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Home My WebLink About5G 1st Quarter 2011 Financial ReportPRI�� U iri ' 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: MAY 16, 2011 AGENDA #: 5G PREPARED BY: JERILYN ERICKSON, FINANCE DIRECTOR PRESENTER: JERILYN ERICKSON AGENDA ITEM: CONSIDER APPROVAL OF THE 1ST QUARTER 2011 FINANCIAL REPORT DISCUSSION: Introduction Staff has prepared preliminary summary financial reports as of March 31, 2010 for the following funds: • General Fund • Debt Service Funds • Revolving Equipment Fund • Water Fund • Sewer Fund • Water Quality Fund • Transit Fund • Economic Development Authority Special Revenue Fund The reports reflect revenue and expenditure activity for the first three months of 2011. 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. ALTERNATIVES: 1. A motion to accept the March 31, 2011 Financial Report as submitted. 2. Take no action and provide the staff with specific direction. RECOMMENDED Alternative 1. A motion as part of the consent agenda to accept the March MOTION: 31, 2011 Financial Report as submitted. Reviewed by: Frank Boyles, City Manager ox rxr MEMORANDUM U TO: Prior Lake City Council FROM: Jerilyn Erickson, Finance Director `y�NNE50�P RE: Financial Report dated 03/31/2011 The financial reports presented as part of this agenda item reflect activity for the first three months of 2011. The significant issues identified at this time are summarized below. When available and easily attainable, I have included revenues and expenditures that pertain to first quarter even though they weren't received or paid during the first quarter. 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 60 for 2011. Twelve (12) permits were issued through March 31S compared to fifteen (15) during first quarter 2010. The average value associated with these permits is $316k as compared to $255k in 2010. An additional five (5) permits were issued in April 2011 for a total of seventeen (17) issued year -to -date. This is down significantly from the 37 permits issued during the first four months of 2010. Approximately 50% of the Municipal State Aid for road maintenance was received. This report reflects the first half Township Fire Agreements that were received through April. First quarter Franchise fees and PEG fees collected in April and May have been included in this report. Fees are slightly higher than 2010 due to Integra submitting franchise fees. An audit of fees submitted by Mediacom was recently conducted by Lewis & Associates. The report indicated that Mediacom had underpaid fees by approximately $34k over the 2007 -2009 period. When combined with interest due on the underpaid fees, the amount due from Mediacom is about $48k. This revenue was not anticipated in the 2011 budget and will be recognized when received. Tower lease revenues reflect nine of fourteen agreements in place. Clear Wireless has terminated their agreement for the Crest Avenue tower, effective February 2011. The 2011 budget will not be impacted. Court fines are tracking slightly higher and prosecution restitution revenues slightly lower than 2010. The 2011 budget was reduced by $52k to reflect a more realistic expectation for these two revenues. Interest earnings are at 54 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. A $15k contribution was received from the Prior Lake Rotary for DARE and a $5k contribution received from the Prior Lake Lions Club for Club Prior. General Fund Expenditures General Fund expenditures for 2011 represent 18 percent of the $12,188,313 budget. The level of expenditures is comparable for the same period in 2010 and 2009. There are three expenditure areas that we can anticipate savings for the year: Page 2 1) General liability and property insurance - $43k 2) Personnel - $19k 3) Workers Compensation insurance- $21k The City Council approved the general liability and property insurance policy with a $40k aggregate deductible versus the $20k aggregate deductible in prior years' policies. This change, combined with a lower agent commission, should result in an approximate $43k savings for 2011. The budget is established prior to the actual renewal of the insurance policy; therefore, the general estimates provided by the League