HomeMy WebLinkAbout4E - 3rd Q. Budget Report
STAFF AGENDA REPORT
MEETING DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
OCTOBER 21, 2002
4E
RALPH TESCHNER, FINANCE DIRECTOR
CONSIDER APPROVAL OF 2002 3RD QUARTER BUDGET
SUMMARY REPORTS 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 3rd Quarter Budget Report
is a document entitled "Budget Report Overview" for the General
Fund that is intended to satisfy your request. The 3rd Quarter Budget
Reports shows the status of expenditures for the first 9 months of
2002 for the General Fund and Enterprise Funds consisting of the
water & sewer, water quality and transit funds.
The "overview" provides information related to those areas within
the general fund 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.
REVIEWED BY:
The "Budget Report Overview" is intended to serve as narrative
support to the Quarterly Budget Report and enhance your
\ffiderstanding of performance results. Please feel free to contact me
at 44[jr more i ormation.
Attachments:
1. 2002 3r arter udget Summary Reports
2. Budget Report Overview (General Fund)
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245
H:\BUDGETlBR.DOC AN EQUAL OPPORTUNITY EMPLOYER
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2002 3rd Quarter General Fund Budget Summary Report
Budget Amount Expended Percent
General Government 1,751,202.00 1,289,4 74.00 74%
Mayor & Council 37,617.00 35,372.00 94%
Ordinance 11,000.00 8,199.00 75%
City Manager 252,905.00 199,233.00 79%
Boards & Commissions 12,964.00 81. 00 1%
Elections 9,360.00 5,460.00 58%
Director of Finance 108,573.00 80,408.00 74%
Accounting 116,964.00 89,690.00 77%
Internal Auditing 14,695.00 11,680.00 79%
Assessing 54,850.00 54,000.00 98%
Law 254,000.00 159,240.00 63%
Personnel 62,347.00 54,049.00 87%
Planning & Zoning 260,933.00 189,547.00 73%
Data Processing 102,615.00 65,899.00 64%
Buildings & Plant 262,105.00 198,687.00 76%
Central Garage 190,274.00 137,929.00 72%
Public Safety 2,652,809.00 1,727,443.00 65%
Police 1,949,071.00 1,368,662.00 70%
Fire & Rescue 323,713.00 91,060.00 28%
Building Inspection 336,315.00 253,974.00 76%
Civil Defense 28,900.00 4,042.00 14%
Animal Control 14,810.00 9,705.00 66%
Public Works 1,056,539.00 707,954.00 67%
Engineering 476,850.00 365,034.00 77%
Street 579,689.00 342,920.00 59%
Culture-Recreation 1,377,486.00 1,156,871.00 84%
Recreation 503,966.00 462,484.00 92%
Parks 808,165.00 648,716.00 80%
Libraries 65,355.00 45,671.00 70%
Economic Development 58,167.00 152,884.00 263%
Debt Service 715,680.00 240,820.00 34%
Contingent Reserve 50,000.00 82,706.00 165%
Revenues 7,661,883.00 5,037,814.00 66%
General Property Taxes 4,703,913.00 2,367,520.00 50%
Licenses & Permits 520,125.00 788,366.00 152%
Intergovernmental Revenue 897,415.00 596,036.00 66%
Charges for Services 990,880.00 975,639.00 98%
Fines & Forfeits 100,800.00 84,949.00 84%
Miscellaneous Revenue 215,750.00 225,225.00 104%
Other Financing Sources 233,000.00 79.00 0%
Total Budget Expenditures 7,661,883.00 5,358,152.00 70%
Total Budget Revenues 7,661,883.00 5,037,814.00 66%
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Enterprise Funds
2002 3rd Quarter Enterprise Funds Budget Summary Report
Budget Amount Expended Percent
Utility Fund 1,885,108.00 1,390,465.00 74%
Water 709,654.00 586,576.00 83%
Sewer 1,175,454.00 803,889.00 68%
Water Quality 256,608.00 87,402.00 34%
Transit Services 382,943.00 218,085.00 57%
Revenues 3,654,270.00 2,097,857.00 57%
Water Utility Revenues 3,044,270.00 1,627,686.00 53%
Water Quality Utility Revenues 160,000.00 117,378.00 73%
Transit Revenues 450,000.00 352,793.00 78%
Total Budget Expenditures 2,524,659.00 1,695,952.00 67%
Total Budget Revenues 3,654,270.00 2,097,857.00 57%
BUDGET REPORT OVERVIEW
(2002 3rd Quarter Budget Report)
Expenditures:
General Government
. Mayor & Council's YTD percentage of 94% is due to per diem compensation that
was newly approved and expenditures 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.
