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Home My WebLink About10A 2009 4th Quarter Finance ReportO~ PRj~~ ~ ~ 'ti 9 `~v x 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 CITY COUNCIL AGENDA REPORT MEETING DATE: FEBRUARY 1, 2010 AGENDA #: 10A . PREPARED BY: Jerilyn Erickson, Finance Director AGENDA ITEM: CONSIDER ACCEPTANCE OF PRELIMINARY 2009 4T" QUARTER FINANCIAL REPORT FOR THE GENERAL FUND AND ENTERPRISE FUNDS DISCUSSION: Introduction Staff has prepared PRELIMINARY summary financial reports as of December 34, 2009 for the General Fund, Water and Sewer Fund, Water Quality Fund, and Transit Fund. The reports reflect revenue and expenditure activity for year ended 2009. The reports are preliminary, unaudited and will change. 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. ALTERNATIVES 1. A motion to accept the Preliminary 2009 4th Quarter Financial Report as submitted. 2. Take no action and- provide the staff with specific direction. RECOMMENDED Alternative 1.. A motion to accept the Preliminary 2009 4th Quarter Financial MOTION: Report as submitted. Reviewed by: Frank Boy es, ity~ Manager ATTACHM NT I 1. Preliminary 2009 4th Quarter Financial Report Summary 2. Financial Report Memorandum www. cityofpriorlake . com i~:rco~n~ill?010 ~~~nd~ ~ep~~zs~o2 tl~~a~~~~+~r~u~is~ar ~~~~~'~v4245 o~ p~O~P MEMORANDUM ti~ 0 ~ TO: Prior Lake City Council FROM: Jerilyn Erickson, Finance Director M~~s°~`~ RE: Preliminary Financial Report dated 12/31/2009 The financial reports presented as part of this agenda item should be considered preliminary and not final for year ended 2009. There is a significant amount of review and analysis that needs to take place before final reports will be issued. The final financial statements are audited by an independent auditing firm after City staff has conducted this year end review. The annual audit takes place in mid- March. A presentation of the 2009 financial results will be made to the City Council in May, 2010. The significant issues identified at this time are summarized below: General Fund Revenues Property taxes are received in June and December. The final tax settlement was received in January 2010 but the revenues are accrued in 2009. Collection of current taxes is comparable to previous years with a rate of 94%. The collection of fiscal disparities revenues is lower than in previous years. Further analysis and discussion with Scott County is needed to determine the reason for this. The collection of delinquent taxes (taxes owed in previous years) is higher than previous years. It is important to note that revenues from taxes are recognized on a cash basis and not an accrual basis for the General Fund. 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 permits were originally budgeted at 100 for 2009. Sixty-two (62) permits were issued through December 31st. Plan check fee revenues are in alignment with building permit revenues. State aid revenues for police and fire are significantly less than budget. The fire aid is apass-through to the Prior Lake Fire Relief Association. Therefore, there is a corresponding reduction in expenditures. Court fines and prosecution restitution revenues will be approximately 30% less than budget when all revenues have been received. Interest earnings (line item 36210) are at 183 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. In addition, the interest earnings account reflects the interest received from zero-coupon bonds. Keep in mind that, just as in years past, interest earnings are adjusted at year end to reflect the fair value of the securities. I've included an estimate of the adjustment. For 2009, this adjustment will be a decrease to the actual interest earnings for the year. This adjustment is impacted in a reverse manner by the maturity of zero-coupon bonds. Developer agreement and sign lease fee revenues were at zero. These revenues are contingent upon development and negotiating sign advertisement agreements at the ball fields. R:\Counci112010 Agenda Reports\02 01 10\2009 4th Quay ier Financial Report.doc General Fund Expenditures General Fund expenditures for 2009 represent 92 percent of the $12,576,974 amended budget. A planned reduction in expenditures was implemented earlier this year due to an anticipated reduction in interest