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Home My WebLink About5F - 2nd Quarter Budget Report 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 STAFF AGENDA REPORT MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: JULY 19,2004 SF RALPH TESCHNER, FINANCE DIRECTOR CONSIDER APPROVAL OF 2004 2ND QUARTER BUDGET SUMMARY REPORTS AND GENERAL FUND OVERVIEW DISCUSSION: 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 2nd Quarter Budget Report is a document entitled "Budget Report Overview" for the General Fund that is intended to satisfy your request. The 2nd Quarter Budget Reports shows the status of expenditures for the first 6 months of activity for the General Fund and Enterprise Funds consisting of the water & sewer, water quality and transit funds. The "overview" provides information related to those areas within the general fund budget that have experienced exceptions (normally o!cS% 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 perform ce results. Please feel free to contact me at 447-9841 for more inD ation. REVIEWED BY: Attachments: 1. 2004 nd rter udget Summary Reports 2. Budget eport Overview (General Fund) www.cityofpriorlake.com HIBUDGETIBR.DOC' Phone 952.447.4230 / Fax 952.447.4245 BUDGET REPORT OVERVIEW (2004 2nd Quarter Budget Report) Expenditures: General Government . Ordinance cost is up at 60% because of the volume of ordinance publications that have occurred in response to both council directives and amendment requests by the public. . 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, fall election judge salaries therefore the zero amounts. . Internal Auditing results are complete at 122%. GASB34 compliance requirements caused our financial report to exceed budget allocation by approximately $3,000. . Assessing contract service expenditures are complete for the year and represent 98% of budget. . Legal fees in the general service area is running lower at 28% than projected at this point of the budget cycle due to the fact that city attorney costs represent only 4 of the 6 months of billings. However, Scott Joint Prosecution expenses for the 2nd quarter billing are actually up. This occurred because the budget for the prosecution did increase significantly for this year. The overall legal expense category outcome is 43% of the year to date budget. . Planning & Zoning expenses of 42% are under budget as expenditures associated with professional services for the Comprehensive Plan update have only been partially expensed. . Data Processing is above estimates at 64% because our network support time has been higher and our annual software service contracts have been paid in their entirety during the first half of the year. . General Government totals are in general conformance with budget estimates at 49%. Public Safety . Fire Department expenses are fairly low because 60% of department costs are attributed to volunteer compensation and pension contribution, both of which are paid as an annual lump sum at year-end. . Civil Defense costs are relatively low because the new Brooksville Hills siren replacement has not yet been installed. . 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 43%. Public Works . Street Department expenses of 40% is low primarily because the bituminous overlay account allocation has not yet been spent. . Central Garage is under projections at 44% because of lower costs in the major repair and maintenance equipment supplies' category associated with public safety, parks and public works. . Public Works totals are in general conformance with budget estimates at 45%. Culture-Recreation . Due to the seasonal nature of recreation programs, their budget expenditures normally lag during the 1st half of the year that accounts for their budget performance level of only 32%. Recreation's major activity levels occur during the summer months which involve park programs, community events and instructor fees. BrD204,doc . Culture-Recreation totals are consistent with seasonal expectations and budget estimates at 44%. Economic Development . Economic Development totals are in general conformance at 52%. Debt Service . All general debt service bond payments are made during the months of June and December. . Debt Service totals are in general conformance with budget estimates at 26%. Contingent Reserve . Two Contingency related expenditures have occurred, of which include an insurance deductible payment of $10,000 made to the LMCIT and $5,727 expended for the downtown planters. Expenditure Summary: 2004 General Fund 2nd Quarter operating expenditures are on track and represent 43% of the total $8,751,570 operating budget. This actually compares with similar 2003 2nd quarter results of 43%. Revenues: . The current property