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HomeMy WebLinkAbout5C - 2nd Quarter Financial Report MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: ALTERNATIVES RECOMMENDED MOTION: Reviewed by: (~ Frank Boyles Ci ATTACHMEN S: AUGUST 2, 2010 5C JERIL YN ERICKSON, FINANCE DIRECTOR CONSIDER APPROVAL OF THE 2010 2nd QUARTER FINANCIAL REPORT FOR THE GENERAL FUND AND ENTERPRISE FUNDS ]ntroduction Staff has prepared summary financial reports as of June 30, 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 six months 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 June 30, 2010 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 June 30, 2010 Financial Report as submitted. r fanager 1. Preliminary June 30, 2010 Financial Report Summary 2. Financial Report Memorandum www.cityofpriorlake.com Phone 952.447.9800 / Fax 952.447.4245 City of Prior lake General Fund Summary As of 6/30/2010 (Unaudited) Variance with Actual 2010 2010 Budget - Percent of Budget Actual Positive (Negative) Budget Revenues Taxes 8,482,856 2,888,870 (5,593,986) 34% Licenses and permits 269,975 267,211 (2,764) 99% I ntergovern mental 1,327,667 524,700 (802,967) 40% Charges for services 1,382,131 519,897 (862,234 ) 38% Fines and forfeitures 182,000 53,745 (128,255) 30% Interest on investments 90,000 87,296 (2,704) 97% Other 60,917 23,756 (37,161) 39% Transfers from other funds 325,000 162,500 (162,500) 50% Total revenues 12,120,546 4,527,975 (7,592,571 ) 37% Expenditures General government 2,342,605 1,046,430 1,296,175 45% Public safety 4,341,614 1,941,665 2,399,949 45% Public works 1,737,675 625,952 1 ,111,723 36% Culture & recreation 1,804,653 730,671 1,073,982 40% Urban & economic development 44,401 13,447 30,954 30% Subtotal 10,270,948 4,358,165 5,912,783 42% Transfers to other funds 1,780,600 513,249 1,267,351 29% Contingency reserve 69,000 69,000 0% Total expenditures 12,120,546 4,871,414 7,249,132 40% Net change (343,439) Page 1 of 7 City of Prior Lake General Fund Revenues As of 6/30/2010 (Unaudited) Variance with 2010 2010 Amended Budget - Actual Budget Actual Positive (Negative) Percent Property taxes 31010 Current taxes 7,952,993 2,449,030 (5,503,963) 31% 31012 Market value credit aid (227,546) 227,546 0% 31020 Delinquent taxes 116,663 116,663 0% 31040 Fiscal disparities 757,409 323,177 (434,232) 43% 8,482,856 2,888,870 (5,593,986) 34% Licenses & permits 32100 Business licenses 1,300 1,500 200 115% 32110 Liquor licenses 57,000 57,324 324 101% 32160 Refuse haulers 3,875 3,175 (700) 82% 32161 Plumbing registrations 875 1,275 400 146% 32170 Outdoor concert permits 1,100 1,450 350 132% 32180 Cigarette licenses 3,250 3,250 100% 32210 Building permits 166,750 155,352 (11,398) 93% 32211 Retainage forfeiture 1,500 1,500 0% 32215 Mechanical permits 14,900 17,766 2,866 119% 32230 Plumbing permits 12,425 17,322 4,897 139% 32231 Sewer/water inspection 2,500 3,242 742 130% 32240 Animal licenses 3,750 3,155 (595) 84% 32260 Burning permits 2,250 900 (1,350) 40% 269,975 267,211 (2,764) 99% 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 230,000 119,433 (110,567) 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 2,054 2,054 0% 33610 County/city aids & grants 13,800 7,527 (6,273) 55% 33620 Township fire & rescue aid 348,065 174,166 (173,899) 50% 33621 Liaison aid 54,042 27,020 (27,022) 50% 33631 Payment in lieu of taxes 380,000 190,000 (190,000) 50% 33700 Miscellaneous grants 3,000 2,500 (500) 83% 1,327,667 524,700 (802,967) 40% Charges for services 34103 Zoning & subdivision fees 7,810 4,763 (3,047) 61% 34104 Plan check fees 83,250 95,789 12,539 115% 34105 Sale of maps/publications 2,500 1,592 (908) 64% 34107 Assessment searches 400 120 (280) 30% 34109 Project admin/eng fees 348,553 (348,553) 0% 34203 AccidenUwarrant reports 300 325 25 108% 34303 Franchise fees 537,000 135,330 (401,670) 25% 34304 PEG access fees 36,000 8,847 (27,153) 25% 34731 Softball fees 28,000 27,630 (370) 99% 34735 Recreation program fees 56,000 33,552 (22,448) 60% 34740 Beach concessions 13,000 3,594 (9,406) 28% 34760 Facility rental 68,166 32,559 (35,607) 48% 34761 Studio/pavilion rental 15,000 8,070 (6,930) 54% Page 2 of 7 City of Prior Lake General Fund Revenues As of 6/30/2010 (Unaudited) Variance with 2010 2010 Amended Budget - Actual Budget Actual Positive (Negative) Percent 34762 Park shelter rental 7,000 7,305 305 1 04 Ofo 34765 Tower leases 150,152 133,733 (16,419) 89% 34780 Park admission fees 29,000 12,810 (16,190) 44% 34783 City Contract Services 13,878 13,878 0% 1,382,131 519,897 (862,234) 38% Fines & forfeitures 35101 County court fines 115,000 33,151 (81,849) 29% 35104 Prosecution restitution 67,000 20,594 (46,406) 31% 182,000 53,745 (128,255) 30% Miscellaneous revenues 