HomeMy WebLinkAbout4F - 3Q Budget Report
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STAFF AGENDA REPORT
MEETING DATE:
AGENDA #:
pREP ARED BY:
AGENDA ITEM:
OCOBER 16, 2000
4F
RAL1'J-l TESCJlNER, FINANCE DlRECfOR
CONSIDER APPROVAL OF 2000 3RD QUARTER BUDGE 'I
REPORT AND OVERVIEW
The City C9uncil baS directed Staff to prepare an accompanying
written narrative that would serve as an informational excerpt to the
quarterly budget reports. AttaChed to the 3" Quarter Budget RepOrt
is a document entitled "Budget Beport Overview" that is intended to
satisfy your request. The 3" Quarter Budget Report showS the statuS
of expenditures for the fIrst 9 monthS in 2000.
The "overview" provideS infonnation related to those areas within
the budget that have experienced exceptions (nonna\\Y ",5%
variation) to the approved budget levels. The report identifIes
revenue shortfa\\s and surpluses and includes a short explanation as
to the vmious reasons. Expenditures are also sut11fllUrlZed on this
basis.
The "Budget RePort Overview" is intended to serve as narrative
support to the QuarterlY Budget Report and enhance your
understanding of perfonnance results. Please feel free to contaCt me
at 447-9841 for more i formation.
DISCUSSION:
REVIEWED BY:
Attachments:
1. 2000 rd art Budget Report
2. Budget Report overview
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph.l612) 447-4230 / Fax (612) 447
AN EQUAL OPPORTUNITY EMPLOYER
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2000 3rd Quarter Budget Report
Budget Amount Expended Percent
General Government 1,707,178.00 1,172,473.00 69%
Mayor & Council 24,260.00 15,129.00 62%
Ordinance 16,000.00 7,348.00 46%
City Manager 247,423.00 166,303.00 67%
Boards & Commissions 10,038.00 200.00 2%
Elections 7,790.00 3,360.00 43%
Director of Finance 95,646.00 68,897.00 72%
Accounting 97,828.00 72,930.00 75%
Internal Auditing 10,885.00 11,070.00 102%
Assessing 45,700.00 45,000.00 98%
Law 268,000.00 143,846.00 54%
Personnel 78,128.00 54,132.00 69%
Planning & Zoning 288,605.00 191,166.00 66%
Data Processing 141,505.00 97,526.00 69%
Buildings & Plant 200,637.00 182,238.00 91%
Central Garage 174,733.00 113,328.00 65%
Public Safety 2,376,713.00 1,517,369.00 64%
Police 1,808,154.00 1,218,936.00 67%
Fire & Rescue 250,577.00 76,138.00 30%
Building Inspection 295,352.00 212,949.00 72%
Civil Defense 11,400.00 2,041.00 18%
Animal Control 11,230.00 7,305.00 65%
Public Works 898,220.00 627,910.00 70%
Engineering 463,779.00 313,274.00 68%
Street 434,441.00 314,636.00 72%
Culture-Recreation 1,152,632.00 979,845.00 85%
Recreation 390,378.00 367,490.00 94%
Parks 716,454.00 577,499.00 81%
Libraries 45,800.00 34,856.00 76%
Economic Development 55,541.00 26,981.00 49%
Debt Service 714,710.00 258,145.00 36%
Transit Services 379,950.00 189,975.00 50%
Contingent Reserve 50,000.00 12,583.00 25%
Revenues 7,334,944.00 4,744,909.00 65%
General Property Taxes 3,949,728.00 2,012,888.00 51%
Licenses & Permits 424,075.00 442,598.00 104%
Intergovernmental Revenue 1,794,566.00 1,138,536.00 63%
Charges for Services 711,750.00 714,729.00 100%
Fines & Forfeits 117,000.00 79,408.00 68%
Miscellaneous Revenue 129,825.00 327,872.00 253%
Other Financing Sources 208,000.00 28,878.00 14%
Total Budget Expenditures 7,334,944.00 4,785,281.00 65%
Total Budget Revenues 7,334,944.00 4,744,909.00 65%
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BUDGET REPORT OVERVIEW
(2000 3rd Quarter Budget Report)
Expenditures:
General Government
. Mayor & Council budget outcome of 62% is lower than expected as a council seat has
be-en unfilled since June.
. Ordinance costs for re-codification of the City Code will be not be incurred because the
City Code update was accomplished in-house which is the main reason why the YTD
percentage is at only 46%.
. City Manager budget is under at 67% for the most part because the professional services
account, which is utilized for special contract purposes, is less than 30% expended.
