The URL can be used to link to this page

Home My WebLink About4G - 2nd Q. Budget Report CONSENT AGENDA #: 4 (g) PREPARED BY: RALPH TESCHNER FINANCE DIRECTOR SUBJECT: CONSIDER APPROVAL OF 2ND QUARTER BUDGET REPORT AND OVERVIEW DATE: JULY 17, 1995 INTRODUCTION: 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 2nd 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 this basis as w . The "Budget Report Overview" is intended to serve as narrativ upp to the quarterly numbers performance and enhance yo r un standi of those results. REVIEWED BY: BR2. WRT 16200 Eagle Creek Ave., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER BUDGET REPORT OVERVIEW (2nd Quarter Budget Report)* Expenditures: General Government . Accounting expenditures are slightly above the 50% variance due to the fact that we overlapped the full time position with the hiring of the new accountant for purposes of training since Bernice lulkowski retired effective June 30, 1995 from full-time employment. . While the overall City Attorney costs are near projections at 49% for half year, general service legal fees are running at 55% of budget while prosecution costs are lagging at 42% due to positive restitution cost recovery. . Expenses associated with Boards and Commissions, Elections and Assessing are typically not incurred until the latter part of the budget year ie; December planning commission per diems, fall election and mid-year contract assessing billing, therefore the low percentages. . Total Buildings and Plant costs are a little higher than the nominal year to date primarily due to a jump in general liability insurance premiums of almost $16,000. However, we anticipate receiving a premium refund latter in the year which will more than offset this increase due to our favorable claims experience which occurred during the previous year. . Remaining categories within General Government are in conformance with budget estimates. Public Safety . Overtime and temporary expenses within the Police Department are running higher than expected however it is being offset by other expenditure categories thereby maintaining an overall budget outcome of 46%. But an unsuccessful arbitration ruling to reinstate a former employee with full backpay and benefits will have an adverse affect and will probably push budget totals above 100% at year-end. . Fire Department expenses are fairly low because over 50% of department costs are attributed to volunteer compensation which is paid as an annual lump sum at year end. . Building Inspection is nearly 10% under budget because vehicle maintenance costs have yet to be incurred which is the main reason the budget to date is 41 %. . Animal Control does not represent a full quarter of service because they are billed one month in arrears. Public Works . Engineering expenses are very near budget expectations with a relatively small variance in the professional service line-item category which is at 70%. . Street Department expenses are significantly under budget (31 %) because the repair and maintenance supply and service category remains largely unused at this time but will be utilized for street repairs during the upcoming months and for stockpiling sand and gravel for winter snowplowing. Cui ture- Recreation . Recreation program expenditures represent a budget performance of 50%. . Parks Department is very near their projections at 42%, considering the fact that the majority of their expenditures will be upcoming as they occur over the summer months of June thru September. . Library results remain favorable due to the fact that virtually no repair and maintenance costs have incurred during the first half of the year. Economic Development . Economic Development activity was on target in all line item categories with the exception that full allocation remains within general professional services for structuring business office park sales. Because these dollars have not yet been utilized, overall department results were 30% of budget. Contingent Reserve . Contingency expenditures to date are largely associated with the Police Annex project (formerly old fire hall) and represent 36% of the Contingency account balance. Expenditure Summary' 1995 General Fund 2nd Quarter operating expenditures are on track and represent 41 % of the total $5,130,765 operating budget. This actually compares favorably with 1994 2nd quarter results of 47%. Expenditures during the 2nd quarter of the year amounted to 24% of budget allocation which is representative of a normal fiscal quarter. Revenues: . The current property tax settlement received in June showed no apparent delinquency problem as collections were slightly above 50%. . Building permit activity is lagging behind projections at this time as evident by 43% of revenue receipts. However, the Federal Reserve's recent action of relaxing the discount interest rate by a 1.4% should result in lower mortgage rates and subsequently higher building starts later in the construction season. . Intergovernmental revenue in the form of state aids and homestead and agricultural credit aid (HACA) is received in two installments in late July and end of December. Also of some concern at this time is that the police and fire contract between the SMDC Community and the City is still under negotiation. As such is the case, payment installments for the first two quarters have been delayed. . Charges for Services revenue slowed during the quarter because we typically do not account for the project management administration charge from the Construction Fund until year end. Also, Fire and Rescue revenue will be substantially off as accident responses have not occurred at the level originally anticipated. We expect to receive only $20,000 of the $55,000 budgeted with the difference largely offset by lower volunteer compensation on the expenditure side. . Fine revenue is averaging $5150/mo. which is very close to budget estimate of $5000. . Development revenue of $73,000 exceeds the budget figure of $35,000 by more than double. . Other Financing Sources primarily consists of the $175,000 enterprise fund contribution transfer which is recognized at year end. Revenue Summary: Revenues realized are fairly typical at approximately 36% of budget which is quite representative of the past five years which have shown a spread of 31-36% at mid year. 2ND QUARTER BUDGET RECAP: Overall, the 1st half of 1995 financial results fairly reflect expectations with no significant expense variances or revenue shortfalls appearing other than noted. While our local government aids for this year have been restored by the State Legislature, it would be prudent for the City to reserve a major portion of the remaining Contingency balance to offset those aforementioned potential revenue shortfalls. * [2nd Quarter Budget Report represents expenditures and revenues to date and do not include outstanding appropriations and receipts.] BR2. WRT 1995 2ND QUARTER BUDGET REPORT 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 POBL:IC SAFETY Police Fire and Rescue Building Inspection Civil Defense Animal Control PUBL:IC WORKS Engineering Street CULTURE-RECREAT:ION Recreation Parks Libraries ORBAN ECONOM:IC 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 RECE:IPTS BR0295.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 528,327.00 11,646.00 3,241.00 109,607.00 203.00 436.00 39,655.00 27,705.00 9,785.00 0.00 77,723.00 24,457.00 97,080.00 32,051.00 94,738.00 775,783.00 635,912.00 29,775.00 103,767.00 1,763.00 4,566.00 290,892.00 199,925.00 90,967.00 348,520.00 103,935.00 240,211.00 4,374.00 16,394.00 90,694.00 35,881.00 1,822,013.00 1,037,560.00 170,272.00 236,882.00 253,947.00 25,765.00 93,267.00 4,320.00 2,086,491.00 1,822,013.00 Percent 46.0% 47.0% 21.0% 50.0% 4.0% 20.0% 49.0% 52.0% 100.0% 0.0% 49.0% 45.0% 40.0% 45.0% 53.0% 42.0% 46.0% 16.0% 41.0% 36.0% 41.0% 41.0% 47.0% 31.0% 44.0% 50.0% 42.0% 33.0% 30.0% 19.0% 36.0% 36.0% 43.0% 50.0% 16.0% 44.0% 43.0% 100.0% 2.0% 41.0% 36.0%