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Home My WebLink About4C - 1995 4Q Budget Report CONSENT AGENDA #: 4 (C) PREPARED BY: RALPH TESCHNER FINANCE DIRECTOR SUBJECT: CONSIDER APPROVAL OF PRELIMINARY 4TH QUARTER BUDGET REPORT AND OVERVIEW DATE: FEBRUARY 5, 1996 REVIEWED BY: The City Council 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 review provides information related to those areas within the budget that have experienced exceptions to the approved budgeted levels. The report identifies revenue shortfalls and surpluses and includes a short explanation as to the various reasons. Also, expenditures are summarized on thl.'.S basi...s as weUt'.T. e "Budget Report Overview" is intended to serve as arratie pport t the quarterly numbers performance and enhance y<?ur unde . ding 0 ,those results. , . I' ' '~. , '~ INTRODUCTION: BR4.WRT 16200 Eagle Creek Ave. S.E.. Prior Lake. Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER T T 1995 4TH QUARTER BUDGET REPORT (preliminary) GENERAL GOVERNMENT Mayor & Council Ordinance City Manager Boards and Commission Elections Director of Finance Accounting Internal Auditing Assessing Law Personnel Planning and Zoning Data Processing Buildings and Plant PUBLIC SAFETY Police Fire and Rescue Building Inspection Civil Defense Animal Control PUBLIC WORKS Engineering Street CULTURE-RECREATION Recreation Parks Libraries URBAN ECONOMIC DEVELOPMENT DEBT SERVICE CONTINGENT RESERVE REVENUES General Property Taxes Licenses and Permits Intergovernmental Revenue Charges for Services Fines and Forfeits Misc. Revenues Other Financing Sources TOTAL BUDGET EXPENDITURES TOTAL BUDGET RECEIPTS BR0495.WRT Budget Amount 1,141,005.00 24,760.00 15,175.00 217,470.00 5,155.00 2,205.00 80,725.00 52,995.00 9,785.00 27,600.00 158,900.00 54,665.00 240,975.00 70,710.00 179,885.00 1,846,130.00 1,389,300.00 190,335.00 250,315.00 4,950.00 11,230.00 715,620.00 422,370.00 293,250.00 787,250.00 206,800.00 567,185.00 13,265.00 54,750.00 486,010.00 100,000.00 5,130,765.00 2,431,710.00 339,085.00 1,450,575.00 576,395.00 60,000.00 93,000.00 180,000.00 5,130,765.00 5,130,765.00 Expended 1,090,587.00 20,635.00 13,314.00 216,872.00 5,287.00 3,045.00 80,729.00 54,193.00 9,785.00 27,000.00 186,291.00 46,071. 00 217,208.00 60,909.00 149,248.00 1,790,894.00 1,364,608.00 189,079.00 222,247.00 4,916.00 10,044.00 662,911.00 412,359.00 250,552.00 747,677.00 204,000.00 534,707.00 8,970.00 32,607.00 485,399.00 37,866.00 5,360,472.00 2,398,685.00 367,469.00 1,540,819.00 539,275.00 75,300.00 255,797.00 183,127.00 4,847,941.00 5,360,472.00 Percent 96.0% 83.0% 88.0% 100.0% 103.0% 138.0% 100.0% 102.0% 100.0% 98.0% 117.0% 84.0% 90.0% 86.0% 83.0% 97.0% 98.0% 99.0% 89.0% 99.0% 89.0% 93.0% 98.0% 85.0% 95.0% 99.0% 94.0% 68.0% 60.0% 100.0% 38.0% 104.0% 99.0% 108.0% 106.0% 94.0% 126.0% 275.0% 102.0% 94.5% 104.0% .. BUDGET REPORT OVERVIEW (Preliminary 4th Quarter Budget Report)* Expenditures: General Government · Mayor & Council expenditures were under budget because the allowance ($3400) for professional services was not used due to the fact that a facilitator for the Council annual workshop was not utilized. . Ordinance expenses ran under because legal publication costs were less than anticipated. . Election expenses will come in at budget upon receipt of school district reimbursement payment of $777 .00 for their 50% share of election judge salaries. . City Attorney costs were substantially higher in 1995 within the general service legal category. There were two reasons for this overrun. The City had to reimburse the LMCIT over $13,000 for defense costs associated with the Prindle and Priorview road litigation plus an additional $21,000 to Larkin Hoffman forpersonne1 and labor relation issues. . Personnel department costs were down because of the position vacancy occurrence. · Planning department budget underexpended by 10% which was the result of an excess of $10,000 remaining within their professional services account. . Data Processing totals will be close to budget because an additional $6500 of outstanding capital purchases are encumbered. · Total Buildings and Plant costs were favorable this past year mainly due to the fact that the City experienced another exceptional year in property insurance claims which resulted in a premium refund of almost $35,000. . Remaining categories are in conformance with budget estimates with overall General Government budget performance of 96%. Public Safety . Both Police and Fire department's level of budget expenditures were slightly under projections at 98% and 99% respectively. . Building Inspection was nearly 10% under budget. The major reasons were a combined reduction in expenses