36210 Interest earnings 90,000 87,296 (2,704) 97% 36211 Developer agreements 0% 36212 Miscellaneous revenue 30,000 9,756 (20,244) 33% 36225 Unrealized inv. Gain(loss) 0% 36230 Contributions & donations 25,000 14,000 (11,000) 56% 145,000 111,052 (33,948) 77% Other financing sources 39102 Sale of property 5,917 (5,917) 0% 39203 Transfers from other funds 325,000 162,500 (162,500) 50% 330,917 162,500 (168,417) 49% Total revenues 12,120,546 4,527,975 (7,592,571 ) 37% Page 3 of 7 City of Prior Lake General Fund Expenditures As of 6/30/2010 (Unaudited) Variance with 2010 2010 Budget - Actual Budget Actual Positive (Negative) Percent General government 41110 Mayor & council 65,453 28,185 37,268 43% 41130 Ordinance 7,000 947 6,053 14% 41320 Administration 351,576 174,788 176,788 50% 41330 Boards & commissions 12,474 861 11,613 7% 41410 Elections 7,167 7,167 0% 41520 Finance 300,327 141,616 158,711 47% 41540 Internal auditing 28,200 25,190 3,010 89% 41550 Assessing 108,200 105,000 3,200 97% 41610 Legal 385,000 106,002 278,998 28% 41820 Personnel 131,540 55,393 76,147 42% 41830 Communications 107,382 51,124 56,258 48% 41910 Comm development/natural res 252,563 113,174 139,389 45% 41920 Technology 146,597 62,141 84,456 42% 41940 Buildings & plant 439,126 182,009 257,117 41% Total general government 2,342,605 1,046,430 1,296,175 45% Public safety 42100 Police 3,072,315 1,439,844 1,632,471 47% 42200 Fire 862,159 308,694 553,465 36% 42400 Building/transportation services 363,796 178,428 185,368 49% 42500 Emergency management 7,500 1,419 6,081 19% 42700 Animal control 35,844 13,280 22,564 37% Total public safety 4,341,614 1,941,665 2,399,949 45% Public works 43050 Engineering 375,022 173,160 201,862 46% 43100 Street 1,032,659 306,589 726,070 30% 43400 Central garage 329,994 146,203 183,791 44% Total public works 1,737,675 625,952 1,111 ,723 36% C u Itu re/recreatio n 45100 Recreation 403,502 150,466 253,036 37% 45200 Parks 1,310,084 545,013 765,071 42% 45500 Libraries 91,067 35,192 55,875 39% Total culture/recreation 1,804,653 730,671 1,073,982 40% Urban & economic development 46500 Economic development 44,401 13,447 30,954 30% Total urban/economic dev 44,401 13,447 30,954 30% 49303 Transfers to other funds 1,780,600 513,249 1,267,351 29% 49999 Contingency reserve 69,000 69,000 0% Total expenditures 12,120,546 4,871,414 7,249,132 40% Page 4 of 7 City of Prior Lake Water & Sewer Fund As of 6/30/2010 (Unaudited) Variance with 2010 2010 Budget - Actual Budget Actual Positive (Negative) Percent Operating revenues Charges for services - water 37100 Water revenues 2,138,750 716,865 (1,421,885) 34% 37110 Capital facility revenue 450,000 230,740 (219,260) 51% 37140 Door hanger charges 9,300 9,300 0% 37150 Water reconnect charges 9,000 1,895 (7,105) 21% 37160 Penalties 70,963 29,843 (41,120) 42% 37170 Water meters 26,000 38,143 12,143 147% 37175 Pressure reducers 8,225 7,401 (824 ) 90% 37180 Frost plates 38 38 0% 37190 Misc revenue adjustments (10) (10) 0% Total water revenues 2,702,938 1,034,215 (1,668,751) 38% Charges for services - sewer 37102 Sewer revenues 1,916,250 489,436 (1,426,814) 26% 37104 MCES revenues 447,294 447,294 0% Total sewer revenues 1,916,250 936,730 (979,520) 49% Miscellaneous revenues 36210 Interest earnings 100,000 109,245 9,245 109% 36212 Miscellaneous 28 28 0% Total miscellaneous revenues 100,000 109,273 9,273 109% Total revenues 4,719,188 2,080,218 (2,638,998) 44% Operating expenses Personnel & current expenses 41520 Finance 123,870 57,003 (66,867) 46% 49400 Water 1,518,521 762,473 (756,048) 50% 49450 Sewer 2,090,547 908,353 (1,182,194) 43% Total operating expenses 3,732,938 1,727,829 (2,005,109) 46% Capital improvements 49400 Water improvements 495,000 113,605 (381,395) 23% 49450 Sewer improvements 144,000 (144,000) 0% 49005 CIPP pipe slip lining 150,000 (150,000) 0% Total capital improvements 789,000 113,605 (675,395) 14% 49303 Transfers to other funds 1,054,796 394,623 (660,173) 37% Total expenses 5,576,734 2,236,057 (3,340,677) 40% Net change (857,546) (155,839) Page 5 of 7 City of Prior Lake Water Quality Fund As of 6/30/2010 (Unaudited) Variance with 2010 2010 Budget - Actual Budget Actual Positive (Negative) Percent Operating revenues Charges for services - storm water 37120 Water quality revenue 425,000 221,868 (203,132) 52% Total water quality revenues 425,000 221,868 (203,132) 52% Miscellaneous revenues 36210 Interest earnings 11,329 11,329 0% Total miscellaneous revenues 11,329 11,329 0% Total revenues 425,000 233,197 (191,803) 55% Operating expenses Personnel & current expenses 49420 Water quality 218,367 79,298 139,069 36% Capital improvements 49420 Water quality 225,000 121,913 103,087 54% 49303 Transfers to other funds 0% Total