of Minnesota Cities Insurance Trust don't reflect the actual experience rating or the coverage changes for the City but are general guidelines for preparing the budget. The 2011 AFSCME union contract was approved with a 0.75% lump sum payment to members. The budget included a 2.0% COLA for AFSCME. Base wages were not adjusted. Anticipated savings are about $19k. Workers Compensation premiums came in lower than anticipated for 2011. This is a result of our positive experience rating. Anticipated savings are about $21 k. Similar to the general liability and property insurance, the budget is established prior to the actual renewal of the insurance policy; therefore, the general estimates provided by the League of Minnesota Cities Insurance Trust don't reflect the actual experience rating or the coverage changes for the City but are general guidelines for preparing the budget. At this point in the year, there are no other significant variances to report. Costs associated with street and park maintenance and recreation programs are incurred during the summer and fall. Further analysis for fuel, electrical and gas will be completed for the second quarter financial report. Debt Service Funds Property taxes and special assessments are received in June, December and January (final tax settlement). Several prepayments have been received for special assessments. Interest earnings are at 43% of the budget. One bond payment is made in February. The majority of bond payments are due on the 1S and 15 of June and December. Revolving Equipment Fund Property taxes and special assessments are received in June, December and January (final tax settlement). Expenditures made during first quarter include a utility box which was authorized in late 2010. Expenditures authorized on April 4, 2011 are not reflected on this report. Anticipated savings from those equipment purchases is approximately $75k. Water Fund The financial report for the Water Fund reflects only one billing cycle and is slightly lower than the same period in 2010. Costs associated with capital improvements are typically incurred during the summer and fall. Sewer Fund The financial report for the Sewer Fund reflects only one billing cycle and is slightly lower than the same period in 2010. Costs associated with capital improvements are typically incurred during the summer and fall. Page 3 Water Quality Fund The financial report for the Water Quality Fund reflects only one billing cycle and is comparable to 2010. Costs associated with capital improvements are typically incurred during the summer and fall. Transit Fund First quarter bus fares and state aid received through April are reflected in the financial report for the Transit Fund. Bus fares are about $20k higher than the same period in 2010 due to the new JARC bus placed into service at the beginning of the year. Ridership has also increased probably due to higher fuel prices. Also reflected in the report (but not actually received) is the anticipated grant reimbursement for 50% of the JARC bus operating costs and reimbursement from the City of Shakopee for 50% of the operating costs not covered by the grant. Economic Development Authority Special Revenue Fund The only activity during the first three months of 2011 for this Fund is interest earnings. If you have any questions regarding these financial reports, please contact me at 952.447.9841. Page 4 0 04 FRIO+P City of Prior Lake 0 General Fund Summary As of 03/31/2011 ""S °�" (Unaudited) Revenues Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Interest on investments Other Transfers from other funds Total revenues Expenditures General government Public safety Public works Culture & recreation Urban & economic development Subtotal Transfers to other funds Variance with Actual 2011 2011 Budget - Percent of Budget Actual Positive (Negative) Budget 8,428,405 - (8,428,405) 0% 292,815 65,149 (227,666) 22% 1,310,678 419,522 (891,156) 32% 1,480,432 461,089 (1,019,343) 31% 130,000 38,608 (91,392) 30% 90,000 48,324 (41,676) 54% 55,000 17,655 (37,345) 32% 335,000 83,750 (251,250) 25% 12,122,330 1,134,097 (10,988,233) 9% 2,304,895 495,152 1,809,743 21% 4,404,802 991,139 3,413,663 23% 1,817,301 396,143 1,421,158 22% 1,802,286 331,608 1,470,678 18% 95,465 7,012 88,453 7% 10,424,749 2,221,054 8,203,695 21% 1,763,565 3,320 1,760,245 0% Total expenditures 12,188,313 2,224,374 9,963,939 18% Net change (65,983) (1,090,277) Page 1 of 11 OQ PRIO City of Prior Lake U General Fund Revenues As of 03/31/2011 !