of $12,000 for seasonal inspection and outside plan review contracting. . Public Safety's total budget performance was a very favorable 97% in view of the fact that it accounts for the major public service category within the City's general operating budget. Public Works . Engineering expenditures were close to budget at 98%. . Street department expenses were significantly under budget largely due to optimum weather conditions experienced during the year that resulted in a savings in excess of $21,000 in the areas of dust control applications, snow removal and general street repairs. Culture-Recreation . Recreation program expenditures came in at 99% of budget while Parks department expenditures was under projections again due partially to the position vacancy of nearly 4 months. . Library costs were only 68% of budget due to the fact that virtually no repair and maintenance costs were incurred during the year. Economic Development . Over $17,000 of promotional and professional service allocations associated with business office park sales were unexpended at year end. Because these dollars were not utilized the department results were only 60% of budget. Contin~ent Reserve . Contingency expenditures in 1995 were very nominal and represented only 38% of the available contingency account balance. They were largely associated with the Police Annex project (formerly old fire hall). Expenditure Summary: Total 1995 General Operating Budget expenditures are projected to be approxirnately $4,890,000 when including outstanding encumbrances. This amount represents 95.3% of the City of Prior Lake $5,130,765 Operating Budget. These totals compares with actual budgetary performance of 98%, 101% and 100% respectively for the preceding years of 1994, 1993 and 1992. & Revenues: · Current property tax collection receipts resulted in a 98% collection rate which is representative of previous years on average. When adding in delinquent receipts of past years the City realized 99% of its ]995 tax levy. · License and permit revenue exceeded projection by 8% fueled by building permit revenue of $276,000. Building permit activity in terms of dollars was 10% above expectations while the actual number (173) of single family starts was less than the budget number of 250. While the numbers were down significantly, the difference was accounted for by greater commercia] and industria] activity and higher valued homes on average. · Intergovernmental revenue was higher (106%) than estimates primarily because of the $76,000 reconciled payment from the Shakopee Mdewakanton Dakota Community for service provided in 1994. This revenue was recognized in 1995 because it was received very late and after our 1994 year end financial statements were completed. · Charges for Services revenue of 94% of budget was due to a shortfall in fire and rescue service payments of nearly $40,000 which was a result of overstating recoverable fire call projections. · Fine revenue exceeded estimates because the City received a one-time underpayment adjustment of $5200 from Scott County because of a miscalculation error dating back to the preceding 6 years. A]so contributing to the higher total was that we received an average monthly remittance of $5800/mo compared to our budget estimate of $5oo0/mo. · Deve]opment revenue of almost $159,000 was more than four times higher than the budget figure of $35,000. · Other Financing Sources consisted of the $] 75,000 enterprise fund contribution transfer and property sales which generated an additional $8,000 of revenue. Revenue Summary: Tota] 1995 Genera] Operating Budget revenue is projected to be approximately $5,370,000 upon receiving our final tax settlement which represents collections during the months of November and December. This amount represents 104.7% of the City of Prior Lake $5,130,765 Operating Budget. These totals compares with actual budgetary performance of 99%, 1]] % and 103% respectively for the preceding years of 1994, 1993 and 1992. PRELIMINARY 4TH QUARTER BUDGET RECAP: Overall, the 1995 budgetary financial performance was extremely positive as the City's Genera] Fund balance will have increased by nearly $480,000 as the result of revenues exceeding expenditures by a significant margin. As soon as the City's 1995 financial audit is completed in May, Staff will report the actual fund balance increase along with recommended alternatives for reserve uses. * [4th Quarter Budget Report represents expenditures and revenues to date and do not include outstanding appropriations and receipts.] BR4WRT '~-~.~"-~~-----...,....-. .'" '-' ..~..- .._______._._,,~,. ., ._.h~'.__"..~.,___. ~___'~._.~_____.___,,___.__~.~<..._..__~