The URL can be used to link to this page

Home My WebLink About4E - 1999 4Q Budget Report STAFF AGENDA REPORT MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: FEBRUARY 7, 2000 4E RALPH TESCHNER, FINANCE DIRECTOR CONSIDER APPROVAL OF 1999 PRELIMINARY 4TH 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 4th Quarter Budget Report is a document entitled "Budget Report Overview" that is intended to satisfy your request. The Fourth Quarter Budget Report shows the status of expenditures for the entire year in 1999. DISCUSSION: 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 performance results. Please feel free to contact me at 447-9841 for more inf, ation. REVIEWED BY: Attachments: 1. 1999 4 iter Budget Report 2. Budget eport Overview 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER H:IBUDGE1\BR.DOC ~ ~ 1999 4th Quarter Budget Report Budget Amount Expended Percent General Government 1,583,232.00 1,564,266.00 99% Mayor & Council 23,910.00 23,100.00 97% Ordinance 20,500.00 15,442.00 75% City Manager 256,129.00 223,332.00 87% Boards & Commissions 10,038.00 7,482.00 75% Elections 3,371.00 2,142.00 64% Director of Finance 93,482.00 90,935,00 97% Accounting 85,468.00 90,485.00 106% Internal Auditing 10,685.00 10,560.00 99% Assessing 41,700.00 41,701.00 100% Law 231,000.00 235,188.00 102% Personnel 76,418.00 77 ,302.00 101% Planning & Zoning 280,321.00 280,448.00 100% Data Processing 138,543.00 139,307.00 101% Buildings & Plant 177,259.00 185,332.00 105% Central Garage __' 134,408.00 141,510.00 105% Public Safety 2,251,940.00 2,184,645.00 97% Police 1,718,488.00 1,665,316.00 97% Fire & Rescue 225,077.00 248,307.00 110% Building Inspection 290,045.00 258,272.00 89% Civil Defense 7,100.00 1,793.00 25% Animal Control 11,230.00 10,957.00 98% Public Works 866,133.00 841,393.00 97% Engineering 452,602.00 422,562.00 93% Street 413,531.00 418,831.00 101% Culture-Recreation 1,057,864.00 1,135,159.00 107% Recreation 366,516.00 426,972.00 116% Parks 674,583.00 691,404.00 102% Libraries 16,765.00 16,783.00 100% Economic Development 52,378.00 45,230.00 86% Debt Service 886,085.00 962,148.00 109% Transit Services 379,950,00 379,950.00 100% Contingent Reserve 50,000.00 22,682.00 45% Revenues 7,127,582.00 7,583,345.00 106% General Property Taxes 3,901,997.00 3,907,775.00 100% Licenses & Permits 410,200.00 480,712.00 117% Intergovernmental Revenue 1,745,900.00 1,815,189.00 104% Charges for Services 636,085.00 739,648.00 116% Fines & Forfeits 91,200.00 110,309.00 121% Miscellaneous Revenue 134,200.00 235,839.00 176% Other Financing Sources 208,000.00 293,873.00 141% Total Budget Expenditures 7,127,582.00 7,135,473.00 100% Total Budget Revenues 7,127,582.00 7,583,345,00 106% BR0499.XLS 3:22 PM2III2000 I I r - ~.~--r-.---- ----- BUDGET REPORT OVERVIEW (1999 4th Quarter Budget Report) Expenditures: General Government . Ordinance costs for re-codification of the City Code were considerably reduced because the City achieved a significant savings by preparing the document in-house which was the main reason why total expenditures reached only 75%. . City Manager total of 87% was the result of having the assistant city manager position open the last two months of the year, which left salaries under-expended. . Election costs ran a bit under because we cut back on the number of judges and used volunteer students for certain election activities instead. . Expenses associated with Boards and Commissions and Elections were under at 75% because cable televising of 4 hrs. per planning commission meeting was originally budgeted. Actual billed time was closer to an average of 2 hrs. per telecast which left a balance in the professional service account category. . Cumulative finance activities in the areas of finance, accounting, auditing and assessing totaled 101 % of the budget estimate. . Legal fees in the general service area came in at 12% lower than projected for city __' attorney costs. However, expenses were considerably higher in the prosecution category which was at 22% above estimate for the year. There are two reasons for this increase. The first is attributed to a capital equipment purchase adjustment in the Scott Joint Prosecution budget. The second cause is that the activity level for Prior Lake was above that of the other cities percentage wise and because quarterly costs are distributed on a percentage basis, our share is more. When combining the two categories though, our aggregate legal expenses were very close to budget at 102%. . Bldgs & Plant expenditures were at 105% due to the fact that our net property and liability insurance premium cost was $18,000 over budget . This was due to a combination of a liability rate increase that was higher than expected and a smaller insurance dividend that was returned by the LMCIT. . Central Garage exceeded budget somewhat at 105% because of higher than expected vehicle and equipment repairs that occurred during the winter months . Remaining categories were in conformance with budget estimates with overall General Government budget performance of99%' Public Safety . Police Department expenses were below at 97% because the department experienced two position openings during the year which resulted in temporarily reducing personnel expenses within the department. · Fire Department expenses exceeded department projections at 110% which was attributed to a 13% increase in volunteer response hours and a 9% increase that occurred in the state aid funded pension contribution. . Building Inspection expenditures of 89% were below budget primarily because the second secretarial position remained vacant since the early part of the year and due to restructuring will not be filled. . Public Safety total budget performance was a favorable 97% for the year in view of the fact that it accounts for the major public service category and nearly a third of the city 's entire general operating budget. Public Works · Engineering total of 