significant issues are summarized below: Property taxes are received in June and December. 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. Forty-one (41) permits have been issued through September 30th. Two additional permits have already been issued in October and eight 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. At the current level of receipts and conservative estimates for 4th quarter, the shortfall will 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 nine months represent 61 percent of the $12,576,974 amended budget. This is about 3% or $300,000 lower than the level of expenditures for the same period last year. A planned reduction in expenditures of $475,000 was implemented earlier this year due to an anticipated reduction in interest earnings and development-related revenues for 2009. The revenues and expenditures for the utility funds are generally consistent with levels from previous years. F\ '\COUl"iC\!\:?CD;) Water consumption, and the corresponding revenues, are approximately 8-9% higher for the four billing periods in 2009 compared to 2008. Typically, the August and October billing cycles reflect higher consumption and, therefore, a higher percentage of the annual revenues. Capital projects are in progress. Some of the costs associated with the CSAH 21 water main repair are reflected in the Water Department's current expenses causing the actual percent to be greater than it would be for normal operations. Due to the magnitude of the costs which have been approved for the CSAH 21 water main repair, a request to formally amend the Water & Sewer Fund budget will be presented to the City Council in November. Transit revenues from the State of Minnesota are relatively on track to meet budget expectations but are significantly less than the same period in 2008. If you have any questions regarding these financial reports, please contact me at 952.447.9841. F: f" City of Prior Lake General Fund Summary As of 9/30/2009 (Unaudited) Variance with Amended 2009 Budget - Percent of Budget Actual Positive (Negative) Budget Revenues Taxes 8,404,562 4,157,388 (4,247,174) 49% Licenses and permits 454,180 267,012 (187,168) 59% Intergovernmental 1,342,679 933,598 (409,081) 70% Charges for services 1,532,553 971,641 (560,912) 63% Fines and forfeitures 222,000 122,801 (99,199) 55% Interest on investments 120,000 154,004 34,004 128% Other 176,000 150,064 (25,936) 85% Transfers from other funds 325,000 243,747 (81,253) 75% Total revenues 12,576,974 7,000,255 (5,576,719) 56% Expenditures General government 2,436,475 1,584,009 852,466 65% Public safety 4,301,345 2,776,727 1,524,618 65% Public works 1,922,955 1,483,820 439,135 77% Culture & recreation 1,927,882 1,365,859 562,023 71% Urban & economic development 62,583 33,641 28,942 54% Subtotal 10,651,240 7,244,056 3,407,184 68% 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 7,677,322 4,899,652 61% Net change (677,067) September 2009 Financial Report: GF Summary Page 1 of 7 10/14/2009 City of Prior Lake General Fund Revenues As of 9/30/2009 (Unaudited) 2009 Variance with Amended 2009 Amended Budget - Actual Budget Actual Positive (Negative) Percent Property taxes 31010 Current taxes 7,910,537 3,702,175 (4,208,362) 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 4,157,388 (4,247,174) 49% Licenses & permits 32100 Business licenses 800 1,300 500 163% 32110 Liquor licenses 57,680 54,705 (2,975) 95% 32160 Refuse haulers 4,200 3,875 (325) 92% 32161 Plumbing registrations 1,250 1,000 (250) 80% 32170 Outdoor concert permits 1,250 1,400 150 112% 32180 Cigarette licenses 3,250 3,250 100% 32210 Building permits 330,000 146,187 (183,813) 44% 32211 Retainage forfeiture 10,250 10,250 0% 32215 Mechanical permits 24,850 19,515 (5,335) 79% 32230 Plumbing permits 19,900 17,429 (2,471) 88% 