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STAFF AGENDA REPORT
APRIL 15,2002
4G
RALPH TESCHNER, FINANCE DIRECTOR
CONSIDER APPROVAL OF 2002 1ST QUARTER BUDGET
REPORT AND OVERVIEW
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 1 st 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 of 2002.
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 performance results. Please feel free to contact me
at 447-9841 for more' formation.
1. Prelimi a 2002 1st Quarter Budget Report
2. Budget Report Overview
H:\BUDGETlBR.DOC
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
2002 1st Quarter General Fund Budget Report
Budget Amount Expended Percent
General Government 1,751,202.00 356,949.00 20%
Mayor & Council 37,617.00 9,822.00 26%
Ordinance 11,000.00 1,000.00 9%
City Manager 252,905.00 60,223.00 24%
Boards & Commissions 12,964.00 0.00 0%
Elections 9,360.00 0.00 0%
Director of Finance 108,573.00 28,742.00 26%
Accounting 116,964.00 31,242.00 27%
Internal Auditing 14,695.00 185.00 1%
Assessing 54,850.00 0.00 0%
Law 254,000.00 28,512.00 11%
Personnel 62,347.00 14,632.00 23%
Planning & Zoning 260,933.00 61,289.00 23%
Data Processing 102,615.00 14,554.00 14%
Buildings & Plant 262,105.00 67,250.00 26%
Central Garage 190,274.00 39,498.00 21%
Public Safety 2,652,809.00 528,286.00 20%
Police 1,949,071.00 421,593.00 22%
Fire & Rescue 323,713.00 24,585.00 8%
Building Inspection 336,315.00 79,072.00 24%
Civil Defense 28,900.00 610.00 2%
Animal Control 14,810.00 2,426.00 16%
Public Works 1,056,539.00 185,218.00 18%
Engineering 476,850.00 114,661.00 24%
Street 579,689.00 70,557.00 12%
Culture-Recreation 1,377,486.00 260,456.00 19%
Recreation 503,966.00 105,205.00 21%
Parks 808,165.00 143,387.00 18%
Libraries 65,355.00 11,864.00 18%
Economic Development 58,167.00 29,670.00 51%
Debt Service 715,680.00 0.00 0%
Contingent Reserve 50,000.00 2,363.00 5%
Revenues 7,661,883.00 808,927.00 11%
General Property Taxes 4,703,913.00 0.00 0%
Licenses & Permits 520,125.00 199,705.00 38%
Intergovernmental Revenue 897,415.00 229,981.00 26%
Charges for Services 990,880.00 323,578.00 33%
Fines & Forfeits 100,800.00 23,763.00 24%
Miscellaneous Revenue 215,750.00 32,607.00 15%
Other Financing Sources 233,000.00 -707.00 0%
Total Budget Expenditures 7,661,883.00 1,362,942.00 18%
Total Budget Revenues 7,661,883.00 808,927.00 11%
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BUDGET REPORT OVERVIEW
(2002 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 9%.
. Expenses associated with Boards and COlmnissions, Elections and Assessing are typically
not incurred until the latter part of the budget year i.e., December EDA and planning
commission per diems, fall election judge salaries and mid-year contract assessing billing,
therefore the zero amounts. Also, Intemal Auditing shows minimal activity, as audit
billings will occur later for work completed on the 2001 audit report.
. Legal fees in the general service area is running lower at 7% than projected at this point of
the budget cycle due to the fact that city attomey costs represent only one month of
billings in the quarter. Also Scott Joint Prosecution expenses for the first quarter billing is
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 quarter of the year is less. This has resulted in the
overall legal expense category outcome of 11 % of the year to date budget.
. Data Processing is under at 14% because our support costs thru CIT are lower because of
less utilization and no capital equipment expenditures have been incurred to date.
. Central Garage is less at 21 % because no costs have occurred yet in the major repair and
service category associated with parks, public safety and public works.
. General Government totals are in general conformance with budget estimates at 20%.
Public Safety
. Police Department expenses are slightly below at 22% because the department has one
open patrol officer position that was not filled during this period, which has temporarily
reduced persOlmel expenses within the department. Also, the new patrol cars have not yet
been purchased.
. Fire Department expenses are fairly low because 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 are relatively low because the new siren replacement at St. Michaels
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 20%.
Public Works
. Street Department expenses typically lag during the 1st 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 i8%.
Culture-Recreation
. Due to the seasonal nature of recreation and park expenditures, budget results (19%) are
normally lower during the 1st quarter. Their major activity levels occur during the spring
and summer months.
. Library results are down at 18% of budget primarily due to lower utility bills, both electric
and gas, associated with the mild winter. Also, no major service calls were experienced
during the first quarter of library operation.
. Culture-Recreation totals are consistent with seasonal expectations and budget estimates
at i9%.
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Economic Development
. The budget expenditure variance occurs as a result of paying off the Hennen building
contract for deed.
. Economic Development totals are above budget estimates at 51 %.
Debt Service
. All general debt servIce bond payments are made during the months of June and
December.
Contingent Reserve
. Three Contingency expenditures have occurred, all of which involved ll1surance
deductible payments made to the LMCIT.
Expenditure Summary:
2002 General Fund 1st Quarter operating expenditures are on track and represent 18% of the
total $7,661,883 operating budget. This actually compares with similar 2001 1st quarter
results of 17%. 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 well ahead of projection as building pennit activity was on a
fairly strong pace early in the year, which resulted in all building related revenue sources
to come in at 42% of estimates.
. Intergovenunental revenue is at the quarterly budget estimate.
. Charges for services is somewhat above expectations at 33% of revenue realized because
we have received five (5) of our seven (7) annual water tower antennae lease agreement
payments during this period. Also park program registrations, particularly in the dance
program, have been strong, as 41 % of estimated revenues have been collected to date.
. Fine revenue is averaging almost $1600 more per month than projected.
. Miscellaneous Revenue is under projections at 20% as no development contract revenue
has been realized during the quarter.
. Other Financing Sources primarily consists of the $225,000 enterprise fund contribution
transfer, which is recognized at year-end.
Revenue Summary:
Revenues normally lag at this time of year and account for approximately 11 % 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 2002 1 st quarter financial perfoID1ance 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.]
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