expenses 443,367 201,211 242,156 45% Net change (18,367) 31,986 Page 6 of 7 City of Prior Lake Transit Fund As of 6/30/2010 (Unaudited) Variance with 2010 2010 Budget - Actual Budget Actual Positive (Negative) Percent Operating revenues Charges for services - transit revenue 38400 Bus fares 90,000 41 ,985 (48,015) 47% 38422 State transit aid 444,661 192,178 (252,483) 43% Total transit revenues 534,661 234,163 (300,498) 44% Total revenues 534,661 234,163 (300,498) 44% Operating expenses Personnel & current expenses 49804 Transit services 863,837 220,880 642,957 26% Capital improvements 49804 Capital improvements 280,636 280,636 0% Total expenses 1,144,473 220,880 923,593 19% Net change (609,812) 13,283 Page 7 of 7 MEMORANDUM TO: FROM: RE: Prior Lake City Council Jerilyn Erickson, Finance Director Financial Report dated 06/30/2010 The financial reports presented as part of this agenda item reflect activity for the first six 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. Historically, we have received 100% of the tax settlement in June. This year, due to County software problems, they disbursed 70% of the first half tax settlement in June. The balance was received in July. Taking into consideration the full tax settlement, the collection rate of current taxes (47%) was comparable to 2009. Delinquent collections were slightly higher than 2009. The Fiscal Disparities revenue includes $57k that was disbursed by the County as a correction for 2009. The City budgeted an anticipated $227,000 cut in the Market Value Homestead Credit Aid for 2010. The actual amount of MVHC Aid to be cut will be $258,000, a shortfall of $31 k. Single family building permits are budgeted at 50 for 2010. Sixty permits were issued through June 30 compared to seventeen (17) during the first six months of 2009. The average value associated with these permits is comparable to those issued in 2009. This higher level of permits is reflected in building permit revenues as well as plan check revenues. An additional seven (7) permits have been issued since June 30 for a total of sixty-seven (67) issued year to date. Project/engineering fees will be processed during third quarter. Franchise Fees are typically received during the month following quarter end. Tower lease revenues reflect payment from ten of the twelve agreements in place. A tower lease was executed with Clear Wireless in May 2010 which generated additional tower lease revenue of $21 k. Approximately 50% of the Municipal State Aid for road maintenance and the Township Fire Agreements were received during first quarter. Court fines and prosecution restitution revenues are coming in lower than previous years. A shortfall of $50k is anticipated. The associated prosecution costs are also lower. Perhaps much of the reason for the reduced revenues is that we have operated with one less officer than budgeted this year. Interest earnings are lower than previous years due to declining interest rates. Interest revenue is at 97 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 40 percent of the $12,120,546 budget. The levels of expenditures are 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. The 2010 budget includes a $69k contingency reserve account. The City Council has authorized the use of $11k from the contingency reserve account to fund a portion of the Maxfield study. Staff will be recommending that the costs associated with the abatement of Oak Wilt be funded by the contingency reserve account, as well. The initial cost is $9,150 plus an estimate of $20,000 for 14 additional properties that have been identified to contain diseased trees. If the disease has spread further, additional funding will be needed. If the above mentioned costs are approved by Council, the contingency reserve account will have a balance of approximately $29k. Enterorise Funds The financial reports for the Water and Sewer Fund and the Water Quality Fund reflect three billing cycles. Water revenues are up slightly due to increased water meter sales (with building permits). Sewer revenues and Water Quality revenues are tracking with 2009. As with the General Fund, interest earnings are lower than previous years. Interest revenue is currently at 109% of budget for the Water & Sewer Fund but will be adjusted at year end to reflect the fair value of the securities. 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 and expenses are reflected on a cash basis. The June 30 report reflects activity for bus fares through April and State Transit Aid through May. As was anticipated, State Transit Aid is significantly lower than previous years. If you have any questions regarding these financial reports, please contact me at 952.447.9841.