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Home My WebLink About4G - 2001 1st Quarter Budget STAFF AGENDA REPORT MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: APRIL 16, 2001 4G RALPH TESCHNER, FINANCE DIRECTOR CONSIDER APPROVAL OF 2001 1ST QUARTER BUDGET REPORT AND 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 1st Quarter Budget Report is a document entitled "Budget Report Overview" that is intended to satisfY your request. The 1 st Quarter Budget Report shows the status of expenditures for the first 3 months in 2001. The "overview" provides information related to those areas within the budget that have experienced exceptions (normally :f: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. The "Budget Report Overview" is intended to serve as narrative support to the Quarterly Budget Report and enhance your understanding of perfo~J71. ' ce .results. Please feel free to contact me at 447-9841 for more mfrrplatlOn. r1 U , 1 REVIEWED BY: Attachments: 1. Prelimi ary 1 1 st Quarter Budget Report 2. Budget Report Overview 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 HIBUDGETIBR.DOC AN EQUAL OPPORTUNITY EMPLOYER r~ 'T'-~-'--~ 111 200118t Quarter Budget Report Budget Amount Expended Percent General Government 1,698,470.00 334,444.00 20% Mayor & Council 24,260.00 5,957.00 25% Ordinance 11,000.00 738.00 7% City Manager 274,301.00 58,865.00 21% Boards & Commissions 9,528.00 0.00 0% Elections 4,265.00 0.00 0% Director of Finance 100,688.00 24,463.00 24% Accounting 110,025.00 26,299.00 24% Internal Auditing 14,415.00 1,685.00 12% Assessing 50,725.00 0.00 0% Law 253,400.00 29,676.00 12% Personnel 79,932.00 18,017.00 23% Planning & Zoning 242,296.00 57,945.00 24% Data Processing 110,615.00 37,072.00 34% Buildings & Plant 237,500.00 25,415.00 11% Central Garage 175,520.00 48,312.00 28% Public Safety 2,497,019.00 524,071.00 21% Police 1,866,772.00 423,204.00 23% Fire & Rescue 283,530.00 26,480.00 9% Building Inspection 324,107.00 71,861.00 22% Civil Defense 9,600.00 400.00 4% Animal Control 13,010.00 2,126.00 16% Public Works 934,128.00 183,190.00 20% Engineering 473,792.00 98,235.00 21% Street 460,336.00 84,955.00 18% Culture-Recreation 1,182,468.00 247,232.00 21% Recreation 442,381.00 102,289.00 23% Parks 686,537.00 130,583.00 19% Libraries 53,550.00 14,360.00 27% Economic Development 49,527.00 8,486.00 17% Debt Service 725,485.00 0.00 0% Transit Services 379,950.00 0.00 0% Contingent Reserve 50,000.00 1,000.00 2% Revenues 7,517,047.00 726,588.00 10% General Property Taxes 3,903,647.00 0.00 0% Licenses & Permits 452,525.00 145,521.00 32% Intergovernmental Revenue 1,804,635.00 217,771.00 12% Charges for Services 852,640.00 244,980.00 29% Pines & Forfeits 122,400.00 14,296.00 12% Miscellaneous Revenue 148,200.00 51,643.00 35% Other Financing Sources 233,000.00 52,377.00 22% Total Budget Expenditures 7,517,047.00 1,298,423.00 17% Total Budget Revenues 7,517,047.00 726,588.00 10% BrtllOI 2:53 PM4/5101 BUDGET REPORT OVERVIEW (2001 1st Quarter Budget Report) Expenditures: General Government . Ordinance costs for legal notices is largely unspent because no ordinance publications occurred during the first three months, which is the main reason why the YTD percentage is at only 7%. . City Manager department expenditures of 21 % are running lower because the entire allocation within the professional services category remains available at this point of the budget year. . Expenses associated with Boards and Commissions and Assessing are typically not incurred until the latter part of the budget year i.e., December EDA and planning commission per diems and mid-year contract assessing billing, therefore the zero amounts. Also, Intema1 Auditing shows minimal activity, as audit billings will occur later for work completed on the 2000 audit report. . Legal fees in the general service area is running lower at 9% than projected at this point of the budget cycle due to the fact that city attorney costs represent only one month of billings in the quarter. Also Scott Joint Prosecution expenses for the first quarter billing was nearly $5,000 less than last year. 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 quarter of the year is less. This has resulted in the overall legal expense category outcome of 12% of the year to date budget. . Data Processing is over at 34% because of the personal computer upgrade acquisition project that occurred during the 1 st quarter. This purchase represented a large capital cost which distorts the ending 1 st quarter results. . B1dgs & Plant is significantly under 1st quarter projections at 11 % due to the fact that the LMCIT (League of Minnesota Cities Insurance Trust) is late in issuing our 2001 general liability and property!casualty insurance policy and therefore we have not been charged the billing premium yet. . General Government totals are in general conformance with budget estimates at 20%. Public Safety . Police Department expenses are slightly below at 23% because the department has two patrol officer positions that were not filled during this period, which have temporarily reduced personnel expenses within the department. . Fire Department expenses are fairly low because nearly 60% of department costs are attributed to volunteer and pension contribution, which is paid as an annual lump sum at year-end. . Building Inspection Department expenses are similarly a little below at 22% because the seasonal positions have not been filled that reduces personnel expenses within the department. ~. 