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HomeMy WebLinkAbout1st Quarter Budget & Invest Rpt CONSENT AGENDA #: 4 (F) PREPARED BY: RALPH TESCHNER FINANCE DIRECTOR SUBJECT: CONSIDER APPROVAL OF 1ST QUARTER BUDGET REPORT AND OVERVIEW DATE: APRIL 15, 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 1st Quarter Budget Report is a document entitled "Budget Report Overview" that is intended to satisfy your request. The "overview" 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. Expenditures are also summarized on this bas' The Budget Report Overview" is intended to serve as ative ~ port 0 the Quarterly Budget Report and enhance your u de.rstTdi of rformance results. l.IIJ~ "\ INTRODUCTION: BR I. WRT 16200 Eagle Creek Ave. S.E.. Prior Lake. Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER BUDGET REPORT OVERVIEW (1996 1st Quarter Budget Report) Expenditures: General Government . Expenses associated with Boards and Commissions, Elections and Assessing are typically not incurred until the latter part of the budget year Le., December planning commission per diems, fall election and mid-year contract assessing billing, therefore the zero amounts. . Legal services are higher than normal during the 1 st quarter because the changeover of attorney firms has resulted in dual utilization until all pending files and cases are closed. . General Government totals are in general conformance with budget estimates. Public Safety . Fire Department expenses are fairly low because over 500/0 of department costs are attributed to volunteer and pension contribution which is paid as an annual lump sum at year end. . 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. Public Works . Street Department expenses typically lag during the 1 st quarter due to the fact that a major share of its operating expenses are incurred during summer and fall. . Public Works totals are somewhat under budget estimates because we have not entered the construction season. C ulture- Recreation . Due to the seasonal nature of recreation and park expenditures, budget results are normally lower during the 1 st quarter. Their major activity levels occur during the spring and summer months. . Library results are favorable due to the fact that virtually no repair and maintenance costs were incurred during the quarter. . Culture-Recreation totals are consistent with seasonal expectations and budget estimates. Economic Development . The budget expenditure variance occurs within the professional services line item where e $7000 has been expended relating to the Highway 13 redevelopment project. Contin~ent Reserve . Contingency expenditures to date are primarily associated with the replacement of the squad ($21,000 in vehicle and equipment costs) which was totaled in January and over $6000 for Minnesota Valley Electric power pole damages sustained in the accident. Also approximately $2000 has been paid to date on building/office repairs caused by the roof leakage at City Hall. Council authorization will be requested subject to final cost determination. Expenditure Summary: 1996 General Fund 1 st Quarter operating expenditures are on track and represent 200/0 of the total $5,447,005 operating budget. This actually compares with 1995 1st quarter results of 17%. The main reason for the differential being the incident expenditures within the Contingent Reserve that we have experienced this year. Expenditures during the 1st quarter are typically less than the remaining fiscal quarters. BRO I 96. DOC Revenues: · Property tax settlements are scheduled for June and December thereby no tax revenue has been received. · Building permit activity is lagging behind projections which is normal at this time but is expected to pick up as we enter the spring building season. · Intergovernmental revenue in the form 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 slightly above expectations at 27% of revenue realized. · Fine revenue is averaging $800 more per month than projected. · No development revenue has been initiated to date which is a major category within Miscellaneous Revenue. · Other Financing Sources primarily consists of the $175,000 enterprise fund contribution transfer which is recognized at year end. Revenue Summary: Revenues normally lag at this time of year and account for approximately 8% of budget which is actually a little better but still representative of the past five years which have shown a spread of 5%-7%. 