. Expenses associated with Boards and Commissions 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 63% than projected at this
point of the budget cycle due to the fact that city attorney costs represent only 8 of the
9 months of billings. Also, Scott Joint Prosecution expenses for the first nine 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 63 % of the year to
date budget.
. Personnel is over at 87% because of expenditures relating to customer service
training, a safety audit and recruitment expenses for the newly established employee
positions that were approved mid-year by the Council.
. Data Processing is under at 64% because our support costs thru CIT are lower
because of less utilization.
. General Government totals are in general conformance with budget estimates at 74%.
Public Safety
. Police Department expenses are slightly below at 70% because the department had
one open patrol officer position that has now been filled, which has temporarily
reduced personnel 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 65%.
Public Works
. Street Department expenses of 59% are low principally because of position openings
and the bituminous overlay work was not completed this year due to the prioritization
and time constraints of other projects.
· Public Works totals are in general conformance with budget estimates at 67%.
Culture-Recreation
· Recreation Department dance activities have again exceeded expectations and have
reached 91% of budget level. Skate park program staffing costs exceeded $20,000
that also was not budgeted. In addition the playground program participation
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substantially increased which resulted in personnel costs for supervisor personnel for
this program to exceed estimates by nearly $12,000. These are the three primary
reasons that Recreation has exceeded third quarter budget variance with a
performance of 92%. On the positive side, as shown under revenues, all recreation
program registrations are at 101 % as well.
. Parks Department is running a little ahead at 80% due to the heavy seasonal activity
that normally occurs during the summer months.
. Library results are down slightly at 70% of budget primarily due to gas and electric
utilities that were lower because of the unusually mild winter.
. Culture-Recreation totals are above seasonal expectations and budget estimates at 86%.
Economic Development
. The budget expenditure variance occurs as a result of paying off the Hennen building
contract for deed and purchasing Joe's Pizza parcel.
. Economic Development totals are within budget estimates at 74% 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 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 3rd Quarter operating expenditures are on track and represent 70% of
the total $7,661,883 operating budget. This actually compares favorably with similar
2001 3rd quarter results of 72%.
Revenues:
. Property tax collection receipts are right at 50% that is on target since settlements
basically occur only twice a year. No apparent tax delinquency problem exists. 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 152% as building
permit activity has been on an exceptionally strong pace that resulted in all building
related revenue sources to exceed full year estimates.
. Intergovernmental revenue is near the 3rd quarter budget estimate at 66%. 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 somewhat above expectations at 98% of revenue realized because
we have received the entire cable franchise fee payment plus all seven (7) of our annual
water tower antennae lease agreement payments. Also park program registrations,
particularly in the dance program, have been strong, as 101 % of estimated revenues
have been collected to date.
. Fine revenue is averaging more than $1000 more per month than projected.
. Miscellaneous Revenue has already reached projections at 104%.
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. 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 66% of
budget which compares positively to the past five years that have shown a spread of 57-
66% at the end of the third quarter. 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.
3RD QUARTER BUDGET RECAP:
Overall, the 2002 3rd quarter financial performance is fairly strong compared to past
years with no significant expense variances or revenue shortfalls appearing other than
noted.
* [3rd Quarter Budget Report represents expenditures and revenues to date and do not
include outstanding appropriations or receipt expectations.]
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