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Home My WebLink About5G - 1st Q. Budget Report16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 STAFF AGENDA REPORT MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: APRIL 18, 2005 5G RALPH TESCHNER, FINANCE DIRECTOR CONSIDER APPROVAL OF PRELIMINARY 2005 1 ST QUARTER BUDGET SUMMARY REPORTS AND GENERAL FUND OVERVIEW DISCUSSION: REVIEWED BY: Attachments: 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 1 st Quarter Budget Report is a document entitled "Budget Report Overview" for the General Fund that is intended to satisfy your request. The 1 st Quarter Budget Reports shows the status of expenditures for the first three 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 +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 44~or~ion. 1. 20051s¢~e.r Bldget Summary Reports 2. Budget ll~t~ort Overview (General Fund) www. cityofpriorlake, com H:\BUDGETXBR.DOC Phone 952.447.4230 / Fax 952.447.4245 2005 1st Quarter General Fund Budget Summary Report General Government Mayor & Council Ordinance City Manager Boards & Commissions Elections Director of Finance Accounting Internal Auditing Assessing Law Personnel Communications Planning & Zoning Data Processing Buildings & Plant Public Safety Police Fire & Rescue Building Inspection Civil Defense Animal Control Public Works Engineering Street Central Garage Culture-Recreation Recreation Parks Libraries Economic Development Debt Service Contingent Reserve Revenues General Property Taxes Licenses & Permits Intergovernmental Revenue Charges for Services Fines & Forfeits Miscellaneous Revenue Other Financing Sources Total Budget Expenditures Total Budget Revenues BR0105.xls Budget Amount Expended Percent 1,974,348.00 359,191.00 18% 52,066.00 12,470.00 24% 14,000.00 910.00 7% 323,213.00 70,378.00 22% 9,074.00 0.00 0% 5,320.00 0.00 0% 120,649.00 30,586.00 25% 139,388.00 33,670.00 24O/o 14,750.00 2,690.00 18% 82,800.00 0.00 0% 264,000.00 50,797.00 19% 67,000.00 15,225.00 23% 119,146.00 29,053.00 24o/0 317,939.00 57,046.00 18% 145,020.00 25,698.00 18% 299,983.00 30,668.00 10% 3,527,057.00 683,238.00 19% 2,435,588.00 544,719.00 22% 569,980.00 24,050.00 4% 476,529.00 111,578.00 23O/o 27,750.00 265.00 1% 17,210.00 2,626.00 15% 1,463,764.00 319,999.00 22% 565,817.00 129,168.00 23% 649,391.00 117,864.00 18% 248,556.00 72,967.00 29% 1,532,392.00 218,947.00 14% 374,831.00 23,246.00 6% 1,079,251.00 172,753.00 16% 78,310.00 22,948.00 29% 178,292.00 39,602.00 22% 790,180.00 526.00 0% 250,000.00 2,600.00 1% 9,716,033.00 589,981.00 6o/0 5,912,669.00 0.00 0% 869,000.00 113,694.00 13% 1,058,791.00 235,817.00 22% 1,278,573.00 146,593.00 11% 150,000.00 29,698.00 20% 185,000.00 52,728.00 29% 262,000.00 11,451.00 4% 9,716,033.00 1,624,103.00 17% 9,716,033.00 589,981.00 6% 4:43 PM4~1~05 Enterprise Funds 2005 1st Quarter Enterprise Funds Budget Summary Report Utility Fund Water Sewer Water Quality Transit Services Transfers Revenues Water Utility Revenues Water Quality Utility Revenues Transit Revenues Total Budget Expenditures Total Budget Revenues Budget Amount Expended Percent 3,138,306.00 591,088.00 19% 986,623.00 213,259.00 22% 2,151,683.00 377,829.00 18% 287,939.00 26,740.00 9% 540,038.00 52,687.00 10% 637,025.00 0.00 0% 4,814,778.00 804,726.00 17% 3,948,250.00 668,854.00 17% 326,490.00 63,306.00 19% 540,038.00 72,566.00 13% 4,603,308.00 670,515.00 15% 4,814,778.00 804,726.00 17% Expenditures: General Government BUDGET REPORT OVERVIEW (2005 1 st Quarter Budget Report) Ordinance costs for legal notices is largely unspent because only a few ordinance publications occurred during the first three months, which is the main reason why the YTD percentage is at only 7%. Expenses associated with Boards and Commissions, Elections and Assessing 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 and mid-year contract assessing billing, therefore the zero amounts. Also, Internal Auditing shows minimal activity, as audit billings will occur later for work completed on the 2004 audit report. · Legal fees in the general service area is running lower at 15% than projected at this point of the budget cycle due to the fact that city attorney costs represent only two months of billings in the quarter. The overall legal expense category outcome is 19% of the year to date budget. · Planning & Zoning expenses of 18% is lower than budget because expenditures associated with professional services for the Comprehensive Plan update have not yet been incurred. · Data Processing is below estimates at 18% because we have not yet expended any