1ST QUARTER BUDGET RECAP: Overall, the 1996 1 st quarter financial performance is fairly typical to past years. Contingency expenditures are running higher and will increase as we repair the roof structures of City Hall, Police Annex and the Library during the year. Also we have only paid a small portion to date for the building damage sustained in. the Parks and Investigation offices caused by the earlier ice buildup on the City Hall roof. * [1st Quarter Budget Report represents expenditures and revenues to date and do not include outstanding appropriations or receipt expectations.] BRO I 96. DOC 1996 1st Quarter Budget Report Budget Amount Expended Percen t General Government 1,209,390.00 273,316.00 23% Mayor & Council 25,110.00 6,565.00 26% Ordinance 14,675.00 1,636.00 110/0 City Manager 224,190.00 54,779.00 24% Boards & Commissions 5,395.00 66.00 10/0 Elections 4,000.00 0.00 0% Director of Finance 86,710.00 20,596.00 240/0 Accounting 57,965.00 14,658.00 25% Internal Auditing 9,700.00 2,025.00 210/0 Assessing 32,410.00 0.00 00/0 Law 186,800.00 58,519.00 31% Personnel 62,470.00 13,083.00 21% Planning & Zoning 236,320.00 52,132.00 22% Data Processing 71,825.00 13,551.00 19% Buildings & Plant 191,820.00 35,706.00 190/0 Public Safety 1,961,540.00 450,900.00 23% Police 1,491,270.00 365,597.00 25% Fire & Rescue 184,560.00 26,989.00 150/0 Building Inspection 268,430.00 56,296.00 21% Civil Defense 6,050.00 192.00 30/0 Animal Control 11,230.00 1,826.00 16% Public Works 733,900.00 140,590.00 19% Engineering 431,780.00 92,067.00 21% Street 302,120.00 48,523.00 160/0 Culture-Recreation 861,800.00 176,740.00 210/0 Recreation 229,150.00 53,574.00 230/0 Parks 619,385.00 121,416.00 20% Libraries 13,265.00 1,750.00 13% Economic Development 51,560.00 19,126.00 37% Debt Service 488,815.00 3,046.00 10/0 Contingent Reserve 140,000.00 29,045.00 21% Revenues 5,447,005.00 437,564.00 80/0 General Property Taxes 2,728,210.00 0.00 0% Licenses & Permits 371,710.00 56,666.00 15% Intergovernmental Revenue 1,447,655.00 207,101.00 14% Charges for Services 560,230.00 153,534.00 27% Fines & Forfeits 60,000.00 11,748.00 20% Miscellaneous Revenue 103,200.00 7,615.00 7% Other Financing Sources 176,000.00 900.00 1% Total Budget Expenditures 5,447,005.00 1,092,763.00 20% Total Budget Revenues 5,447,005.00 437,564.00 8% BRO I.XLS -~,,,,",,,,-",,'-"<'-"~,",.~._,~ CONSENT AGENDA #: 4 (G) PREPARED BY: RALPH TESCHNER FINANCE DIRECTOR SUBJECT: CONSIDER APPROVAL OF 1ST QUARTER INVESTMENT REPORT SUMMARY DATE: APRIL 15, 1996 INTRODUCTION: REVIEWED BY: Staff has prepared the accompanying written narrative to serve as an informational addendum to the quarterly investment report summary. Attached to the quarterly investment report is a document entitled "Investment Report Summary Narrative". It is intended to provide supplementary information with respect to those allowable forms of investment types permitted by Minnesota Statute. Additional objectives of the report narrative is to identify the various funds established and describe the purpose those funds serve. In most instances the dollars are either reserv,. ed and resvIcted for specific expenditures as indicated or suff cient fu alancr are necessary to provide adequate operational c~sh fiO. w1as i .the cases of the General Fund and Sewer and Water Fund. .,' ~ \, _/ IRI.WRT 16200 Eagle Creek Ave. S.E., Prior Lake. Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER INVESTMENT REPORT SUMMARY NARRATIVE The attached Investment Report identifies the various types of investments and those brokers/banks the City of Prior Lake uses for investment purposes. At the end of the report summary is the grand total of all city monies currently invested and the weighted average return of the investment portfolio. Investments for local governments are restricted to only those permitted by by Minnesota Statutes. They are identified as follows: 1. U.S. Treasury Bills and Notes which are direct obligations of the federal government. 2. U.S. Government Securities which are guaranteed or insured by the federal government i.e., FHLB, FNMA, FHLMC, agencies or authorities such as TVA. 3. State and Local Government bonds that are rated "A" or better. 