. The majority of 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 elections.
. Internal Auditing and Assessing totals largely represent completion of expenditures
for the year with little remaining activity.
. Legal fees in the general service area is running lower 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 plus the City's litigation costs are down. Also Scott Joint Prosecution
expenses for the first nine months were more than $19,000 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 three quarters of the year is less. This has
resulted in the overall legal expense category outcome of 54% of the year to date
budget.
. Planning is somewhat under at 66% because the vacant planner position has not been
filled due to the re-organization plan implemented earlier this summer.
. Bldgs & Plant is above 3rd quarter projections at 91 % 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 Le., library, pavilion, park improvements etc. Also the
City's increased involvement in land use disputes over the past two years has adversely
affected our liability claims experience. This overage will continue throughout the year as
our premiums are paid on a quarterly basis.
. Central Garage is below projections at 65% because of lower than expected major vehicle
contract repairs which may be an indication of a beneficial future trend as a result of
regularly scheduled maintenance.
. General Government totals are under budget estimates at 69%.
Public Safety
. Police Department expenses are under at 67% because the department has two position
openings that 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 that is paid as an annual lump sum at
year-end.
. Civil Defense costs have been relatively low because of the lack of general repair service
which is typically caused by direct lightning strikes to the sirens.
. Animal control does not represent a full quarter of service because they are billed one
month in arrears.
. Public Safety are under budget estimates at 64%.
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Public Works
. Engineering Department expenses are similarly a little below at 68% because of the late
filling of the engineering tech position vacancy that has reduced personnel expenses
within the department.
. Public Works totals are in general conformance with budget estimates at 70%.
Culture-Recreation
. Recreation Department dance program activities have exceeded expectations and have
reached 94% of YTD budget level. However park program registrations are also up
significantly at 109% of estimated revenue and Recreation staff expect that all recreation
related revenues realized in the fourth quarter will exceed those expenditures that are
revenue supported for the year.
. Library results are up slightly at 76% of budget primarily due to gas and electric utilities
that were somewhat underestimated because this was our first experience as to the heating
and lighting costs for the new building.
. Culture-Recreation totals are above seasonal expectations and budget estimates at 85%.
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
an unused allocation within consultant services as a result of the re-organization plan.
. Economic Development totals are under budget estimates at 49%.
Debt Service
. All general debt service principal bond payments are made annually in the month of
December with interest payments occurring twice a year in June and December.
. Debt Service totals are in general conformance with budget estimates at 36%.
Transit Services
. Transit Services totals are in general conformance with budget estimates at 50%.
Contingent Reserve
. Three Contingency expenditures have been incurred to date, all involving either our
insurance co-payor deductible payments made to the LMCIT with the largest amount of
$10,000 relating to the Hentges competitive bidding lawsuit settlement.
Expenditure Summary:
2000 General Fund 3rd Quarter operating expenditures are on track and represent 65% of the
total $7,334,944 operating budget. This actually compares favorably with similar 1999 3rd
quarter results of 68%.
Revenues:
. Property tax collection receipts are right at 51 % that is on target since settlements
basically occur only twice a year. No apparent tax delinquency problem exists.
. License & Permit fees are considerably ahead of projection as building permit activity has
been on a record pace that resulted in all building related revenue sources to come in at
105% of estimates with a full quarter remaining.
. Intergovernmental revenue in the form of state aids and homestead and agricultural credit
(HACA), which account for 54% of aids, are received in two installments in late July and
end of December that would account for our current receipt level of 63%.
. Charges for services is somewhat above expectations at 100% of revenue realized because
our facility rental income is substantially higher due to an additional water tower antennae
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lease agreement and the revenue derived from the old library building rental to Integra
Telecom. Also park program registrations, particularly in the dance program, have been
strong.
. Miscellaneous Revenue is up as higher interest rates have resulted in increased interest
earnings and developer agreement revenue of $217,000, of which two-thirds is attributed
to the initial three phases of the Deerfie1d development, has exceeded the standard budget
estimate of $35,000.
. Other Financing Sources primarily consists of the $200,000 enterprise fund contribution
transfer that is recognized at year-end.
Revenue Summary:
Revenues realized are significantly higher overall than typical at approximately 65% of
budget compared to the past five years that have shown a spread of 56-59% at the end of the
third quarter.
3RD QUARTER BUDGET RECAP:
Overall, the 2000 General Fund 3rd quarter financial performance is quite favorable as
expenditures are expected to be down somewhat due to the re-organization plan and revenues
are up considerably because of a strong housing market and greater development activity. No
significant expense variances or revenue shortfalls appear 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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