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 21 %. Public Works . Engineering Department expenses are similarly a little below at 21 % because of an engineering tech position vacancy that has yet to be filled which has temporarily reduced persoID1e1 expenses within the department. . Street Department expenses typically lag during the 1 st quarter due to the fact that a major share of its operating expenses is incurred during summer and fall. · Public Works totals are in general conformance with budget estimates at 20% BROIOI III r "II .. r rl Culture-Recreation · Due to the seasonal nature of recreation and park expenditures, budget results (19%) are nonnally lower during the 1st quarter. Their major activity levels occur during the spring and summer months. . Library results are up slightly at 27% of budget primarily due to winter the heating cost for the building, which were somewhat underestimated because of the steep rise in natural gas pnces. · Culture-Recreation totals are consistent with seasonal expectations and budget estimates at 21 %. Economic Development · The budget expenditure variance occurs within the categories of professional services, which is reserved for EDA project analysis that for the most part is unexpended to date. . Economic Development totals are under budget estimates at 17%. Debt Service · All general debt servIce bond payments are made during the months of June and December. Transit Services · This entire expenditure is associated with the City's tax levy, which is scheduled to be paid in June and December. Contingent Reserve . One Contingency expenditure has been incurred which involved an insurance deductible payment of $1 ,000 made to the LMCIT. Expenditure Summary: 2001 General Fund 1st Quarter operating expenditures are on track and represent 17% of the total $7,517,047 operating budget. This actually compares with similar 2000 1 st quarter results of 18%. Expenditures during the 1st quarter are typically less than the remaining fiscal quarters. Revenues: . Property tax settlements are scheduled for June and December therefore no tax revenue has been received. . License & Pennit fees are slightly ahead of projection as building permit activity was on a fairly strong pace early in the year, which resulted in all building related revenue sources to come in at 33% of estimates. . Intergovernmental revenue primarily in the fonn of state aids and homestead and agricultural credit (HAC A) is received in two installments in late July and end of December. . Charges for services is somewhat above expectations at 29% of revenue realized because we have received the entire cable franchise fee payment plus four (4) of our seven (7) amma1 water tower antennae lease agreement payments during this period. Also park program registrations, particularly in the dance program, have been strong, as 40% of estimated revenues have been collected to date. . Fine revenue is averaging over $3000 less per month than projected. · Miscellaneous Revenue is up at 35% due to higher investment interest eamings plus the City received a $10,000 insurance settlement for the vandalism that occurred to the Sand Point picnic shelter fireplace in 1999. BRDIDI . Other Financing Sources primarily consists of the $200,000 enterprise fund contribution transfer, which is recognized at year-end. However the City has booked a property sale relating to the Mueller/HUD house swap associated with the Lakefront Plaza senior project. This revenue transaction will ultimately be offset by an identical acquisition expenditure. Neither were budgeted items. Revenue Summary: Revenues nOn11ally lag at this time of year and account for approximately 10% of budget, which is actually a little better on average but still representative of the past five years, which have shown a spread of 8%-10%. 1ST QUARTER BUDGET RECAP: Overall, the 2001 1st quarter financial performance is fairly typical to past years with no significant expense variances or revenue shortfalls appearing other than noted. * [1st Quarter Budget Report represents expenditures and revenues to date and do not include outstanding appropriations or receipt expectations.] BROIDI IH . r rl