earnings and development-related revenues for 2009. Areas where expenditures varied more substantially than projected include: $ 80,000 Workers Com ensation remium ad'ustment 31,000 Net fuel savings -lower prices, increased consum tion 45,000 Dela ed hirin of Fire Chief 67,000 Streamlined/reduced recreation ro rammin -staff & su lies 81,000 Lower utility costs for gas, electric and street li htin 12,000 Reduction in overtime 20,000 Reduction in legal costs for Scott Joint Prosecution 30,000 Reduction in seasonal ersonnel costs 21,000 Reduction in expenditures for consultants in Economic Develo ment 8,000 Reduction in expenditures for Regional Trainin Facilit 193,000 Uns ent Contin enc $588,000 Total At this preliminary stage, an estimated net change of $495,000 is projected for the General Fund as a result of expenditures coming in considerably less than revenues received. This number will chance as City staff completes their review of revenues and expenditures for completeness and accuracy. Enterprise Funds The financial reports for the Enterprise Funds are preliminary, as well. Water consumption, and the corresponding water and sewer revenues, is higher for the six billing periods in 2009 compared to 2008. Further review and analysis is needed on consumption data. Capital projects are in progress. Further review of the status of the capital projects is needed to determine if all expenses have been recorded for 2009. Transit revenues from the State of Minnesota are at approximately 86% of what was budgeted for 2009. Expenses are also less than originally budgeted. Further review is needed to determine if all expenses have been recorded for 2009. If you have any questions regarding these financial reports, please contact me at 952.447.9841. R:\Counci112010 Agenda Reports\U2 01 10\20J9 4th Quarter Financial Report.doc o~ PRt~+P ~, City of Prior Lake ~ ~ General Fund Summary As of 12/31 /2009 "~,~s~" (Preliminary and Unaudited) Variance with Amended 2009 Budget - Percent of Budget Actual Positive (Negative) Budget Revenues Taxes 8,404,562 8,249,888 (154,674) 98% Licenses and permits 454,180 363,397 (90,783) 80% Intergovernmental 1,342,679 1,266,826 (75,853) 94% Charges for services 1,532,553 1,365,416 (167,137) 89% Fines and forfeitures 222,000 158,340 (63,660) 71% Interest on investments 120,000 129,100 9,100 108% Other 176,000 168,820 (7,180) 96% Transfers from other funds 325,000 325,000 - 100% Total revenues 12,576,974 12,026,787 (550,187) 96% Expenditures General government Public safety Public works Culture & recreation Urban & economic development Subtotal Transfers to other funds Contingency reserve Total expenditures 2,436,475 2,149,234 287,241 88% 4,301,345 3,948,419 352,926 92% 1,922,955 1,928,452 (5,497) 100% 1,927,882 1,738,390 189,492 90% 62,583 34,050 28,533 54% 10,651,240 9,798,545 852,695 92% 1,625,734 1,725,734 (100,000) 106% 300,000 7,346 292,654 2% 12,576,974 11,531,625 1,045,349 92% Net change - 495,162 Page 1 of 4 01/29/2010 O~ PRIp~ ~ ~ City of Prior Lake ~ General Fund Revenues As of 12/31 /2009 ""^~ss°K`' (Preliminary and Unaudited) Property taxes 31010 Current taxes 31012 Market value credit aid 31020 Delinquent taxes 31040 Fiscal disparities Licenses & permits 32100 Business licenses 32110 Liquor licenses 32160 Refuse haulers 32161 Plumbing registrations 32170 Outdoor concert permits 32180 Cigarette licenses 32210 Building permits 32211 Retainage forfeiture 32215 Mechanical permits 32230 Plumbing permits 32231 Sewer/water inspection 32240 Animal licenses 32260 Burning permits Intergovernmental revenue 33401 Local government aid 33416 State aid -police training 33418 State road & bridge aid 33420 State fire aid -ins premium 33421 State police aid -ins premium 33422 State aids & grants 33610 County/city aids & grants 33620 Township fire & rescue aid 33621 Liaison aid 33631 Payment in lieu of taxes Charges for services 34103 Zoning & subdivision fees 34104 Plan check fees 34105 Sale of maps/publications 34107 Assessment searches 34109 Project admin/eng fees 34203 Accident/warrant reports 34303 Franchise fees 34304 PEG access fees 34731 Softball fees 34735 Recreation program fees 34740 Beach concessions 34760 Facility rental 2009 Variance with Amended 2009 Amended Budget - Actual Budget Actual Positive (Negative) Percent 