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Home My WebLink About5D - Preliminary First Quarter Financial Report o~ PRIO~ t ~ ~ 4646 Dakota Street S.E, U ~: Prior Lake, MN 55372-1714 ~INNESO~~ CITY COUNCIL AGENDA REPORT MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: ALTERNATIVES RECOMMENDED MOTION: ReVie1j MAY 3,2010 5D JERIL YN ERICKSON, FINANCE DIRECTOR CONSIDER APPROVAL OF 2010 1ST QUARTER FINANCIAL REPORT FOR THE GENERAL FUND AND ENTERPRISE FUNDS Introduction Staff has prepared summary financial reports as of March 31, 2010 for the General Fund, Water and Sewer Fund, Water Quality Fund, and Transit Fund. The reports reflect revenue and expenditure activity for the first quarter of 2010. The reports are preliminary, unaudited and may 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. 1. A motion to accept the 2010 1 st 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 accept the 2010 1 st Quarter Financial Report as submitted. - all 3ger J 1. Preliminary 2010 1 st Quarter Financial Report Summary 2. Financial Report Memorandum www.cityofpriorlake.com Phone 952.447,9800 / Fax 952.447.4245 MEMORANDUM TO: FROM: RE: Prior Lake City Council Jerilyn Erickson, Finance Director Financial Report dated 03/31/2010 The financial reports presented as part of this agenda item reflect activity for the first three months of 2010. The significant issues identified at this time are summarized below. General Fund Revenues Property taxes are received in June and December. Revenues from taxes are recognized on a cash basis and not an accrual basis for the General Fund. Therefore, revenues will not be reflected in the financial reports until June, Single family building permits are budgeted at 50 for 2010, Fifteen (15) permits were issued through March 31 st compared to five (5) during first quarter 2009, The ave,rage value associated with these permits is significantly less than those issued in 2009. An additional sixteen (16) permits have been issued since March 31 for a total of thirty-one (31) issued year to date. Approximately 50% of the Municipal State Aid for road maintenance and the Township Fire Agreements were received during first quarter as was expected. Tower lease revenues reflect early payment from two of the eleven agreements in place. Court fines and prosecution restitution revenues are tracking similarly to 2009, The 2010 budget reflects a more realistic expectation for these two revenues, Interest earnings are at 39 percent of the budget. Keep in mind that, just as in years past, interest earnings are adjusted at year end to reflect the fair value of the securities. General Fund Exoenditures General Fund expenditures for 2010 represent 18 percent of the $12,120,546 budget. The level of expenditures is comparable for the same period in 2009. At this point in the year, there are no significant variances. Costs associated with street and park maintenance and recreation programs are incurred during the summer and fall. Enterorise Funds The financial reports for the Water and Sewer Fund and the Water Quality Fund reflect only one billing cycle and are comparable to 2009. Costs associated with capital improvements are typically incurred during the summer and fall. The water and sewer operational activities will continue to be reported as one fund throughout 2010. Per council direction, staff will segregate the Water and Sewer Fund into two funds at the end of 2010. Transit revenues from the State of Minnesota are tracking close with the 2010 budget. The revenue budget was significantly reduced to reflect the planned revenue reduction from the Met Council. Expenses are comparable to first quarter 2009. If you have any questions regarding these financial reports, please contact me at 952.447.9841. ~p~~ ~C~ City of Prior Lake General Fund Summary As of 3/31/2010 (Unaudited) Variance with Actual 2010 2010 Budget - Percent of Budget Actual Positive (Negative) Budget Revenues Taxes 8,482,856 (8,482,856) 0% Licenses and permits 269,975 71,510 (198,465) 26% I ntergovern mental 1,327,667 404,624 (923,043) 30% Charges for services 1,382,131 159,235 (1,222,896) 12% Fines and forfeitures 182,000 23,555 (158,445) 13% Interest on investments 90,000 35,361 (54,639) 39% Other 60,917 3,120 (57,797) 5% Transfers from other funds 325,000 (325,000) 0% Total revenues 12,120,546 697,405 (11,423,141) 6% Expenditures General government 2,342,605 