93% was the result of having the public works director position open the last three months of the year, which left salaries under-expended. · Street Department expenses were slightly above budget projections at 101 %. · Public Works overall total of97% was consistent with budget estimates. BR0499.DOC Culture-Recreation · Recreation Department program expenditures represented a budget performance of 116% as activities exceeded expectations, especially the dance program, These expenses were offset by park program registrations which reached 120% of estimated revenue. · Park Department expenditures were at 102% primarily because the use of part time and temporary employees was utilized to a greater extent than in past years. · Culture-Recreation totals of 1 07% was somewhat above budget estimates. Economic Development · Economic Development expenditure activity of 86% was under budget estimates. The budget expenditure variance oCClirs within the printed service category for EDA promotional materials that went largely unspent plus professional service costs were lower. Debt Service . Debt Service expenses exceeded budget figures at 109% as the City called and paid off the remaining principal on two outstanding park bond issues which had interest coupons that were higher than what could be earned under current market conditions. This decision --' by the Council not only reduced our overall debt but also reduced future property tax levy requirements. Contingent Reserve . Three Contingency expenditures were incurred during 1999, two involving insurance payments made to the LMCIT relating to the Traxler lift station encroachment claim ($4392) and the Mousel rights violation claim ($10,000). The third was for replacing two roof top air conditioning coils ($8290) at the Fire Station which were damaged by hail during last year's spring storms. This was the lowest amount expended from the City's Contingent Reserve when compared historically with past budgets. Expenditure Summary: Total unaudited 1999 General Operating Budget expenditures are projected to be $7,155,000 when including outstanding encumbrances. This amount represents 100.4% of the approved 1999 City of Prior Lake Operating Budget (7,127,582). These totals compare with actual budgetary performance of 98%, 98% and 98% for the preceding years of 1998, 1997 and 1996. Revenues: · Current property tax collections resulted in a 99% collections rate which is somewhat higher than previous years on average. When adding in delinquent receipts of past years the City realized slightly over 100% of its 1999 property tax levy. · License & Permits revenue ended the year at 117% of budget. This occurred as building permit activity was up significantly exceeding our building related revenue estimates by 19%. · Intergovernmental revenue in the form of state aids and homestead and agricultural credit (HACA), which account for almost 55% of aids, are received in two installments in late July and end of December which would account for our current receipt level of 60%. · Charges for Services was above expectations at 116% of revenue realized. The difference was the result of two occurrences; increased park recreation program receipts in the amount of $39,000 and another (No.5) water tower antennae lease agreement with APT (American Portable Telecom) which generated an additional $26,250 of facility rental revenue. · Fine revenue averaged nearly $9200 monthly or $1600 more per month than projected. Court Fine revenue was $1,000 more per month than budget and our prosecution BR0499.DOC ..... yo- -----------T.-.-----. ..---.-..---.--. restitution recovery efforts have been very successful at 55% above our initial projection ($1550 vs. $1000/mo.) . Development revenue totaled $66,000 more than our budget estimate of $35,000 as a result of several final plat approvals during 1999 that pushed Miscellaneous Revenue totals to 176% of budget. . Other Financing Sources ended up 41% because of the Toronto Avenue lot sale that was not programmed into the city's 1999 general fund revenue forecast. Revenue Summary: Total 1999 General Operating Budget revenues are projected to be $7,579,219. This amount represents 106% of the City of Prior Lake's $7,127,582 General Operating Budget. These totals compare with actual budgetary performance of 104%, 102% and 105% respectively for the preceding years of 1998, 1997 and 1996. 4TH QUARTER BUDGET RECAP: Overall, the 1999 budgetary financial performance was very good as the City's General Fund balance will have increased by approximately $424,000 from $2,004,553 to a preliminary unaudited position of $2,428,553 as the results of revenues exceeding expenditures. This general fund balance amount represents a reserve of 33% based upon the current annual budget or $228,000 above the Council approved 30% operating capital minimum. The above figures are not final. As soon as the City's 1999 financial audit is completed in May, Staff will report the actual fund balance increase. The preliminary budget surplus of$424,219 was the result of the following seven (7) items: 1. Contingency balance 2. FEMA grant 3. Toronto Ave. lot sale 4. APT water tower antennae lease 5. Dance program registration increase 6. Developer agreement increase 7. Building permit revenue increase Total... $27,318.00 $77,507.00 $89,293.00 $26,250.00 $39,032.00 $66,456.00 $79,253.00 $405,109.00 These factors accounted for 96% of the total surplus that occurred in 1999. It is important to recognize that revenue items #2 & 3 are one time unplanned events that were not programmed into the general fund budget revenue scenario. Revenue item #4 could not be anticipated and item #5 was growth oriented. The last two revenue categories (items 6 & 7) are extremely elastic and are not expected to continue at these levels over the next couple years as our existing lot inventory is very low until the Deerfield development comes on line. BR0499.DOC