32231 Sewer/water inspection 5,000 2,316 (2,684) 46% 32240 Animal licenses 3,750 4,035 285 108% 32260 Burning permits 2,250 1,750 (500) 78% 454,180 267,012 (187,168) 59% Intergovernmental revenue 33401 Local government aid 11,905 5,953 (5,952) 50% 33416 State aid - police training 8,855 9,117 262 103% 33418 State road & bridge aid 238,000 207,213 (30,787) 87% 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 12,634 2,179 121% 33620 Township fire & rescue aid 322,016 311,207 (10,809) 97% 33621 Liaison aid 52,948 26,474 (26,474) 50% 33631 Payment in lieu of taxes 360,000 360,000 100% 1,342,679 933,598 (409,081) 70% Charges for services 34103 Zoning & subdivision fees 13,075 5,722 (7,353) 44% 34104 Plan check fees 220,750 95,234 (125,516) 43% 34105 Sale of maps/publications 500 3,771 3,271 754% 34107 Assessment searches 400 55 (345) 14% 34109 Project admin/eng fees 314,900 236,175 (78,725) 75% 34203 AccidenUwarrant reports 300 268 (32) 89% 34303 Franchise fees 536,944 271,060 (265,884) 50% 34304 PEG access fees 35,256 18,103 (17,153) 51% 34731 Softball fees 28,000 30,798 2,798 110% 34735 Recreation program fees 66,000 40,100 (25,900) 61% 34740 Beach concessions 13,000 9,673 (3,327) 74% 34760 Facility rental 86,526 56,175 (30,351 ) 65% 34761 Studio/pavilion rental 18,000 14,618 (3,382) 81% September 2009 Financial Report: GF Revenues Page 2 of 7 10/14/2009 City of Prior Lake General Fund Revenues As of 9/30/2009 (Unaudited) 2009 Variance with Amended 2009 Amended Budget - Actual Budget Actual Positive (Negative) Percent 34762 Park shelter rental 7,000 9,834 2,834 140% 34765 Tower leases 150,152 150,125 (27) 100% 34780 Park admission fees 28,000 29,105 1,105 104% 34782 Sign lease fees 13,750 825 (12,925) 6% 1,532,553 971,641 (560,912) 63% Fines & forfeitures 35101 County court fines 150,000 82,645 (67,355) 55% 35104 Prosecution restitution 72,000 40,156 (31,844) 56% 222,000 122,801 (99,199) 55% Miscellaneous revenues 36210 Interest earnings 120,000 154,004 34,004 128% 36211 Developer agreements 25,000 3,292 (21,708) 13% 36212 Miscellaneous revenue 30,000 30,825 825 103% 36225 Unrealized inv. Gain(loss) 36230 Contributions & donations 15,000 8,950 (6,050) 60% 190,000 197,071 7,071 104% Other financing sources 39102 Sale of property 6,000 5,390 (610) 90% 39203 Transfers from other funds 325,000 243,747 (81,253) 75% 39310 Bond Proceeds 100,000 101,607 1,607 0% 431,000 350,744 (80,256) 81% Total revenues 12,576,974 7,000,255 (5,576,719) 56% September 2009 Financial Report: GF Revenues Page 3 of 7 10/14/2009 City of Prior Lake General Fund Expenditures As of 9/30/2009 (Unaudited) Variance with Amended 2009 Budget - Actual Budget Actual Positive (Negative) Percent General government 41110 Mayor & council 70,131 42,691 27,440 61% 41130 Ordinance 11 ,000 5,171 5,829 47% 41320 City manager 388,036 263,967 124,069 68% 41330 Boards & commissions 12,369 3,065 9,304 25% 41410 Elections 5,600 5,600 0% 41520 Director of finance 128,978 91,788 37,190 71% 41530 Accounting 182,043 123,615 58,428 68% 41540 I nternal auditing 27,200 24,190 3,010 89% 41550 Assessing 105,200 102,000 3,200 97% 41610 City attorney 385,000 256,663 128,337 67% 41820 Personnel 135,314 80,314 55,000 59% 41830 Communications 119,113 70,500 48,613 59% 41910 Comm development/natural res 261,924 182,800 79,124 70% 41920 Data processing 160,815 55,723 105,092 35% 41940 Buildings & plant 443,752 281,522 162,230 63% Total general government 2,436,475 1,584,009 852,466 65% Public safety 42100 Police 3,117,749 2,145,656 972,093 69% 42200 Fire 780,878 335,130 445,748 43% 42400 Building/transportation services 360,328 270,336 89,992 75% 42500 Emergency management 7,500 1,709 5,791 23% 42700 Animal control 34,890 23,896 10,994 68% Total public safety 4,301,345 2,776,727 1,524,618 65% Public works 