tax settlement in June represented only 70% of what was due to the City because Scott County experienced some software problems with their tax collections program. The remaining amount was paid during the first week of July. However the market value credit aid will be not be paid by the State this year. . License & Permit fees are right on pace at 51 % of projections. . Intergovernmental revenue is above at 57% of the quarterly budget estimate because the 3rd quarter SMDC police and fire contract payment was remitted early. . Charges for services is somewhat under expectations at 46% primarily due to the timing of franchise fee payments which occur shortly after the end of each quarter and the project administration/engineering transfer which is recognized at year end. . Fine revenue of 64% is averaging above projections because of higher prosecution restitution payments. . Miscellaneous Revenue is above budget at 57% due to development contract revenue collected during the quarter. . Other Financing Sources primarily consists of the $250,000 enterprise fund contribution transfer, which is recognized at year-end. Revenue Summary: Revenues realized are lower overall than typical at approximately 38% of budget when compared to the past five years that have shown a spread of 44-53% at midyear. The main reason is the partial property tax payment received by the City. With the delayed tax payment paid in July, revenues are expected to continue according to projections. 2ND QUARTER BUDGET RECAP: Overall, the 2004 2nd quarter financial performance is fairly typical to past years with no significant expense variances or revenue shortfalls appearing other than noted. Building activity related revenues are not as strong as during the past three years but is anticipated Br0204.doc Blil204_doc to turn upwards as our lot inventory increases next year when the Jeffers, Stemmers and the final Wilds developments reach final plat stage. · [2nd Quarter Budget Report represents expenditures and revenues to date and do not include outstanding appropriations or receipt expectations.] 2004 2nd Quarter General Fund Budget Summary Report Budget Amouut Expeuded Perceut Geueral Governmeut 1,772,691.00 870,644.00 49% Mayor & Council 49,313.00 25,677.00 52% Ordiuance 9,500.00 5,665.00 60% City Manager 290,413.00 128,045.00 44% Boards & Commissions 9,324.00 0.00 0% Elections 10,734.00 0.00 0% Director of Finance 118,888.00 58,062.00 49% Accounting 143,052.00 64,774.00 45% Internal Auditing 13,400.00 16,390.00 122% Assessing 78,100.00 76,300.00 98% Law 236,000.00 100,947.00 43% Personnel 73,696.00 37,014.00 50% Communications 110,609.00 51,316.00 46% Planning & Zoning 231,004.00 97,598.00 42% Data Processing 107,525.00 68,918.00 64% Buildings & Plant 291,133.00 139,938.00 48% Public Safety 3,120,429.00 1,348,131.00 43% Police 2,177,947.00 1,048,042.00 48% Fire & Rescue 440,753.00 79,070.00 18% Building Inspection 458,069.00 213,927.00 47% Civil Defense 27,650.00 526.00 2% Animal Coutrol 16,010.00 6,566.00 41% Public Works 1,382,553.00 620,743.00 45% Eugiueeriug 551,254.00 282,120.00 51% Street 595,763.00 235,576.00 40% Ceutral Garage 235,536.00 103,047.00 44% Culture-Recreatiou 1,385,205.00 610,170.00 44% Recreation 358,088.00 114,808.00 32% Parks 954,782.00 457,535.00 48% Libraries 72,335.00 37,827.00 52% Ecouomic Developmeut 245,432.00 127,464.00 52% Debt Service 770,260.00 197,949.00 26% Contingent Reserve 75,000.00 15,727.00 21% Revenues 8,751,570.00 3,313,867.00 38% General Properly Taxes' 5,261,594.00 1,637,029.00 31% Licenses & Permits 843,313.00 431,347.00 51% Intergovernmental Revenue 955,589.00 540,188.00 57% Charges for Services 1,125,374.00 521,928.00 46% Fines & Forfeits 115,200.00 73,285.00 64% Miscellaneous Revenue 188,500.00 106,668.00 57% Other Financing Sources 262,000.00 3,422.00 1% Total Budget Expenditures 8,751,570.00 3,790,828.00 43% Total Budget Revenues 8,751,570.00 3,313,867.00 38% . adj. for $365,406 market value aid cut BR0204.x]s 2:28PM7/lI04 _._...~_._.._.,._,--,._...~.,.._,-_..,.~_..,_......"-,... _,_,_",','_"'__"W'_ - .~.._--,_._-,.,.._._--- -- ------_.~---,...._-_.- Enterprise Funds 2004 2nd Quarter Enterprise Funds Budget Summary Report Budget Amount Expended Percent Utility Fund 2,513,915.00 1,145,469.00 46% Water 966,156.00 454,077.00 47% Sewer 1,547,759.00 691,392.00 45% Water Quality 294,077.00 66,240.00 23% Transit Services 493,876.00 134,730.00 27% Transfers 616,000.00 0.00 0% Revenues 4,396,376.00 2,185,203.00 50% Water Utility Revenues 3,572,500.00 1,765,815.00 49% Water Quality Utility Revenues 330,000.00 163,525.00 50% Transit Revenues 493,876.00 255,863.00 52% Total Budget Expenditures 3,917,868.00 1,346,439.00 34% Total Budget Revenues 4,396,376.00 2,185,203.00 50%