HomeMy WebLinkAbout5F - 3rd Quarter Budget Report
16200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372-1714
STAFF AGENDA REPORT
MEETING DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
OCTOBER 18, 2004
5F
RALPH TESCHNER, FINANCE DIRECTOR
CONSIDER APPROVAL OF 2004 3RD 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 3rd Quarter Budget Report
is a document entitled "Budget Report Overview" for. the General
Fund that is intended to satisfy your request. The 3rd Quarter Budget
Reports shows the status of expenditures for the first 9 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
: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 more' formation.
REVIEWED BY:
Qu er udget Summary Reports
ort Overview (General Fund)
Attachments:
www.cityofpriorlake.com
H:\BUDGET\BRDOC
Phone 952.447.4230 / Fax 952.447.4245
2004 3rd Quarter General Fund Budget Summary Report
Budget Amount Expended Percent
General Government 1,772,691.00 1,256,041.00 71%
Mayor & Council 49,313.00 37,152.00 75%
Ordinance 9,500.00 7,044.00 74%
City Manager 290,413.00 206,396.00 71%
Boards & Commissions 9,324.00 0.00 0%
Elections 10,734.00 6,008.00 56%
Director of Finance 118,888.00 86,250.00 73%
Accounting 143,052.00 96,108.00 67%
Internal Auditing 13,400.00 16,390.00 122%
Assessing 78,100.00 76,300.00 98%
Law 236,000.00 166,021.00 70%
Personnel 73,696.00 53,381.00 72%
Communications 110,609.00 79,614.00 72%
Planning & Zoning 231,004.00 147,279.00 64%
Data Processing 107,525.00 75,492.00 70%
Buildings & Plant 291,133.00 202,606.00 70%
Public Safety 3,120,429.00 1,983,470.00 64%
Police 2,177,947.00 1,536,929.00 71%
Fire & Rescue 440,753.00 111,890.00 25%
Building Inspection 458,069.00 322,862.00 70%
Civil Defense 27,650.00 1,284.00 5%
Animal Control 16,010.00 10,505.00 66%
Public Works 1,382,553.00 995,839.00 72%
Engineering 551,254.00 407,945.00 74%
Street 595,763.00 426,113.00 72%
Central Garage 235,536.00 161,781.00 69%
Culture-Recreation 1,385,205.00 1,107,165.00 80%
Recreation 358,088.00 282,591.00 79%
Parks 954,782.00 759,695.00 80%
Libraries 72,335.00 64,879.00 90%
Economic Development 245,432.00 150,045.00 61%
Debt Service 770,260.00 197,949.00 26%
Contingent Reserve 75,000.00 51,349.00 68%
Revenues 8,751,570.00 5,103,103.00 58%
General Property Taxes * 5,261,594.00 2,662,259.00 51%
Licenses & Permits 843,313.00 623,947.00 74%
Intergovernmental Revenue 955,589.00 722,376.00 76%
Charges for Services 1,125,374.00 764,716.00 68%
Fines & Forfeits 115,200.00 113,907.00 99%
Miscellaneous Revenue 188,500.00 206,762.00 110%
Other Financing Sources 262,000.00 9,136.00 3%
Total Budget Expenditures 8,751,570.00 5,741,858.00 66%
Total Budget Revenues 8,751,570.00 5,103,103.00 58%
* adj. for $365,406 market value aid cut
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10:02 AMI 0/6/04
Enterprise Funds
2004 3rd Quarter Enterprise Funds Budget Summary Report
Budget Amount Expended Percent
Utility Fund 2,513,915.00 1,750,248.00 70%
Water 966,156.00 702,606.00 73%
Sewer 1,547,759.00 1,047,642.00 68%
Water Quality 294,077.00 123,905.00 42%
Transit Services 493,876.00 259,509.00 53%
Transfers 616,000.00 0.00 0%
Revenues 4,396,376.00 3,198,993.00 73%
Water Utility Revenues 3,572,500.00 2,597,540.00 73%
Water Quality Utility Revenues 330,000.00 216,319.00 66%
Transit Revenues 493,876.00 385,134.00 78%
Total Budget Expenditures 3,917,868.00 2,133,662.00 54%
Total Budget Revenues 4,396,376.00 3,198,993.00 73%
BUDGET REPORT OVERVIEW
(2004 3rd Quarter Budget Report)
Expenditures:
General Government
· 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, The 56% amount in Elections represents results of the state
primary election.
