HomeMy WebLinkAbout4G - 2001 2nd Quart Budget Rpt
STAFF AGENDA REPORT
MEETING DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
JULY 16,2001
4G
RALPH TESCHNER, FINANCE DIRECTOR
CONSIDER APPROVAL OF 2001 2ND 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 2nd Quarter Budget Report
is a document entitled "Budget Report Overview" that is intended to
satisfy your request. The 2nd Quarter Budget Report shows the
status of expenditures for the first 6 months in 2001.
The "overview" provides information related to those areas within
the budget that have experienced exceptions (nonnally :1::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 . ance results. Please feel free to contact me
at 447-9841 for more i forn1ation.
REVIEWED BY:
Attachments:
1. Prelin ina 00 2nd Quarter Budget Report
2. Budget eport Overview
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245
HIBUDGETIBKDOC AN EQUAL OPPORTUNITY EMPLOYER
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2001 2nd Quarter Budget Report
Budget Amount Expended Percent
General Government 1,698,470.00 822,360.00 48%
Mayor & Council 24,260.00 12,904.00 53%
Ordinance 11,000.00 4,339.00 39%
City Manager 274,301.00 120,901.00 44%
Boards & Commissions 9,528.00 0.00 0%
Elections 4,265.00 0.00 0%
Director of Finance 100,688.00 49,971.00 50%
Accounting 110,025.00 52,512.00 48%
Intema1 Auditing 14,415.00 11,700.00 81%
Assessing 50,725.00 50,000.00 99%
Law 253,400.00 86,839.00 34%
Personnel 79,932~00 35,108.00 44%
P1aIU1ing & Zoning 242,296.00 117,864.00 49%
Data Processing 110,615.00 49,411.00 45%
Buildings & P1aI1t 237,500.00 128,417.00 54%
Central Garage 175,520.00 102,394.00 58%
Public Safety 2,497,019.00 1,112,041.00 45%
Police 1,866,772.00 906,127.00 49%
Fire & Rescue 283,530.00 50,088.00 18%
Building Inspection 324,107.00 149,823.00 46%
Civil Defense 9,600.00 687.00 7%
Animal Control 13,010.00 5,316.00 41%
Public Works 934,128.00 425,569.00 46%
Engineering 473,792.00 202,616.00 43%
Street 460,336.00 222,953.00 48%
Culture-Recreation 1,182,468.00 587,558.00 50%
Recreation 442,381.00 239,085.00 54%
Parks 686,537.00 319,171.00 46%
Libraries 53,550.00 29,302.00 55%
Economic Development 49,527.00 320,541.00 647%
Debt Service 725,485.00 252,743.00 35%
Transit Services 379,950.00 189,975.00 50%
Contingent Reserve 50,000.00 9,983.00 20%
Revenues 7,517,047.00 3,477,158.00 46%
General Property Taxes 3,903,647.00 1,921,429.00 49%
Licenses & Pem1its 452,525.00 401,089.00 89%
Intergovemmenta1 Revenue 1,804,635.00 340,948.00 19%
Charges for Services 852,640.00 539,333.00 63%
Fines & Forfeits 122,400.00 39,532.00 32%
Miscellaneous Revenue 148,200.00 105,232.00 71%
Other Financing Sources 233,000.00 129,595.00 56%
Total Budget Expenditures 7,517,047.00 3,720,770.00 49%
Total Budget Revenues 7,517,047.00 3,477,158.00 46%
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BUDGET REPORT OVERVIEW
(2001 2nd Quarter Budget Report)
Expenditures:
General Government
. Ordinance costs for legal notices is somewhat under because of a limited number of
ordinance publications that occurred during the first six months, which is the main reason
why the YTD percentage is at 39%.
. City Manager department expenditures of 44% are mIming lower because the professional
services category remains largely unspent at this point of the budget year.
. Expenses associated with Boards and COlmnissions and Elections are typically not
incurred until the latter part of the budget year i.e., December EDA and planning
conunission per diems and fall elections, therefore the zero amounts.
. 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 37% than projected at this
point of the budget cycle due to the fact that city attorney costs represent only 4 of the
6 months of billings. Also Scott Joint Prosecution expenses for the first six months
were more than $12,000 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
half of the year is less. This has resulted in the overall legal expense category
outcome of 34% of the year to date budget.
