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Home My WebLink About4H - 1st Q. Budget Report MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: REVIEWED BY: Attachments: STAFF AGENDA REPORT APRIL 17, 2000 . 4H RALPH TESCHNER, FINANCE DIRECTOR CONSIDER APPROVAL OF 2000 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 1st 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 three months in 2000. 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 ore in ation. 1. 2000 uarter Budget Report 2. Budget Report 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:\BUDGET\BR.DOC . T 2000 1st Quarter Budget Report Budget Amount Expended Percent General Government 1,707,178.00 381,465.00 22% Mayor & Council 24,260.00 6,094.00 25% Ordinance 16,000.00 1,128.00 7% City Manager 247,423.00 58,483.00 24% Boards & Commissions 10,038.00 0.00 0% Elections 7,790.00 0.00 0% Director of Finance 95,646.00 22,627.00 24% Accounting 97,828.00 24,117.00 25% Internal Auditing 10,885.00 1,185.00 11% Assessing 45,700.00 0.00 0% Law 268,000.00 42,041.00 16% Personnel 78,128.00 17,895.00 23% Planning & Zoning 288,605.00 69,219.00 24% Data Processing 141,505.00 30,524.00 22% Buildings & Plant 200,637.00 69,672.00 35% Central Garage 174,733.00 38,480.00 22% Public Safety 2,376,713.00 486,535.00 20% Police 1,808,154.00 394,508.00 22% Fire & Rescue 250,577.00 26,577.00 11% Building Inspection 295,352.00 62,840.00 21% Civil Defense 11,400.00 784.00 7% Animal Control 11,230.00 1,826.00 16% Public Works 898,220.00 172,173.00 19% Engineering 463,779.00 99,756.00 22% Street 434,441.00 72,417.00 17% Culture-Recreation 1,152,632.00 268,510.00 23% Recreation 390,378.00 95,834.00 25% Parks 716,454.00 159,312.00 22% Libraries 45,800.00 13,364.00 29% Economic Development 55,541.00 10,271.00 18% Debt Service 714,710.00 0.00 0% Transit Services 379,950.00 0.00 0% Contingent Reserve 50,000.00 10,000.00 20% Revenues 7,334,944.00 653,680.00 9% General Property Taxes 3,949,728.00 0.00 0% Licenses & Permits 424,075.00 114,414.00 27% Intergovernmental Revenue 1,794,566.00 205,006.00 11% Charges for Services 711,750.00 281,818.00 40% Fines & Forfeits 117,000.00 21,691.00 19% Miscellaneous Revenue 129,825.00 23,545.00 18% Other Financing Sources 208,000.00 7,206.00 3% Total Budget Expenditures 7,334,944.00 1,328,954.00 18% Total Budget Revenues 7,334,944.00 653,680.00 9% BROlOOXLS 2:38 PM4/10/2000 . --r--- . -.--- ----_._~- BUDGET REPORT OVERVIEW (2000 1st Quarter Budget Report) Expenditures: General Government . Ordinance costs for re-codification of the City Code will take place later this year which is the main reason why the YTD percentage is at only 7%. . Expenses associated with Boards and Commissions and Assessing are typically not incurred until the latter part of the budget year Le., December EDA and planning commission per diems and mid-year contract assessing billing, therefore the zero amounts. Also, Internal Auditing shows minimal activity as audit billings will occur later for work completed on the 1999 audit report. . Legal fees in the general service area is running lower at 14% than projected at this point of the budget cycle due to the fact that city attorney costs are short one month of billings in the quarter. Also Scott Joint Prosecution expenses for the first quarter billing was nearly $8,000 less than last year. 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 16% of the year to date budget. . Bldgs & Plant is above 1st quarter projections at 35% due to the fact that our general liability and property/casualty insurance premium jumped 32% from $125,000 to $165,000, an increase of $40,000 over last year. This was largely due the additional building facilities coming on line i.e., library, pavilion, park improvements etc. Also the City's increased involvement in land use disputes has adversely affected our liability claims experience. . General Government totals are in general conformance with budget estimates at 22%. Public Safety . Police Department expenses are slightly below at 22% because the department has two position openings which have not yet been filled which has temporarily reduced personnel expenses within the department. . Fire Department expenses are fairly low because nearly 60% of department costs are attributed to volunteer and pension contribution which is paid as an annual lump sum at year end. . Building Inspection Department expenses are similarly a little below at 21 % because the building inspector position has just recently been filled which has temporarily reduced personnel expenses within the department. . 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 . Engineering Department expenses are similarly a little below at 22% because of an engineering tech position vacancy that has yet to be filled which has temporarily reduced personnel expenses within the department. . Street Department expenses typically lag during the 1st quarter due to the fact that a major share of it's operating expenses are incurred during summer and fall. . Public Works totals are in general conformance with budget estimates at 19%. BROIOO.DOC Culture-Recreation . Due to the seasonal nature of recreation and park expenditures, budget results are normally lower during the 1st quarter. Their major activity levels occur during the spring and summer months. . Library results are up slightly at 29% of budget primarily due to gas utilities for the winter months which were somewhat underestimated because this was our first experience as to the heating cost for the new building. . Culture-Recreation totals are consistent with seasonal expectations and budget estimates at 23%. Economic Development . The budget expenditure variance occurs within the categories of printed forms which is reserved for EDA promotional materials that for the most part is unexpended to date and the general professional services allocation which has not yet been utilized. . Economic Development totals are under budget estimates at I8%. Debt Service . All general debt service bond payments are made during the months of June and December. Transit Services . This entire expenditure is associated with the City's tax levy which is scheduled to be paid in June and December. Contin~ent Reserve . One Contingency expenditure has been incurred which involved our insurance deductible payment of $10,000 made to the LMCIT relating to the Hentges competitive bidding lawsuit settlement. Expenditure Summary: 2000 General Fund 1st Quarter operating expenditures are on track and represent 18% of the total $7,334,944 operating budget. This actually compares with virtually the same 1999 1st quarter results of 18%. Expenditures during the 1 st quarter are typically less than the remaining fiscal quarters. Revenues: · Property tax settlements are scheduled for June and December thereby no tax revenue has been received. · License & Permit fees are slightly ahead of projection as building permit activity was on a fairly strong pace early in the year which resulted in all building related revenue sources to come in at 27% of estimates. . Intergovernmental revenue in the fonn of state aids and homestead and agricultural credit (HACA) is received in two installments in late July and end of December. · Charges for services is somewhat above expectations at 40% of revenue realized because we have received the entire cable franchise fee payment plus our annual water tower antennae lease agreement payments during this period. Also park program registrations, particularly in the dance program, have been strong as 40% of estimated revenues have been collected to date. · Fine revenue is averaging over $1400 more per month than projected. · No development contract revenue has been received to date which is a major category within Miscellaneous Revenue. BROIOO.DOC . · Other Financing Sources primarily consists of the $200,000 enterprise fund contribution transfer which is recognized at year end. Revenue Summary: Revenues normally lag at this time of year and account for approximately 9% of budget, which is actually a little better on average but still representative of the past five years which have shown a spread of 6%-1 0%. 1ST QUARTER BUDGET RECAP: Overall, the 2000 1 st quarter financial performance 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.] BROIOO.DOC