7,910,537 7,440,822 (469,715) 94% (226,000) (71) 225,929 0% - 157,906 157,906 0% 720,025 651,231 (68,794) 90% 8,404,562 8,249,888 (154,674) 98% 800 1,500 700 188% 57,680 54,730 (2,950) 95% 4,200 3,875 (325) 92% 1,250 1,100 (150) 88% 1,250 1,400 150 112% 3,250 3,250 - 100% 330,000 222,445 (107,555) 67% - 10,750 10,750 0% 24,850 29,454 4,604 119% 19,900 24,793 4,893 125% 5,000 3,705 (1,295) 74% 3, 750 4,120 370 110% 2,250 2,275 25 101 454,180 363,397 (90,783) 80% 11,905 11,905 - 100% 8,855 9,118 263 103% 238,000 230,237 (7,763) 97% 166,000 122,953 (43,047) 74% 172,500 155,277 (17,223) 90% - - - 0% 10,455 12,634 2,179 121 322,016 311,207 (10,809} 97% 52,948 53,495 547 101% 360,000 360,000 - 100% 1,342,679 1,266,826 (75,853) 94% 13,075 8,440 (4,635) 65% 220,750 143,723 (77,027) 65% 500 5,694 5,194 1139% 400 55 (345) 14% 314,900 314,900 - 100% 300 309 9 103% 536,944 494,792 (42,152) 92% 35,256 26,986 (8,270) 77% 28,000 30,798 2,798 110% 66,000 48,602 (17,398) 74% 13,000 10,018 (2,982) 77% 86,526 74,957 (11,569) 87% Page 2 of 4 01/29/2010 04 p~~+P ~, ~ City of Prior Lake General Fund Revenues As of 12/31 /2009 ""^Nfis~~" (Preliminary and Unaudited) 34761 Studio/pavilion rental 34762 Park shelter rental 34765 Tower leases 34780 Park admission fees 34782 Sign lease fees Fines & forfeitures 35101 County court fines 35104 Prosecution restitution Miscellaneous revenues 36210 Interest earnings 36211 Developer agreements 36212 Miscellaneous revenue 36225 Unrealized inv. Gain loss) 36230 Contributions & donations Other financing sources 39102 Sale of property 39203 Transfers from other funds 39310 Bond Proceeds Total revenues 2009 Variance with Amended 2009 Amended Budget - Actual Budget Actual Positive (Negative) Percent 18,000 15,903 (2,097) 88% 7,000 10,128 3,128 145% 150,152 150, 327 175 100% 28,000 28,959 959 103% 13,750 825 (12,925) 6% 1,532,553 1,365,416 (167,137) 89% 150,000 103,766 (46,234) 69% 72,000 54,574 (17,426) 76% 222,000 158,340 (63,660) 71% 120,000 219,100 99,100 183% 25,000 3,292 (21,708) 13% 30,000 42,081 12,081 140% - (90,000) (90,000) - 15,000 16,450 1,450 110% 190, 000 190, 923 923 100% 6,000 5,390 (610) 90% 325,000 325,000 - 100% 100,000 101,607 1,607 0% 431, 000 431, 997 997 100% 12,576,974 12,026,787 (550,187) 96% Page 3 of 4 ~ 01/29/2010 p4 P~o,~ City of Prior Lake ~ ~ General Fund Expenditures As of 12/31 /2009 M~~B°'`4` (Preliminary and Unaudited) Variance with Amended 2009 Budget - Actual Budget Actual Positive (Negative) Percent General government 41110 Mayor & council 70,131 59,584 10,547 85% 41130 Ordinance 11,000 7,337 3,663 67% 41320 City manager 388,036 359,550 28,486 93% 41330 Boards & commissions 12,369 5,003 7,366 40% 41410 Elections 5,600 5,408 192 97% 41520 Director of finance 128,978 126,432 2,546 98% 41530 Accounting 182,043 168,847 13,196 93% 41540 Internal auditing 27,200 24,190 3,010 89% 41550 Assessing 105,200 104,095 1,105 99% 41610 City attorney 385,000 344,366 40,634 89% 41820 Personnel 135,314 113,587 21,727 84% 41830 Communications 119,113 98,007 21,106 82% 41910 Comm development/natural res 261,924 240,816 21,108 92% 41920 Data processing 160,815 114,219 46,596 71 41940 Buildings & plant 443,752 377,793 65,959 85% Total general government 2,436,475 2,149,234 287,241 88% Public safety 42100 Police 3,117,749 2,953,374 164,375 95% 42200 Fire 780,878 592,583 188,295 76% 42400 Building/transportation services 360,328 360,311 17 100% 42500 Emergency management 7,500 6,285 1,215 84% 42700 Animal control 34,890 35,866 (976) 103% Total public safety 4,301,345 3,948,419 352,926 92% Public works 43050 Engineering 493,165 478,184 14,981 97% 43100 Street 1,112,526 1,107,097 5,429 100% 43400 Central garage 317,264 343,171 (25,907) 108% Total public works 1,922,955 1,928,452 (5,497) 100% Culture/recreation 45100 Recreation 437,498 349,500 87,998 80% 45200 Parks 1,384,317 1,307,843 76,474 94% 45500 Libraries 106,067 81,047 25,020 76% Total culture/recreation 1,927,882 1,738,390 189,492 90% Urban & economic development 46500 Economic development 62,583 34,050 28,533 54% Total urban/economic dev 62,583 34,050 28,533 54% 49303 Transfers to other funds 1,625,734 1,725,734 (100,000) 106% 49999 Contingency reserve 300,000 7,346 292,654 2% Total expenditures 12,576,974 11,531,625 1,045,349 92% Page 4 of 4 01/29/2010