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Home My WebLink About4E - Budget Report 2Q MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: REVIEWED BY: Attachments: STAFF AGENDA REPORT JULY 15,2002 4E RALPH TESCHNER, FINANCE DIRECTOR CONSIDER APPROVAL OF 2002 2ND 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 Oven;iew" that is intended to satisfy your request. The 2nd Quarter Budget Report shows the status of expenditures for the first 6 months of 2002. The "overview" provides information related to those areas within the budget that have experienced exceptions (normally :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 ~ H:IBUDGETlBR.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 2nd Quarter General Fund Budget Report Budget Amount Expended Percent General Government 1,751,202.00 832,078.00 48% Mayor & Council 37,617.00 21,221.00 56% Ordinance 11,000.00 4,857.00 44% City Manager 252,905.00 109,738.00 43% Boards & Commissions 12,964.00 0.00 0% Elections 9,360.00 0.00 0% Director of Finance 108,573.00 54,454.00 50% Accounting 116,964.00 60,527.00 52% Internal Auditing 14,695.00 11,680.00 79% Assessing 54,850.00 54,000.00 98% Law 254,000.00 99,563.00 39% Personnel 62,347.00 31,412.00 50% Planning & Zoning 260,933.00 126,957.00 49% Data Processing 102,615.00 31,926.00 31% Buildings & Plant 262,105.00 135,733.00 52% Central Garage 190,274.00 90,010.00 47% Public Safety 2,652,809.00 1,140,205.00 43% Police 1,949,071.00 917,257.00 47% Fire & Rescue 323,713.00 53,045.00 16% Building Inspection 336,315.00 162,772.00 48% Civil Defense 28,900.00 1,065.00 4% Animal Control 14,810.00 6,066.00 41% Public Works 1,056,539.00 422,333.00 40% Engineering 476,850.00 244,141.00 51% Street 579,689.00 178,192.00 31% CuIture- Recreation 1,377,486.00 643,221.00 47% Recreation 503,966.00 240,930.00 48% Parks 808,165.00 371,719.00 46% Libraries 65,355.00 30,572.00 47% Economic Development 58,167.00 142,060.00 244% Debt Service 715,680.00 240,820.00 34% Contingent Reserve 50,000.00 77,449.00 155% Revenues 7,661,883.00 4,063,795.00 53% General Property Taxes 4,703,913.00 2,298,999.00 49% Licenses & Permits 520,125.00 542,167.00 104% Intergovernmental Revenue 897,415.00 358,357.00 40% Charges for Services 990,880.00 694,713.00 70% Fines & Forfeits 100,800.00 57,701.00 57% Miscellaneous Revenue 215,750.00 111,779.00 52% Other Financing Sources 233,000.00 79.00 0% Total Budget Expenditures 7,661,883.00 3,498,166.00 46% Total Budget Revenues 7,661,883.00 4,063,795.00 53% BI~202 11:30 AM6/27/02 -""'''''''->~~''''''''''._~'' ,..".".._--_."_._...._---_.._---_._----,----~,._-, BUDGET REPORT OVERVIEW (2002 2nd Quarter Budget Report) Expenditures: General Government . Mayor & Council's YTD percentage of 56% is due to expendihlres incurred within Travel & Conference category that was associated with the Long Range Planning Committee meeting expenses and increased workshop activity for the first half of the year. . 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 44%. . City Manager's mid-year expenses are understated at 43% because the City cancelled an aerial photo contract from the prior year that resulted in a large credit against professional services expense account of nearly $12,000. The work will be accomplished later this year with another vendor and will offset this reversal. . Expenses associated with Boards and ConU11issions 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 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 39% than projected at this point of the budget cycle due to the fact that city attorney costs represent only 5 of the 6 months of billings. Also, Scott Joint Prosecution expenses for the first six 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 quarter of the year is less. This has resulted in the overall legal expense category outcome of 39% of the year to date budget. . Data Processing is under at 31 % because our support costs thru CrT are lower because of less utilization and limited capital equipment expenditures have been incurred to date. . General Government totals are in general conformance with budget estimates at 48%. Public Safety . Police Department expenses are slightly below at 47% because the department had one open patrol officer position that has now been filled during this period, which has temporarily reduced persom1el expenses within the department. . 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 43%. Public Works . Street Department expenses of 31 % is low primarily because the bituminous overlay account allocation has not yet been spent. . Public Works totals are in general conformance with budget estimates at 40%. Culture-Recreation . Parks Department is running a little under at 46% as they are now entering the heavy activity period of the summer months where a significant portion of their seasonal expenses are incurred. . Culture-Recreation totals are consistent with seasonal expectations and budget estimates at47%. BR0202 Economic Development · The budget expenditure variance occurs as a result of paying off the Helmen building contract for deed and purchasing Joe's Pizza parcel. · Economic Development totals are within budget estimates at 55% upon excluding these Council approved real estate transactions. Debt Service · All general debt serv1ce bond payments are made during the months of June and December. · Debt Service totals are in general conformance with budget estimates at 34%. Contingent Reserve · Contingency expenditures include insurance deductible payments made to the LMCIT, hazardous waste analysis relating to the old Prior Lake dump site along CSAH 44 and the Boderman condemnation award. Expenditure Summary: 2002 General Fund 2nd Quarter operating expenditures are on track and represent 46% of the total $7,661,883 operating budget. This actually compares favorably with similar 2001 2nd quarter results of 49%. Revenues: · The current property tax settlement in June showed no apparent delinquency problem as collections approached 50%. The first half of the market value credit aid will be remitted by the State at the end of October. · License & Permit fees are considerably ahead of projection at 107% as building permit activity has been on an exceptionally strong pace that resulted in all building related revenue sources to already exceed full year estimates. · Intergovernmental revenue is near the quarterly budget estimate at 40%. The only outstanding substantial items remaining are the Fire and Police aid funded by the 2% surcharge on property and casualty insurance premiums that is paid at the end of September by the State of Minnesota. · Charges for services is remain above expectations at 70% of revenue realized because we have received six (6) of our seven (7) annual water tower antelmae lease agreement payments during the first half of the year. Also park program registrations, particularly in the dance program, have been strong, as 77% of estimated revenues have been collected to date. · Fine revenue is averaging more than $1900 more per month than projected. · Miscellaneous Revenue is close to projections at 52%. · Other Financing Sources primarily consists of the $225,000 enterprise fund contribution transfer, which is recognized at year-end. Revenue Summary: Revenues realized are somewhat higher overall than typical at approximately 53% of budget which compares positively to the past five years that have shown a spread of 39-46% at midyear. This higher percentage is somewhat misleading because the City now collects a proportionately greater percentage of its revenue in property taxes as a result of the elimination of HACA aid which was always received during the second half in past years. 2ND QUARTER BUDGET RECAP: BR0202 BR0202 Overall, the 2002 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.]