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Home My WebLink About5F - 3rd Quarter Budget Summary 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 STAFF AGENDA REPORT MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: OCTOBER 20, 2003 5F RALPH TESCHNER, FINANCE DIRECTOR CONSIDER APPROVAL OF 2003 3RD QUARTER BUDGET SUMMARY REPORTS AND GENERAL FUND OVERVIEW DISCUSSION: The City Council has directed Staff to prepare an accompanying written narrative that would serve as an informational excerpt to the quarterly budget reports. Attached to the 3rd Quarter Budget Report is a document entitled "Budget Report Ovel1Jiew" for the General Fund that is intended to satisfy your request. The 3rd Quarter Budget Reports shows the status of expenditures for the first nine months of 2003 for the General Fund and Enterprise Funds consisting of the water & sewer, water quality and transit funds. The "overview" provides information related to those areas within the general fund budget that have experienced exceptions (normally "'5% variation) to the approved budget levels. The report identifies revenue shortfalls and surpluses and includes a short explanation as to the various reasons. Expenditures are also summarized on this basis. REVIEWED BY: The "Budget Report Overview" is intended to serve as narrative support to the Quarterly Budget Report and enhance your understanding of performance results. Please feel free to contact me ., 447-'i1J;r';OO I. 2003 3rd Quarter Budget Summary Reports 2. Budget Report Overview (General Fund) Attachments: H:\BUDGETIBR.DOC www.cityofpriorlake.com Phone 952.447.4230 / Fax 952.447.4245 2003 3rd Quarter General Fund Budget Summary Report Budget Amouut Expended Perceut General Government 1,907,420.00 1,327,292.00 70% Mayor & Council 50,973.00 39,527.00 78% Ordinance 9,500.00 7,782.00 82% City Manager 341,665.00 241,021.00 71% Boards & Commissions 12,824.00 556.00 4% Elections 3,553.00 0.00 0% Director of Finance 111,658.00 82,128.00 74% Accounting 130,045.00 97,661.00 75% Internal Auditing 14,900.00 12,097.00 81% Assessing 67,900.00 66,700.00 98% Law 242,000.00 142,389.00 59% Personnel 73,033.00 38,170.00 52% Planning & Zoning 291,761.00 197,159.00 68% Data Processing 92,700.00 60,593.00 65% Buildings & Plant 270,713.00 198,591.00 73% Central Garage 194,195.00 142,918.00 74% Pnblic Safety 2,973,617.00 1,939,714.00 65% Police 2,106,318.00 1,484,471.00 70% Fire & Rescue 394,259.00 107,711.00 27% Building Inspection 428,880.00 336,133.00 78% Civil Defense 28,150.00 894.00 3% Animal Control 16,010.00 10,505.00 66% Public Works 1,106,777.00 841,908.00 76% Engineering 515,660.00 383,485.00 74% Street 591,117.00 458,423.00 78% Culture-Recreation 1,676,189.00 1,211,119.00 72% Recreation 687,565.00 453,832.00 66% Parks 917,809.00 705,095.00 77% Libraries 70,815.00 52,192.00 74% Economic Development 67,359.00 34,470.00 51% Debt Service 755,170.00 235,295.00 31% Contingent Reserve 150,000.00 52,890.00 35% Revenues 8,636,532.00 5,243,355.00 61% General Property Taxes 5,179,013.00 2,441,583.00 47% Licenses & Permits 665,275.00 806,517.00 121% Intergovernmental Revenue 971,705.00 613,009.00 63% Charges for Services 1,222,939.00 1,002,916.00 82% Fines & Forfeits 131,100.00 91,934.00 70% Miscellaneous Revenue 208,500.00 251,865.00 121% Other Financing Sources 258,000.00 35,531.00 14% Total Budget Expenditures 8,636,532.00 5,642,688.00 65% Total Budget Revenues 8,636,532.00 5,243,355.00 61% Br<l303.x]s 12:24PMIO/3/0J Enterprise Funds 2003 3rd Quarter Enterprise Funds Budget Summary Report Budget Amount Expended Percent Utility Fund 2,098,024.00 1,795,931.00 86% Water 793,472.00 729,145.00 92% Sewer 1,304,552.00 1,066,786.00 82% Water Quality 282,674.00 119,181.00 42% Transit Services 470,912.00 198,836.00 42% Revenues 3,826,856.00 2,588,533.00 68% Water Utility Revenues 3,181,945.00 2,072,502.00 65% Water Quality Utility Revenues 174,000.00 149,433.00 86% Transit Revenues 470,911.00 366,598.00 78% Total Budget Expenditures 2,851,610.00 2,113,948.00 74% Total Budget Revenues 3,826,856.00 2,588,533.00 68% BUDGET REPORT OVERVIEW (2003 3rd Quarter Budget Report) Expenditures: General Government . Expenses associated with Boards and Commissions and Elections are typically not incurred until the latter part of the budget year i.e., December EDA and planning commission per diems and fall election judge salaries, therefore the 4% and zero amounts. · Ordinance expenditures are above budget at 82% because of an increase in legal notice and ordinance publications. . Internal Auditing and Assessing totals for the most part represent completion of expenditures for the year with little remaining activity. · Legal fees in the general service area is running lower at 59% than projected at this point of the budget cycle due to the fact that city attorney costs represent only 8 ofthe 9 months of billings. Also, Scott Joint Prosecution expenses for the first nine months are down. This appears to