capital dollars for our scheduled computer replacements. · Bldgs & Plant is less at 10% because our LMCIT liability and property casualty insurance premiums were billed late by the League of Minnesota Cities and will show up in next quarter's budget analysis. · General Government totals are in general conformance with budget estimates at 18%. Public Safety · Police Department expenses are slightly below at 22% because the new patrol cars have not yet been purchased. · Fire Department expenses are fairly low because 63% of department costs are attributed to volunteer compensation and pension contribution, both of which are paid as an annual lump sum near year-end. · Civil Defense costs are relatively low because the new Willows 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 19%. Public Works · Street Department expenses typically lag during the 1 st quarter due to the fact that a major share of its operating expenses is incurred during summer and fall. · Central Garage is above projections at 29% because of higher costs in the repair and maintenance equipment supplies' category associated with public works. · Public Works totals are in general conformance with budget estimates at 22%. Culture -Re creation · Due to the seasonal nature of recreation and park expenditures, budget results (6% & 16%) are normally lower during the 1st quarter. Their major activity levels occur during the spring and summer months. Also, both the recreation supervisor and specialist positions still remain open at this time that have significantly contributed to the large budget variance in Recreation. Bffil05.doc · Library results are up at 29% of budget primarily because of higher gas utilities during the first quarter of library operation. Culture-Recreation totals are less than seasonal expectations and budget estimates at 14%. Economic Development · The budget expenditures are slightly under as the general professional services appropriation is unexpended to date. · Economic Development totals are under budget estimates at 22%. Debt Service · All general debt service bond payments are made during the months of June and December. Contingent Reserve · Two small Contingency expenditures have occurred totaling $2600, both attributed to LMCIT insurance deductible payments. Expenditure Summary: 2005 General Fund 1 st Quarter operating expenditures are on track and represent 17% of the total $9,716,033 operating budget. This actually compares with similar 2004 1st quarter results of 18%. Expenditures during the 1st quarter are typically less than the remaining fiscal quarters. Revenu es: · Property tax settlements are scheduled for June and December therefore no tax revenue has been received. · License & Permit fees are under total projection at 13% as building permit activity is on a very weak pace as our lot inventory has been nearly exhausted and is not expected to pick up appreciably until next year as a number of developments have experienced a variety of delays that will result in our lowest number of building permits during the past five years. · Intergovernmental revenue is under at 22% of the quarterly budget estimate because the 1 st half fire contract payment from Spring Lake has not yet been received. · Charges for services is under expectations at 11% primarily due to the fall off in building permit plan check fees, 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. Also all park service fees are not collected until the summer months. · Fine revenue is averaging slightly above projections as payments are in arrears by one month. · Miscellaneous Revenue is slightly above budget at 29% due to an increase in development contract revenue 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 normally lag at this time of year and account for approximately 6% of budget, which is actually less than what the City has averaged in the past five years, which have shown a spread of 7%-12%. Br0105.doc 1ST QUARTER BUDGET RECAP: Overall, the 2005 1 st quarter financial performance is fairly typical to past years with no significant expense variances or revenue shortfalls appearing other than noted. Revenues are a little soft as building activity is anticipated to continue its short-term decline as the construction season begins and our lot inventory decreases further. However the City is currently processing proposed developments that will provide in excess of 1000 lots. * [lst Quarter Budget Report represents expenditures and revenues to date and do not include outstanding appropriations or receipt expectations.] Br0105.doc