· Accounting expenditures are lower at 67% of budget due to the fact that the city no
longer is charged service fees by Wells Fargo on our bank statement because an
earnings credit is used in lieu of interest earned on our funds to offset service fees.
· 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 53% than projected at this
point of the budget cycle due to the fact that city attorney costs represent only 7 of the
9 months of billings. However, Scott Joint Prosecution expenses for the 3rd 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
70% of the year to date budget.
· Planning & Zoning expenses of 64% are under budget because the department's
planning coordinator position was open for a short period of time, which has
temporarily reduced personnel expenses within the department and expenditures
associated with professional services for the Comprehensive Plan update have only
been partially expensed.
· Data Processing is under estimates at 70% as the personal computers scheduled for
replacement will occur during the last fiscal quarter.
· General Government totals are in general conformance with budget estimates at
71%.
Public Safety
· Police Department expenses are slightly below at 71 % because the department has an
open patrol officer position, which has temporarily reduced personnel expenses
within the department.
. 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 Willow's 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 64%.
Public Works
· Central Garage is under projections at 69% 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 72%.
Br0304.doc
Culture- Recreation
. Due to the seasonal nature of recreation programs and park activities, their
expenditures normally exceed budget levels during the summer months that accounts
for their budget performance levels of 79 & 80% respectively. Recreation's major
activity levels occur during the summer months that involve park programs,
community events and instructor fees.
. Library budget totals are above at 90% due to a number of major repair issues that
have occurred during the summer, the largest being the vandalized freon pipe
breakage which resulted in an incurred expense of nearly $10,000 to fix.
. Culture-Recreation totals are consistent with seasonal expectations and budget
estimates at 80%.
Economic Development
. The budget expenditure variance occurs within the categories of professional services
that are unexpended to date.
. Economic Development totals are below budget estimates at 61%.
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
. Four Contingency related expenditures have occurred, of which include $3,742 for
the FIN program, $4,000 for the joint public training facility, $32,404 expended for
the downtown planters and insurance deductible payments of $11,203 made to the
LMCIT.
Expenditure Summary:
2004 General Fund 3rd Quarter operating expenditures are on track and represent 66% of
the total $8,751,570 operating budget. This actually compares favorably with similar
2003 3rd quarter results of 65%.
Revenues:
. The current property tax settlement in June showed no apparent delinquency problem
as collections approached 50%. However the market value credit aid will be not be
paid by the State this year.
. License & Permit fees are right on pace at 74% of projections.
. Intergovernmental revenue is right on pace at 76% of projections.
. Charges for services is somewhat under expectations at 68% 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 99% is averaging above projections because of higher prosecution
restitution payments.
. Miscellaneous Revenue was up considerably at 115% due to the continued strength of
developer agreement revenue of $105,000 that was more than double the standard
budget estimate of $50,000.
. Other Financing Sources primarily consists of the $250,000 enterprise fund
contribution transfer, which is recognized at year-end.
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Revenue Summary:
Revenues realized are lower overall than typical at approximately 58% of budget (net of
market value cut) when compared to the past five years that have shown a spread of 59-
66% at the end of the third quarter.
3RD QUARTER BUDGET RECAP:
Overall, the 2004 3rd 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
to turn upwards as our lot inventory increases next year when the Jeffers, Stemmers and
the final Wilds developments reach final plat stage and with annexation development.
* [3rd Quarter Budget Report represents expenditures and revenues to date and do not
include outstanding appropriations or receipt expectations.]
Br0304.doc