�'NWESO�P (Unaudited) Property taxes 31010 Current taxes 31012 Market value credit aid 31020 Delinquent taxes 31040 Fiscal disparities Licenses & permits 32100 Business licenses 32110 Liquor licenses 32160 Refuse haulers 32161 Plumbing registrations 32170 Outdoor concert permits 32180 Cigarette licenses 32210 Building permits 32211 Retainage forfeiture 32215 Mechanical permits 32230 Plumbing permits 32231 Sewer /water inspection 32240 Animal licenses 32260 Burning permits Intergovernmental revenue 33401 Local government aid 33416 State aid - police training 33418 State road & bridge aid 33420 State fire aid - ins premium 33421 State police aid - ins premium 33422 State aids & grants 33620 Township fire & rescue aid 33621 Liaison aid 33631 Payment in lieu of taxes Charges for services 34103 Zoning & subdivision fees 34104 Plan check fees 34105 Sale of maps /publications 34107 Assessment searches 34109 Project admin /eng fees 34203 Accident/warrant reports 34303 Franchise fees 34304 PEG access fees 34731 Softball fees 34735 Recreation program fees 34740 Beach concessions 34760 Facility rental Variance with 2011 2011 Amended Budget - Actual Budget Actual Positive (Negative) Percent 7,929,520 - (7,929,520) 0% (258,524) - 258,524 0% - - - n/a 757,409 - (757,409) 0% 8,428,405 - (8,428,405) 0% 900 550 (350) 61% 57,000 2,350 (54,650) 4% 3,875 - (3,875) 0% 875 675 (200) 77% 1,100 400 (700) 36% 3,250 2,750 (500) 85% 187,000 40,160 (146,840) 21% - 3,500 3,500 n/a 16,395 4,783 (11,612) 29% 13,920 6,478 (7,442) 47% 2,500 618 (1,882) 25% 3,750 2,610 (1,140) 70% 2,250 275 (1,975) 12% 292,815 65,149 (227,666) 22% 11,905 - (11,905) 0% 8,246 - (8,246) 0% 230,000 123,345 (106,655) 54% 123,000 1,000 (122,000) 1% 155,000 - (155,000) 0% - 947 947 n/a 361,992 178,962 (183,030) 49% 40,535 20,268 (20,267) 50% 380,000 95,000 (285,000) 25% 1,310,678 419,522 (891,156) 32% 7,810 3,964 (3,846) 51% 96,350 23,449 (72,901) 24% 2,500 255 (2,245) 10% 400 20 (380) 5% 376,000 104,750 (271,250) 28% 300 183 (117) 61% 540,000 141,374 (398,626) 26% 36,000 9,034 (26,966) 25% 28,000 23,695 (4,305) 85% 56,000 4,329 (51,671) 8% 13,000 2,246 (10,754) 17% 63,667 15,977 (47,690) 25% Page 2 of 11 OF PRIG City of Prior Lake General Fund Revenues As of 03/3112011 " (Unaudited) Fines & forfeitures 35101 County court fines 85,000 27,797 (57,203) 33% 35104 Prosecution restitution 45,000 10,811 (34,189) 24% 130,000 38,608 (91,392) 30% Miscellaneous revenues 36210 Interest earnings 90,000 48,324 (41,676) 54% Variance with 2,155 (27,845) 7% 2011 2011 Amended Budget - Actual 65,979 Budget Actual Positive (Negative) Percent 34761 Studio /pavilion rental 15,000 1,716 (13,284) 11% 34762 Park shelter rental 7,000 340 (6,660) 5% 34765 Tower leases 209,405 129,757 (79,648) 62% 34780 Park admission fees 29,000 - (29,000) 0% 1,480,432 461,089 (1,019,343) 31% Fines & forfeitures 35101 County court fines 85,000 27,797 (57,203) 33% 35104 Prosecution restitution 45,000 10,811 (34,189) 24% 130,000 38,608 (91,392) 30% Miscellaneous revenues 36210 Interest earnings 90,000 48,324 (41,676) 54% 36212 Miscellaneous revenue 30,000 2,155 (27,845) 7% 36230 Contributions & donations 25,000 15,500 (9,500) 62% 145,000 65,979 (79,021) 46% Other financing sources 39203 Transfers from other funds 335,000 83,750 (251,250) 25% 335,000 83,750 (251,250) 25% Total revenues 12,122,330 1,134,097 (10,988,233) 9% Page 3 of 11 04 PRIG City of Prior Lake General Fund Expenditures As of 03/3112011 N Nes°�P (Unaudited) General government 41110 Mayor & council 41130 Ordinance 41320 Administration 41330 Boards & commissions 41410 Elections 41520 Finance 41540 Internal auditing 41550 Assessing 41610 Legal 41820 Personnel 41830 Communications 41910 Comm development/natural res 41920 Technology 41940 Buildings & plant Total general government Public safety 42100 Police 42200 Fire 42400 Building /transportation services 42500 Emergency management 42700 Animal control Total public safety Public works Variance with 2011 2011 