4. Bankers' Acceptances of a United States Bank 5. Commercial Paper that is rated "AAA" and matures in 270 days or less. 6. Repurchase Agreements with banks having capitalization exceeding $10,000,000. Also allowable, but of higher risks, are guaranteed investment contracts (GIC's) and mortgaged-backed securities (CMO's) which because of their sophisticated nature and inherent risk, Prior Lake does not participate in. The City's investment portfolio amount is a pool of city funds identified on the Monthly Treasurer's Report which is comprised of 14 funds that have been established by the City as allowable under state statute. A short description of these funds is outlined below and for the most part are dedicated for specific purposes. General Fund - The General Fund represents the necessary resources to support general operating budget expenditures of the City. The year-end fund balance represents dollars that have accumulated over a period of time as a result of cumulative budgetary revenue surpluses and expenditure underruns. The City Council has designated a portion of this amount, equal to 30% of the current operating budget, for working capital to finance city operations. Sewer & Water Fund - The Sewer and Water Fund accounts for the collection of sewer and water billing utility revenue. This enterprise fund balance is allocated for the operational costs of the Water/Sewer departments and normally reserved for large capital municipal system expenses. Storm Water Fund - The Storm Water Fund is funded by the $3.75 storm water charge on the water bills and is dedicated to finance water quality improvements including departmental administration, storm water maintenance operations and improvement projects such as water quality ponds. Capital Park Fund - Capital Park funds are dedicated funds generated by the 10% park dedication fee as a result of new development and by park support fees on new construction building permits for the purpose of developing the City's neighborhood park and trail system. These dollars are programmed throughout the course of the city's capital improvement plan. Severance Compensation Fund - This fund was established to partially fund the City's compensated absence liability which is associated with the accrued vacation and sick leave of employees upon employment termination. The State Auditor's Office has recommended that local governments set aside a certain percentage on the basis of foreseeable turnover. 16200 Eagle Creek Ave. S.E.. Prior Lake. Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER EDC Loan Fund - This fund was recently created to account for the proceeds of an economic development grant that was received from the State of Minnesota to provide seed money for a revolving loan account. The purpose is to provide economic incentive for new business expansion within the community. Tax Increment Fund - The Tax increment Fund represents an accumulation of funds such as bond proceeds, TIF district property taxes (after debt service) and project administration fees charged to companies requesting project writedowns in the form of tax increment financing for new and/or redevelopment. Equipment Fund - Equipment certificate bond proceeds are deposited in this fund as the principal source of financing large equipment acquisitions. A general fund transfer was also authorized to provide supplemental financing. The long term effect of contributing occasional general fund contributions is to mitigate any property tax increase of future equipment certificates. Building Fund - The funds within the Building Fund are bond proceeds from the issuance of water revenue bonds necessary for the construction of the new maintenance facility. The CFAC (capital facility) charge of $7.50 on each utility bill is reserved to pay the bond principal and interest installments. Construction Fund - Construction Fund dollars represent unexpended bond proceeds which are reserved to pay for improvement projects that have been approved by the City Council on an annual basis. For the most part these monies are necessary to complete outstanding construction contracts and related professional and engineering services. Trunk Reserve Fund - The Trunk Reserve Fund consists of dedicated funds generated from utility connection permits and acreage fees assessed at time of sewer and water installation for the purpose of trunk oversizing costs and central municipal system improvements i.e., wells, lift stations, force mains etc. These dollars are programmed throughout the course of