448,718 1,893,887 19% Public safety 4,341,614 954,508 3,387,106 22% Public works 1,737,675 336,794 1,400,881 19% Culture & recreation 1,804,653 305,190 1,499,463 17% Urban & economic development 44,401 44,401 0% Subtotal 10,270,948 2,045,210 8,225,738 20% Transfers to other funds 1,780,600 100,000 1,680,600 6% Contingency reserve 69,000 69,000 0% Total expenditures 12,120,546 2,145,210 9,975,336 18% Net change (1,447,805) March 2010 Financial Report: GF Summary Page 10'7 4/27/2010 City of Prior Lake General Fund Revenues As of 3/31/2010 (Unaudited) Variance with 2010 2010 Amended Budget - Actual Budget Actual Positive (Negative) Percent Property taxes 31010 Current taxes 7,952,993 (7,952,993) 0% 31012 Market value credit aid (227,546) 227,546 0% 31020 Delinquent taxes 0% 31040 Fiscal disparities 757,409 (757,409) 0% 8,482,856 (8,482,856) 0% Licenses & permits 32100 Business licenses 1,300 1,200 (100) 92% 32110 Liquor licenses 57,000 (57,000) 0% 32160 Refuse haulers 3,875 (3,875) 0% 32161 Plumbing registrations 875 1,025 150 117% 32170 Outdoor concert permits 1,100 200 (900) 18% 32180 Cigarette licenses 3,250 3,000 (250) 92% 32210 Building permits 166,750 48,507 (118,243) 29% 32211 Retainage forfeiture 1,500 1,500 0% 32215 Mechanical permits 14,900 5,912 (8,988) 40% 32230 Plumbing permits 12,425 6,323 (6,102) 51% 32231 Sewer/water inspection 2,500 848 (1,652) 34% 32240 Animal licenses 3,750 2,595 (1,155) 69% 32260 Burning permits 2,250 400 (1,850) 18% 269,975 1'1,510 (198,465) 26% 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 230,000 119,432 (110,568) 52% 33420 State fire aid - ins premium 123,000 2,000 (121,000) 2% 33421 State police aid - ins premium 155,000 (155,000) 0% 33422 State aids & grants 515 515 0% 33610 County/city aids & grants 13,800 (13,800) 0% 33620 Township fire & rescue aid 348,065 174,166 (173,899) 50% 33621 Liaison aid 54,042 13,511 (40,531) 25% 33631 Payment in lieu of taxes 380,000 95,000 (285,000) 25% 33700 Miscellaneous grants 3,000 (3,000) 0% 1,327,667 404,624 (923,043) 30% Charges for services 34103 Zoning & subdivision fees 7,810 1,370 (6,440) 18% 34104 Plan check fees 83,250 2:1,091 (52,159) 37% 34105 Sale of maps/publications 2,500 1,521 (979) 61% 34107 Assessment searches 400 (400) 0% 34109 Project admin/eng fees 348,553 (348,553) 0% 34203 Accident/warrant reports 300 126 (174) 42% 34303 Franchise fees 537,000 (537,000) 0% 34304 PEG access fees 36,000 (36,000) 0% 34731 Softball fees 28,000 24,500 (3,500) 88% 34735 Recreation program fees 56,000 2,611 (53,389) 5% 34740 Beach concessions 13,000 2,139 (10,861) 16% March 2010 Financial Report: GF Revenues Page 2 of 7 4/27/2010 City of Prior Lake General Fund Revenues As of 3/31/2010 (Unaudited) Variance with 2010 2010 Amended Budget - Actual Budget Actual Positive (Negative) Percent 34760 Facility rental 68,166 14,642 (53,524) 21% 34761 Studio/pavilion rental 15,000 1,529 (13,471) 10% 34762 Park shelter rental 7,000 1,723 (5,277) 25% 34765 Tower leases 150,152 77,983 (72,169) 52% 34780 Park admission fees 29,000 (29,000) 0% 1,382,131 159,235 (1,222,896) 12% Fines & forfeitures 35101 County court fines 115,000 15,519 (99,481) 13% 35104 Prosecution restitution 67,000 8,036 (58,964 ) 12% 182,000 2:3,555 (158,445) 13% Miscellaneous revenues 36210 Interest earnings 90,000 3:5,361 (54,639) 39% 36212 Miscellaneous revenue 30,000 3,120 (26,880) 10% 36230 Contributions & donations 25,000 (25,000) 0% 145,000 38,481 (106,519) 27% Other financing sources 39102 Sale of property 5,917 (5,917) 0% 39203 Transfers from other funds 325,000 (325,000) 0% 330,917 (330,917) 0% Total revenues 12,120,546 697,405 (11,423,141 ) 6% March 2010 Financial Report: GF Revenues Page 3 of 7 4/27/2010 City of Prior Lake General Fund Expenditures As of 3/31/2010 (Unaudited) Variance with 2010 2010 Budget - Actual Budget Actual Positive (Negative) Percent General government 41110 Mayor & council 65,453 13,594 51,859 21% 41130 Ordinance 7,000 793 6,207 11% 41320 Administration 351,576 99,702 251,874 28% 41330 Boards & commissions 12,474 12,474 0% 41410 Elections 7,167 7,167 0% 41520 Finance 300,327 7'1,215 229,112 24% 41540 Internal auditing 28,200 20,190 8,010 72% 41550 Assessing 108,200 108,200 0% 41610 Legal 385,000 43,244 341,756 11% 41820 Personnel 131,540 27,451 104,089 21% 41830 Communications 107,382 27,950 79,432 26% 41910 Comm developmenUnatural res 252,563 Ei4,673 197,890 22% 41920 Technology 