have occurred because the activity level for Prior Lake is below that of the other cities percentage wise and because quarterly costs are distributed on a percentage basis, our share for the first half of the year is less. This has resulted in the overall legal expense category outcome of 59% of the year to date budget. . Personnel expenses of 52% are somewhat less than normal as expenditures associated with professional services and public information categories have not been expended. . Planning & Zoning expenses of 68% are under budget as expenditures associated with professional services for the Comprehensive Plan update have not yet been initiated. · Data Processing is under at 65% because the scheduled replacement of personal computers has not occurred within the general equipment expense category. . General Government totals are in general conformance with budget estimates at 70% with noted exceptions. Public Safety . Police Department expenses are slightly below at 70% because the department had one open patrol officer position that has now been filled, which has temporarily reduced personnel expenses within the department. . Fire Department expenses are fairly low at 19% because 60% of department costs are attributed to volunteer compensation and pension contribution, both of which are paid as an annual lump sum near year-end. · Civil Defense costs are relatively low because the new siren replacement at St. Paul's Lutheran Church has not yet been installed. · Animal control does not represent a full quarter of service because they are billed one month in arrears. . Public Safety totals are in general conformance with budget estimates at 65% with noted exceptions. Public Works . Public Works totals are in general conformance with budget estimates at 76%. Culture-Recreation · Recreation Department is under at 66% due to the elimination of the remaining expenses associated with the dance program that was recently privatized. BR0303.doc · Culture-Recreation totals are consistent with seasonal expectations and budget estimates at 72%. Economic Development . The budget expenditure variance occurs within the categories of professional services that are unexpended to date. · Economic Development totals are below budget estimates at 51%. Debt Service . All general debt service bond payments are made during the months of June (interest only) and December (principal & interest). · Debt Service totals are in general conformance with budget estimates at 31 %. Contingent Reserve · Six Contingency related expenditures have occurred, three of which involved insurance deductible payments made to the LMCIT, $5,595 for professional services provided for the document imaging system, $11,957 for the new precinct counter and ballot booths and $20,414 for renovation repairs on the fire truck aerial apparatus. Expenditure Summary: 2003 General Fund 3rd Quarter operating expenditures are on track and represent 65% of the total $8,636,532 operating budget. This actually compares favorably with similar 2002 3rd quarter results of 70%. Revenues: . The current property tax settlement in June showed no apparent delinquency problem as collections approached 50%. However the market value credit aid will be not be paid by the State this year. · License & Permit fees are considerably ahead of projection at 121% as building permit activity has continued on an exceptionally strong pace. . Intergovernmental revenue is near the quarterly budget estimate at 63%. The only outstanding substantial items remaining are the Fire and Police aid funded by the 2% surcharge on property and casualty insurance premiums. LGA has also been eliminated by the State. . Charges for services remain above expectations at 82% of revenue realized because we have received all seven (7) of our annual water tower antennae lease agreement payments during the first half of the year and recreation program fees have exceeded expectations. . Fine revenue of 70% is lagging projections by $700 per month. · Miscellaneous Revenue is considerably above budget at 121 % due to revenue from six (6) development contracts. . Other Financing Sources primarily consists of the $250,000 enterprise fund contribution transfer, which is recognized at year-end. Revenue Summary: Revenues realized are approximately 61 % of budget which compares typically to the past five years that have shown a spread of 56-66% at the end of the third quarter especially when considering the loss of the market value credit that was not paid by the State of Minnesota. BR0303.doc 3RD QUARTER BUDGET RECAP: Overall, the 2003 3rd quarter financial performance is fairly typical to past years with no significant expense variances or revenue shortfalls appearing other than noted. The most significant variance being the state aid elimination. * [3rd Quarter Budget Report represents expenditures and revenues to date and do not include outstanding appropriations or receipt expectations.] BR0303.doc