43050 Engineering 493,165 352,603 140,562 71% 43100 Street 1,112,526 882,778 229,748 79% 43400 Central garage 317,264 248,439 68,825 78% Total public works 1,922,955 1,483,820 439,135 77% Culture/recreation 45100 Recreation 437,498 291,065 146,433 67% 45200 Parks 1,384,317 1,011,570 372,747 73% 45500 Libraries 106,067 63,224 42,843 60% Total culture/recreation 1,927,882 1,365,859 562,023 71% Urban & economic development 46500 Economic development 62,583 33,641 28,942 54% Total urban/economic dev 62,583 33,641 28,942 54% 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 7,677 ,322 4,899,652 61% September 2009 Financial Report: GF Expenditures Page 4 of 7 10/14/2009 City of Prior Lake Water & Sewer Fund As of 9/30/2009 (Unaudited) Variance with Amended 2009 Budget - Actual Budget Actual Positive (Negative) Percent Operating revenues Charges for services - water 37100 Water revenues 2,138,750 1,425,313 (713,437) 67% 37110 Capital facility revenue 450,000 305,082 (144,918) 68% 37150 Water reconnect charges 7,650 18,120 10,470 237% 37160 Penalties 70,963 45,205 (25,758) 64% 37170 Water meters 43,625 25,059 (18,566) 57% 37175 Pressure reducers 12,975 7,220 (5,755) 56% Total water revenues 2,723,963 1,825,999 (897,964) 67% Charges for services - sewer 37102 Sewer revenues 1,916,250 1,371,855 (544,395) 72% Total sewer revenues 1,916,250 1,371,855 (544,395) 72% Miscellaneous revenues 36210 Interest earnings 240,000 223,011 (16,989) 93% 36212 Miscellaneous 3,303 3,303 0% 33630 Metro Council Grants 39102 Sale of Property 350 350 0% Total miscellaneous revenues 240,000 226,664 (13,336) 94% Total revenues 4,880,213 3,424,518 (1,455,695) 70% Operating expenses Personnel & current expenses 49400 Water 1,449,803 1,261,802 188,001 87% 49450 Sewer 1,962,489 1,446,327 516,162 74% Total operating expenses 3,412,292 2,708,129 704,163 79% Capital improvements 49400 Water improvements 311,200 144,225 166,975 46% 49450 Sewer improvements 129,000 77,984 51,016 0% 49003 Lift station upgrade 165,000 78,813 86,187 48% 49005 CIPP pipe slip lining 130,000 130,000 0% Total capital improvements 735,200 301,022 434,178 41% 49303 Transfers to other funds 1,044,214 779,886 264,328 75% Total expenses 5,191,706 3,789,037 1,402,669 73% Net change (311,493) (364,519) September 2009 Financial Report: Water. Sewer Page 5 of 7 10/14/2009 City of Prior lake Water Quality Fund As of 9/30/2009 (Unaudited) Variance with 2009 2009 Budget - Actual Budget Actual Positive (Negative) Percent Operating revenues Charges for services - storm water 37120 Water quality revenue 425,000 290,423 (134,577) 68% Total water quality revenues 425,000 290,423 (134,577) 68% Miscellaneous revenues 36210 Interest earnings 17,822 17,822 0% Total miscellaneous revenues 17,822 17,822 0% Total revenues 425,000 308,245 (116,755) 73% Operating expenses Personnel & current expenses 49420 Water quality 186,806 160,124 26,682 86% Capital improvements 49420 Water quality 235,000 85,614 149,386 36% Total expenses 421,806 245,738 176,068 58% Net change 3,194 62,507 September 2009 Financial Report: Water Quality Page 6 of 7 10/14/2009 City of Prior lake Transit Fund As of 9/30/2009 (Unaudited) Variance with 2009 2009 Budget - Actual Budget Actual Positive (Negative) Percent Operating revenues Charges for services - transit revenue 38400 Bus fares 112,000 96,247 (15,753) 86% 38422 State transit aid 718,058 503,670 (214,388) 70% Total transit revenues 830,058 599,917 (230,141) 72% Total revenues 830,058 599,917 (230,141 ) 72% Operating expenses Personnel & current expenses 49804 Transit services 790,120 405,762 384,358 51% Capital improvements 49804 Capital improvements 20,000 3,119 16,881 16% Total expenses 810,120 408,881 401,239 50% Net change 19,938 191,036 September 2009 Financial Report: Transit Page 7 of 7 10/14/2009