the city's capital improvement plan. Collector Street Fund - The Collector Street Fund consists of dedicated revenue generated by fees associated with new development and new construction building permits for the purpose of funding pedestrian related improvements i.e., bikeways, sidewalks, trail systems plus right of way acquisition along collector streets. Debt Service Fund - The Debt Service Fund represents prepayments of special assessments, property tax collections and special levies needed to amortize the outstanding bonded indebtedness of the City. This fund balance is 100% reserved for the payment of bond principal and interest. Agency Fund - The Agency Fund accounts for the $1500 residential building permit deposit that is refunded to the building contractor upon final inspection. This provides the City the required financial assurance that the property site will be adequately cleaned up and debris free before an occupancy permit is granted. Because city funds are pooled for investment purposes, interest is allocated to each fund on a quarterly basis, and is based upon each individual fund's proportionate share of the total. Overall the total investment pool does not represent excess reserves but rather available financial resources. In most instances these funds were establish and restricted for specific and designated purposes by either Minnesota Statutes or City Code to accomplish the goals and objectives of the City of Prior Lake. INVEST.WRT Reference Number FBSBal1k: 500754-00 500754-00 500754-00 500754-00 500754-00 500754-00 500754-00 500754-00 500754-00 500754-00 CITY OF PRIOR LAKE MINNESOTA INVESTMENT REPORT SUMMARY March 31 1996 Investment Cost Interest Rate Purchase Date Maturity Date Girard Savings, CA 93,188.00 6.05% 06/01/95 08/15/96 Southern Pacific, CA 93,188.00 6.05% 06/01/95 08/15/96 Standard Pacific, CA 93,188.00 6.05% 06/01/95 08/15/96 Southwest State - Windom, MN 81,820.50 7.40% 04/13/95 04/13/98 I st National Bank. - Elk River, MN 81,820.50 7.40% 04/13/95 04/13/98 Bank & Trust, Puerto Rico 79,147.80 6.21% 12/ 18/95 03/15/00 1 st National Bank., OK 79,147.80 6.21% 12/18/95 03/15/00 New South Federal Savings, CA 79,147.80 6.21% 12/ 18/95 03/15/00 River Bank. America, NY 79,147.80 6.21% 12/ 18/95 03/15/00 Standard Federal Bank, MI 79,147.80 6.21% 12/18/95 03/15/00 Jtiran& MOOdy,Inc.: -------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------- 50912553 50912553 50912553 50912553 50912553 50912553 50912553 50912553 50912553 50912553 50912553 Commercial Paper (G.E. Capital) Commercial Paper (G.E. Capital) U.S. Treasury Notes U.S. Treasury Notes Commercial Paper (G.E. Capital) U.S. Treasury Notes U.S. Treasury Notes U.S. Treasury Notes U.S. Treasury Notes U.S. Treasury Notes FHLMC govt. agency 342,245.00 389,565.00 180,050.00 949,327.00 194,992.00 888,310.00 900,030.00 840,585.00 848,633.00 394,255.00 500,000.00 5.55% 5.52% 5.90% 5.96% 5.15% 4.36% 5.51% 4.69% 5.91% 5.07% 6.12% 11/15/95 11/15/95 07/25/94 05/18/95 03/15/96 02/15/94 06/07/95 02/15/94 07/21/95 02/ 15/94 01/19/96 04/12/96 05/10/96 05/15/96 05/15/96 09/13/96 11/15/96 05/15/97 11/15/97 05/15/98 11/15/98 01/21/03 -------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------- League4MFund: MN-01-145-1 Prior Lake State Bank:: ------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------- Liquid Asset Fund 1,300,000.00 4.87% 03/3 1/96 --/--/96 # 10101 # 10 102 Certificate Certificate 500,000.00 500,000.00 12/05/95 12/05/95 11/15/96 11/14/97 5.30% 5.35% Prudential Securities: ---------------------------------------------------------- -------------------------------------------------------------- 008-950601-33 008-950601-33 SlnithBarney: # 12089 # 12089 # 12089 # 12089 # 19089 # 19089 # 19089 # 19089 # 19089 INVEST. WRT Certificate 100,000.00 8.00% 06/26/91 06/26/96 Certificate 96,000.00 6.00% 11/29/95 11/29/01 ---------------- -- Certificate 90,000.00 6.35% 04/13/92 04/13/96 Certificate 90,000.00 7.00% 03/23/92 03/23/97 Certificate 90,000.00 6.45% 04/13/95 04/13/98 FHLB govt. agency 170,521.00 7.03% OS/20/94 03/22/99 FNMA govt. agency 95,461.00 7.17% 06/22/94 03/07/01 TVA govt. agency 517,188.00 6.19% 01/04/96 08/01/02 FNMA govt. agency 249,600.00 6.30% 12/06/95 02/03/04 FNMA govt. agency 498,281.00 6.33% 12/13/95 02/03/04 FNMA govt. agency 256 525 00 6.34% 12/06/95 11 / 10/05 Investment Portfolio Total $11,820,512.00 5.60% (weighted average)