Budget - Actual Budget Actual Positive (Negative) Percent 67,365 18,669 48,696 28% 7,000 427 6,573 6% 371,884 81,608 290,276 22% 13,575 - 13,575 0% - - - n/a 312,967 79,868 233,099 26% 28,200 5,190 23,010 18% 118,800 - 118,800 0% 309,000 64,161 244,839 21% 140,248 35,911 104,337 26% 113,956 25,942 88,014 23% 276,354 64,898 211,456 23% 135,340 32,413 102,927 24% 410,206 86,065 324,141 21% 2,304,895 495,152 1,809,743 21% 3,122,509 732,811 2,389,698 23% 851,139 161,020 690,119 19% 398,004 92,610 305,394 23% 7,500 423 7,077 6% 25,650 4,275 21,375 17% 4,404,802 991,139 3,413,663 23% 43050 Engineering 416,046 95,050 320,996 23% 43100 Street 1,054,352 204,768 849,584 19% 43400 Central garage 346,903 96,325 250,578 28% Total public works 1,817,301 396,143 1,421,158 22% Culture /recreation 45100 Recreation 45200 Parks 45500 Libraries Total culture /recreation Urban & economic development 46500 Economic development Total urban /economic dev 390,860 69,647 321,213 18% 1,326,359 243,037 1,083,322 18% 85,067 18,924 66,143 22% 1,802,286 331,608 1,470,678 18% 95,465 7,012 88,453 7% 95,465 7,012 88,453 7% 49303 Transfers to other funds 1,763,565 3,320 1,760,245 0% 49999 Contingency reserve - - - n/a Total expenditures 12,188,313 2,224,374 9,963,939 18% Page 4 of 11 n City of Prior Lake Debt Service Funds As of 03/31/2011 (Unaudited) 2,705,000 4% 1,458,001 17,495 Variance with - 7,518 (7,518) n/a 2011 2011 Budget - Actual Budget Actual Positive (Negative) Percent Revenues Property taxes 31010 Current taxes 1,157,195 - 1,157,195 0% Special assessments 36102 Special assessments 374,184 7,338 366,847 2% Miscellaneous revenues 36210 Interest earnings 31,945 13,588 18,357 43% Other financing sources 39203 Transfers from other funds 2,367,398 3,320 2,364,078 0% Total revenues Expenditures Debt Service 601 Principal 611 Interest 630 Other expenses Total expenditures 3,930,722 24,246 3,906,476 1% 2,820,000 115,000 2,705,000 4% 1,458,001 17,495 1,440,506 1% - 7,518 (7,518) n/a 4,278,001 140,013 4,137,988 3% 4,278,001 140,013 4,137,988 3% Net change (347,279) (115,767) 0 0- 4 Y�O City of Prior Lake Al Revolving Equipment Fund As of 03/31/2011 (Unaudited) Variance with 2011 2011 Budget - Actual Budget Actual Positive (Negative) Percent Revenues Property taxes 31010 Current taxes 270,000 - 270,000 0% Miscellaneous revenues 36210 Interest earnings Other financing sources 39203 Transfers from other funds Total revenues Expenditures Public safety 42100 Police 450 Agency Forfeit Proceeds 580 General Equipment 42200 Fire & Rescue Total public safety Public works 43100 Streets Total public works Culture & recreation 45200 Parks 26,348 11,254 15,094 43% 100,000 25,000 75,000 25% 396,348 36,254 360,094 9% - 600 (600) n/a 73,500 - 73,500 0% 73,500 600 72,900 1 % 90,000 1,040 88,960 1 % 163,500 1,640 161,860 1 % 440,749 43,738 397,011 10% 440,749 43,738 397,011 10% 89,507 - 89,507 0% Total culture & recreation 89,507 - 89,507 0% Total expenditures 693,756 45,378 648,378 7% Net change (297,408) (9,124) n ll, N�p Cit y of Prior Lake Water Fund As of 03/31/2011 !9 „ soll" (Unaudited) Variance with 2011 2011 Budget - Actual Budget Actual Positive (Negative) Percent Operating revenues Charges for services - water 37100 Water revenues 2,138,750 212,894 (1,925,856) 10% 37110 Capital facility revenue 450,000 39,095 (410,905) 9% 37140 Door hanger charges - 6,025 6,025 n/a 37150 Water reconnect charges 9,000 1,625 (7,375) 18% 37160 Penalties 70,963 3,925 (67,038) 6% 37170 Water meters 26,000 6,961 (19,039) 27% 37175 Pressure reducers 8,225 1,362 (6,863) 17% 37180 Frost plates - 30 30 n/a 37190 Misc revenue adjustments - 653 653 n/a Total water revenues 2,702,938 272,570 (2,431,051) 10% Intergovernmental 33422 State Aids /Grants - 1,232 Total intergovermental - 1,232 - 0% Miscellaneous revenues 36210 Interest earnings 36212 Miscellaneous Total miscellaneous revenues Total revenues Operating expenses Personnel & current expenses 41520 Finance 49400 Water Total operating expenses Capital improvements 49400 Water improvements Total capital improvements 49303 Transfers to other funds 50,000 21,158 (28,843) 42% - 21 21 n/a 50,000 21,179 (28,822) 42% 2,752,938 294,981 (2,459,873) 11% 65,692 14,892 50,800 23% 1,636,242 360,438 1,275,804 