. Bldgs & Plant is above 2nd quarter projections at 54% due to the fact that our general
liability and property/casualty insurance premium increased by 8% from $130,000 to
$140,000, an increase of $10,000 over last year. This overage will continue throughout the
year as our premiums are paid on a quarterly basis.
. Central Garage is above projections at 58% because of higher costs in the major repair
and maintenance equipment supplies' category associated with parks and public works.
This was to be expected as a result of the protracted winter operations and additional park
facilities coming on line.
. General Government totals are in general conformance with budget estimates at 48%.
Public Safety
. 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.
. Civil Defense costs have been relatively low because of the lack of general repair service
that is typically caused by direct lightning strikes to the sirens.
. 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 45%.
Public Works
. Engineering Department expenses are a little below at 43% because of earlier position
vacancies that have temporarily reduced persOlmel expenses within the department.
. Public Works totals are in general c01~rormance with budget estimates at 46%.
Culture-Recreation
. Recreation Department dance activities have again exceeded expectations and have
reached nearly 100% of budget level, which is the primary reason Recreation has
exceeded mid-year budget variance with a performance of 54%. As shown under
revenues, all recreation program registrations are at 82% as well.
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. Library results are up marginally at 55% of budget primarily due to the winter 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 50%.
Economic Development
. The budget expenditure variance is due to expenditures of nearly $305,000.00 for the
acquisition of the Hem1en parcel located downtown, the Creekside Circle home purchased
as part of the Lakefront Plaza land exchange and the T.J. Towing parcel.
. Economic Development totals are under budget estimates at 31 % upon excluding these
Council approved real estate transactions.
Debt Service
. All general debt servIce bond payments are made during the months of June and
December.
. Debt Service totals are in general conformance with budget estimates at 35%.
Transit Services
. Transit Services totals are in general conformance with budget estimates at 50%.
Contingent Reserve
. Three Contingency expenditures of approximately $5200 have been incurred which
involved insurance deductible/settlement payments to the LMCIT. An additional $4800
was appropriated by the Council under Invoice List for expenses associated with the
Lakefront Park grand opening celebration.
Expenditure SunU11ary:
2001 General Fund 2nd Quarter operating expendihlres are on track and represent 49% of the
total $7,517,047 operating budget. This actually compares favorably with similar 2000 2nd
quarter results of 45%, which did not include the extraneous land purchases that have
occurred this year.
Revenues:
. The current property tax settlement in June showed no apparent delinquency problem as
collections approached 50%. The first half of the transit feathering aid will be remitted by
the State during the first week of July.
. License & Pennit fees are considerably ahead of projection as building pem1it activity has
been on an exceptionally strong pace that resulted in all building related revenue sources
to come in at 85% of estimates.
. Intergovermnental revenue primarily in the fom1 of state aids and homestead and
agricultural credit (HACA) is received in two installments in late July and end of
December.
. Charges for services is somewhat above expectations at 63% of revenue realized because
we have received the entire cable franchise fee payment plus six (6) of our seven (7)
aIU1ual water tower anteImae lease agreement payments during this period. Also park
program registrations, particularly in the dance program, have been strong, as 82% of
estimated revenues have been collected to date.
. Fine revenue is averaging about $2300 less per month than projected.
. MiscellaI1eous Revenue is up at 71 % due to higher investment interest eamings plus the
City received a $10,000 insuraI1ce settlement for the vandalism that occurred to the Sand
Point picnic shelter fireplace in 1999.
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. Other Financing Sources primarily consist 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. The revenue received with this sales transaction exceeded the house cost by
$12,500.00.
Revenue Sununary:
Revenues realized are somewhat higher overall than typical at approximately 46% of budget
which compares positively to the past five years that have shown a spread of 38-46% at
midyear.
2ND QUARTER BUDGET RECAP:
Overall, the 2001 2nd quarter financial perfonnance is fairly typical to past years with no
significant expense variances or revenue shortfalls appearing other than noted.
* [2nd Quarter Budget Report represents expenditures and revenues to date and do not
include outstanding appropriations or receipt expectations.]
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