146,597 43,813 102,784 30% 41940 Buildings & plant 439,126 46,093 393,033 10% Total general government 2,342,605 448,718 1,893,887 19% Public safety 42100 Police 3,072,315 710,647 2,361,668 23% 42200 Fire 862,159 1 EiO,057 712,102 17% 42400 Building/transportation services 363,796 87,483 276,313 24% 42500 Emergency management 7,500 336 7,164 4% 42700 Animal control 35,844 5,985 29,859 17% Total public safety 4,341,614 9514,508 3,387,106 22% Public works 43050 Engineering 375,022 86,029 288,993 23% 43100 Street 1,032,659 1 Ei3,322 879,337 15% 43400 Central garage 329,994 97,443 232,551 30% Total public works 1,737,675 336,794 1,400,881 19% Culture/recreation 45100 Recreation 403,502 7'0,023 333,479 17% 45200 Parks 1,310,084 216,034 1,094,050 16% 45500 Libraries 91,067 19,133 71,934 21% Total culture/recreation 1,804,653 305,190 1,499,463 17% Urban & economic development 46500 Economic development 44,401 44,401 0% Total urban/economic dev 44,401 44,401 0% 49303 Transfers to other funds 1,780,600 100,000 1,680,600 6% 49999 Contingency reserve 69,000 69,000 0% Total expenditures 12,120,546 2,145,210 9,975,336 18% March 2010 Financial Report: GF Expenditures Page 4 of 7 4/27/2010 City of Prior lake Water & Sewer Fund As of 3/31/2010 (Unaudited) Variance with 2010 2010 Budget - Actual Budget Actual Positive (Negative) Percent Operating revenues Charges for services - water 37100 Water revenues 2,138,750 217,710 (1,921,040) 10% 37110 Capital facility revenue 450,000 77,040 (372,960) 17% 37140 Door Hanger Charges 6,500 6,500 0% 37150 Water reconnect charges 9,000 1,355 (7,645) 15% 37160 Penalties 70,963 9,206 (61,757) 13% 37170 Water meters 26,000 11 ,170 (14,830) 43% 37175 Pressure reducers 8,225 2,170 (6,055) 26% 37180 Frost Plates 23 23 0% 37190 Misc Revenue Adjustments (20) (20) 0% Total water revenues 2,702,938 325,151 (2,377,787) 12% Charges for services - sewer 37102 Sewer revenues 1,916,250 154,422 (1,761,828) 8% 37104 MCES revenues 140,977 140,977 0% Total sewer revenues 1,916,250 295,399 (1,620,851 ) 15% Miscellaneous revenues 36210 Interest earnings 100,000 43,248 (56,752) 43% 36212 Miscellaneous 24 24 0% Total miscellaneous revenues 100,000 43,272 (56,728) 43% Total revenues 4,719,188 663,822 (4,055,366) 14% Operating expenses Personnel & current expenses 41520 Finance 123,870 28,360 (95,510) 23% 49400 Water 1,538,521 316,809 (1,221,712) 21% 49450 Sewer 2,094,547 438,623 (1,655,924) 21% Total operating expenses 3,756,938 783,792 (2,973,146) 21% Capital improvements 49400 Water improvements 475,000 91,100 (383,900) 19% 49450 Sewer improvements 140,000 (140,000) 0% 49005 CIPP pipe slip lining 150,000 (150,000) 0% Total capital improvements 765,000 91,100 (673,900) 12% 49303 Transfers to other funds 1,054,796 (1,054,796) 0% Total expenses 5,576,734 874,892 (4,701,842) 16% Net change (857,546) (211,070) March 2010 Financial Report: Water. Sewer Page 5 of 7 4/27/2010 City of Prior Lake Water Quality Fund As of 3/31/2010 (Unaudited) Variance with 2010 2010 Budget - Actual Budget Actual Positive (Negative) Percent Operating revenues Charges for services - storm water 37120 Water quality revenue 425,000 8'1,280 (343,720) 19% Total water quality revenues 425,000 8'1,280 (343,720) 19% Miscellaneous revenues 36210 Interest earnings 4,418 4,418 0% Total miscellaneous revenues 4,418 4,418 0% Total revenues 425,000 85,698 (339,302) 20% Operating expenses Personnel & current expenses 49420 Water quality 218,367 3:3,938 184,429 16% Capital improvements 49420 Water quality 225,000 8:3,061 141,939 37% 49303 Transfers to other funds 0% Total expenses 443,367 116,999 326,368 26% Net change (18,367) (3'1,301 ) March 2010 Financial Report: Water Quality Page 6 of 7 4/27/2010 City of Prior Lake Transit Fund As of 3/31/2010 (Unaudited) Variance with 2010 2010 Budget - Actual Budget Actual Positive (Negative) Percent Operating revenues Charges for services - transit revenue 38400 Bus fares 90,000 29,964 (60,036) 33% 38422 State transit aid 444,661 10'1,430 (343,231 ) 23% Total transit revenues 534,661 131,394 (403,267) 25% Total revenues 534,661 131,394 (403,267) 25% Operating expenses Personnel & current expenses 49804 Transit services 863,837 116,903 746,934 14% Capital improvements 49804 Capital improvements 280,636 280,636 0% Total expenses 1,144,473 116,903 1,027,570 10% Net change (609,812) 14,491 March 2010 Financial Report: Transit Page 7 of 7 4/27/2010