22% 1,701,934 375,330 1,326,604 22% 1,090,000 54,027 1,035,973 5% 1,090,000 54,027 1,035,973 5% 778,511 54,715 723,796 7% Total expenses 3,570,445 484,072 3,086,373 14% Net change (817,507) (189,092) Page 7 of 11 0 pR ` O � City of Prior Lake N Sewer Fund As of 03/31/2011 M�so�P (Unaudited) Variance with Intergovernmental 33422 State Aids /Grants 2011 Budget 2011 Actual Budget - Positive (Negative) Actual Percent Operating revenues 1,232 0% Miscellaneous revenues Charges for services - sewer 36210 Interest earnings 50,000 21,158 (28,843) 37102 Sewer revenues 997,500 151,803 (845,697) 15% 37104 MCES revenues 918,750 138,520 (780,230) 15% 37110 Capital facility revenue - 39,095 39,095 n/a 37160 Penalties - 5,202 5,202 n/a Total sewer revenues 1,916,250 334,620 (1,581,630) 17% Intergovernmental 33422 State Aids /Grants - 1,232 1,232 n/a Total intergovermental - 1,232 1,232 0% Miscellaneous revenues Personnel & current expenses 36210 Interest earnings 50,000 21,158 (28,843) 42% Total miscellaneous revenues 50,000 21,158 (28,843) 42% Total revenues 1,966,250 357,010 (1,609,241) 18% Operating expenses Personnel & current expenses 41520 Finance 65,692 13,732 51,960 21% 49450 Sewer 2,143,582 474,477 1,669,105 22% Total operating expenses 2,209,274 488,209 1,721,065 22% Capital improvements 49450 Sewer improvements 318,000 - 318,000 0% Total capital improvements 318,000 - 318,000 0% 49303 Transfers to other funds 310,322 54,715 255,607 18% Total expenses 2,837,596 542,924 2,294,672 19% Net change (871,346) (185,915) Page 8 of 11 04 px'o� City of Prior Lake Water Quality Fund As of 03/31/2011 ""^S�` (Unaudited) Variance with Miscellaneous revenues 36210 Interest earnings 10,000 4,606 (5,394) 46% Total miscellaneous revenues 10,000 4,606 (5,394) 46% Intergovernmental Revenue 33160 Federal Grants 87,000 - (87,000) 0% Total intergovernmental revenues 87,000 - (87,000) 0% Total revenues Operating expenses Personnel & current expenses 49420 Water quality Capital improvements 49420 Water quality 522,000 85,623 (436,377) 16% 398,404 45,488 510,000 141,782 352,916 11% 368,218 28% Total expenses 908,404 187,270 721,134 21% Net change (386,404) (101,647) Page 9 of 11 2011 2011 Budget - Actual Budget Actual Positive (Negative) Percent Operating revenues Charges for services - storm water 37120 Water quality revenue 425,000 81,017 (343,983) 19% Total water quality revenues 425,000 81,017 (343,983) 19% Miscellaneous revenues 36210 Interest earnings 10,000 4,606 (5,394) 46% Total miscellaneous revenues 10,000 4,606 (5,394) 46% Intergovernmental Revenue 33160 Federal Grants 87,000 - (87,000) 0% Total intergovernmental revenues 87,000 - (87,000) 0% Total revenues Operating expenses Personnel & current expenses 49420 Water quality Capital improvements 49420 Water quality 522,000 85,623 (436,377) 16% 398,404 45,488 510,000 141,782 352,916 11% 368,218 28% Total expenses 908,404 187,270 721,134 21% Net change (386,404) (101,647) Page 9 of 11 0 PR `O �P City of Prior Lake Transit Fund As of 03131/2011 "SOS° (Unaudited) Variance with 2011 2011 Budget - Actual Budget Actual Positive (Negative) Percent Operating revenues Charges for services - transit revenue 38400 Bus fares 100,000 52,489 (47,511) 52% 38422 State transit aid 560,886 154,113 (406,773) 27% Total transit revenues 660,886 206,602 (454,284) 31% Miscellaneous revenues 36210 Interest earnings Total miscellaneous revenues Total revenues Operating expenses Personnel & current expenses 49804 Transit services 10,000 8,410 1,590 84% 10,000 8,410 1,590 84% 670,886 215,012 (452,694) 32% 776,458 210,792 565,666 27% Total expenses 776,458 210,792 565,666 27% Net change (105,572) 4,220 Page 10 of 11 n FRIO City of Prior Lake Economic Development Authority Special Revenue Fund As of 03/31 /2011 'fso� (Unaudited) Variance with 2011 2011 Budget - Actual Budget Actual Positive (Negative) Percent Revenues Intergovernmental revenues 33610 County /city aids & grants 15,000 - 15,000 0% Miscellaneous revenues 36210 Interest earnings Total revenues Expenditures Economic development 46500 Economic development 2,000 795 1,205 40% 17,000 795 16,205 6% 55,000 55,000 0% Total economic development 55,000 - 55,000 0% Total expenditures 55,000 - 55,000 0% Net change (38,000) 796